Quality Management

Toyota

Competitiveness is the key to success for most companies. Some companies have worked hard to strengthen
their position in the fast-paced industry. Furthermore, a number of companies have learnt to adopt quality
management practices aimed at improving core competencies. Toyota is one of these companies. The level
of quality that Toyota has established in their vehicles is absolutely astounding. Toyota's automobiles have
always been noted for their efficiency and effectiveness. The company's "kaizen" concept of continual
improvement has proven to be a winning strategy throughout the years. As a matter of fact, the concepts of
TQM and kaizen (continuous improvement), grew with in the company and came into focus, resulting in
greater quality of product and work quality at all stages, and also improved personal and organizational
strength. (Refer table 1).

TQM (Total Quality Management) is a concept that covers all elements of a company's operations. Its
mission is to establish and sustain a culture of continuous improvement that satisfies expectations of
customers at a low cost. Toyota customers are price-conscious, but they also respect quality and value. Large
corporations have been able to attain economies of scale, helping them to offer low-cost items. Unfortunately,
since they are mainly concerned with price, the product's quality may not be exceptional. Quality has always
been viewed of as an extra cost, yet it now plays a crucial role on determining the price of a product. The
idea of total quality management was widely used in manufacturing industries in the early 1980s and has
lately demonstrated its importance in the services industry for enhancing service quality and customer
happiness, resulting in greater competitive advantage. The Toyota Engine Corporation's overall aim is to
"create and offer innovative, safe, and excellent high quality services and products that fulfil a variety of
customers' demands to improve the quality of life of people all over the globe" (TMC, 2006). The seven
essential parts of Toyota's high-quality system span the length of the distribution chain are: Reduce setup
time by analyzing and having to manage strategies and letting employees to set up their own units; Produce
in small quantities to take benefit of the reduced delivery time and grow the potential to make a range of
product on a single line; Motivate staff by offering ongoing training and responsibilities, encouraging them
to treat other employees as customers, and reporting to the team leader among the work; Control the quality
at the point with empowered workers who can not only notice but also repair errors as they arises by reducing
delays; Maintain equipment as the main method of achieving good quality, with workers inspecting
machinery at the start, putting them in the perfect situation to spot and resolve emerging problems; Pull
manufacturing side to side the collection to offer number of materials and work necessary to keep the real
line running, attempting to minimize stock; and Suppliers are included via training and responsibility for
supplying their products to the main line with the same level of quality that is aimed for. Toyota applies
TQM to all other activities because it emphasizes on increasing product quality and reducing variability
(Refer Figure 1). These tasks include profile design product strategy, evaluation, manufacturing, market
research, production preparation inspection, sales, R&D service, engineering design, product engineering
and product management (Amasaka 2014). Quality is determined at the stage of development based on
testing of expected output and characteristics, allowing mechanical and engineering defects to be identified
(Amasaka 2014). Through the manufacturing process, from start to end, measures are taken to assess the
quality of techniques, final products, individual components, and resources (Amasaka 2014). A precise and
comprehensive quality standard guarantees that the Toyota's products fulfil the expectations of its consumers
at various phases, leading to customer happiness and loyalty. To improve customer satisfaction, quality
measures is also important during the sales, service, market research, and product management stages. Toyota
achieves this by conducting periodic customer satisfaction surveys, allowing customers to offer ideas and
comments to quality improvement programs, and giving post-purchase maintenance and support (Amasaka
2014). There are four basic parts to Toyota's quality management strategy. Firstly, Toyota uses quality
measures and assurance systems that are based on extensive research and testing (Toyota Motor Corporation
2012b). This demonstrates that Toyota's approaches, such as FMEA and FTA, have been studied and
confirmed to be effective. Second, the company actively incorporates its employees in the quality control
process by forming quality circles, providing training, and executing audit processes (Toyota Motor
Corporation 2012b). Third, Toyota's TQM tools are in line with the company's customer-centric culture.
Lastly, Toyota employs a comprehensive quality control method that spans the company's departments,
divisions, and sites. One of the other tool that Toyota uses is Just-In-Time (JIT) which is a set of tools,
procedures, and concepts that enable a corporation to make and deliver essential products in small quantities
and with shorter lead times in order to satisfy the demands of individual customers. Mr. Fujimoto, Professor
of Economics at Tokyo University, argues that one of the reasons for Japanese automakers' strong
productivity increase is their commitment to JIT. The term "customer" is used here to refer to both external
and internal customers. The preceding step treats each step or procedure like a client and provides exactly
what is required, at the right moment. In JIT, the internal customer phrase has become the most important
