The latest: The list of Toyota vehicle components that require fixes now includes floormats, anti-lock braking systems, pedals and drive shafts.

It has been impossible not to notice the bad month Toyota has had after originally recalling and suspending sales of eight of its best-selling vehicles and halting production at six facilities — including those in Woodstock and Cambridge, Ont. — over a potentially dangerous problem caused by gas pedals several weeks ago. They have since restarted production — but its troubles are far from over.

“The front shaft in these vehicles may include a component that contains cracks that developed during the manufacturing process.”

At the end of last week, Toyota Canada announced a voluntary safety recall on certain 2010 Tacoma pickup trucks. “The front shaft in these vehicles may include a component that contains cracks that developed during the manufacturing process,” the company said in a statement. “As those vehicles are used, the cracks may eventually lead to the separation of the drive shaft at the joint portion.”

The condition involves only two specific drive shaft production lot numbers, installed in certain 2010 Tacoma 4WD vehicles. News reports says dealers will inspect the vehicles to identify the numbers located on the drive shaft and, if necessary, replace the shaft. Toyota will notify owners by first-class mail starting in mid-March.

In other recall news, the company has expanded its floor mat recall to include certain Corolla, Matrix and Highlander vehicles.

Toyota restarted production of all originally affected models last week, but early this week, the company announced it will temporarily halt production at two U.S. factories after sales were hit hard by the string of safety problems, according to AFP. It will suspend output at its Kentucky plant producing Camry and Avalon sedans for four days. It will also suspend production of Tundra pickup trucks at its Texas plant for a total of 10 days in March and April, the newspaper said.

To read about the original recall and the pedal's Canadian manufacturing connection — and what the APMA says about the situation — click here.

Stephen Beatty, managing director of Toyota Canada, also did damage control, going on CBC News last week to remind Canadian consumers not to confuse widespread recall problems in the U.S. with the situation in Canada. He asked automotive journalists to get the word out that Toyota’s floormat problems only affected about 270,000 cars in Canada. About 4.2 million cars were recalled globally.

This was on the heels of an another recall of nearly a half a million of its hybrid vehicles last Tuesday, including the latest version of its popular Prius model, after an issue arose with the anti-lock braking systems in the vehicles. In Canada, the recall will affect nearly 3,300 of the newest Priuses, and 309 Lexus HS 250h models, the company said. Letters will be mailed the affected owners in the next few weeks to let them know when they can bring their vehicles in to update software in the vehicle's anti-lock brake system.

Separately, Toyota said Tuesday it will also conduct a voluntary safety recall on 393 early-production 2010 Camry vehicles in Canada to inspect for a power steering hose that may be in contact with a front-brake tube and cause it to leak.

Manufacturing AUTOMATION Lean manufacturing expert Dr. Timothy Hill weights in on Toyota's troubles and how the company is dealing with being hit by "a perfect storm" in an online exclusive.

Last week's North American International Auto Show in Detroit presented the best the automotive industry had to offer, reportedly with significantly fewer fewer bells and whistles than usual, and a focus on greener, more energy efficient vehicles.

Along these lines, in an interview with the Canadian Press early last week, a senior Toyota Canada executive said there was no reason why Toyota wouldn't one day manufacture its hybrid cars in Canada, especially if its new products prove to be as popular as the Prius.

“There's absolutely no reasons why hybrids could not be built in Canada.” — Toyota Canada executive

"We've said for a long time now we want to move hybrids across our lineup, so there's absolutely no reasons why hybrids could not be built in Canada," he said in a telephone interview with the news organization. "The issue is, when do we get to that critical mass in the market that makes production feasible?"

"I would say this very aggressive movement toward introduction of new vehicles bodes well for advancing production over the near- to medium-term."

