IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v118y2009i2p375-386.html
   My bibliography  Save this article

Market flexible customizing system (MFCS) of Japanese vehicle manufacturers: An analysis of Toyota, Nissan and Mitsubishi

Author

Listed:
  • Tomino, Takahiro
  • Park, Youngwon
  • Hong, Paul
  • Roh, James Jungbae

Abstract

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 manufacturers (Toyota, Nissan, and Mitsubishi) continue to implement MFCS as a way of securing their competitive advantages around the world.

Suggested Citation

  • Tomino, Takahiro & Park, Youngwon & Hong, Paul & Roh, James Jungbae, 2009. "Market flexible customizing system (MFCS) of Japanese vehicle manufacturers: An analysis of Toyota, Nissan and Mitsubishi," International Journal of Production Economics, Elsevier, vol. 118(2), pages 375-386, April.
    • Handle: RePEc:eee:proeco:v:118:y:2009:i:2:p:375-386
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(08)00382-4
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Araz, Ceyhun & Ozkarahan, Irem, 2007. "Supplier evaluation and management system for strategic sourcing based on a new multicriteria sorting procedure," International Journal of Production Economics, Elsevier, vol. 106(2), pages 585-606, April.
    2. Chiang, Tzu-An & Trappey, Amy J.C., 2007. "Development of value chain collaborative model for product lifecycle management and its LCD industry adoption," International Journal of Production Economics, Elsevier, vol. 109(1-2), pages 90-104, September.
    3. Li, Xiuhui & Wang, Qinan, 2007. "Coordination mechanisms of supply chain systems," European Journal of Operational Research, Elsevier, vol. 179(1), pages 1-16, May.
    4. Miyazaki, Shigeji, 1996. "An analytical comparison of inventory costs between the pull and the parts-oriented production systems," International Journal of Production Economics, Elsevier, vol. 44(1-2), pages 151-157, June.
    5. Tseng, Mei-Chiun, 2004. "Strategic choice of flexible manufacturing technologies," International Journal of Production Economics, Elsevier, vol. 91(3), pages 223-227, October.
    6. Demeter, Krisztina & Gelei, Andrea & Jenei, Istvan, 2006. "The effect of strategy on supply chain configuration and management practices on the basis of two supply chains in the Hungarian automotive industry," International Journal of Production Economics, Elsevier, vol. 104(2), pages 555-570, December.
    7. Lars Lundqvist & Kenneth Button & Peter Nijkamp (ed.), 2003. "The Automobile," Books, Edward Elgar Publishing, number 2516.
    8. Gunasekaran, Angappa & Lai, Kee-hung & Edwin Cheng, T.C., 2008. "Responsive supply chain: A competitive strategy in a networked economy," Omega, Elsevier, vol. 36(4), pages 549-564, August.
    9. Wahab, M.I.M. & Stoyan, S.J., 2008. "A dynamic approach to measure machine and routing flexibilities of manufacturing systems," International Journal of Production Economics, Elsevier, vol. 113(2), pages 895-913, June.
    10. Karsak, E. Ertugrul & Kuzgunkaya, Onur, 2002. "A fuzzy multiple objective programming approach for the selection of a flexible manufacturing system," International Journal of Production Economics, Elsevier, vol. 79(2), pages 101-111, September.
    11. Llorens, F. Javier & Molina, Luis M. & Verdu, Antonio J., 2005. "Flexibility of manufacturing systems, strategic change and performance," International Journal of Production Economics, Elsevier, vol. 98(3), pages 273-289, December.
    12. Handfield, Robert B. & Pagell, Mark D., 1995. "An analysis of the diffusion of flexible manufacturing systems," International Journal of Production Economics, Elsevier, vol. 39(3), pages 243-253, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. MacCarthy, Bart L. & Ovutmen, Tamer, 2015. "Using a central Vehicle Holding Compound (VHC) in an open pipeline automotive order fulfilment system: A simulation study," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 590-601.
