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Toyota Safety Recall

In: Business and Management

Submitted By nfloyd
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university name | Safety Recalls | With reference to Toyota | | Your Name
Course TitleInstructor Name | [Pick the date] |

Introduction Toyota has officially announced that it will recall 2010 model Prius and Lexus HS250h models globally along with the Toyota models in Japan to fix an issue the performance of their braking systems. The latest in a series of safety related problems with Toyotas became public fodder last week when Toyota acknowledged that customers of the third generation hybrid had complained of a loss of stopping power at low speeds.
Safety Recalls, Outsourcing and Inconsistent Competitive priorities Safety recalls are indicators of problems regarding quality management in the operations management of an organization. In Toyota safety recall the company has planned to rectify the problem by recalling the car but the customers may be busy with their work and undergoes lot of mental agony before the problem is rectified. When an organization outsources spare parts especially in automobile industry many suppliers will be supplying parts for organizations. The quality control will be an issue if numbers of suppliers are more in number. The inconsistent competitive priority is also another cause for quality issues.
Questions
1Q. How has operations strategy and competitive priorities evolved in the automobile industry during the last 100 years?
A: There is no competition in the automobile industry before Second World War. The American automobile companies like Ford, General Motors and Chrysler etc have dominated the automobile industry. Later Germany, Japan and UK entered into the automobile market. With the advent of globalization, liberalization and privatization the automobile companies like Toyota, Honda etc have entered into global markets. Toyota has brought revolution in the global automobile industry with its quality and innovative operations strategies. Toyota a Japanese firm has dominated the American automobile market with its commitment to quality management in operations management strategy. Long cars have been like by customer but small cars are being liked by customers. Rapid and dynamic changes have taken place in the automobile industry in the past 100 years. Many changes regarding speed, price, designs, features like sound systems, GPS, AC etc have taken place in the automobile industry. Hybrid and electric cars are being manufactured in the present automobile industry but petrol and diesel is the only fuel before 100 years.
2Q. What are the positive and negative tradeoffs associated with outsourcing production functions to supplier organizations?
A: Manufacturing a car needs thousands of parts and variety of items. A normal organization cannot make all the products. Hence organizations especially in automobile industry outsource production function to supplier organizations. The following are the positive and negative tradeoffs associated with outsourcing production functions to supplier organizations. Positive Tradeoffs | Negative Tradeoffs | * Time can be saved with outsourcing production function. * Make or Buy decision is possible with outsourcing production functions. * Money is also saved by selecting suppliers at competitive price. | * Quality issues with the supplier. * The supplier is not under control * Brand image of the organization is lost due to fault of suppliers. |

3Q. What quality systems and procedures and systems should Toyota have followed to ensure that faulty automobiles are not delivered to the customers? A: The product testing should have been conducted in different ways to ensure the quality of the car. The suppliers should be selected based on total quality tools and techniques. The quality principles of the supplier organization should be checked at regular intervals and in a standard format. Third party organizations should be hired by Toyota to ensure quality control measures at its supplier organizations. Organizations who are certified by ISO, awarded Six Sigma, Malcolm Baldridge Awards should be selected as suppliers rather than selecting suppliers on price.

References http://www.toyota.com/recall/ http://www.autoblog.com/2010/02/09/officially-official-toyota-recalls-2010-prius-and-lexus-hs250h/ http://green.autoblog.com/2010/02/09/officially-official-toyota-recalls-2010-prius-and-hs250h-for-a/ http://trafficsafetynews.com/toyota-recalls-2010-lexus-rx-350-and-rx-450-h-vehicles/ http://www.pcmag.com/article2/0,2817,2358978,00.asp http://www.autobytel.com/toyota/camry/2010/car-recalls/ http://www.mnn.com/green-tech/transportation/stories/toyota-recalls-2010-prius-other-hybrids http://www.egmcartech.com/2012/06/29/lexus-recalls-2010-rx350-and-rx450h-models-over-floor-mats/ http://www.4wheelsnews.com/toyota-recalls-2010-lexus-rx350-rx450h-to-fix-floor-mat/ Top of Form
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