The automotive giant plans to launch nine new or revised vehicles in Canada this year, including the Scion brand, which has been sold in the U.S. since 2003 but couldn't be bought in Canada until now. In a move trending across all of the world's largest automakers, Toyota seemed to be charting the most aggressive path: it expects hybrid systems to become the standard for its most popular vehicles in the next few years, including a new family of Prius cars.

But opinion is split on whether an immediate move to hybrids was in the best interest of automakers, particularly in North America, where the market for such cars has yet to mature.

According to the National Post, Toyota said it plans to launch eight hybrid models in the next few years, and possibly a new smaller hybrid concept the automaker unveiled  at the auto show, tentatively named the FT-CH.

The company plans to offer plug-in hybrids and all-electric cars starting in model-year 2012 and hydrogen fuel-cell vehicles in 2015 in its global markets.

Toyota Canada Inc. set a new December sales record, as did the Lexus brand, Toyota brand and all four Canadian-built Toyota and Lexus models, which accounted for 54 percent of 2009 sales. Manufacturing operations increased employment and production to record levels in Toyota's 22-year history.

"A strong finish helped [the company] record its third-straight year of sales topping 200-thousand, at 205,115, its second best year on record," said Yoichi Tomihara, president of Toyota Canada. "I just want to thank Canadians for making it possible to achieve record sales."

Toyota sold 16,472 vehicles (up 86.2 percent to set a new December record). These included 9,607 cars (up 79.4 percent to set a new December record) and 6,865 trucks (up 96.6 percent).

Made-in-Canada successes
One of Canada's most popular cars, the built-in-Canada Toyota Corolla, set a new December record with 4,677 models sold (up 112.5 percent). It's the third straight month the Corolla has set a new monthly record.

The built-in-Canada Toyota Matrix established its third-straight monthly record with 2,369 models sold (up 140.3 percent) for its best-ever December.

Another made-in-Canada success, the Toyota RAV4 continues its record- breaking sales streak, with best ever December sales of 2,036 models (up 47.3 percent). The RAV4 pitched a perfect game in 2009, setting new records each month for its best-ever sales year, at 25,784 models.

"With the addition of the first shift in Woodstock in 2009, production at Toyota Motor Manufacturing Canada has grown to 319,548 units," said Ray Tanguay, president of Toyota Motor Manufacturing Canada Inc. "Now, with a second shift building RAV4, we forecast even further growth in production as a highlight in 2010."

"2009 was a year of adjustment in the Canadian auto industry. As a company that responded quickly to the changing economy and the changing values, we were able to continue to deliver value to Canadian drivers," explained Warren Orton, Director at Toyota Canada. "From engine upgrades to new generations and all new models, plus several key awards for reputation, quality and retained value, Toyota is ready to welcome more drivers in 2010. To get things rolling, all Toyotas purchased in January or February will benefit from a new Toyota Complimentary Maintenance Program, which covers oil changes, tire rotations and other services for the first two years or 48,000 km of ownership."
www.toyota.ca
www.toyota.ca/tmmc.html

Toyota Motor Manufacturing Canada Inc. will add a second shift to build more RAV4s at its Woodstock, Ont.-based facility in March 2010. TMMC, which also builds the Corolla, Matrix, and the Lexus RX350, will add more than 800 jobs and increase RAV4 production to 150,000 vehicles. Hiring begins this month.

“We're sending a strong message that Toyota is very committed to making cars here in southwestern Ontario.” — TMMC president Ray Tanguay

Production of the RAV4 SUV began in November 2008 with one-shift and 1,200 team members. Toyota will now build the majority of RAV4s for the North American market in Ontario.

"Thanks to the high demand for this popular vehicle, we are able to increase production in Woodstock," said Ray Tanguay, president of TMMC. "We are very pleased to be able to continue our growth and provide jobs in the local community. This is a vote of confidence in the RAV4 product, the quality of our suppliers and the capability of our Canadian Team Members. In addition, this move demonstrates Toyota's continued commitment to North American production and to building where we sell."

