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Seatbelt Recall

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Submitted By rahmase
Words 2012
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Business Research Project: Part IV Darby Bess, Roslyn Mason, Jessica Hardin, Jennifer Steimle, Stephen Yeager QNT/561 December 3, 2013 James Krause

The purpose of this research paper is to identify and correct causes of Toyota’s seat belt recall of 310,000 of its vehicles (Eisenstein, 2013). Seat belt failures contribute to loss of income as well as lives. If the issue is extrapolated to the economy, the loss of income and lives equate to a moderate yet significant portion of lost GDP. Thousands of people that contribute to the nations production essentially disappear effecting economic growth. Seat belt legislation is goverened by the states. Twenty-five states and the District of Columbia require seat belts for all passengers. All vehicles including buses are required to be fitted with what the Federal Motor Vehicle Safety Standards and Regulations (FMVSR) call a type 2 seat belt assembly consisting of a combination pelvic and upper torso restraint (Insurance Institute for Highway Safety, 2013). Currently, states are expanding their seat-belt laws to cover rear-seat occupants (Copeland, 2010). It is prudent for any organization to understand the mechanics, processes, and products they use or create. If a product or process fails, it is important the same institution initiates sound research to generate dependable data derived by professionally conducted practices that can be used reliably for decision making (Cooper & Schindler, 2011). To do this, organizations must clearly define the purpose, provide their complete research, apply high ethical standards, make limiting factors known, furnish adequate analysis, present findings unambiguously, and justify their conclusions. Credibility is important thus framing the problem in a disciplined way will help develop complete and detailed answers that executives can use to shape policy and increase efficiency in seatbelt manufacturing.
Organization to be Researched Toyota is a Japanese vehicle manufacturer founded in 1935. Toyota offers various classes of and 31 different types of vehicles. This organization is reputed to listening to its consumers and encouraging innovation in the workplace. New lines of environmentally safe vehicles continue to evolve including six forms of hybrids or electric vehicles to purchase. Toyota continues to focus on safety. Their vehicles consistently win high safety ratings and awards for performance, which is why they take seatbelt recalls seriously.
The Dilemma Toyota’s seat belt recall is the company’s dilemma. According to Eisenstein (2013), Toyota says the problem involves seat belts that could fail because of excess wear of the driver and front passenger side seat belt retractors not being mounted correctly. Its recall of 310,000 vehicles plagues the company and must be fixed before casualties mount and the resulting negative press harms Toyotas holistic image.
Identifying the Population Another piece to researching the dilemma is identifying the target population by picking out those people, events, or records that contain the desired information and can answer measurement questions (Cooper & Schindler, 2011) with the help of a random sampling generator. Once the population is identified, simple random sampling is the probability sampling method of choice because Toyota already has a list of all 310,000-vehicle owners. These lists are updated as vehicles are sold and titles transferred. Although expensive, it is an accurate method plus Toyota has deep pockets and maintains a contingency fund for this purpose. Of 310,000 owners, Toyota has determined it needs to poll a relatively large sample (p = x/n or 65,000/310,000*100 which would give it approximately a 21% contact rate) to ensure accuracy and reliability.

The Survey The survey below was given to employees of USAA as a pretest to receive feed back to see what questions work well, what questions sound strange, what questions can be eliminated and what needs to be added. Wheather the survey is too short, too long or if the respondents lost interest in survey? Overall comments were favorable. Employees liked that the survey had different kinds of questions (multipule choice, number, and writing). A few even commented that they would complete the survey if they were Toyota owners because it was short and self-explanitory. It only took a few minutes to complete and appriciated that it felt easy and non-invasive. Mangers and supervisors were given a different suvery. Overall comments were favorable, however they did suggest that we might want to target some one in the research and development department because it is their responsibility to find suppliers, research the type of belts and design used. It was also suggested that we add questions about seat belt regulations as well.
Customer Survey Questions
1. What age group do you fall under? 18-3031-4041-49 |

2. What is your gender? MaleFemale |

3. Our Toyota’s records show you own a Toyota vehicle. If you no longer own a Toyota, do not complete this survey.

4. What brand of Toyota do you own? Make, Model and Year

5. How long have you owned your Toyota?

5. How satisfied are you with your current vehicle on a scale 1-5? With 5 being the highest. 12345 |
5. Have you ever had to have your vehicle serviced due to seatbelt recall? YesNo6. Do you have a favorable view of Toyota’s recall services. AgreeDisagreeUnsure7. Do you think Toyota handled the Safety Belt recall correctly? YesNoUnsure | |
Comments:
8. How satisfied are you with Toyota’s recall survey on a scale of 1-5? With 5 being the highest. 12345 |
9. Do you have any additional comments that can help Toyota serve you better? |

Survey for Managers and Supervisors
The purpose of this survey to collect information to manufacture a better safteybelf for Toyota vehicles.

