Monday, Oct 28, 2013 at 00:26
Olcoolone - News to you? What bush have you been hiding under?
"Toyota Motor Corporation has historically been viewed as a high-quality producer of safe and reliable automobiles. So, how did Toyota find itself plagued by problems in the 2000's involving accidents, lawsuits, recalls, and high warranty expenses? One prominent theory is that in its attempt to gain market share and exceed the sales of GM, the company lost control over the manufacture of of some critical vehicle components, including the electrical systems and the accelerator. Around 2005, Toyota began a significant shift towards outsourcing important parts of the production process to its key suppliers. However, those suppliers often did not have the same internal controls as or reputational incentives associated with product quality as did Toyota. In short, the sales volume goal and related outsourcing led to reduced quality, and the company is now suffering for this strategic misstep. As of March 31, 2010, Toyota had accrued a warranty liability of of US$2,985 billion related to these problems. During 2010, Toyota responded to its problems by convening an ongoing Special Committee for Global Quality to investigate the causes of quality issues and to determine the best strategies for dealing with them."
(Book: Auditing; A Risk-Based Approach to Conducting a Quality Audit - by Karla Johnstone: Page 738)
More _
http://www.warrantyweek.com/archive/ww20110630.html
What is also not widely known, is the effect on Toyota of the Japanese Govt passing working hour limits (per day) in the late 1990's.
In the mid 1990's, the Japanese Govt became alarmed at a new phenomenon that was producing a sharp increase in the death rate of otherwise healthy males in the workforce.
Employees, many of them highly trained people, and senior people in companies, were dropping dead for no immediately-obvious reason.
The doctors investigated and came to a shocking unanimous conclusion - the deaths were the result of overwork.
Sizeable numbers of Japanese executives, engineers, and other important highly-educated employees were arriving at work at 6:00AM, working all day until past midnight - sometimes to 2:00AM, going
home, snatching a few hours sleep, and then returning to work at 6:00AM.
The overwork was taking its toll on these over-conscientious workers, and they were starting to drop like flies.
The Japanese Govt passed a law limiting employee working hours in one day to 12 hrs maximum.
The effect on Toyota was immediate. Toyota engineers, already low in numbers, and already overworked, constantly checking engineering plans and QC on the factory floor - simply went
home at 6:00PM and left Quality Control and engineering plans unchecked and unattended.
Parts designs were forwarded to the factory and were manufactured and installed without the necessary QC inspection of the plans and the finished product. Toyota was running at full steam, but the steersmen were absent.
Toyota hurriedly carried out a major increase in the intake of engineers. From inducting 300 new engineers a year, Toyota went to inducting 900 extra new engineers a year.
However, new engineers take several years to train and to get up to full speed in the techniques of Toyota QC and production. There was a serious lag in QC right as production levels soared.
New Toyota V6 engines were blowing up with less than 200kms on the clock. Accelerator control problems arose, boot torsion bars snapped, electronics problems reared their ugly head. Increased numbers of engine problems surfaced, oil burning, injector problems - and all these QC were sheeted
home to inadequate engineering checking and QC. Warranty costs soared. Toyota, which had less than 200,000 vehicles with warranty claim problems in 1999, saw the number of vehicles with warranty problems soar to over 2,000,000 vehicles by 2005. The numbers kept rising through to 2009.
Toyota had dropped the ball, instead of picking it up and running with it. Toyota had chosen the path of vastly increased production levels, with a corresponding drop in engineering checks and QC levels.
In Toyotas favour, they have recognised their lowering of QC standards and are trying to address it. However, there's still a lot of Toyota vehicles out there that will continue to show poor Toyota QC for years to come, until they are scrapped.
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