TOYOTA

Introduction
Toyota is a Japan based manufacturer of automotives.and, as of February 2016, was the 13th
largest company in world by revenue. Toyota was the largest automobile manufacturer in 2012
(by production) In July of that year, the company reported the production of its 200-millionth
vehicle.Toyota is the world's first automobile manufacturer to produce more than 10 million
vehicles per year.

Auto Recall
An auto recall is when a manufacturer (or the NHTSA) determines that a car model (or several
models) has a safety-related defect or does not meet with a federal safety standard. When this
occurs, the automaker will alert owners to the problem and usually offer a free repair.

Toyota - Auto Recalls

The prevalence of recalls in recent years contributes to a significant, yet unnecessary, expense for
manufacturers and an added burden on single-source suppliers.
There have been numerous recalls that have affected millions and millions of vehicles including
Toyota .Now a days Toyota is one of the 10 most recalled brand .
Toyota is recalling 3.37 million vehicles globally over a pair of defects, in the latest hit for a
Japanese auto industry hit by fuel-efficiency scandals and an exploding airbag crisis.
The most affected models in Toyota’s recall include its Prius hybrid and luxury Lexus, with the
vehicles mostly sold in Japan, North America and Europe.
About half of the recalled vehicles, built between 2008 and 2012, have a problem with passenger
and driver-side air bags that could see the safety device partially deploy and create the risk of
injury
The other defect is tied to problems with a fuel emission control unit that could lead to cracks
developing in the unit,.As a result of this condition, the cracks could expand over time and,
eventually, fuel may leak from these cracks when the vehicle has a full tank of gas
Toyota's latest recall includes the Corolla, one of the world's best-selling models, and the Vitz or
Yaris subcompact hatchback model. It covers driver-side and passenger-side airbags installed in
cars produced between May 2000 and November 2001, and April 2006 and December 2014. It
affects about 1.16 million vehicles sold in Japan, about 820,000 cars sold in China, and around
1.47 million cars in the European market.The recall extends to Central and South America,
Africa, the Near and Middle East and Singapore, and also includes the Hilux pick-up truck and
the Etios line of sedans and hatchbacks.
The latest recall includes about 20,000 cars which were fitted with replacement Takata inflators
following an initial 2010 recall, as the replacement parts are also seen to be at risk of exploding
as they do not contain a drying agent.Transport authorities around the world now consider
inflators without a drying agent to be unsafe, and have ordered all of them to be withdrawn
Recently Most common recalls are as follow
 Airbag recall
 Structure recall
 brakes recall
 Suspension recall
 Fuel Supply recall
 Label Recall
 Steering Recall
 Power Train Recall
Reasons of Recalls
“Automobiles are more complex than ever, with systems that continue to try to do more for the
driver, But with complexity comes higher risk for failure. Automotive manufacturers must take
steps to mitigate these failures through collaboration and the use of advanced technologies. The
ability to easily move information and attain real-time visibility into the supply chain and its
manufacturing and quality processes, is crucial in order to continue producing high-quality and
safe vehicles.”
Design for Manufacturing step is missing
Design for manufacturing is an integral part of the design and production process but toyota still
equate this with design testing. It’s not the same.Effective product development must go beyond
the traditional steps of acquiring and implementing product and process design technology as the
solution This is one of important reason of recalls.
Design integrity Problem
Initial design stage should be as fault free as possible to avoid the problems. ignorance of this
point increases the recalls of Toyota
Lack of support in parts of Supply Chain
There were lack of support in parts of supply chain which includes contractors,Suppliers,
software developers and a sales outreach.A great design can fail if the supply chain does not
provide the necessary support to guarantee success.
Ignorance of Checking History of Suppliers
A supply chain is only as good as its components. In the electronics industry this is a cardinal
principle of an effective and efficient product management system.A single OEM product can
have components from dozens of suppliers and an effective failure monitoring system must look
deep into the supply chain.Ignorance of these steps caused recalls of vehicles

Failure to Comply with Regulations

Environmental and other compliance requirements have ballooned in recent years and across
multiple geographies. The acronyms alone tell a story of an industry being closely monitored. In
the last two decades regulators in Europe, Asia and North America have asked manufacturers to
comply with REACH, RoHS and WEEE. If you don’t know what they mean that’s already a
problem. Failure to comply with these three regulations or the US-driven rule on “Conflict
Minerals” is guaranteed to result in product recall
Weak Collaboration in components of supply Chain
All segments of the supply chain must work tightly together to avoid product recalls. The
equipment Vendor diod not bring all components of supply chain at early design phase which
resulted more and more products recalls

