Delegating Full Responsibility of The Product Project Management To Chassisco
Delegating Full Responsibility of The Product Project Management To Chassisco
Delegating Full Responsibility of The Product Project Management To Chassisco
The main contributors of the crisis at ChassisCo's Athens plants are listed below
Delegating full responsibility of the product Project Management to ChassisCo
After the successful launch of Toyota 1997 Suprima, ChassisCo adamantly took the
responsibility of project management of 2003 Suprima with only technological support
provided by Toyota. This was one of the core issue of the crisis. This is because the
independent model by which the Toyota manufactures requires much diligence, careful
planning, stringent supervision, regular inspection and sufficient book keeping. The success
of 1997 Suprima & Responsa led ChassisCo to believe that they fully understood Toyota's
model of TPS and JIT which was actually not true.
Toyota’s late audit
As Toyota delegated responsibility of project management to ChassisCo, they also
neglected to check on the progress of the project time to time. TPS flows in a way where
small problems arises continuously and these are solved with efficiency. When Walt
Bernstein finally went to visit the supplier he found how far behind the project were. A
routinely audit could have spared them from these problems.
Not having enough experts on project
With the success of 1997 Suprima and 1999 Responsa ChassisCo had an unprecendented
number of new launchings with a wide customer base. They had to relocate their expert
employees elsewhere and this lowered the productivity, knowledge and team spirit of
Athen's branch.
ChassisCo's responsibility
Lack of knowledge in project management
Reduce shared information to employees and clients.
Company's global development decentralization
Insufficient Manpower
Lack of knowledge on Technical Instruction Sheet
Failure to communicate with Toyota on unrealistic product price.
Failure to audit and standardized suppliers
Toyota's responsibility
Lack of supervision from Toyota as they outsourced everything (sourcing, incoming
logistics and inventory management) to ChassisCo
Slow detention on potential problems
2. What are ChassisCo's options for resolving the crisis ?
ChassisCo must shift its culture towards one more compatible with Toyota by means
to escalate risks in time. By doing this, it will help to solve risks swiftly and prevent
further stalling of operations.
Evaluate for getting a new suppliers that could increase the quality and compatibility
for manufacturing process.
Come out with the most experienced staff resources especially expertise and
engineers in the cradle production in order to tackle problem arises.
Improve their quality concerns and fix their cost issues .
What would you do if you were in charge?
If I were in charge, I would identify and prioritize the problem, also develop the
activities checklist for the plant to work on. Next, followed all standard procedure for
overseeing a problematic suppliers as they had a greater responsibility to improve
operations. Other than that, planning the job design and human resources properly ,
the scheduling of the job and Total Quality Management (TQM) to prevent the further
critical issues arise.
3. What are Toyota's options for resolving the crisis?
Toyota should stop assuming that their suppliers are perfectly fit for any increase in
responsibilities especially those supplier from different cultures.
Toyota also should consider in getting new suppliers that could increase the quality
and compatibility of their manufacturing processes.
Toyota should stay open and listen to the risks issued by the people working on the
supplier side. Particularly with those risks related to a constraint in capacity or
quality.
What would you do if you were in charge?
My first recommendation to Toyota is too never assume that their suppliers are going
to be able to undertake a significant increase in responsibility, especially when they
do not fully know the Toyota way of doing things.
In the future if they do attempt to make a similar partnership with a supplier that they
employ an experienced Toyota champion to oversee the entire operation for at least
a year until they are absolutely certain they are sufficient on their own.