INSUBCONTINENT EXCLUSIVE:
Toyota Motor (7203.T) was ramping back production at its Japan-based factories on Wednesday after a computer system processing orders for
vehicle parts broke down on Tuesday, forcing the closure of 14 assembly plants.The disruption shut down a system that is at the core of
Toyota&s lean manufacturing, a way of reducing inventory and maximizing production efficiency that the Japanese automaker pioneered and its
rivals have widely adopted.It&s not clear what caused the system outage, and Toyota has not provided details on what went wrong
The company said the cause was not a cyberattack, Reuters reported.In February last year, Toyota also had to shut down the same 14 factories
in Japan when one of its suppliers, Kojima Industries, which supplies plastic parts and electronic components to Toyota, said one of its
file servers had been infected with a virus that carried an undisclosed threatening message.That attack raised questions about the
cybersecurity of Japan&s supply chain.Toyota&s production has been recovering this year, so the outage could be potentially more costly than
the 2022 shutdown.Toyota&s domestic output was up 29% in the first half of this year, the first such increase in two years
Toyota makes a full range of vehicles in Japan from the budget Yaris to its most expensive models, including luxury Lexus brand
cars.Toyota&s production in Japan & about a third of its global output & averaged about 13,500 vehicles a day in the first half of the year,
Reuters calculations showed
That excludes vehicles from group automakers Daihatsu and Hino.Its average global vehicle sale price in the most recent quarter was
equivalent to $26,384, based on its financial reporting
Using that as a proxy would mean a full-day of production at the 14 plants would be equivalent to $356 million in revenue.Toyota has not
said how or whether it will look to recoup the lost output.Toyota essentially invented modern auto assembly with its &kanban& system for
notifying suppliers of what parts are needed where and when to minimize inventory.&Kanban& means signboard in Japanese, and the Toyota
engineer and later executive, Taichi Ono, who developed the system drew inspiration from watching an American supermarket chain, Piggly
Wiggly, manage its shelf stock on a trip to the United States in the 1950s.Toyota&s system of lean production and just-in-time parts
delivery has been adopted across the auto industry and widely studied
It shifted from a system of printed cards that managed supplier workflow to an internet-based &e-kanban& system more than 20 years
ago.Toyota&s kanban system, which relies on simple visual cues to organize workflow, has been adopted for other industries, including
software development.Koji Sato took over from Toyota Chairman Akio Toyoda as CEO in April.The post What happened to shut down Toyota&s
production in Japan? first appeared on Ariana News.
