Video Title: Toyota: Toyota’s Production Problems
Run Time: 5:46
Classroom Application: Instructors will find this video useful in the study of social perception and brand image. Toyota serves as an excellent case study for this topic because the company has recently suffered production problems that harmed the company’s brand image. Providing students with such knowledge can help them to better understand how public perception influences the overall success of a company.
Synopsis
Toyota is the world’s largest manufacturer of automobiles. The company’s just in time inventory management system makes production problems more visible. Despite the company’s commitment to quality, in 2010 it was claimed that unintended acceleration of Toyota automobiles had resulted in a large amount of property damage, a number of injuries, and even deaths. As a result, Toyota recalled millions of automobiles, issued a very public apology, and made multiple changes to ensure the quality of their automobiles and to regain the trust of consumers.
Discussion Questions
1.Discuss how the seeds of Toyota’s success and Toyota’s basic philosophy were already in place during the company’s first visit to the Ford Motor Company in Detroit.
When Toyota first began in the automobile industry, they visited the Ford Motor Company’s factory in the United States. While on the trip, leaders of Toyota visited a Piggly Wiggly grocery store. They were impressed when they saw beverages being restocked on the shelves following each purchase. This gave them the idea for “just in time” inventory, where a minimum number of parts and supplies are kept on hand at the assembly factory.
Toyota’s actions showed that the company was interested in innovation even back in the 1930s. Company leaders recognized that to succeed, Toyota couldn’t merely emulate Ford, it needed to seek improvement over Ford, which it did by using what it learned in the U.S. to develop a whole new methodology for manufacturing, the
2.Were the “mistakes” that Toyota committed in confronting the 2010 safety allegations actually mistakes, or did Toyota go about addressing the problems ?
Toyota’s big mistake was to confront the problem in its traditional style — to be thorough, careful, and systematic in identifying and solving a problem. Ostensibly, this was a mistake because American consumers were looking for a quick admission of guilt, a quick apology, and a quick solution to the problem. So for public relations purposes, Toyota’s “slow and careful” response was a mistake. However, in actually analyzing the problem Toyota’s approach was successful because it took the hysteria out of the situation and eventually showed that much of the original problem could be attributed to drivers simply mistaking the accelerator pedal for the brake, something that the company could not be faulted for. Finally, Toyota showed humility when its president and CEO offered a public apology to the public. Safety technology officers were appointed and the company stepped up its commitment to quality control. These moves may have been unnecessary, but in the long run may pay off by preventing this kind of problem from ever occurring again for Toyota.
3.A pundit claims that Toyota’s accelerator problems turned out to be a “plus” for the company. How do you interpret this claim?
In many respects, the claim seems valid. Though the incidents damaged Toyota’s spotless reputation in the eyes of the public, it ultimately reinforced Toyota’s basic philosophy of continuous improvement. Had the problems never occurred, Toyota perhaps was running the risk of complacency. Even though the problems turned out to be overblown, they highlighted the idea that even the most successful company cannot rest on its laurels and take things for granted. Fortunately, the accelerator problems did not do any serious damage to the company, and the fact that they served as a wake-up call ultimately may turn out to be a plus for Toyota.
Quiz
1.Which of the following changes did not take place at Toyota as a result of the 2010 investigation?
a.A chief safety technology officer was appointed in Japan.
b.Toyota took actions to decrease transparency company-wide.
c.Toyota streamlined communication with customers through the use of social media.
d.One thousand engineers were added to the special committee for global quality.
Answer: b
Explanation: Even after the 2010 production problems, Toyota is committed to remaining true to the company’s philosophy of complete transparency. The company’s just in time inventory management system makes production problems very visible, but this system is a hallmark of the Toyota company.
2.In 2010, Toyota altered its production process for which of the following reasons?
a.cultural issues
b.legal issues
c.income level and distribution issues
d.infrastructure issues
Answer: b
Explanation: Firms may alter their products or production process for legal, cultural, or economic reasons to fit the needs of customers in different countries. In 2010, it was charged that the unintended acceleration of Toyota automobiles had led to a property damage, injuries, and even loss of life. NASA and the National Highway Traffic Safety Administration eventually concluded that none of the accidents were a result of electrical or software issues in Toyota automobiles. It was found through extensive research that some of the accidents were caused by accelerator entrapment, and others were caused by drivers not applying the brakes in an emergency situation. However, to reassure consumers in the United States that Toyota automobiles were safe, Toyota made extensive alterations to their automobiles.
3.What aspect of the Toyota automobile company would likely be different today if managers had not made a visit to the United States to tour the Ford Motor Company in the 1930s?
a.Toyota would not use the assembly-line type production style developedby Ford Motor Company.
b.Toyota would not use the just in time inventory management system as was demonstrated by the Ford Motor Company when the Toyota managers visited.
c.Toyota would not use the just in time inventory management system as was demonstrated by the Piggly Wiggly grocery store the managers visited on their trip.
d.No aspect of the Toyota automobile company would likely be different had they not made a visit to the United States to tour the Ford Motor Company, as Toyota did not adopt any production ideas from that particular trip.
Answer: b
Explanation: Toyota’s leaders came to the United States to tour the Ford Motor Company. While on their trip, they visited a Piggly Wiggly grocery store. They saw employees in the store restocking beverages following each purchase. This process impressed them and led to the idea for the inventory management process that eventually became known as just in time inventory management.
4.In 2010, Toyota automobiles were thought to have caused property damage, injury, and deaths due to which of the following problems?
a.unintended acceleration
b.brake failure
c.faulty engine components
d.failing transmissions
Answer: a
Explanation: In 2010, it was found that several accidents had occurred due to what appeared to be unintended acceleration in Toyota automobiles.
5.Which of the following conclusions were drawn from the investigations conducted by NASA, the National Highway Traffic Safety Administration, and Toyota to look into the allegations against the automobile manufacturer in 2010?
a.The accidents had all occurred as a result of faulty electronics in Toyota automobiles.
b.A portion of the accidents occurred as a result of accelerator assembly entrapment, while others occurred due to driver error.
c.A portion of the accidents occurred as a result of electronic problems in Toyota automobiles, while others occurred due to accelerator assembly entrapment.
d.The accidents had all occurred as a result of driver error.
Answer: b
Explanation: NASA and the National Highway Traffic Safety Administration concluded that none of the accidents were a result of electrical or software issues in Toyota automobiles. It was found through extensive research that some of the accidents were caused by accelerator entrapment and others were caused by drivers not applying the brakes in an emergency situation.