Paper Summary:

In this article, the writer discuses that the strategic decisions facing Toyota specifically in the area of production and manufacturing in Asia center mainly on the ability to simplify the complex production processes they rely on for strategic sourcing, procurement, supplier quality management all of which impact their ability to quickly on-board new suppliers. The writer evaluates the specific strategic options, and within them, the specific tactical choices or decisions which need to be made. The writer maintains that despite the high level of automation however Toyota still faces formidable resistance to change within the cultures of its suppliers, and to be effective, the proposed rapid on-boarding program needs to address resistance to change. The writer concludes that for Toyota the greatest challenge will be overcoming resistance to change within its existing TPS organization and the support staffs that are responsible for supporting its many initiatives and programs.

Outline:
Introduction
Strategic Decisions For Toyota's Asian Manufacturing Operations
Specific Strategic Decisions to Concentrate on Supply Chain Value-based Supplier Integration
Implications for Innovation and Entrepreneurship

From the Paper:

"The many strategic choices that Toyota has in pursuing manufacturing in Asia can be succinctly defined as supplier aggregator, cost leader or supply chain value-based supplier integrator. The Five Forces Model as defined by Dr. Micheal Porter has often been used to analyze specific industries and their ability to capitalize on Dr. Porters' generic competitive strategies. In the case of Toyota's decisions with regard to being a supplier aggregator versus supply-chain value-based aggregator, longitudinal studies indicate that being a value-based aggregator is where the inherent strength of their manufacturing processes are. The idea of being purely driven by price and attempting to force suppliers into a purely cost competitive mindset so the autos produced can ride an elasticity curve in chosen markets is a path to financial losses and brand degradation however. As has been shown in many studies, pricing on automobiles globally is inherently inelastic ..."

Sample of Sources Used:

• George Alukal 2007. Lean Kaizen in the 21st Century. Quality Progress 40, no. 8 (August 1): 69-70. http://www.proquest.com (accessed December 23, 2008).
• Bill Baker 2003. Toyota Production System. Quality Progress 36, no. 1(January 1): 98. http://www.proquest.com (accessed December 21, 2008).
• JT Black 2007. Design rules for implementing the Toyota Production System. International Journal of Production Research 45, no. 16(August 1): 3639. http://www.proquest.com (accessed December 23, 2008).
• Kasra Ferdows 2006. Transfer of Changing Production Know-How. Production and Operations Management 15, no. 1 (April 1): 1-9. http://www.proquest.com (accessed December 24, 2008).
• Japan's smooth operators :But does lean production damage the brand?. 2007. Strategic Direction 23, no. 4 (April 1): 10. http://www.proquest.com (accessed December 21, 2008).

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