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# Toyota Production Assignment

By Author: Sherry Roberts
Total Articles: 450

The grid analysis entailing the weighted scoring model indicates the decision factors that support the selection if Toyota’s North-American facility for production of their cars. The two main choices under consideration are the Toyota motor manufacturing Canada as well as the USA. The first table (Table 1) indicates the relative quality or condition of every factor at each of the potential sites via the use of the ordinal scale of 0 to 5, whereby 0= worst, 3= average and 5= the best. The second table (Table 2) offers an indication of the weight or significance that is credited to each factor and additionally calculates the weighted score of every factor as the cumulative score on every site. The weights are dependent on the ordinal scale ranging from 0-5 whereby 0 is least important, 3 is average while 5 implies critically significant.
Table 1: the unweighted grid analysis
The factors addressed in this case include:
Brand recognition Market saturation Per capita income Distance to market Distance from capital suppliers Government regulation Government corporate taxes Government labor regulations Site infrastructure
The TMMC
2 3 3 3 3 5 5 4 3
The USA
2 2 4 5 5 3 2 5 4
The ordinal factor scale to use in the above assessment includes: 0 represents the works condition while 5 is a representation of the best conditions.

The factors:
Brand recognition Market saturation Per capita income Distance to market Distance from capital suppliers Government regulation Government corporate taxes Government labor regulations Site infrastructure Total
The TMMC
4 9 12 15 15 25 20 16 9 125
The USA
4 6 16 25 25 15 8 20 12 131

The ordinal weight scale follows that 0 represents “least important” while 5 represents “the most important”
The weight is this case is 2, 3, 4, 5, 5, 5, 4, 4, and 3
The ordinal weight scale follows that 0 represents “least important” while 5 represents “the most important.”
The weight is this case is 2, 3, 4, 5, 5, 5, 4, 4, and 3
The exogenous factors as well as the assumption that supports the TMMC relates to the aspects of market saturation in that the availability of competitors and their local distributors are an important factor in considering the location of a facility. In this case, the number of competitors who precede the arrival of Toyota is an environment attribute that is beyond the corporate control. The case of high market saturation causes an increase in the supply costs, increasing the possibility that there is going to be substituted as well as negatively impact the market share (Liker, 2010). Canada delivers the impression that they possess a mature and consequently growing automotive industry along with their international partners. The US automotive industry, on the other hand, was at some point a giant of domestic auto production capacity but has been on a decline for some years. Although the two countries have identically viable automotive markets, the evident decline in the US domestic automakers presents a unique opportunity for international producers are Toyota to take advantage.
About the issue of per capita income, in the year 2008, Canada has a per capita income of \$39,300 while the US had \$47,000. The average income of an individual is an exogenous attribute relating to the native economic prosperity and thus not results of any impact from Toyota Motor Corporation. A higher per capita income has a positive impact on the RX 330 pricing as well as profit margins. Following the normalization of the per capita income to the lowest alternative, Canada receives a three while the US receives a four due to the possession of a higher per capita. The subject of government regulation is an exogenous factor that is based on the comparison of the composite freedom of businesses as well as the score of trade freedom for the two countries (Nayab, 2011). Canada and the US exhibit 184.6 and 178.2 respectively.

References
Liker, J. (2010). The way back for Toyota. Industrial Engineer, 42(5), 28-33. Retrieved April 6, 2016, from ABI/INFORM Global.
Liker, J., & Morgan, J. (2011). Lean Product Development as a System: A Case Study of Body and Stamping Development at Ford. Engineering Management Journal, 23(1), 16-28. Retrieved April 6, 2016, from ABI/INFORM Global.
Nayab, N. (2011). Disadvantages to using decision trees.

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