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The Recovery EffortHow could alternative P-valve production sites be organized and the delivery of the required 32,500 P-valves a day be resumed so quickly? We describe the roles played in the recovery by six firms, which we visited during our field research: Toyota, Aisin Seiki, Denso, Taiho Kogyo, Kayaba Industry, and Koritsu Sangyo. While these firms differ in size, areas of specialization, position in the value chain, and financial linkages to Toyota, they share several characteristics: a commitment to, and capabilities for, JIT production and the ability to solve problems at their source.16From the beginning, it was clear that until Aisin could rebuild its previous capacity, outside help would be indispensable. It was decided then that firms from both inside and outside the Toyota group would be asked to set up alternative P-valve production sites as soon as possible, with Aisin providing technical assistance, design drawings, jigs (e.g., specialized drills), machine tools, and raw materials (e.g., cast iron) salvaged from the fire.17 Aisin was to immediately begin setting up alternative production sites in its other plants as well.Sixty-two firms responded to Aisin’s call and immediately began preparations to manufacture P-valves. Responding firms included twenty-two of Aisin’s own suppliers (e.g., Koritsu Sangyo); Toyota itself; thirty-six of Toyota’s regular suppliers (e.g., Toyota keiretsu firms such as Denso and Taiho Kogyo, independent suppliers such as Kayaba Industry and Akebono Brake Industry, and firms belonging to other keiretsu such as Sumitomo Electric Industries); and four non-regular suppliers (e.g., Nabco).
Along with these firms were about 150 others, including seventy machine-tool makers that were involved indirectly in the recovery process, since machinery, drills, fixtures, and gauges had to be found to replace the ones destroyed in the fire. Aisin asked machinery makers in Japan and beyond to gather every available machine on hand, including exhibition models taken from showrooms and equipment already promised to other clients. For the sake of fast recovery, both regular and nonregular suppliers of machinery to Aisin were called on. The cooperation of these suppliers was crucial to the success of the recovery effort; undoubtedly, many were hoping to increase sales to Toyota in the future.
Firms were asked to machine the needed parts using Aisin’s design drawings and forged blocks and to deliver them to Aisin. Then Aisin would be responsible for final assembly, quality control, and delivery to Toyota and other customers. A few firms such as Nabco, Sumitomo Electric Industries, and Akebono Brake Industry already produced P-valves of different types, but most had no experience with this particular part. One firm, the sewing-machine manufacturer Brother Industries, had never made car parts.18 Although the technology and skills involved in manufacturing P-valves are relatively simple, their numerous and complex orifices require highly precise machining. Without the dedicated equipment used by Aisin (which was largely destroyed in the fire), P-valve production would be slow and arduous.
The situation was discouraging: the suppliers recruited lacked sufficient tools, were mostly unfamiliar with P-valve production, and were inexperienced in responding to crises of this magnitude. The problem-solving capabilities developed through long-term collaboration and the flexible deployment of resources enabled the firms to overcome these obstacles and ensured a rapid recovery of P-valve production and of Toyota’s assembly plants.
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