expression; the previous process must always do what the following process requires. JIT will not work
otherwise. (J.K. Liker, 2004) JIT works so efficiently at Toyota that no department or area has a large
inventory of parts. Figure 4 depicts the group of automakers' that has low inventory levels. Other than JIT,
Toyota also prefer lean production. The essence of lean production is continuous flow. Shortening the time
it takes from raw materials to completed items will result in better quality, lower costs, and faster delivery.
Continuous flow encouraged the adoption of additional lean technologies and ideas at Toyota, such as built-
in quality (jidoka) and preventative maintenance. Figure 5 shows an example of continuous flow. When
issues arise in one-piece flow manufacturing, the entire production line comes to a stop. In this sense, it's a
terrible production system. When production pauses, however, everyone is pushed to fix the problem right
away, forcing team members to think, which allows them to grow and become stronger team members. (J.K.
Liker and Morgan James, 2006) For example, at Toyota Motor Manufacturing Texas (TMMTX) in San
Antonio, When one of the drop lifter robots (with a one-ton capacity) crashed, the entire manufacturing line
stopped (in September, 2010). It was deemed a big failure since it disrupted the whole downstream
production flow. Instead of blaming someone for the catastrophe, everyone involved, including the
production team and relevant maintenance personnel, assisted in the recovery. Toyota was able to operate
the production line in under two hours. If this had happened at any other company, I believe it would have
taken more than one day to get the production line up and running, based on my research. The Toyota Way
essentially trains their workers and colleagues how to respond in key situations like these. This is only one
of many examples of Toyota's one-piece flow breakdowns, which help team members enhance their abilities
to get more out of their latent talents. The 5S's are also used in a lean system to enable a continuous flow to
Takt time. 5S is also a tool for making issues apparent, and when used correctly, it may be part of the visual
control process of a well-planned lean system. Refer to Figure 6. Moreover, Toyota does not have a six sigma
program since it is built on advanced statistical analysis methods, according to Mr. Yuichi Okamoto, a formal
TTC vice president. Instead, they're use the well-known 5-why analysis. By asking why it happens, based on
the response to the first why. In most cases, asking why it happens leads to the root cause further upstream
in the process (J.K. Liker, 2004). It is Toyota's iterative four-step management approach, which was
developed in the 1950s by management expert W. Edward Deming. He advocated that business processes be
evaluated and quantified in order to pinpoint causes of variance that cause products to fall short of consumer
expectations. Business processes should be put into a continuous feedback loop, according to him, so that
managers may identify and adjust the aspects of the process that need to be improved. Deming drew a
(somewhat simplistic) picture to show this continuous process, which is widely referred to as the PDCA
cycle (Plan, Do, Check, and Act). Refer to figure 7. Toyota views product development as a repeatable
process governed by the Plan, Do, Check, Act (PDCA) method. Every development stage within a
development program provides a chance to find waste reduction options for the following programs. (J.M.
Morgan and J.K. Liker, 2006). Moreover, The Toyota Production System (TPS) was created to enhance
product quality, boost productivity, and lower total production costs And after so many years of dedication
to continual development, TPS was emerged. Toyota Production System TPS (Refer figure 2) became the
subject of criticism for the first time in Toyota's history in 2009. More than nine million vehicles, including
Toyota and Lexus models, were recalled to replace floor mats (5.2 MM) and sticky accelerator pedals (2.3
MM), or a combination of the two faults (1.7MM). For everyone who believed in the Toyota Way, this
raised problems. Toyota lost its way as a result of a lack of consistency in the execution of its own TPS
principles. Toyota's fast growth in terms of the number of internationally sold models, manufacturing lines,
and the increasing complexity of each of the separate vehicles, along with societal pressure and rising market
expectations, became a key source of quality and safety difficulties. Toyota was unable to deal with the
situation and departed from its TPS principles. Table 3 depicts the actuality of the recall difficulties, as
evidenced by intensive testing and research that was conducted by the National Highway Traffic Safety
Administration (NHTSA) with NASA's assistance. On February 8, 2011, NASA and the National Highway
Traffic Safety Administration (NHTSA) released the results of a ten-month investigation into the causes of
the Toyota faults in 2009. According to their results, no electrical defects caused the Toyota's unexpected
acceleration issues. Toyota executives were not searching for someone else to blame or pass the burden after
the numerous charges from the large recall and the recession situation. In truth, Akio Toyoda acknowledged
full responsibility for the situation, claiming that buyers had begun to doubt Toyota's vehicle's safety, and he
took personal responsibility for this. Toyota then created the new role of regional chief quality officer shortly
after these large recall concerns. This position was more direct power and authority than the company's
President. He has the authority to do whatever is necessary in the case of quality and safety concerns, which
include the following issues; "If in doubt, cease manufacturing and issue an urgent recall." Akio Toyoda and
his board of directors constituted a "Special Committee for Worldwide Quality" in another highly visible yet
global action.

