Toyota has decided it no longer needs 50 kinds of airbags to protectdrivers' knees.Ten, the companysays, ought to suffice. In one ofToyota's biggest initiatives since2009, the carmaker is winnowing the number of parts it uses and increasing common components across models. The plan will cut both the time and cost for creating new models by as much as30%. Theautomaker spent $9.6 billionin R&D last year.In thepast, Toyota focused on developing custom parts. It needed 50 types ofknee-level airbags because seats for various models had different profiles. By standardizing"hip heights" acrossmodels, Toyota is reducing knee airbag variants by80%. Lastyear, it had slashed radiators to 21 models from about 100.And it is reducing the number of cylinder sizes in its enginesto 6 from more than 18."From nowon, Toyota will seek the compatibility of certain parts it uses with standard parts used by many automakersglobally," says the firm.Toyota's goal should make the company less vulnerable to supply disruptions by using parts from the largest manufacturers that can be substituted globally. The 2011 earthquake and tsunami in Japan forced Toyota to confront the complexity and risks of relying on thousands ofsuppliers, sub-contractors andsub-subcontractors making customized parts. The earthquake"really made us to look into our supply chain in great detail and see certain weaknesses there and look into things that needed to befixed," saidToyota's spokesman.International component makers such as JohnsonControls, Bosch GmbH and TRW Automotive are bettingToyota's campaign will help them win contracts currently held by smaller Japanese companies."This should mean more opportunities for globalmega-suppliers with worldwide capacity and designexpertise," saidone analyst.
Critical thinkingquestions:
1. Why is Toyota modifying its componentoptions?
A. To increase the use of common parts among its models.
B. Because it will save50% of the time to develop a new model.
C. Because it is spending too much onR&D.
D. All of the above.
2. Why did Toyota develop custom parts in thepast?
A. Because different models were unique and had different needs.
B. Because compatibility did not save any money.
C. Because of the earthquake threat.
D. Because their suppliers demanded it.
3. Using standard parts
A. means Toyota can buy from more suppliers.
B. will save money.
C. will lowerR&D time.
D. All of the above.
4. Using thousands of suppliers is
A. Johnson, TRW, andBosch's idea.
B. better for global auto parts suppliers.
C. preferable to having only100's of suppliers.
D. making Toyota vulnerable to an overly complex supply chain.