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Tmmc Case Answer

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The fourth endogenous factor measures Plant Competencies. Plant competencies is an important factor because it deals with how well the cultural environment and management of the plants adapt and function with the TPS system and the Toyota principles of Jidoka and Kaizen. Thought extremely important Plant
Competencies scored a 3 due to its endogenous flexibility. Toyota has control of this and could manipulate the Management style to adapt better competences. TMMC scored a 4 mainly in regard to the fact that it was unionized which limited third party communication and participation, second because
TMMC adapted new technology in the past with success.
The fifth endogenous factor measured in the grid analysis was that of potential growth. Growth is important if demand exceeds capacity. This was weighted as a 3 due to Toyota’s control over plant and production growth. TMMI and TMMC both scored a 4 due to the range of technology that TMMC incorporated and the relative size of the plant 2 million sq ft to its production capacity and 400 acres to grow on and TMMI’s growth in 2004. NUMMI is constrained by acreage and TMMK shows no sign of growth.
The exogenous factors that are largely out of Toyota’s control include the location of the plants in respect to the selling markets and the vendors and suppliers that produce the components for the production of the RX 300. An additional exogenous factor is the overall cost incentives to manufacture at a specific plant.
For simplicity many factors were grouped into the cost incentive factor and it is weighted very heavily due to its significance and impact on the decision making process. Cost incentives are exogenous due to the vast amount of external factors that are out of Toyota’s control. This Factor harbors sub factors such as laws, regulations, taxes and duty’s, import export tariffs, tax incentives, cost of…...

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