In an interview with The Globe and Mail, he goes on to say that this move "reinforces that our parent company in Japan is very confident that Ontario is a great place to build cars. … I think a lot of people started to question whether Canada is a good place to invest. We're sending a strong message that Toyota is very committed to making cars here in southwestern Ontario.”

The RAV4 is one of only two vehicles in Toyota's portfolio in the U.S. market that has posted a sales gain this year, up 3 percent compared with the same period last year.

The additional 800 jobs will boost the total TMMC employment to approximately 6,500. TMMC has manufactured vehicles since November 1988 and has the capacity to build 420,000 units annually.
www.tmmc.ca

With Toyota’s recent recall woes, Manufacturing AUTOMATION asked its resident Lean manufacturing expert and Lean Insights columnist, Dr. Timothy Hill, to give his view on the troubles facing the company and how it reflects on its Toyota Production System:


The Toyota Way, as espoused by the Toyota Production System, does a great job of bringing continuous improvement (kaizen) to the workplace. It's unfortunate that something of a perfect storm has hit Toyota recently. That trifecta behind the storm is composed of:
 

The real question will be how Toyota positions itself as it recovers from these recalls. I suggest that people think about the Bridgestone/Firestone scandal — how bad it was at the time and how Bridgestone/Firestone survived.

1) early and infrequent warnings, serving to muddy the “go, no-go” threshold decision over a warranty recall;
2) the U.S. government wearing two hats (as the government and part-owner of GM) and perhaps a little schadenfreude throw in; and
3) the fault lying with suppliers and not on the Toyota assembly line.
 
Bear in mind that the numbers of affected vehicles is very low, confounding the threshold issue mentioned above.
 
Jeffrey Liker, who has written books on the Toyota Way, acknowledged “Toyota has been exemplary at surfacing problems in the factory and stopping production before a crisis was reached.”
 
Some have argued “making the exact same product again and again — what's known as ‘quality control’ in manufacturing — isn't the same thing at all as ensuring safety.” While this is largely true, it only brings culpability when the manufacturer is aware that “making the exact same product again and again” brings forward a known quality problem — think of Ford’s Pinto or Explorer. Ford knew about the problems with the “back-fire bomber” and the roll-over issues but continued to build the vehicles.
 
While it’s certainly unfortunate for Toyota to be caught in the current situation, it did the right thing by stopping production and preventing any further mistakes from escalating from production to consumers. Toyota worked closely with CTS (which had a manufacturing facility in Mississauga, Ont.) in to address the (few) sticking accelerator pedals and did not resume sales or production until that fix was in.
 
Liker went on to mention that "failure to follow all the principles of the Toyota Way led to this crisis. Now the Toyota Way is the only way out of it." I agree completely. Moreover, I recommend that people recall other brave recall and shutdown efforts, such as the Tylenol scare. Once tampering was discovered, product was pulled off the shelves, production was stopped entirely and did not continue until Tylenol could safely sell product again. Was there a large amount of tampered goods? No. Was it important to the TQM (Total Quality Manufacturing) beliefs held by Tylenol to extend quality to the customer? Yes, absolutely.
 
The real question will be how Toyota positions itself as it recovers from these recalls. I suggest that people think about the Bridgestone/Firestone scandal — how bad it was at the time and how Bridgestone/Firestone survived.
 
Toyota also needs to continue to extend its kaizen principles to its suppliers. Too much growth might have eroded this effort. Moreover, in the race to meet kaizen objectives, suppliers and Toyota need to think outside the box (really bring their problem solving strengths to bear) and consider the “what if?” questions that appear in the daily lives of their customers.
 
If a very wet environment led to the few gas pedal issues, why wasn’t a very wet environment considered before releasing the final product? We get snow and snow melts. We get rain and a host of other “wet” outside environments. Toyota brought forward great thinking when it test drove the Venza to determine uniquely Canadian driving challenges. They can do it, let’s hope they do it in time.

