Many studies on Japanese manufacturing practices have rarely compared how different
Japanese vehicle manufacturers implement market flexible customizing system (MFCS).
The aim of this study is to compare collaborative practices of Toyota, Nissan and
Mitsubishi in terms of how they integrate changing market demand information into
their production plans. From 2001 to 2008 a research team has engaged in-depth
interviews of eleven executives from Toyota, Nissan and Mitsubishi and five executives
from their suppliers. Such longitudinal approach was to examine the evolving sets of
management philosophies and manufacturing practices. The results of this study
suggest a few interesting findings. First, as an improvement of flexible manufacturing
systems (FMS) in 1980s, Japanese vehicle manufacturers have been adopting MFCS
which integrates long-term market-driven production planning with short-term
customer-specified order demands. Second, Toyota, Nissan and Mitsubishi combine
make-to-plan (MTP) with make-to-order (MTO) and implement incentive practices for
their suppliers and manage inventory risks. Third, Toyota implements a few days shorter
market responsive production practices than Nissan and Mitsubishi. This difference in
‘‘a few days’’ characterizes Toyota’s organizational capabilities in the form of highly
flexible customizing system. This study suggests that three Japanese vehicle manu-
facturers (Toyota, Nissan, and Mitsubishi) continue to implement MFCS as a way of
securing their competitive advantages around the world.
Many studies on Japanese manufacturing practices have rarely compared how different
Japanese vehicle manufacturers implement market flexible customizing system (MFCS).
The aim of this study is to compare collaborative practices of Toyota, Nissan and
Mitsubishi in terms of how they integrate changing market demand information into
their production plans. From 2001 to 2008 a research team has engaged in-depth
interviews of eleven executives from Toyota, Nissan and Mitsubishi and five executives
from their suppliers. Such longitudinal approach was to examine the evolving sets of
management philosophies and manufacturing practices. The results of this study
suggest a few interesting findings. First, as an improvement of flexible manufacturing
systems (FMS) in 1980s, Japanese vehicle manufacturers have been adopting MFCS
which integrates long-term market-driven production planning with short-term
customer-specified order demands. Second, Toyota, Nissan and Mitsubishi combine
make-to-plan (MTP) with make-to-order (MTO) and implement incentive practices for
their suppliers and manage inventory risks. Third, Toyota implements a few days shorter
market responsive production practices than Nissan and Mitsubishi. This difference in
‘‘a few days’’ characterizes Toyota’s organizational capabilities in the form of highly
flexible customizing system. This study suggests that three Japanese vehicle manu-
facturers (Toyota, Nissan, and Mitsubishi) continue to implement MFCS as a way of
securing their competitive advantages around the world.
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