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TPS's process design in American automotive plants and its effects on the triple bottom line and sustainability

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  • Bergenwall, Amy L.
  • Chen, Chialin
  • White, Richard E.
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    Abstract

    Many people assume that Japanese management practices, the Toyota Production System, have been whole-heartedly implemented by American automakers for more than two decades. However, the recent financial and operational crises faced by American automakers indicate that a performance gap still exists between their production processes and those used by their Japanese counterparts. In this paper, we conduct a case study to identify differences in the seven Toyota Way principles associated with process design between American automakers and Toyota from the triple bottom line perspective to investigate the effects of different process designs along three dimensions of sustainability: economic (profit), social (people), and environmental (planet). Through the within-case analyses, we identify the similarities and differences of process designs in two American automotive plants and the Toyota Production System to establish essential information for the triple bottom line analyses. We then conduct cross-case analyses to explore the effects of different process designs not only on the traditional profitability performance measures but also on workforce management and environmental performance measures. Our research findings provide new insights into the current status of Toyota Production System implementation and its effects on the triple bottom line and sustainability.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0925527312001764
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    Bibliographic Info

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

    Volume (Year): 140 (2012)
    Issue (Month): 1 ()
    Pages: 374-384

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    Handle: RePEc:eee:proeco:v:140:y:2012:i:1:p:374-384

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

    Related research

    Keywords: Toyota Production System; Manufacturing process design; Case study; Automobile industry; Triple bottom line; Sustainability;

    References

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    1. Kannan, Vijay R. & Tan, Keah Choon, 2005. "Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance," Omega, Elsevier, vol. 33(2), pages 153-162, April.
    2. Yasin, Mahmoud M. & Small, Michael H. & Wafa, Marwan A., 2003. "Organizational modifications to support JIT implementation in manufacturing and service operations," Omega, Elsevier, vol. 31(3), pages 213-226, June.
    3. Marvin B. Lieberman & Lieven Demeester, 1999. "Inventory Reduction and Productivity Growth: Linkages in the Japanese Automotive Industry," Management Science, INFORMS, vol. 45(4), pages 466-485, April.
    4. Hong Chen & Murray Z. Frank & Owen Q. Wu, 2005. "What Actually Happened to the Inventories of American Companies Between 1981 and 2000?," Management Science, INFORMS, vol. 51(7), pages 1015-1031, July.
    5. Marvin B. Lieberman & Shigeru Asaba, 1997. "Inventory Reduction and Productivity Growth: A Comparison of Japanese and US Automotive Sectors," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 18(2), pages 73-85.
    6. David, Israel & Eben-Chaime, Moshe, 2003. "How far should JIT vendor-buyer relationships go?," International Journal of Production Economics, Elsevier, vol. 81(1), pages 361-368, January.
    7. Sadao Sakakibara & Barbara B. Flynn & Roger G. Schroeder & William T. Morris, 1997. "The Impact of Just-in-Time Manufacturing and Its Infrastructure on Manufacturing Performance," Management Science, INFORMS, vol. 43(9), pages 1246-1257, September.
    8. Yang, Chen-Lung & Lin, Shu-Ping & Chan, Ya-hui & Sheu, Chwen, 2010. "Mediated effect of environmental management on manufacturing competitiveness: An empirical study," International Journal of Production Economics, Elsevier, vol. 123(1), pages 210-220, January.
    9. Yang, Ma Ga (Mark) & Hong, Paul & Modi, Sachin B., 2011. "Impact of lean manufacturing and environmental management on business performance: An empirical study of manufacturing firms," International Journal of Production Economics, Elsevier, vol. 129(2), pages 251-261, February.
    10. Richard E. White & John N. Pearson & Jeffrey R. Wilson, 1999. "JIT Manufacturing: A Survey of Implementations in Small and Large U.S. Manufacturers," Management Science, INFORMS, vol. 45(1), pages 1-15, January.
    11. Callen, Jeffrey L. & Fader, Chris & Krinsky, Itzhak, 2000. "Just-in-time: A cross-sectional plant analysis," International Journal of Production Economics, Elsevier, vol. 63(3), pages 277-301, January.
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    Cited by:
    1. Yusuf, Yahaya Y. & Gunasekaran, A. & Musa, Ahmed & El-Berishy, Nagham M. & Abubakar, Tijjani & Ambursa, Hafsat M., 2013. "The UK oil and gas supply chains: An empirical analysis of adoption of sustainable measures and performance outcomes," International Journal of Production Economics, Elsevier, vol. 146(2), pages 501-514.
    2. Govindan, K. & Jafarian, A. & Khodaverdi, R. & Devika, K., 2014. "Two-echelon multiple-vehicle location–routing problem with time windows for optimization of sustainable supply chain network of perishable food," International Journal of Production Economics, Elsevier, vol. 152(C), pages 9-28.

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