Question

Toyota Corollas are available in eight different colours, and six different models. The Corolla models differ mainly in transmission type and feature packages. Additional option packages are available for some models. Toyota Motors Manufacturing Canada produces cars to order, for two national distributors: Toyota Canada, and Toyota USA. All production is based on firm orders from the distributors. Estimate the total number of unique vehicle configurations that are available, and discuss how Toyota’s distributors decide how many of each to order, and how the cars get to the final customer. Also, discuss Toyota’s claim that all cars are already sold when they leave the plant.

Answer 1

Toyota currently mentions around 70 different models that were offered under its brand name, including sedans, coupes, buses, trucks, hybrids, and crossovers. Many of these models are manufactured as passenger sedans, ranging from the Toyota Yaris subcompact to the Corolla compact, the Camry mid-size, and the Avalon full-size. Vans include the Previa / Estima, Sienna, etc. Several small cars are marketed under the Scion name, for example, the xB and tC. Toyota Recyclers Wellington removes:

• Toyota Cars / Commercials
• Toyota Vans / Utes
• Toyota 4WD / SUVs

Dealers store vehicles based on a recent past. Those models which are selling the fastest are reordered first. Dealers are aware of which colors sell well, which trim sets sell better and which variations of engine/transmission sell well. Toyota's distributor decides on the basis of the number of orders they received previously.

Toyota generally follows Pull System Manufacturing

A "pull" production system is central to the concept of lean fabrication and JIT inventory controls. This is compared with the other fabrication system, which is a "press" device. There are times where each situation is ideal; however, by adopting a mainly "pull" strategy, Toyota has made considerable strides.

The North American automotive traffic movement demonstrates how cars pass through this North American distribution network from the assembly plants. They are shuttled into a marshaling yard until the cars are assembled. (North American vehicle delivery flow will clarify the specifics of the marshaling yard activities. North American vehicle delivery flow will be clarified next.) When the vehicles have been loaded in the marshaling yard, they are transported to the storage facility for shipment out. Two modes are used to transport the vehicles to the final dealers. The first choice is rail transport, loading vehicles onto railcars, transporting them to a railhead, and then loading them into a truck for distribution to the dealers. For direct truck away, the second choice is: vehicles are loaded into trucks and shipped directly to dealers. Option 1 is used by dealers situated a long distance from the factory, usually more than 500 miles away. They account for around 75 percent of the production. Option 2 is used by dealers near to the plant — within travel time of two or three days.

Toyota has an on-time distribution target of 48 hours in its arrangements with the trucking companies from the point the car is shuttled to the loading area before it is shipped to the dealership. There is no specific distribution schedule for the railroads since too many factors, such as railway changing time at rail yards, demand for empty locomotives, obstruction at destination rail yards, etc., may influence the timing of rail shipments. Toyota further underlines safety through the tracking of risk measures for both trucking and rail partners. For all its logistics companies, the organization holds an annual meeting to identify the best performers in both on-time delivery and quality performance. The acknowledgment gives the logistics suppliers an opportunity to develop and also sets the standards for potential results.

Yes, Toyota's claim that a car is already sold when it leaves the plant is true. Because Toyota follows the JIT manufacturing process, so, the statement is true.