...Transcript * 1. TOYOTA MOTOR MANUFACTURING INC. U.S.A Prepared By – Ashwin Mehta – 313 Pratik Mehta – 314 Ishaan Parekh – 315 Ankit shah – 317 Dishank Shah – 318 Fenil Shah - 319 * 2. Agenda Current Scenario Problems Faced Analysis Suggestions and recommendations Risks and contingencies * 3. Current Scenario • Toyota Motors Manufacturing (TMM) faces increasing problems with its seat supply. • Kentucky Framed Seat (KFS), is a single seat supplier for TMM. • KFS is responsible for the material flaws and missing parts as the major encountered defects. • These problems are increasingly occurring with an increase in varieties and demand for the seats. * 4. Problems Faced • Product proliferation problems with defective seats. • Company’s deviation from its normal production plan and lack of a recovery system. • Run ratio dropped from 95% to 85%. • This means 45 less cars were being produced per shift. • This translated in overtime of workers. • Too many cars needed off-line operations of one type or the another before they could go on shipping. * 5. Questions Raised • Will the sales company get cars on time as promised? • What does it mean to implement JIT and Jidoka principles to this situation? • Is TMM handling seat defects correctly on the line? • Is the current routine for handling seat-defect cars really a legitimate exception to TPS, or could it be a dangerous deviation from TPS? • Is there a way to kaizen TMM’s off-line routine? * 6. Analysis...
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...Financial Analysis of General Motors and Toyota General Motors Co. is an automobile company, which develops, manufactures and markets cars, trucks and parts worldwide. The company operates through the following automotive segments: GM North America, GM Europe, GM International Operations and GM South America. The GM North America segment sells vehicles under the brands Chevrolet, GMC, Buick and Cadillac with sales, manufacturing and distribution operations in the U.S., Canada and Mexico and distribution operations in Central America and the Caribbean. The GM Europe segment sells vehicles under the brands Opel, Vauxhall and Chevrolet with sales, manufacturing and distribution operations across Western and Central Europe. The GM International Operations segment sells vehicles under the brands Buick, Cadillac, Chevrolet, Daewoo, FAW, GMC, Holden, Isuzu, Jiefang, Opel and Wuling brands with sales, manufacturing and distribution operations in Asia-Pacific, Russia, the Commonwealth of Independent States, Eastern Europe, Africa and the Middle East. The GM South America segment sells vehicles under the brands Chevrolet, Suzuki and Isuzu with sales, manufacturing and distribution operations in Brazil, Argentina, Colombia, Ecuador and Venezuela. It also provides automotive financing services through its subsidiary, General Motors Financial Co., Inc. (GM Financial). It finances its loan origination volume through the use of credit facilities and securitization trusts that issue...
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...Corporate Finance FIN-325 I. General Overview General Motors, also known as (GM), is an American multinational corporation headquartered in Detroit, Michigan. General Motors was founded on September 16th, 1908 in Flint Michigan by William C. Durant as a holding company, or a wholly owned subsidiary for Buick. The company designs, manufactures, and distributes vehicles on all six major continents under 18 brand names. Some of their well-known brand names include Chevrolet, Buick, Cadillac, GMC, Opel, Vauxhall, Wuling, Baojun, and JieFang. GM also operated the brand names of Saturn, Pontiac, and Hummer until 2009. During this time, GM was emerging from chapter 11 bankruptcy as a result of the 2008 financial crisis, and decided to shed those brands for strategic reasons in order to compete with foreign emerging vehicle distributers in the market. In January 1912, the company decided to incorporate themselves under the GM brand name, and were the gold standard in the automobile industry for almost 80 years. From 1931-2007, GM successfully led global sales amongst every car manufacturer in the auto-manufacturing industry. Currently, the automobile industry is one of the most fierce industries in the market. Not only is GM competing with American car manufacturers such as Ford and Dodge, but also foreign companies such as Toyota, Honda, and Hyundai. II. Financial Statements (attached excel sheet) Anthony Brooks For: Professor Goncalves Corporate Finance FIN-325 Final...
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...Boiled Frog Phenomenon Irma E. Jimenez American Intercontinental University MGT 680 – Strategic Management August 30, 2013 Abstract The “boiled frog” phenomenon will be explained and how it relates to strategic management. An example of a business or businesses undergoing a similar situation will also be given and how could they have avoided the effects of the “boiled frog” phenomenon. Boiled Frog Phenomenon The purpose of this paper is to elaborate about the term "boiled frog" phenomenon which is a story about a live frog placed in a large pot filled with cold water. The experiment done with the live frog is also meant to compare it and how this story relates to strategic management in the business environment. An example in regards to a firm that has undergone a similar situation will be given as well and, how that business could have avoided the effects of the “boiled frog” phenomenon. A few questions will follow to explain the process. What is the "boiled frog" phenomenon? According to the article by Polynice, when a frog is placed inside a pot of boiling water, on top of a stove, the frog will react very fast and will jump out of the water immediately. But, if the same frog is placed inside a large pot filled with cold water and then put on top of the stove and it is turned on to be heated up slowly, the frog will not notice the change of temperature (Polynice, 2007). Eventually, the frog felt unconscious...
