class 5 toyota

8/2/2019 Class 5 Toyota

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MBA Intake 616 March 2012

To Rw anda For Toyo t a

Dr. Reid E. Wh i t lock

1Copyright 15 March 2012 REW

Rector


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Toyota

Global brand with global reach reputation?



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Most production Is Centralized

Parts feed into Japan



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Two-way Transport

Parts flowing to Japan cars moving the other way



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Steps In Auto Manufacture and Distribution

Assembly and design are closely-held



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Review: Coltan

Coltan in Rwanda



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Toyota Production

Assembly



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Toyota production

Human and Robot



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The Finished Product

Ready to leave the factory



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Toyotas At Port

Ready for shipment



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Arrival in Rwanda

Pickup



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Arrival in Rwanda

FJ Cruiser



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Arrival in Rwanda

Land Cruiser



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In Use In Rwanda

Land Cruiser



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Toyota Supply Chain

The planet to Japan to Rwanda



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Automobile Recall

The manufacturers worst nightmare



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Automobile Recall

It happens to even the best firms



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Manufacturer Views About Announcing A Recall

Challenge on several levels

Hesitate be sure vs. cover-up

Good guy becomes bad guy



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Automobile Recall

The manufacturers worst nightmare



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Warranties

How does a warranty work?

o pays

Who knows?

Who listens?

Who is liable?

o oes e wor



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Secret Warranties

Little known. Little discussed.

1. Service advisories are posted on an

automaker's internal computer network. They

offer troubleshooting tips and allow the dealero e manu ac urer or e repa r. s

information is never divulged to the customer.



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Secret Warranties

Little known. Little discussed.

2. If the defect grows into a more involvedsolution requiring upgraded parts, automakers

then draw up a formal technical service bulletin

(TSB) and distribute the bulletin to dealers andgovernmen agenc es. e serv ce u e n s

only issued after the manufacturer has what it

.



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Secret Warranties

Little known. Little discussed (continued)

3. As more & more customers hear about TSBs,

and find that their base warranties are

problem, pressure on dealers builds. With

-dealers put pressure on the manufacturer. This

can lead to a second TSB, sent only to dealers,

extending the warranty coverage and leaving tothe dealer's discretion the amount that will be


covere or re un e o e cus omer.


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Secret Warranties

Little known. Little discussed (continued)

4. In some cases, the aggravation gets too

great and the automaker decides to issue a

letter (sent to first owners only, at their last

all owners will get and which vehicles are

involved. A special bulletin or letter is also sent

to dealers to ensure they follow the guidelines



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Automobile Recall & Customer Satisfaction

Are they related?



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Automobile Recall & Customer Satisfaction

Are they related?

Have consumers come to accept recalls as a normalpar o car owners p. e so ware pa c es

significantly less satisfied with their car than those who

have not?

Loyalty after a recall?



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Customer Behavior After A Recall

Hostile or appreciative?

Fear ?

Relief ?

Cooperation?



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Trade-Offs

Safety versus Cost

Recalls are expensive and aggravating for all concerned car ma ers, car owners, e r car nsurance as a resu

of any accidents and the dealerships that have to face theproblem firsthand.

Recalls are not issued lightly, but neither thegovernment nor the auto companies want people gettinghurt because of somethin that could have been fixed



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Biggest Recall

Ford

The biggest recall in auto history started in early 2008w t or s reca o m on ve c es or au ty cru se

control switches that could catch fire.

The cost to Ford, to the government, to consumers

was in the billions of dollars, and the repercussions arestill being felt.



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Toyotas Biggest Recall

2009-10

9 MILLION VEHICLES

Toyota initiated. If suspicions proved correct the

.

From April 2010 an investigation lasted ten months. The

investigation concluded that the problems were notelectrical.


Any damage to reputation?


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Toyotas Biggest Recall

Aftermath

U.S. sales dropped 16% in January 2010

e company s s oc surren ere on o va ue na single week.

The U.S. Department of Transportation (DOT)threatened the company with fines for being slow to react

o e pro ems.



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Toyotas Change of Strategy

Cautionary Tale Tortoise became a hare

Over decades, Toyota built its reputation and markets are n t ny ncrements y way o ts renowne

continuous-improvement method. Quality was always firstbecause it led EVENTUALLY to lower costs which wouldlead to higher market share.

In the 1990s, Toyota set out to become the world's topauto company.

Being the best and being the biggest created a tensionthat Toyota couldn't resolve.



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You Are Toyota

What do you do in your supply chain???



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an y ou o r y ou r at t en t on

. .

Rect or , SFB

[email protected] . rw

MBA Intake 6

16 March 2012


class 5 toyota

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