The reason why I selected Toyota is that it is known for prioritizing quality and was the first automobile
manufacturer to apply quality tools for improvement, as Quality is the key for achieving client satisfaction,
and it is integrated in everything Toyota do. Toyota has created basic but powerful tools internally and
constantly teaches its team members to use them in all parts of car manufacture and design. Toyota has also
created Kaizen, or continuous improvement, as a method of eliminating waste that adds expense without
contributing value, no matter how minor. Not unexpectedly, their product is produced at a lesser cost within
a certain niche of the vehicle market. It is the consequence of generations of hard work, innovation, and a
Japanese work ethic at Toyota all over the world. When it comes to quality, no other firm, in my opinion, is
a greater example than Toyota.

Recommendation:

The extensive use of TQM is a primary priority for Toyota. But there are improvements that can still be
implemented. Limiting costs to a minimum is an important goal. Toyota, however, has to ensure that the
quality of products is maintained. It is critical for Toyota to eliminate TQM processes that create more costs
than benefits. Toyota has recognized the need to allow employees to flourish. Basically, Toyota workers
have to embrace the values of quality and manifest these values in production. As a result, the products of
Toyota will tremendously improved and wastes will reduce significantly. Furthermore, Product
diversification is needed since most cars in the market look similar. The company has learned the methods
in building characters in the cars bannered by the top-notch quality. This is observed in the performance of
Toyota products and the ability of the cars to provide limitless satisfaction. Furthermore, the manufacturing
processes are still being practiced with quality. Additionally, Toyota must first straighten up the value
stream's general flow before delving into specific activities. Individual procedures should be improved in
order to support the flow. Lean process development necessitates a systematic, step-by-step approach. The
first stage in setting up a one-piece flow is to establish a solid process that can match the customer's needs
(J.K. Liker, 2004). Cutting corners may work occasionally, but it does not always result in outstanding
outcomes. Refer to Figure 3. In this fast growing production industry, I think Toyota should have more
meetings regarding the quality control so that the errors related to safety can be detected sooner. Also, data
from pretesting of cars should open for public to see what Toyota is providing when it comes to safety and
quality in their cars. Furthermore, according to the data of recalls i think the problem was in the middle
management. They did not stick to the Toyota Way's ideals and shifted their focus. For example, when they
received recommendations or comments from genuine consumers regarding current recall concerns, they
were enraged and said, "This is our problem, let us figure it out on our own." It's a fantastic opportunity for
Toyota to give their employees training and teach them the fundamentals of TPS and the Toyota Way attitude
of "customer first" after the crisis. Also, in my opinion TPS shouldn’t be claiming their method fail-proof
when it comes to high quality automobile production as there should always be space for improvement by
taking their past mistake into consideration. To improve and balance the system, more research and study
should be done in area of responding to emergency situations. The earthquake tragedy in Japan, which
occurred in March 2011, is the most relevant example. Because of its short inventory, Toyota was
significantly impacted. Toyota facilities all across the world cut output to 30% to 50% of their regular
capacity. This resulted in a massive financial loss of about 75% for the quarter and 31% for the year. So,
Toyota should undergo several researches in improving product quality.
 Appendix:

Background: Toyota is one of the world's major automakers, with over 9 million vehicles sold on all five
continents in 2006. Toyota is one of the top ten Fortune Global 500 companies in the world, and the firm is
pleased to be the most admired carmaker, an achievement it attributes to its commitment to customer
satisfaction. Toyota has competed effectively with automobile manufacturers in Asia, Europe, and the United
States. Sakichi Toyoda created Japan's first power loom in the late nineteenth century, revolutionizing the
country's textile sector. Sakichi created the Toyoda Spinning & Weaving Company in January 1918, and in
1924, he realized a longstanding desire by developing an automated loom with the support of his son,
Kiichiro Toyoda. He founded Toyoda Automatic Loom Works two years later. Kiichiro, was also an
innovator just like his father, when he went US and Europe of his trip he became fascinated with the budding
automobile industry. Extending the frontiers of production has defined the Toyota experience from looms to
vehicles. History Shotaro Kamiya, then president of the Toyota Motor Sales Company, supported his team
when Toyota became the first Japanese automobile manufacturer to go into motor sports in 1957. He
encouraged his team with his belief that, “There will be no progress if you fear failure.” Toyota Motor Co.,
Ltd. won the Deming Application Prize in 1965 and the Japan Quality Control Award in 1970 after
introducing statistical quality control (SQC) in 1949, and has since applied Total Quality Management
(TQM) depending on the unchanging principles of 'customer first,' 'total participation' and kaizen (continuous
improvement), Furthermore, since the establishment of the Creative Idea Suggestion System in 1951, the
number of recommendations has constantly risen, and the system has facilitated flexible reactions to changes
including monozukuri (conscientious manufacture), contributing significantly to the company's progress.

Figure 1. TQM is in sync with Toyota's operations (Amasaka 2014, p. 1138).

Figure 2. TPS's two pillars, Just-In-Time (JIT) and Jidoka, are depicted. Each piece is necessary in the
creation of TPS since it fits into its place to form a comprehensive representation of a home.
Figure 3. Cycles of continuous improvement (Source: David Meier and J.K. Liker, 2006)

Figure 4. Inventory data of work-in-progress for leading vehicle manufacturers

Figure 6. TPS's well-known 5s

Figure 7. PDCA cycle

Table 3. Myths and Facts about Engineering Errors that Lead to Recalls Original source: ( Liker J.K and
Ogden T.N., 2011)

References:

Free Essays - [Link]. (2018). Total Quality Management in Toyota.

StudyCorgi. (2021) 'Toyota: Total Quality Management Theory and Practice'. 23 July.

IvyPanda. (2021) 'Total Quality Management (TQM) Implementation: Toyota'. 23 July.

BusinessEssay. (2021) 'Toyota Motors: Total Quality Management'. 23 December.

Daisuke Wakabayashi, “Adherents Defend the Toyota ‘Way,’” The Wall Street Journal, Feb. 26, 2010

ISBN: 139780071392310 ( The Toyota Way by Jeffery [Link], 2004)

ISBN :0-412-83930-X (Toyota Production Systems - Third Edition by Yasuhiro Monden, 1998)

[Link]
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nagement/tqm/[Link]

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