Mismanagement at Manufacturing Floor

Toyota has contract manufacturer which has its own assembly plant but still company is entitled
to efficient, fault-free production environment. While the company does not own the property, it
has the right to inspect the production facility and ensure the contractor complies with regulatory
requirements. Failure to do this results in a product recall

Recommendations
A product recall is tantamount to a kiss of death in certain segments of the economy, especially
for food and other agricultural products. Not so much in other areas such as in the automotive
market where manufacturers, led by General Motors, have this year recalled millions of vehicles.
The electronics industry falls somewhere in between these two economic sectors but the impact
of a recall due to defects in performance or other reasons can be equally severe, leading to
significant decline in market share and huge losses.
Recalls aren’t common in the electronics industry and even when OEMs, especially in the
consumer and white goods segment, issue a defect notice many people don’t directly associate
the incident with specific technology in the product. The component supplier may have caused
the incident leading to the recall but it’s the OEM that takes the public beating. In other words,
the OEM gets blamed as it has happened with General Motors, Toyota Motor Corp., and
Chrysler, which on Oct. 29 announced the recall of more than 300,000 vehicles due to faulty
“electrical connectors of the diesel fuel heater, which may overheat, causing a leak in the fuel
heater,” according to a statement issued by the National Highway Traffic Safety Administration
(NHTSA).
While OEMs may be blamed by regulatory authorities and endure a public drubbing for any
recalls, the suppliers hardly get off free. In fact, a supplier whose component or subsystem
results in a product recall not only faces high financial losses but may lose major contracts not
only with the impacted OEMs but also other customers. This is why the electronics industry puts
a great deal of importance on product reliability both at the components and finished equipment
levels. It also means the supplier and the OEM are joined at the hips and must work closely
together to ensure the integrity of the finished goods.
So, what to do to avoid these costly recalls some Suggestions are summerized down to the
following critical points:
Design Integrity:
From begining stage try to make the design as fault-free as possible. Its better to
take time to ensure the quality of design than recalls or repeated redesign which
can result into more additions of problem
Don’t Skip the Test Phase
Its obvious that failure to sufficiently test a design can result in greater problems
down the road. Additionally, the prototype must be subjected to necessary failure
analysis and repeatedly to eliminate potential problems. Faults identified during
this phase can be more easily corrected than if the issue was raised down the
road.
Design for Manufacturability
Effective product development must go beyond the traditional steps of acquiring and
implementing product and process design technology as the solution.It must
address management practices to consider customer needs, designing those
requirements into the product, and then ensuring that both the factory and the
virtual factory (the company’s suppliers) have the capability to effectively produce
the product.” Crow noted that decisions made during the design phase can
account for up to “70 percent of the product’s costs while decisions made during
production only account for 20 percent of the product’s costs,” which means
assuring design for manufacturability can yield great results.
Check and Double-check all Parts of the Supply Chain
A great design can fail if the supply chain does not provide the necessary support to
guarantee success. In addition to securing a viable design a manufacturer must
have an excellent support system with suppliers, contractors, software
developers and a sales outreach that on their own double-check their systems to
make sure these are optimized to support the product.
Verify History and Record of the Supplier
. . Each layer must be closely scrutinized and processes put into place to ensure
accuracy of reports. Many OEMs rely on a core group of suppliers to assure the
integrity of their products. These suppliers are often listed on the Approved
Vendors’ Lost (AVL), which can be shared with and sometimes managed by an
electronics manufacturing services (EMS) provider. This list must continually be
evaluated with new players added and some older ones removed as necessary.
 It must never become a static list.
Stay Abreast of Rules and Regulations
There are three regulations which regulators in Europe, Asia and North America have
asked manufacturers to comply with These are REACH, ROHS and WEEE. If you don’t
know what they mean that’s already a problem. To follow these rules and regulations
can decrease the product recall
Use technology to connect the supply chain
With a global supply chain, it becomes increasingly difficult to know what is happening
at each facility or supplier. Utilizing leading technologies, such as the cloud or mobile
devices, helps to connect the supply chain, making it possible for operators and
inspectors within a manufacturer’s facility or the relevant supplier to input data from
anywhere, using any mobile device. The data populate a centralized database for
