A global knowledge transfer network: the case of Toyota's global production support system

2017

ABAS

Simultaneously launching new models globally becomes a problem with an increase in global production. Although Toyota Motor Corporation and Hyundai Motor Company have different production systems, they have almost at the same time created organizations with similar functions to solve the problem of simultaneously launching new models globally. These organizations are Toyota's Global Production Center (GPC) and Hyundai's pilot center. Both were new organizations with their own pilot production lines instead of conventional mass production lines. However, Toyota's GPC, which is a part of the mother factory system, plays a complementary role vis-à-vis the company's domestic plants, while at Hyundai's pilot center, which is a part of the model factory system, the pilot center functions independently of the domestic plants. This is how Toyota reduces the burden on its competitive mother factories in Japan, while Hyundai opts to maintain a distance from its domestic factories, which are not a) Faculty of Business Administration, Toyo University, 5-28-20 Hakusan, Bunkyo-ku, Tokyo, Japan, ruiberd@gmail.com A version of this paper was presented at the ABAS Conference 2017 Winter (Suh, 2017) © 2017 Youngkyo Suh. This is an Open Access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited.

Section: Discussionmentioning

confidence: 99%

Organizations for Global Simultaneous New Model Launching

2017

ABAS

“…This can be seen as a case of domestic knowledge network expanding overseas. Moreover, studies on Toyota's global knowledge network (Suh, 2012(Suh, , 2015(Suh, , 2016 have clarified that the role of domestic plants, the OMCD, and the GPC in knowledge transfer to overseas is essential.…”

Section: Knowledge Network Of Toyotamentioning

confidence: 99%

Knowledge Network of Toyota

2017

ABAS

Knowledge is a source of firm's competitiveness and is created, diffused, and standardized within a company's knowledge network. The knowledge network of Toyota Motor Corporation in Japan comprises multiple automotive plants, the Operation Management Consulting Division (OMCD), and the Global Production Center (GPC) as nodes on that network. Knowledge is created on a manufacturing plant floor and diffused between multiple automotive plants through a direct interacting network without standardization. The OMCD diffuses both standardized and unstandardized knowledge. The GPC's important function is knowledge standardization. In conclusion, Toyota's domestic knowledge network maintains a balance between the diversification and standardization of knowledge created on the production floor through a mix of nodes at various standardization levels.

“…OMCD had the role of managing the domestic Japanese suppliers and of unifying the Toyota production system. In the overseas knowledge transfer process, OMCD sent engineers to support the resolution of issues in overseas factories and to diffuse the fundamental philosophy regarding the Toyota production system and its roots (Suh, 2015). Figure 1 summarizes the mother factory system of Toyota.…”

Section: Frameworkmentioning

confidence: 99%

“…The need for sending human resources from the home country is lessened. Currently, OMCD is responsible for sending engineers for problem-solving and diffusion of the Toyota production system in overseas factories (Suh, 2015).…”

Section: Changes In the Mother Factory Systemmentioning

confidence: 99%

Mother Factory vs. Model Factory

2016

ABAS

The production systems of Japanese companies are considered to be firm-specific advantages, which lead to superior productivity. The mother factory system, exemplified by Toyota Motor Corporation, has been used as a primary method for transferring Japanese production systems overseas. However in recent years, some companies, such as Hyundai Motor Company of Korea, have begun using a different way to transfer production methods overseas. This paper terms this method the "model factory system" and compares it with the mother factory system within the framework of knowledge transfer theory. In this framework, production systems are regarded as knowledge held by the home country. In this analytical framework, members, tools, and manuals represent knowledge that is directly moved; skills, organizations, and layouts represent knowledge that can be reproduced by the recipient. This framework was used to analyze cases of production system transfer overseas by Toyota Motor a) Manufacturing Management Research Center, Graduate School of Economics, the University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo, Japan, ruiberd@gmail.com A version of this paper was presented at the ABAS Conference 2016 Summer (Suh, 2016). © 2016 Youngkyo Suh. This is an Open Access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited. 252Corporation and Hyundai Motor Company. It was shown that the mother factory system primarily transfers knowledge from the home country's factories, whereas the model factory system transfers knowledge from the corporate headquarters.