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In 2008, Toyota was ranked the world’s number one in motor vehicle production volume with more plants opening in Canada, USA and Mexico. Due to the worldwide recession, Toyota sales dropped tremendously, thereafter. Beginning in early 2010 Toyota’s sales, and stock price dropped again due to accelerator and brake problems with a number of their cars. People were afraid to drive and purchase the 2010 Prius as the brake problems occurred mainly in this line of car. Toyota was no longer ranked number one in motor vehicle production due to the problems the company faced in 2010.
Currently in 2011, Toyota is concerned about how well the Lexus RX 330/350 has done in the North American market? Due to this matter, the operation management team has produced a report that concerns the Toyota Motor Company’s North American Lexus production decision made a few years ago and the production of Toyota’s strategy for North America. This report includes a critical assessment of the Toyota Production System (TPS), which will be used to demonstrate the basic understanding of the TPS and describe the TPS as a total entity.
This report also includes a grid analysis which will be used to help make the North American plant location decision for the Lexus RX 330 Line by listing the key factors as either exogenous or endogenous, stating any relevant assumptions or constraints, and assigning two scores to each factor: one for production of the Lexus RX 330 at the Toyota Motor Manufacturing of Canada (TMMC), and one for production at a Toyota factory in the USA. Lastly, this report will recommend an appropriate production capacity to be built at TMMC, and it will assess Toyota’s current regional production strategy in North America.
The operation management team will do a thorough assessment of Toyota production in North America. This report will mention the purposes and advantages of the TPS. It will show the profit earned from the Lexus RX 330 line over the five years period from 2003 – 2007, and how well it is currently doing in 2011. This report will evaluate the current distribution of Toyota production in North America and suggest why Toyota has chosen to produce its cars for the North American market in the current manner.