Supplier and Customer Relationships in Toyota Manufacturing USA: Proposal of Development of Advanced TPS for Global Production Strategy

Hirohisa Hirohisa,James Fikes

doi:10.22158/se.v6n2p44

Abstract

Toyota Motor Corporation has developed a process to enhance the supplier and customer relationships through their Tier 1 shipping process. The Tier 1 shipping entity is the supplier to the customer producing the completed product. In their system, quality gates are inserted into the process to act as the gates from order through shipment to ensure the correct material is ordered and shipped on the proper dates to sustain Just-in-Time delivery. This paper describes the Toyota Manufacturing USA process to fulfill customer orders and build a successful business relationship.

Highlights

Supplier and customer relationships have been present throughout history
Ideas for an Enhanced Communication Method Communication between both the supplier and customer must be established in the manufacturing environment to prevent product shortages or overages (Weber, Current, & Desai, 1998). Using this concept to support a more reliable communication model, this article proposes three important points to assure high quality and effective communication in the business relationship which includes: (1) Frequent and structured communication meetings lead by supplier to discuss abnormalities in the order or shipments (2) Operation schedule and volume comparisons between supplier and customer (3) Product change point reviews and discussions Figure 3 shows the ideal flow of communication for common supplier and customer related actions and the corresponding actions that are required from the receiver of the information
The authors of this article have proposed an order confirmation system which includes three quality gates: Frequent and structured communication meetings lead by supplier to discuss abnormalities in the order or shipments: (1) Confirmation of order accuracy (2) Maximization of logistics space (3) Product shipment confirmation (3-Point Check System) Figure 4 shows the supplier order to shipment confirmation system

Summary

Introduction

Supplier and customer relationships have been present throughout history. For example, plants supply food to animals and animals are the supply of food to humans. Ideas for an Enhanced Communication Method Communication between both the supplier and customer must be established in the manufacturing environment to prevent product shortages or overages (Weber, Current, & Desai, 1998) Using this concept to support a more reliable communication model, this article proposes three important points to assure high quality and effective communication in the business relationship which includes: (1) Frequent and structured communication meetings lead by supplier to discuss abnormalities in the order or shipments (2) Operation schedule and volume comparisons between supplier and customer (3) Product change point reviews and discussions Figure 3 shows the ideal flow of communication for common supplier and customer related actions and the corresponding actions that are required from the receiver of the information. The 3-Point Check System is designed to prevent the incorrect shipment of product to the customer by (i) ensuring the customer shipping label matches the supplier internal product label, (ii) the customer shipping label matches the product to be shipped, and (iii) the supplier internal product label matches the product to be shipped

Example

Conclusion