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...Fordism and Taylorism are responsible for the early success and recent decline of the U.S. motor vehicle industry Ronald Jean Degan International School of Management Paris 2011 Working paper nº 81/2011 globADVANTAGE Center of Research in International Business & Strategy INDEA - Campus 5 Rua das Olhalvas Instituto Politécnico de Leiria 2414 - 016 Leiria PORTUGAL Tel. (+351) 244 845 051 Fax. (+351) 244 845 059 E-mail: globadvantage@ipleiria.pt Webpage: www.globadvantage.ipleiria.pt WORKING PAPER Nº 81/2011 Setembro 2011 Com o apoio 2 Fordism and Taylorism are responsible for the early success and recent decline of the U.S. motor vehicle industry Ronald Jean Degen Ph.D. Candidate at the International School of Management Paris Vice Chairman of Masisa Chile Address: E-mail: rjdegen@gmail.com Phone: +55 21 8068 9000 Av. Pasteur 333 Botafogo/Urca Lancha Ovelha Negra Iate Clube do Rio de Janeiro 22290-240 Rio de Janeiro, RJ Brazil 3 Fordism and Taylorism are responsible for the early success and recent decline of the U.S. motor vehicle industry Abstract This paper identifies the ways in which the ideas of Fordism and Taylorism have been responsible for the success of the U.S. motor vehicle companies until 1955, and for their subsequent decline. On three occasions, the motor vehicle industry has changed the fundamental ideas on the process of manufacturing, and, perhaps more significantly, on how humans work together to create value. Under Fordism...
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...Toyota in North America Donald L. Woolridge, Sr. Indiana Wesleyan University February 20, 2013 Course ADM537A Toyota in North America This paper will provide an overview and history of Toyota in general and the company’s operations in North America and its product lines specifically; share comments on the company’s organizational structure and senior management leadership style; discuss its nearest competitors – Ford, GM and Chrysler, known as the Detroit 3; share the weighted average cost of capital; provide insight in the company’s rationale/methodology for evaluating capital budgeting opportunities in North America; review the economic forecast for the industry; show the characteristics of common stock and bonds, share key financial ratios for three years, comparing to industry and nearest competitors; and in conclusion share a strong, fact-based summary of why or why not a person should make an investment in the common stock of Toyota. Historical Overview Toyota is a family-owned and operated company with very humble beginnings. Sakichi Toyoda, his son, Kiichiro Toyoda and Taiichi Ohno all played an important role in not only laying the foundation for what would become the automotive giant Toyota, but also in the development of the system that has revolutionized lean manufacturing; the Toyota Production System (TPS) (ToyotaGeorgetown.com, 2006-2013). Sakichi Toyoda invented the automated loom which ensured quality of product by stopping when threads...
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...Ford vs Dell Executive Summary FORDs current method of controlling all aspects of the manufacturing is outdated and is limiting the corporation’s annual results. In order to stay competitive and become efficient again, FORD needs to re-evaluate their current supply chain and implement key portions of DELLs vertically integrated supply chain model. A proper implementation will increase information flow between suppliers, departments and dealers resulting in a reduction of redundant inventory and focus towards just in time inventory. All of these factors will further drive up the already US industry leading profit margin per vehicle. In order to accomplish these goals FORD needs to refocus the Purchasing department’s responsibilities, consolidate and develop suppliers that deliver finished high level components and increase the information flow across all points of the supply chain. These steps will help to introduce a more pull-based system. Contents Issue identification 1 Environmental and root cause analysis 2 Alternatives/Options 3 Recommendations 4 Implementation 5 Monitor & Control 6 Issue identification • Current order to delivery (OTD) is more than 60 days. • Management of large supplier network. • Utilization of IT is lacking. • Purchasing isn’t integrated into Product development. • Independent dealership network has resulted in FORDs loss of control over customer service experiences. This network also...
