Market flexible customizing system (MFCS) of Japanese vehicle manufacturers: An analysis of Toyota, Nissan and Mitsubishi
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.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- 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.
- Li, Xiuhui & Wang, Qinan, 2007. "Coordination mechanisms of supply chain systems," European Journal of Operational Research, Elsevier, vol. 179(1), pages 1-16, May.
- 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.
- Tseng, Mei-Chiun, 2004. "Strategic choice of flexible manufacturing technologies," International Journal of Production Economics, Elsevier, vol. 91(3), pages 223-227, October.
- 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.
- Lars Lundqvist & Kenneth Button & Peter Nijkamp (ed.), 2003. "The Automobile," Books, Edward Elgar Publishing, number 2516.
- 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.
- 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.
- 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.
- 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.
- 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.
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 references are entirely missing, you can add them using this form.