Toyota - Make or Brake

Table of Contents

Executive Summary: 3
Introduction: 4
Toyota’s Issue: 4
Toyota’s response to handle the situation: 5
Quality: 5
Toyota’s quality issue and possible causes: 7
Toyota’s corrective actions and cost impact: 9
The way forward- steps to re-bounce: 9
Conclusion: 10
Bibliography: 13
Appendix 15

Executive Summary:

The objective of the report to investigate the quality issues Toyota- the largest Japanese Automobile company, is facing in the perspective of operation management principles and practices. Toyota had to recall eight million plus cars for fixing the acceleration and brake system problems associated with 52 fatalities and many injuries specifically in North America and Europe regions. Industry analysts had portrayed a gloomy picture about Toyota’s future in the wake of these quality issues and recalls. Some of them called it the beginning of Toyota’s leadership end.

We will critically analyse the problem being faced by Toyota by studying the impact of recent product quality issues on Toyota’s present and future business outlook. We will conclude the report by our recommendation to Toyota to fix the product quality and reputation issues.


Toyota is an accomplished leader and globally known name in the car making industry. The company has been successfully manufacturing and selling reliable automobiles worldwide.   The Toyota Motor Corporation (TMC) was established on 28/08/1937 by Sakichi Toyoda. It employees 320,590 people worldwide and it is mainly into motor production and sales business. It is a 397.05 Billion Yen Company head quartered in Japan (Toyota> Company Profile> Overview,2010). TMC headed by its Chairman Akio Toyoda, enjoys leadership position in the car making industry as a reputable and reliable car producing company. Its production system known (TPS) had been the source of inspiration for many companies in automobile industry for its operational efficiency and reliability.

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