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...History: Since its incorporation in 1903, Ford Motor Company has grown into the 3rd largest automaker in the world (based on global vehicle sales) behind Toyota and GM, and the second largest in the United States Henry Ford invented the assembly line in 1923 The company’s tremendous success in the late nineties, when it was ranked as one of the world’s most profitable companies, was marred following the aftermath of Hurricane Katrina in 2005 Subsequent rise in gas prices prompted a dramatic shift in consumer vehicle purchasing habits, exposing flaws that led the company to an annual loss of $12.6 billion, the largest in the company’s history. Mission: We are a global, diverse family with a proud heritage, passionately committed to providing outstanding products and services. Vision: To become the world’s leading consumer company for automotive products and services. Core Values: We do the right things for our people, our environment, and our society, but above all for our customers. Goals: To become a more globally integrated and competitive firm, to build more of the products that people really want and value. Products: Automotive and Financial Services Competitors: Toyota, GM, Chrysler External Analysis: (General) Social Political/Legal Economic Environmental Technology Favorable Unfavorable Unfavorable Unfavorable Favorable Industry Analysis: Market...
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...market potential, Toyota needs to determine the best regions for growth to ensure cost and quality. Based on market figures (Figure 10 & 11), the following GE Matrix is drawn up to show the likelihood of the following market outcomes: Figure 11: GE Matrix showing international market approach The above graph was plotted based on information and the following criteria – Available resources, effective use of resources for maximum milking, potential business this market can bring in for the company, potential establishment of market leader Based on the above, the implications and resulting suggested approach is: Asia – A strong defense strategy. Manufacturing in Asia is relatively cheap, hence the recommendation to put efforts into R&D of materials, manufacturing and work closely with suppliers and manufacturers to keep costs low, for higher profit margins. 1 USA’s market is attractive, however competition is stiff with GM and Ford. Toyota needs to increase positive consumer perceptions to push sales and establish itself as a market leader. Latin America is a growing market with an unstable and undominated automotive industry. Toyota can choose selective markets or products and use an S-O to attack the market and establish presence. This strategy can apply to Africa too, with an added advantage that Africa is geographically closer to manufacturing plants in Asia. Europe has seen a fall in the automotive industry and Toyota not even being in...
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...Proceedings of the 2012 International Conference on Industrial Engineering and Operations Management Istanbul, Turkey, July 3 – 6, 2012 Car Recalls: A Problem Unique to Toyota or For All Car Makers? Kamrul Ahsan School of Management and Information Systems, Faculty of Business and Law Victoria University Australia Abstract Often automobile recalls are drawing media and public attention. Influenced by Toyota’s recent automobile recalls 2009-2010 this research conducts an empirical study on historical car recalls. The research uses secondary data from recall websites maintained by public and private organizations. For different car model year and manufacturer the study looks at frequency of recalls, recorded customer complaints, and yearly sales data. Analysis shows recalls are a common event with the majority of recalls initiated by only a few car makers. Though car makers use many eye catching and popular quality and customer care slogans and programs, many popular car makers still face valid customer complaints and consequently face many unwanted recalls. This study identifies that most recalls occur during the first five years of the car model year. This preliminary study of automobile recalls can be further extended at a later stage to identify key causes of recall. Keywords Product recalls, Reverse logistics, car recalls, product returns, closed loop supply chain 1. Introduction Though manufacturers use state-of-the-art operations philosophies, tools and techniques...
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...SAE TECHNICAL PAPER SERIES 2003-01-2307 A Comparative Study of the Production Applications of Hybrid Electric Powertrains Harry L. Husted Delphi Corporation Reprinted From: Hybrid Vehicle and Energy Storage Technologies (SP-1789) Future Transportation Technology Conference Costa Mesa, California June 23-25, 2003 400 Commonwealth Drive, Warrendale, PA 15096-0001 U.S.A. Tel: (724) 776-4841 Fax: (724) 776-5760 Web: www.sae.org All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of SAE. For permission and licensing requests contact: SAE Permissions 400 Commonwealth Drive Warrendale, PA 15096-0001-USA Email: permissions@sae.org Fax: 724-772-4891 Tel: 724-772-4028 For multiple print copies contact: SAE Customer Service Tel: 877-606-7323 (inside USA and Canada) Tel: 724-776-4970 (outside USA) Fax: 724-776-1615 Email: CustomerService@sae.org ISSN 0148-7191 Copyright © 2003 SAE International Positions and opinions advanced in this paper are those of the author(s) and not necessarily those of SAE. The author is solely responsible for the content of the paper. A process is available by which discussions will be printed with the paper if it is published in SAE Transactions. Persons wishing to submit papers to be considered for presentation or publication by SAE should send the manuscript...
