Toyota Motors Manufacturing (TMM) faces increasing problems with its seat supply. TMM’s single seat supplier, Kentucky Framed Seat (KFS), is responsible for the majority of the problems with material flaws and missing parts as the major encountered defects. These problems are increasingly occurring with an increase in varieties of and demand for the seats.
Toyota currently addresses these problems offline; however, this is a deviation from the policies and procedures under the Toyota Production System (TPS). Now, as TMM ramps up for the production of the Camry Wagon, it must address the seat issue before seriously impacting production performance. This is Caused by 3 Factors:
1.Seats need to match each particular car, therefore stock parts cannot be used
2.The supplier process operates under Just In Time (JIT)
3.KFS cannot readily supply replacements for defective seats. Purchase Department Suggestions to Top Level ManagementQ1: Buying Quality Material at Low Prices:Solutions :1.Purchase Department has suggested following ways to procure material at low price andw with best quality 2.Downward Integration: As Toyota is huge industry and requires large number of stock, so if it can go for downward integration it would be a good idea as than it can very well control the inventory for JIT and it will also have a total quality control and will save the cost.
3.Quality Control: Quality check Teams can be formed which would work in close collaboration with suppliers so to check on quality of materials supplied by them and suggest them measures to overcome any defect in their manufacturing process.