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HOLY CROSS COLLEGE OF SASA INC.
Km.9 Sasa Davao City
TOYOTA MOTORS PHILIPPINES CORPORATION
CASE STUDY
SUBMITTED BY:
WENAH MAE ARTAJO
KRISTAL JOY J. ODIPA
STUDENT
SUBMITTED TO:
MRS.MARY JANE ROFEROS
TEACHER
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INTRODUCTION
The Toyota Motors Philippines dates back to 1962 when Delta Motor Corporation, a
company established by Ricardo C. Silverio the rights to assemble and distribute Toyota
vehicles for the Philippine market. Delta Motor Corporation collapsed during the
Philippine economic downturn in the early 1980s. Operations came to a halt in
December 1983 and by March 1984, Toyota's tie-up with Delta Motor Corporation was
terminated. The company was dissolved by 1988. After a five-year absence, Toyota
directly entered the Philippine market with the establishment of TOYOTA MOTOR
PHILLIPINES CORPORATION (TMPC) in 1988
ISSUE AND CONCERN
Toyota Motor Philippines Corporation has recalled units of three models sold in the
country from November 2004 to 2010.
Toyota announced the recall of 6.39 million vehicles worldwide for 5 different problems.
The problems include: June
Defects in driver’s seat
Steering column problems
Engine starter glitch that poses fire risk
The recall covers 50,260 vehicles sold locally between November 2004 to June 2010.
POINT OF VIEW
Toyota Motor Philippines Corporation (TMP) has always been committed to the long-
term sustainability of its operations in the country to contribute to the development of the
Philippine society. Guided by our mission to deliver “always better cars”, we keep our
customers’ needs and expectations as our top priority. We are truly grateful and
indebted to the trust of our customers, which drives us to further improve Toyota’s brand
of quality. In return, Toyota commits to continue to introduce cars that are fun to drive
and safe & reliable to use. As such, every effort that a Toyota Team Member exerts is
geared towards improving the ownership experience of each customer. With the help of
our various stakeholders in the Toyota value chain, we shall continue to make
significant milestones together, as we all passionately work to be “always better” in
everything we do. In the coming years, Toyota will transition from simply being a vehicle
manufacturing company to a mobility company that actively finds solutions to improve
means of moving people. With this positive outlook, we are excited to actively
participate in this whole new mobility ecosystem which will transform the way we do
business. providing dependable vehicles for their daily use.
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STATEMENT OF THE PROBLEM
The compromising of quality of produced cars due to extensive cost cutting of the
system resulting in multiple cases of deaths and accident and loss of sales and
customer loyalty
The Large scale of product recall are increasing
OBJECTIVE:
To produce vehicles and components of outstanding quality
To decrease the company’s expense by reducing the scale of product recall
To prevent future incidents with regards to the use of product vehicles
To ensure the safety of the customers
To be able re-establish customer loyalty and trust
AREA OF CONSIDERATION
Strength
Strong brand portfolio
Originated Just-In-Time Production
Close relationship with suppliers
Wide product offering • Pioneered quality circles
Weakness
Large scale product recalls
Opportunities
Strong attitude towards green vehicles
Changing customer needs (customized cars)
Growing demand from major emerging markets (India & China)
Threats
New emission standards
Intensifying competition
Weakening demand, increasing cost
Natural disasters that disrupt JIT method
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ALTERNATIVE COURSE OF ACTION
Quality control and checking should be performed with utmost importance before
selling the vehicle to the market.
Quality control and checking should be performed with utmost importance before
selling the vehicle to the market.
Bring back the system of production that prefers quality over quantity.
Advantage:
Product quality will not be compromised and customer’s trust would be regained
Vehicular malfunctioning would be prevented
The corporation would have a sense of direction as to how it would regain its
form status and prevent the re occurrence of recent downfall.
Disadvantage:
Less profit due to reduced production
Additional expenses and time consuming
Senior Management should reassess to control and clarify the objectives of the
production.
RECOMMENDETION:
Toyota Motor Philippines Corporation will be strict with regards to quality control of its
product. Quality control inspectors will make sure that from the very beginning, from
receiving of raw materials, the standards are met. And as these raw materials undergo
process or the assembly line, there will be quality inspectors that would check if the
operators follows the procedures written on their operation standard. Once finished, all
the finished product or cars will go through an intensive quality check and drive test to
ensure that before the cars are received by the consumer, everything is on high quality.
There would also be operators that would immediately proceed to repair and completion
once defects are found in the product. Toyota should continue to undertake concerted
efforts to strengthen its management platform and raise corporate value.
PLAN OF ACTION
Quality control inspectors will make sure that the products meet the standards of
quality and safety. TMP Quality Control will focus on these major areas:
Receiving of raw material
Assembly line
finished goods/products
QC Audit
Repair and Completion
Time Frame: 2013-2015
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PLAN OF ACTION
Toyota Motor Corporation would slowly and surely its former global car
manufacturing status.
The Corporation would regain the loyalty and trust of the its customers.
Issues and incidents involving the quality of the vehicle would no longer be a
norm,
Toyota’s image of quality production would be restored.
The Corporation would earn profit through quality oriented.
The present proposal includes enhanced quality control procedures that would
help in decreasing of the defects on it.
