As a company, Toyota has reached such great heights not merely through creating good products, but also by a good understanding of production efficiency and lean production. They have managed to save billions of dollars simply through streamlining their production- things like the Toyota Production System and just-in-time scheduling have helped in no small part.
But of course, the leaner operations become, the more difficult it is to react to unforeseen circumstances. Early in January, a critical furnace was destroyed in an explosion at Aichi Steel Corporation’s Chita plant in Japan. The result of this is a little like a domino effect: as steel production tanks, parts production will begin to slow as well- and as reserves are depleted, eventually vehicle production has to stop.
Due to these parts shortages, Toyota will suspend all production on its vehicle assembly lines within Japan from February 8 through 13. Operations are scheduled to recommence on February 15, and vehicle production on lines outside Japan will not be suspended. Toyota is willing to go to greater lengths during this kind of crisis- they are even willing to take steel from another manufacturer if it means that they can kick start production again. Every hour a plant sits unused is a big loss to the company.
