Wednesday, January 26, 2011

Toyota recalls 19,000 cars in Britain. What's happening to the Japanese giant?


Toyota ranks fourth in the world in profit. But Setting aside the oil companies and banks, the Japanese company is number one among manufacturers. The Toyota Production System has been company's biggest success which organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customer, with intent to proceed at the lowest possible per-unit cost. This System has made what Toyota is.
Unfortunately, the company has been forced to recall almost 9 millions of cars around the world since problems first appeared in 2009.
Well, what’s happened to the Japanese giant?
Ironically, it’s just the System to make troubles. In fact, the other side of rationalisation is compulsory labor.
In 2003 a labor-management council meeting noted that, “the company sees the high incidence of psychological disease as a grave situation.”
In addition to the deterioration of mental health, Toyota has implemented cost-reduction measures.  A new wage system was introduced with wage reductions after the age of fifty-one and many activities have been delocalized. By then, a large amount of workers have been sent overseas as training leaders and replaced with thousands of short-term employees. In summary, there is mainly a strong dissatisfaction between workers which impacts on Toyota’s approach to quality.

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