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...Management of Strategic Alliances: Performance Evaluation Where to Link in the Value Chain? • Alliance combining same value-chain activities are to gain efficiencies, merge talents, or share risks • In operations alliances firms combine manufacturing activities to reach economies of scale • Operations/marketing alliances provide access to markets Identification of the links in VC forms the basis for performance of the SA Negotiation & Performance • The formal agreement is not as important as the ability of managers to get along • Negotiation issues • equity contributions • management structure • “prenuptial” agreements Selected Questions for a StrategicAlliance Agreement Design & Performance • Depends on the type of alliance chosen • Informal CAs often have no formal design issues • Formal CAs may require separate organization unit housed in one company • JV—Parent companies set up separate legal entity Decision-making Control • Two areas need to be considered: • Operational decisions (focus on day to day running) • Strategic decisions (focus on long term survival) • Majority ownership does not necessarily control • In JVs, strategic decision making takes place at the level of JV’s board of directors or top management. Management Structures • Dominant parent: controls or dominates strategic and operating decision making • Often has majority ownership • Treats the JV as wholly owned subsidiary • Shared management: both parent companies contribute approximately...
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...BUS 710 WIL-MOR TECHNOLOGIES BIBIN BASTIAN 11/04/2014 Introduction The Wil-More Technologies case presents the advantages and complexities of international collaborations in business where a lot of synergies like cultural differences, profit expectations play a crucial role. WIL-MOR JV was formed in the year 1992 by a 50/50 partnership between Detroit base Wilson industries and Japan based Morota Manufacturing company to cater the transformations happening in North American automobile manufacturing segment. Four years after the inception of the JV, company is not performing financially well as expected and this creates tension between both the partners and they plan to re evaluate the strategy. In depth-Problem Analysis. The major issues that lead to the re-evaluation of the relationship between the two companies can be summarized as * Failure to achieve forecasted returns When the JV was signed both companies aimed to leverage the maximum efficiency and gain a market leader position. They expected the company to break even within three years of operation. But even in the fifth year company is losing about $100,000 a month. With company running at close to full capacity, having client mix of transplants and Big 3 and still not able to make money made Wilson managers sceptical about the capability of JV. * Different Perspective about profit. Wilson focussed on making quick money out of the deal and they are profit centric, whereas Morota had a quality...
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...| The Cyclical Rise and Fall of GM | | | | | This paper will touch on the history of GM dating back to 1899 with a history of boom and bust all the way up to the collapse, the rebirth of GM in 2009 and subsequent successful years since. | Recently in the news there has been an alarming fact about General Motors automobile products that have caused a loss of property and more importantly loss of lives, while most admit a simple design flaw could’ve been repaired with a $0.57 switch (foxnews.com, 2014, 1 Apr). This paper will touch on the history of GM dating back to 1899 with a history of a boom and bust cycle all the way up to the collapse, the rebirth of GM in 2009 and subsequent successful years since. The History of General Motors Corporation, the one-time “largest automaker in the world” had its start in 1899. At that time over one thousand companies attempted to improve the “horse drawn carriage” to that of an automobile and failed. William Crapo Durant was in the horse carriage business in Flint Michigan since 1886, selling over 75,000 in 1895. In 1904 Durant bought into the Buick Motor company where many other auto makers had operations in Flint, MI; Chrysler, Buick, Nash to name a few. The economic downturn of 1907 bankrupted many of the smaller auto manufacturers and to protect the company, Durant sought out Henry Ford and Ransom Olds to discuss a possible merger. Both declined due to Durant’s lack of capital (Durant, 2004, p 71-73). Durant, instead...
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...engines, and electric cars. Henry Ford built the first car in 1896, (Gale, 2003). and then revolutionized the industry when he invented the assembly line.(David Highfill, Matt Baki, Sean Copus, Matt Green, Jennifer Smith, Matt Whineland). This invention allowed mass production which lowered the costs of automobiles for consumers. The industry includes a number of car manufacturers competing with each other in their competitive priorities, and competitive capabilities to capture market share. The major players in the industry are, the big three US automakers, Ford Motor Company, DaimlerChrysler, and General Motors. The major Japanese players who are also a part of the US auto industry are Toyota, Nissan and Honda. Ford, Chrysler and GM account for approximately 76% of US passenger Vehicles, Toyota, Nissan and Honda, Subaru and Mitsubishi account for 18%. The European automakers, BMW and Mercedes makeup nearly 2%. (Global Foresight, Inc. 2006 Report on Industry Trends). Over the years several mergers and acquisitions occurred within the industry and contributed to this global view. Some of the mergers and acquisition are: Chrysler merging with Daimler-Benz, to form the new Daimler-Chrysler; and buying stake in Mazda, Mitsubishi and Hyundai, and Fiat merged with BMW and Mercedes and has formed an alliance with Daimler- Chrysler. Ford purchased Sweden’s Volvo, British Jaguar and luxury line Aston Martin. General Motors bought controlling stake in Isuzu,. These mergers would increase...
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