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

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  • Tomino, Takahiro
  • Park, Youngwon
  • Hong, Paul
  • Roh, James Jungbae
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    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.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 118 (2009)
    Issue (Month): 2 (April)
    Pages: 375-386

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    Handle: RePEc:eee:proeco:v:118:y:2009:i:2:p:375-386

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    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Market flexible customizing system (MFCS) Japanese vehicle manufacturers Make-to-plan (MTP) Make-to-order (MTO) Inventory risk management;

    References

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    1. 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.
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    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.
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    6. 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.
    7. 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.
    8. 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.
    9. 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.
    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.
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    Cited by:
    1. 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.
    2. 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.
    3. 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.
    4. 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.

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