DISCUSSION QUESTIONS FOR PORSCHE (10 points):
1. Beginning in 1977 (p.191), Porsche used the traditional mass production system based on the moving assembly line to produce pure “drivers’ cars” suitable for everyday use albeit at relatively small volumes – a maximum total of 50,000 cars by 1986 (page 195). It was the brand of choice among the young, upwardly mobile professionals or “yuppies” on Wall Street, NY and elsewhere in the world. Whilst using this approach, enumerate the forms of “muda” (waste – see Chapter 8 and the powerpoint slides for suggested categories), their concrete manifestations (such as excessive inventories expressed as quantitative data if available) and their causes. (Begin with the table below with 1-3 word entries. When your table is done, add a short explanation/discussion. Be sure to mention any interdependence or connections among them). Add as many rows as you need. (5 points)
FORMS OF MUDA MANIFESTATIONS CAUSES Rework Blue-coated rectification craftsmen (page 189, 1st paragraph; page 194, 2nd paragraph Tolerating defect “the first time” of production, No inspection at the source(p. 194, 2nd pus.)
(Add your short discussion hcre)
2. Beginning in 1987, sales declined and by 1991/92, the company experienced an existential crisis. Sales plunged to $1.5 billion leading to a loss of $40 million. What were the causes of the crisis? (2.5 points)
3. Whilst Toyota took several decades to develop TPS within the company and many other car manufacturers are still at various stages of catching up, what was it about the Porsche workforce that enabled it to implement the TPS successfully in 5 short years? (2.5 points)