personnel to review and analyze, while sending real-time notifications to management,
even when they are off-site
Ensure Tighter Collaboration between Distributors, Suppliers, EMS Providers and OEM:
There should be strong Collaboration between members of supply chain to avoid
recalls but harmonizing the relationship is the main task of the OEM. The
equipment vendor must bring all members of its supply chain together early in
the product design stage and ensure they work as a team. Oftentimes, that duty
is delegated to the EMS provider but in recent years some distributors have
stepped up to provide this service. Digi-Key Corp., for example, is helping some
of its customers with their volume purchase requirements even while keeping its
focus on servicing design engineers, according to Dave Doherty, executive vice
president of operations.
Work with suppliers
Relationships between OEM manufacturers and their suppliers have continued to
change drastically, shifting from one manufacturer juggling multiple suppliers to a
single supplier supporting multiple manufacturers. Even though this is a more
efficient business model for manufacturers, it creates a scenario where issues
with a single supplier affect multiple manufacturers and multiple part lines.
Working closely with suppliers enables manufacturers to understand the
supplier’s internal processes and offer ways to improve the quality of the
component parts so they meet the manufacturer’s quality standards.
Secure the Manufacturing Floor
Even if you are using a contract manufacturer who owns the assembly plant you are
still entitled to efficient, fault-free production environment. While the OEM may
not own the property, it has the right to inspect the production facility and ensure
 the contractor complies with regulatory requirements. Failure to do this could
result in a product recall that may be forced upon the manufacturer by regulators
not because of a problem with the product itself but for failing to comply with the
law.
Leverage manufacturing intelligence
Data gathered in-process offer a second tier of information, or manufacturing
intelligence, that can be used to increase efficiency and quality across the enterprise
and supply chain. Utilizing advanced data analysis software, it’s possible to compare
site to site or supplier to supplier, identifying areas for improvement. If one facility is
running an identical process significantly more efficiently than another, the information
could be shared with the second site to enable process improvement. Extending this
learning opportunity across a manufacturing environment helps to increase overall
effectiveness and improve variation across operations.
Create a culture of quality
Abnormalities in parts or inefficiencies in manufacturing processes exist on any plant
floor, but operators may hesitate to point them out for fear it will reflect poorly on
the quality of their work. Instead, quality departments and executive management
should create a culture where suggestions for improvements—large or small—
are welcomed and praised. This will not only encourage employees to offer
suggestions, but also ultimately lead to improved manufacturing and quality,
based on the recommendations
Secure the Shipment
Assume the product is not safe until delivered intact and unspoiled to the end-
customer. Some product recalls occur because of damages suffered after
production rather than as a result of defects in parts or problems on the
manufacturing floor. This week, for instance, Toyota announced the recall of
170,000 Camry sedans in the United States and Europe “over faulty ball joints
that may have been damaged during shipment” and which could make drivers
lose control of the vehicle.
Demand more than an inspection report
Traditionally, manufacturers had to rely on a paper report and the word of their suppliers
that the parts received met the OEM’s high quality standards. Today, it’s not enough to
trust this process. Manufacturers must have visibility into supplier operations to
understand what’s occurring within the manufacturing processes, ensuring appropriate
testing is being conducted and confirming the results meet the OEM’s high quality
standards. Real-time visibility created through cloud-based quality systems offers a
complete view of supplier operations, removing the need to re-inspect incoming parts.
 Have a Crisis Response Team
Product failure may occur despite all efforts by a manufacturer to avoid it. Beyond
the actions above, manufacturers must have a plan in place to deal with
identified problems in order to determine the appropriate response. A software
update can resolve some problems, for example, eliminating the need for a more
expensive product recall. The crisis response team should also be charged with
closely monitoring the product through the design and production stages and
also oversee post-production activities to identify problems and deal promptly
with them..
Drill down through data to reduce warranty claims and recalls.
Manufacturing intelligence enables the enterprise to drill down through manufacturing
data from within the OEM business and the supply chain to identify when, where, and
how defective parts were made. If a product was returned within the warranty period
because of a defective part, quality software can be used to identify whether the return
was due to a supplier or material inconsistency. With the source of the issue identified,
enterprises can put measures in place to prevent the same issue in the future..