CAN THE BIG 3 OVERTAKE TOYOTA? — A STUDY BASED ON THE THEORY OF CONSTRAINTS

Abstract

Purpose — The aim of this paper is to provide answers to two significant questions. The first question is "what is the comprehensive action for the Big 3 to overtake Toyota Company?" The second question is "Can TOC (Theory of Constraints) really deal with this kind of complicated problem effectively?" Design/methodology/approach — In order to address this question and come out with a reasonable answer, this study uses the Theory of Constraints to discover the root causes and countermeasures for the Big 3 to break through their paradigms. Findings — It is worthwhile to highlight that we have demonstrated that a sophisticated case in global competition of the motor market can provide solutions with only four TOC logic trees. Furthermore, it is interesting to note that the four TOC logic trees fit perfectly well with each of the four problem solving steps in two aspects: (1) It provides a shortcut through mirror imaging process and (2) It enhances the clarity of the thinking process. Research limitations/implications — However, there remains some issues open for further exploration: (1) How can we make sure that the appropriate core problem(s) or root cause(s) has been identified in CRT (Current Reality Tree) and it is indeed the most meaningful one? (2) How can we proceed from CRT to FRT (Future Reality Tree) & further from FRT to PT (Prerequisites Tree) more effectively? (3) How can we discover key obstacles from PT and how to develop action plans from TT (Transition Tree) smoothly? (4) How to refine and integrate these feasible solution sets coming out from TT into the optimal solution scheme to be adapted in the real world? Originality/value — This study demonstrates how TOC problem solving can help to solve the core problems and root causes of "can the Big 3 overtake Toyota?" It not only gives managerial insights for the Big 3 to break through their paradigms to fight back Toyota; but also identify how a complex problem beyond production field can be analyzed and dealt with effectively. Paper type–Case study paper.