toyota vs. big 3
...ally in Toyota and Ford Motors case. “According to most forecasts, U.S. automakers will likely continue to lose ground in North American sales to Toyota and other Asian brands”(Toyota vs. GM). This statement is a petrifying one, considering the United States largest automobile manufacturer is an Asian-based company. Ford Motor Company, and the other bands of the auto-industry, sound like they are gratified with their standings, and also lack a leadership role. Here is one example of “Big 3’s” lack of leadership, “Spurred by escalating oil prices, the demand for fuel-efficient vehicles have definitely stepped up,"(Detroit News) said Jim Press, executive vice president of Toyota Motor Sales. If the companies of the “Big 3” would have set the pace during the hybrid-engine R&D, the tables would be turned on Toyota. The failure of leadership in this case caused a loss in sales and a dip into their market-share. So, what have GM and Ford contributed to their market share of the hybrid-engine? Yes, they have produced a hybrid-engine, but at a much heftier production cost than their competitor. These higher production costs mean higher retail prices, which clearly states why sales are not above or at par with Toyota’s hybrid-engine sales, plain and simple. So, what aspects of the Toyota Company stand out from the rest of the auto-industry? Well, listen to what Greg Mattson has to say, a visitor to the Toyota Plant 4 years ago. “It's June 2001, and I'm standing on the production floor of the Toyota Car Company in Toyota City, Japan. I'm awestruck at the level of organization I see at every turn. Tools are color-coded and placed at arm's reach, and the employees are performing a well-choreographed dance of seamless production. Nothing is wasted; nothing is overlooked. On this day the company is running at 98 percent efficiency, with less than one percent defects and only ten minutes of operating inventory at any given time”(Howes). WOW, this type of performance sounds like execution, energy, and excellence, and this was 4 years ago. The production manager of Toyota views the organizational secret as a very simple task at hand. He says, "We view production problems as opportunities, not inconveniences. Of course, there is more to the organizational equation, but this is the most basic and important lesson to learn"(Taylor). These types of energy must derive from Taiichi Ohno, the father of Toyota's production system and the man who brought Toyota's simple secret, called "lean manufacturing," to the modern world. He says, “In a nutshell, lean manufacturing is based on the principles of zero defects, one-piece flow (completing one job at a time) and just-in-time inventory” (Taylor). Clearly, Toyota is/has quickly taking over the auto-industry and blowing their competition away with their tremendous profits. ”In factories around the world, Toyota consistently makes the highest-quality cars with the fewest defects of any competing manufacturer, while using fewer man-hours, less on-hand inventory, and half the floor space of its competitors”(Liker). Maybe the “Big 3” should take some notes. Well, on the other hand, if they are content with #3, why bother? One last point, during March, gas prices jumped to an average of $2.15 per gallon nationwide last week, according to federal figures. Also during this month, "Spurred by escalating oil prices, the demand for fuel-efficient vehicles has defi...