    2. Laurent Lim, Lâm & Alpan, Gülgün & Penz, Bernard, 2014. "Reconciling sales and operations management with distant suppliers in the automotive industry: A simulation approach," International Journal of Production Economics, Elsevier, vol. 151(C), pages 20-36.
    3. Surbhi Upadhyay & Suresh Kumar Garg & Rishu Sharma, 2023. "Analyzing the Factors for Implementing Make-to-Order Manufacturing System," Sustainability, MDPI, vol. 15(13), pages 1-22, June.
    4. Aoki, Katsuki & Staeblein, Thomas, 2018. "Monozukuri capability and dynamic product variety: An analysis of the design-manufacturing interface at Japanese and German automakers," Technovation, Elsevier, vol. 70, pages 33-45.
    5. Pierdzioch, Christian & Rülke, Jan-Christoph & Stadtmann, Georg, 2011. "Forecasting U.S. car sales and car registrations in Japan: Rationality, accuracy and herding," Japan and the World Economy, Elsevier, vol. 23(4), pages 253-258.
    6. Aoki, Katsuki & Staeblein, Thomas & Tomino, Takahiro, 2014. "Monozukuri capability to address product variety: A comparison between Japanese and German automotive makers," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 373-384.
    7. Roh, James & Hong, Paul & Min, Hokey, 2014. "Implementation of a responsive supply chain strategy in global complexity: The case of manufacturing firms," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 198-210.
    8. Nepal, Bimal & Monplaisir, Leslie & Famuyiwa, Oluwafemi, 2012. "Matching product architecture with supply chain design," European Journal of Operational Research, Elsevier, vol. 216(2), pages 312-325.
    9. Staeblein, Thomas & Aoki, Katsuki, 2015. "Planning and scheduling in the automotive industry: A comparison of industrial practice at German and Japanese makers," International Journal of Production Economics, Elsevier, vol. 162(C), pages 258-272.
    10. Youn, Sun Hee & Yang, Ma Ga (Mark) & Kim, Jin Hwan & Hong, Paul, 2014. "Supply chain information capabilities and performance outcomes: An empirical study of Korean steel suppliers," International Journal of Information Management, Elsevier, vol. 34(3), pages 369-380.
    11. Thomé, Antonio Márcio T. & Scavarda, Luiz Felipe & Pires, Sílvio R.I. & Ceryno, Paula & Klingebiel, Katja, 2014. "A multi-tier study on supply chain flexibility in the automotive industry," International Journal of Production Economics, Elsevier, vol. 158(C), pages 91-105.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trkman, Peter & McCormack, Kevin, 2009. "Supply chain risk in turbulent environments--A conceptual model for managing supply chain network risk," International Journal of Production Economics, Elsevier, vol. 119(2), pages 247-258, June.
    2. Correll, David & Suzuki, Yoshinori & Martens, Bobby, 2014. "Biorenewable fuels at the intersection of product and process flexibility: A novel modeling approach and application," International Journal of Production Economics, Elsevier, vol. 150(C), pages 1-8.
    3. Gunasekaran, Angappa & Irani, Zahir & Choy, King-Lun & Filippi, Lionel & Papadopoulos, Thanos, 2015. "Performance measures and metrics in outsourcing decisions: A review for research and applications," International Journal of Production Economics, Elsevier, vol. 161(C), pages 153-166.
    4. Siao-Leu Phouratsamay & Safia Kedad-Sidhoum & Fanny Pascual, 2021. "Coordination of a two-level supply chain with contracts," 4OR, Springer, vol. 19(2), pages 235-264, June.
    5. Yan, Xiaoming & Zhang, Minghui & Liu, Ke, 2010. "A note on coordination in decentralized assembly systems with uncertain component yields," European Journal of Operational Research, Elsevier, vol. 205(2), pages 469-478, September.
