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Risks of Global Production Systems: Lessons from Toyota's Mass Recalls

By: Minhyung, Kang | SERI Quarterly, July 2010 | Article details

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Risks of Global Production Systems: Lessons from Toyota's Mass Recalls


Minhyung, Kang, SERI Quarterly


Keywords

global production system, risk management, Toyota recalls, quality management, automotive industry, overseas suppliers

PROS AND CONS OF GLOBAL PRODUCTION SYSTEMS

It was shocking to see Toyota, known for legendary quality control, begin a series of record recalls at the end of 2009 that ultimately involved nearly 10 million vehicles. After first blaming floor mats for stuck accelerator pedals, it ultimately found a defective part in the pedals. With the main cause of the defect blamed on the side effects of relocating the company's production base overseas, there is an increasing wariness about the inherent risks of a global production …

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