You are the manager of Strategic Sourcing at Toyota Motor Corp and have just been called by the VP of global sourcing to whom you report. There has been a problem with the least 8 vehicles exhibiting sticking accelarator pedals and your boss is upset. Strong Evidence points to a problem with CTS, an electronic supplier, which has been recognized for high quality standards by the Toyota. You have asked to provide your boss with the following
a) Identify the exact sequence of steps - a project plan - on how to handle this problem, from dealing with customers to identifying causes. Explain what should be done and why ?
b) What should be said to your customers? How should you explain the problem ?
c) What information do you want to collect and from who to identify causes ?
d) What should you say to your supplier ? How should you say it (e.g In Public or Private : in a meeting or in writing ) ? What action do you expect them to take ?
e) Do you continue long term contracting with this supplier ? Do you penalize the supplier ?
d) What are the risk trade offs in your decision? ( Placing blame versus accumulating evidence: dropping a supplier versus standing by a supplier) ?