Dr. Timothy Hill is an Industrial and Organizational Psychologist and Certified Lean Six Sigma Black Belt with global expertise in Human Resources/Human Capital. He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

The following is an excerpt from a new book by Shigeo Shingo, the co-creator of the Toyota Production System, entitled Kaizen and the Art of Creative Thinking. It is reproduced with permission from PCS Press.

FINDING THE CAUSE: IN PURSUIT OF PURPOSE
It is said that humans are the only animals that act based on reason. In fact, every action throughout our life has purpose; at least, that is how it should be. Due to the force of habit or sheer laziness, we often act without asking ourselves "why" or considering the true purpose of the action.

"Why do we eat?" If this question were asked, many would answer, "To gain nutrition, so that we can enjoy a long and healthy life."

The reality may differ. Sometimes we eat just because food is there, or just to enjoy the momentary satisfaction of having food in our mouth. Even worse, we might eat a certain food because we saw it on a TV commercial, and are unwittingly serving the purpose of benefiting a company's bottom line, instead of our long-term health.

For the most part, human action is based on reason.

Nevertheless, we often forget our purpose or misunderstand what the ultimate purpose really is. Consciously pursuing the purpose and reasoning behind one's action is just as important in manufacturing as it is in our daily lives. Indeed, sometimes the solution to a problem is discovered only in the process of realigning our actions with their true purpose.

FOUR PURPOSES OF IMPROVEMENT
The purposes for factory improvement, for example, may include the following:
1. Increasing productivity
2. Improving quality
3. Cutting time
4. Cutting cost

The fulfillment of these purposes can act as a gauge for how well we are improving the factory. Conversely, failing to fulfill these purposes means there are problems that need to be fixed.
Thus, if we take the time to refine our actions on the basis of their intended purpose, problems will often disappear.

The success of this concept is contingent upon how well we identify and define our purpose. Think of the pursuit of purpose as a three dimensional concept where:
• X: represents the clear purpose of goals.
• Y: represents single or multiple purposes. If multiple, clarify each.
• Z: serves to fulfill the ideal to be reached, such as future state not-stock production.

SCRATCHING THE SURFACE
Knowing the job and knowing the purpose of the job are two very different things. We may know our job to the letter, but indifference or a lack of awareness as to why the job needs to be done can greatly limit our success.

TRUE PURPOSE OF INVESTIGATION
I was meeting with the president of N Mining Company in Kita-Kyushu when there was a knock on the door. It was Mr. Y, the mining director, and Mr. K, the accounting director. They had just returned from investigating the feasibility of acquiring a competitor's mine that was (fiscally speaking) about to go under. I offered to leave while they gave their report, but the president insisted that I stay and listen.

"Things are in terrible shape, as we expected," said Mr. Y.

"Their mining has been reckless and the roads and preparation facilities haven't been maintained well at all."

"Their accounting practices are just as bad," chimed in Mr. K., the accounting director. "There are many outstanding ac- counts; payables that haven't been paid off and receivables that haven't been collected. It's completely unorganized."

Seemingly finished with their report, the president, who had been almost silent, opened his mouth. "Is that all?"

"Well . . . yes," replied Mr. Y, reluctantly.

The president cocked an eyebrow at me, "As we all know, R Mining Company is on the verge of bankruptcy. Isn't it expected that their operations would be in dire straits?

"I didn't send you to confirm the obvious. I sent you to discover whether there's still any potential left in the mine. Of course their operations are in shambles! But it's possible there's hope buried somewhere underneath, and I expected you to dig a little to find it!"

This episode taught me the importance of extending our thoughts beyond the job and onto the true purpose of our work, especially if it is not obvious from the given instructions. Confirming the development potential of the mine prior to acquisition was a crucial factor in the decision for N Mining to buy. Consequently, ascertaining this information was integral in the company's investigational purpose. Although not specifically instructed to do so, had the two men considered this as their purpose upon their visit, perhaps they would have returned with information that could have served the growth of their company.