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Toyota Supplier Relationship Case Study

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Sultan Qaboos University
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Toyota Supplier Relationship Case Study
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1. Causes of the Crisis at ChassisCo’s Athens Plant
The case study is about Toyota supplier relationship with ChassisCo. The relationship
problem arose from the poor visibility and low quality of supplier for the 2003 Suprima model.
This crisis was a big challenge to Toyota which is re-known for meeting consumer demands for
quality and just in time production thus taking care of stock outs (Fine et al., 2017). Both
companies, Toyota and ChassisCo can be held responsible for the quality problem.
Toyota’s Responsibility
The crisis can be said to be partly Toyota’s responsibility because it is Toyota who
selected ChassisCo as the supplier at the first point. Quality and delivery issues are primarily
related to supplier efforts and selecting the supplier becomes a crucial responsibility. Although
there had been a success story where ChassisCo contributed to the successful launch of Toyota
1997 Suprima, there were some technical variations with the new model, 2003 Suprima which
was a bit difficult for ChassisCo to deliver (Fine et al., 2017). There are a number of reasons why
the crisis at ChassisCo’s Athens plant can be termed as Toyota’s responsibility. Some of these
causes include:
Lack of Stringent Supervision
One of the areas where Toyota failed is fully delegating the project management
responsibility to ChassisCo. Although ChassisCo had a history of delivering similar projects in
the past, there were a few elements that made this project unique and much more assistance and
supervision was required from Toyota. In the 2003 Suprima project, Toyota provided only the
technological capability to ChassisCo in the execution of the project (Fine et al., 2017).
However, this time the project required more than just technological know-how. There was need

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1 Toyota Supplier Relationship Case Study Student Name Institution Name Course Name/Code Instructors Name Due Date 2 1. Causes of the Crisis at ChassisCo’s Athens Plant The case study is about Toyota supplier relationship with ChassisCo. The relationship problem arose from the poor visibility and low quality of supplier for the 2003 Suprima model. This crisis was a big challenge to Toyota which is re-known for meeting consumer demands for quality and just in time production thus taking care of stock outs (Fine et al., 2017). Both companies, Toyota and ChassisCo can be held responsible for the quality problem. Toyota’s Responsibility The crisis can be said to be partly Toyota’s responsibility because it is Toyota who selected ChassisCo as the supplier at the first point. Quality and delivery issues are primarily related to supplier efforts and selecting the supplier becomes a crucial responsibility. Although there had been a success story where ChassisCo contributed to the successful launch of Toyota 1997 Suprima, there were some technical variations with the new model, 2003 Suprima which was a bit difficult for ChassisCo to deliver (Fine et al., 2017). There are a number of reasons why the crisis at ChassisCo’s Athens plant can be termed as Toyota’s responsibility. Some of these causes include: Lack of Stringent Supervision One of the areas where Toyota failed is fully delegating the project management responsibility to ChassisCo. Although ChassisCo had a histo ...
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Anonymous
Very useful material for studying!

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