1. What is your gender?
Male
Female
2. How long have you worked for Toyota?
1-5 years
5-10 years
10-20 years
20 or over
3. Which department are you currently employed?
Accounting
Manufacturing
Engineering
Research and Development
4. Is there a suggesgion box in your department? YesNoUnsure |

4. Do you think Toyota handled the Safety Belt recall correctly? YesNoUnsure | 5. Are Managers and Supervisors involved in making suggesions or decision about Toyota recalled parts or products? YesNoUnsure |
6. If yes, what are some of those suggestions? Use a better manufacturer for parts and productsAdvise customers sooner about safety recalls before told to do so by regulators.Hire better inspectors to find problems before the vehicles leave the assembly lines.Additional Comments: |
XXXX
Format The format of the survey will be a typical six to seven question hybrid survey that is structured to elicit comparable data across its samples so that similarities and differences can be found. The team chose investigative questions as well as a follow-up communication approach to this survey for the sake of speed and to check and balance interviewer error and bias’ that is present when collecting primary data.
Distribution
The survey will be distributed online as a way to save money and quicken the response time with less error or bias. Computer generated surveys will be sent out to the sample population of 65,000 owners. They will receive an email directing them to the Toyota website where they can self-register by way of vehicle identification number and complete the survey. Once completed, the data will automatically tabulate, providing inferential statistically calculated information from which managers can focus on a fix.
Collection
We want to collect as much primary and verifiable data that we can from the random sample of 65,000 vehicle owners through a random sampled computer delivered survey. This method is the most efficient because Toyota wants to close the issue out as soon as possible based on the safety aspect of the dilemma and the increased likelihood that more people will die if the problem is not fixed quickly. So, the data will be collected as individuals complete the survey within a 30-day window. Interviewees will also be given the option and information to interview via telephone incase they want to express their issues in more detail. Telephone surveys tend to encourage longer and more robust responses to open-ended questions (Cooper & Schindler, 2011), thereby providing more detail for consideration.

| Effected | Not Effected | Those who own an FJ Cruiser | 60000 | 5000 | Those who have had seatbelts fail | 40000 | 20000 | Activities effecting the proper use of seatbelts | 54000 | 6000 | Cause of seatbelt failure | 52000 | 8000 | Recall survey satisfaction | 43000 | 17000 | Helpful comments | 40000 | 20000 | Figure 1

Figure 2
Research Questions * How many customers will the seatbelt recall affect? * What are the regulatory requirements for vehicular seatbelts with regards to manufacturing and assembly? * Does Toyota outsource the manufacturing of its vehicular seatbelts and assemblies? * Why are Toyota's seat belts and assemblies failing? * Have changes occurred in seatbelt materials, products, or processes that contributed to seatbelt assembly failures in the Toyota FJ Cruisers? * What are Toyota’s current seatbelt alternatives?
Content to be Gathered Figure 1 demonstrates what research questions need to be answered, their specific questions and it identifies the target groups. The National Highway Traffic Safety Administration has a library of information that deals with this particular issue and other government standards like 571.208 Standard No. 208 Occupant crash protection, 571.209 Standard No. 209 Seat belt assemblies, and 571.210 Standard No. 210 Seat belt assembly anchorages. These standards provide regulatory specifications outlining seat belt quality that provides the criterion for seat belt manufacturers to produce and install type 1 (pelvic) and 2 (pelvic/shoulder) seat belt assemblies. Research gathered from federal regulations, past industry seat belt recalls, as well as empirical evidence that the company is privy too so far will help answer designated research questions.
Stage 1: Determine the severity of the situation
1. Verify safety hazard.
2. Check records and quickly recall vehicles for inspection.
Stage 2: Suspend selling particular vehicles
1. Pull all vehicles of the lots with the particular seat belts.
Stage 3: Brainstorm
1. Where did the problem generate? a. Who is responsible? b. What can be done for the best outcome? c. When did the belts start becoming a liability? d. Where was the order placed for the belts? e. How is this problem going to affect all parties? 1
Discover
Management
Dilemma

1a Exploration

Toyotas current issue with seat belt recalls

2
Define
Management
Question

What should be done to fix the seat belts in Toyota vehicles to improve safety for customers?

2a Exploration
Interviews with

* Service Managers * Customers * Manufacturing Managers * National Highway Traffic Safety Advisors

3
Define
Research
Question(s)

* What are the regulations for safety belts/their manufacturing/assembly?

* How are Toyota seat belts manufactured? Are there differences from that of competitors/other leading automobile manufacturers?

* What are the issues/failures in Toyota’s seat belt assembly? What changes/products/processes in Toyota’s manufacturing may have impacted ‘seat belt assembly’ failures?

* Have other automobile manufacturers had similar issues; What are the alternatives for Toyota’s seat belt assembly

Conclusion The goal of this research is to compile enough data to answer each question within a 95% certainty. Having experts answer the survey will reduce the risk of outliers distorting the data. Identifying the target population and taking a large enough sample will ensure that the data cannot be skewed in any direction.

Reference Cooper, D. R. & Schindler, P. S. (2011). Business Research Methods (11th ed.). [University of Phoenix Custom Edition e-text]. New York, NY: McGraw Hill. Retrieved November 1, 2013 from University of Phoenix, QNT561-Applied Business Research & Statistics Web site. Copeland, L., (2010). States expand seat belt laws to cover rear-seat riders. Retrieved from http://usatoday30.usatoday.com/news/nation/2010-08-18-seat-belt-rear_N.htm Eisenstein, P. A. (2013, March 15). Toyota recalls 310,000 SUVs for seatbelt problem. NBCNews.com. Retrieved from www.nbcnews.com/business/toyota-recalls-310-000- suvs-seatbelt-problem-1C8895938 Insurance Institute for Highway Safety (2013). Retrieved from: http://www.iihs.org/ McClave, J. T., Benson, P. G., & Sincich, T. (2011). Statistics for Business and Economics (11th ed.). [University of Phoenix Custom Edition e-text]. Boston, MA: Prentice Hall. Retrieved November 1, 2013 from University of Phoenix, QNT561-Applied Business Research & Statistics Web site.

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