Sample Management Paper on Toyota Disruption

Toyota Disruption

  1. Outline
  2. Critical disruption on important supply chain.
  3. Tohoku earthquake was a major blow to Toyota manufacturers.
  4. Power shortage caused by earthquake disruption.
  5. Production of more than 1200 parts was halted as a result of earthquake.
  6. The disruption not only affected Toyota assembly in Japan but also affected production in North America.
  7. The earthquake disaster led to great reduction in production capacity.
  8. Recovery process was necessary to stabilize automobile manufacturing.
  9. The disaster prompted creation of systematic mapping in the supply chain.
  10. Creation of disruption management strategies was part of the mitigation plans to save the company from derailment in case of such disaster in future.
  11. In order to have effective mapping on the supply chain, investigations were conducted.
  12. Fundamental problems emerged during the investigation when 5% of the suppliers refused to disclose their own sub vendor claiming that the information was proprietary.
  13. There was need for multi sourcing to overcome supply disruptions.
  14. Draft with Corrections

Toyota company is measured (use considered) one of greatest automotive industry in the world faced a major challenge when some of its main suppliers were affected by earthquake in Japan. Main suppliers were crippled by tsunami and earthquake damage that occurred in Japan. The earthquake calamity big damaged to some suppliers while others were affected as result of power shortage caused by damage in electrical distribution plants. Production of more than 1200 parts was knocked out by the earthquake disaster (citation).

Consequences of these damages were not only felt by Toyota assembly in Japan but were also felt in the regions of North America where major manufacturing of Toyota automobiles take place. The disaster struck key suppliers including the Merck plant which is the sole supplier of aluminum-flaked paint pigment. Fast action compelled the automakers to work around the clock in order get substitute supply of paint on a short notice. During the investigation the company discovered some of substitute suppliers relied on their primary suppliers. The mapping indicated a diamond shaped supply chain which indicated a substantial overlap in the system. These finding called for more critical approach in sourcing decision and disruption.

In order to build a robust enterprise, it was necessary to create a strong disruption management strategy that would overcome the disruptions in the supply chain.  In order to curb unforeseen disasters in the future, the manufacturer demanded disaster plan from its suppliers. The initiative included engaging 400 North American suppliers. As part of the plan, the suppliers were required to create backup production plan that would ensure consistent supply in case of major calamity. This required the suppliers to maintain substantial reserve stock or get certification to produce supply parts in a second factory.

  • Final Essay

Toyota which is considered one of greatest automotive industry in the world faced a major challenge when some of its main suppliers were affected by earth quake in Japan. Main suppliers were crippled by tsunami and earthquake damage that occurred in Japan. The earth quake calamity caused physical damaged to some suppliers while others were affected as result of power shortage caused by damage in electrical distribution plants. Production of more than 1200 parts was knocked out by the earthquake disaster (Sedgwick, 2014). Consequences of these damages were not only felt by Toyota assembly in Japan but were also felt in the regions of North America where major manufacturing of Toyota automobiles take place. The disaster struck key suppliers including the Merck plant which is the sole supplier of aluminum-flaked paint pigment (Matsuo, 2015). Quick action compelled the automakers to work around the clock in order get substitute supply of paint on a short notice.

During the investigation the company discovered some of substitute suppliers relied on their primary suppliers. The mapping indicated a diamond shaped supply chain which indicated a substantial overlap in the system (Matsuo, 2015). These finding called for more critical approach in sourcing decision and disruption. In order to build a robust enterprise, it was necessary to create a strong disruption management strategy that would overcome the disruptions in the supply chain.

In order to curb unforeseen disasters in the future, the manufacturer demanded disaster plan from its suppliers. The initiative included engaging 400 North American suppliers. As part of the plan, the suppliers were required to create backup production plan that would ensure consistent supply in case of major calamity (Sedgwick, 2014). This required the suppliers to maintain substantial reserve stock or get certification to produce supply parts in a second factory.

References

Matsuo, H. (2015). Implications of the Tohoku earthquake for Toyota׳s coordination mechanism: Supply chain disruption of automotive semiconductors. International Journal Of Production Economics, 161217-227. doi:10.1016/j.ijpe.2014.07.010

Sedgwick, D. (2014). Toyota asks suppliers for disaster plans. Automotive News, 88(6632), 4-61.