    6. Beatriz Andres & Vicente Javier Blanes, 2020. "A Negotiation Approach to Support the Strategies Alignment Process in Collaborative Networks," Sustainability, MDPI, vol. 12(7), pages 1-30, April.
    7. Ventura, José A. & Bunn, Kevin A. & Venegas, Bárbara B. & Duan, Lisha, 2021. "A coordination mechanism for supplier selection and order quantity allocation with price-sensitive demand and finite production rates," International Journal of Production Economics, Elsevier, vol. 233(C).
    8. Eduardo Fernández & José Rui Figueira & Jorge Navarro, 2023. "A theoretical look at ordinal classification methods based on comparing actions with limiting boundaries between adjacent classes," Annals of Operations Research, Springer, vol. 325(2), pages 819-843, June.
    9. Mutlu, Fatih & Çetinkaya, Sıla, 2020. "Supplier–carrier–buyer channels: Contractual pricing for a carrier serving a supplier–buyer partnership," International Journal of Production Economics, Elsevier, vol. 230(C).
    10. Preil, Deniz & Krapp, Michael, 2022. "Bandit-based inventory optimisation: Reinforcement learning in multi-echelon supply chains," International Journal of Production Economics, Elsevier, vol. 252(C).
    11. Cao, Zong-Hong & Zhou, Yong-Wu & Zhao, Ju & Li, Chang-Wen, 2015. "Entry mode selection and its impact on an incumbent supply chain coordination," Journal of Retailing and Consumer Services, Elsevier, vol. 26(C), pages 1-13.
    12. Seebacher, Gottfried & Winkler, Herwig, 2014. "Evaluating flexibility in discrete manufacturing based on performance and efficiency," International Journal of Production Economics, Elsevier, vol. 153(C), pages 340-351.
    13. Sher, Mikhail M. & Kim, Seung-Lae & Banerjee, Avijit & Paz, Michael T., 2018. "A supply chain coordination mechanism for common items subject to failure in the electronics, defense, and medical industries," International Journal of Production Economics, Elsevier, vol. 203(C), pages 164-173.
    14. Enrico Teich & Thorsten Claus, 2017. "Measurement of Load and Capacity Flexibility in Manufacturing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(4), pages 291-302, December.
    15. Dobos, Imre & Vörösmarty, Gyöngyi, 2019. "Inventory-related costs in green supplier selection problems with Data Envelopment Analysis (DEA)," International Journal of Production Economics, Elsevier, vol. 209(C), pages 374-380.
    16. Castka, Pavel & Balzarova, Michaela A., 2008. "ISO 26000 and supply chains--On the diffusion of the social responsibility standard," International Journal of Production Economics, Elsevier, vol. 111(2), pages 274-286, February.
    17. Maciej Urbaniak & Piotr Rogala & Piotr Kafel, 2023. "Expectations of manufacturing companies regarding future priorities of improvement actions taken by their suppliers," Operations Management Research, Springer, vol. 16(1), pages 296-310, March.
    18. Ramanathan, Usha & Muyldermans, Luc, 2010. "Identifying demand factors for promotional planning and forecasting: A case of a soft drink company in the UK," International Journal of Production Economics, Elsevier, vol. 128(2), pages 538-545, December.
    19. Lun, Y.H. Venus & Browne, Michael & Lai, Kee-hung & Wong, Christina W.Y. & Cheng, T.C.E., 2011. "Examining the influence of firm performance on business risk-taking and the mediation effect of scale of operations in the container terminal industry," Research in Transportation Economics, Elsevier, vol. 32(1), pages 64-70.
    20. Monideepa Tarafdar & Sufian Qrunfleh, 2017. "Agile supply chain strategy and supply chain performance: complementary roles of supply chain practices and information systems capability for agility," International Journal of Production Research, Taylor & Francis Journals, vol. 55(4), pages 925-938, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:118:y:2009:i:2:p:375-386. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.