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Toyota Operations Improvement Plan

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Operations Improvement Plan
University of Maryland
MBA 6022
February 17, 2012
Instructor: Dr. Ben Thompson

Tracy Moore
MBA 6022
2237 Gateway Blvd
Baltimore, MD 21202

Abstract: Toyota is faced with an Accelerator crisis after allegedly faulty accelerator pedals in some of their vehicles caused the pedals to depress get stuck or cause them to accelerate. This lead to a massive recall and lead to penalties and fines from the US government and consumer confidence diminished. There are several processes that can be identified that will benefit Toyota and lead to improvement which is what will be discussed in this paper.

Toyota Motor Corporation was founded by Kiichiro Toyoda. Its headquarters is in Japan and was established in 1933. According to by Greto, Schotter, and Teagarden (2010), “In 1934, the company produced its first Type A engine at the encouragement of the Japanese government, and two years later the company produced its first passenger car, the Toyota AA” (p. 2). After going through financial turmoil the 1950’s but helped out by the US government for the war effort in Korea, Toyota started a subsidiary in the US in 1957. In 1982 Toyota formed a joint venture with General Motors in the US at a plant in California. In 2009, a new president was named a Toyota, Akio Toyoda who was a member of the founding family. Akio Toyoda was at the helm of the company when the Toyota accelerator crisis hit and had to answer to a question and answer session before the US House of Representatives. Mr. Toyoda is not responsible for process improvement to fix the problems in the past and restore consumer confidence in Toyota for the future. Currently Toyota is faced with an Accelerator crisis after allegedly faulty accelerator pedals in some of their vehicles caused the pedals to depress get stuck or cause them to accelerate. This lead to a massive recall and…...

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