Unit 17 Quality Management in Toyota Assignment

Introduction
Quality has become the most important tool and the shortcut in the modern business
market for an organization to survive. The customers are now become more quality
conscious and demanding as they have many options for buying their preferred
products and services. In all industries the term quality plays a vital role (Goetsch, &
Davis, 2014,). In some potential markets like UK and US the customers are not even
considered about the price of the product but they expect high quality and standard.
Hence maintaining and providing good quality products and services has become very
essential. For serving this purpose the management has introduced a separate section
for quality termed as quality management. This management system is widely
practiced by almost all industries. This system develops a systematic procedure
through which the quality for the products can be achieved and through which
customer satisfaction and competitive advantage can be achieved (OaklandS, 2014).
This Unit 17 Quality Management Toyota Assignment speaks about the relevance of
the quality and its management in the modern business organizations. An organization
Toyota is taken into consideration for the purpose of the analysis and for highlighting
various aspects of quality in business organizations. This report highlights how
quality can support the organization like Toyota in achieving the customer satisfaction
and competitive advantage.

Task 1

a) Discuss definitions of quality in terms of business and services

provision

“According to ISO 8402-1986 the term Quality in business can be defined as the
standardized features and characteristics of the particular products and services
which can satisfy the target clients”.

As per this definition in business the organizations should develop and provide the
products and services which can exhibit standardized characteristics that can make its
customer happy. This standardization can develop trust within the customers and can
make them more loyal towards the company. Hence quality can obtain and retain
many customers which can lead the organization towards a long term success through
developing a good brand image and reputation. The organization Toyota the
automobile manufacturing company had to face many difficulties like reduction in the
production, less profitability, legal actions, loss of company reputation etc as a result
of the compromise in the quality. Even though this organization had a good reputation
in the market, due to the recall of its automobiles the production as well as the profit
was affected (Plsek, 2015).
The term quality can also be defined as “the perception of the customers about the
product or service of a particular organization”

This definition highlights the importance of the quality for a business organization in
the modern business world. Customer perception is very important while defining the
quality of the product. The cost- quality perception of the customer is the appropriate
example for this. The customer can be easily perceived for the quality of the product
or service through its high price. Through providing high quality products to the
customers the business organization can perceive the customers and can generate
more income. Once the quality is lost through poor quality, it can generate negative
perception and then the customer trust will be lost and they can jump to any other
brands which can provide them with satisfaction. In the case of Toyota also the
incident of vehicle recall they lost the customer trust and generated a negative
perception which resulted in the loss of many loyal customers.

“Quality can also be defined as making the customers satisfied through

providing the specifications and requirement specified by the customers”. From
the scenario it is evident that the organization Toyota has a forward looking approach
and very innovative who manufactures automobiles based on the modern trends and
safety measures. Through this it is evident that the organization is following some
quality principles which are customer oriented.

b) Explain and illustrate earlier processes of inspection and assurance

During early days the manufacturing and production unit conducts inspections on the
performance of the workers and reports are produced based on the inspections. These
inspections have contributed in the production of the quality products. At that time
inspections were conducted periodically. But now the situations have changed, the
business has grown which has resulted in the mass production and this prompted the
need for full time quality inspections. The process of quality assurance includes
providing assurance to the customers that they will receive quality products. Based on
this assurance only the customers purchase the products (Okerekehe, 2014).

The evolution of the quality begins from the year 1950 through the quick adoption of
the quality management practices. During this time mass inspections and quality
control measures were taken by the management so that less defective parts are
manufactured. During the year 1960s the concept of quality assurance came into
existence and the manufacturing organization started attracting the customers through
providing quality assurance. From the year 1969 the concept of total quality
management is adopted by almost all manufacturing organization to ensure the
production of quality products and the customer satisfaction.

During the year 1979 the British Standards Institutions has introduced BS5750, which
is a quality assurance standard equivalent to the BS EN ISO 9000:2000. The
manufactures are required to register with this standard so as to get the quality
assurance certification. Another standard which has contributed a lot in the evolution
of quality is the Charter mark which is an award provided to the organizations which
provides high quality customer service. During the year 2008 this is replaced by the
customer service excellence standard. These services and standards have acted as a
support for the organizations while providing quality assurances. The regulations of
these standards also implements quality control within the organization.

International organization for standardization had introduced a standard ISO 9002

which provides importance to the quality assurance in the production, installation and
providing appropriate customer service. This provides the manufactures with a
detailed statement and standards for the development and the maintenance of an
effective quality management system.

c) Discuss a range of quality management approaches Organizations like

Toyota can adopt, clearly highlighting the similarities and differences
between the different methods.

According to the organization Toyota, quality is not achieved through inspecting it in

the final stage. They believe that quality should be ensured at every stage from the
production to the customer service. The organization has established a companywide
quality control and each employee has the responsibility of quality assurance. There
are many quality management approaches which can contribute to the effectiveness of
the quality in such organizations. Some of the quality management approaches which
can be adopted by the organization Toyota are mentioned below.

 W. Edwards Deming: According to him the quality is determined by the system. Customer
orientation and continuous improvement can lead to the achievement of the quality. This
approach will be appropriate for Toyota as it is more systematic and can provide high degree
of quality assurance.
 Joseph M Juran: He implemented Pareto analysis for quality principles. According to this 80%
of the issues are caused because of 20% of the causes. He provides importance to the human
relations which are very important for the organizations like Toyota. This approach provides
the organizations with the options like quality planning, Quality control and quality
improvement (Evans & Lindsay, 2014).
 Kaoru Ishikawa: This approach supports the organization like Toyota to introduce and
implement total quality management which can lead to the success of the organization. This
approach of companywide quality control is adopted by Toyota to achieve success.
 Philip B Crosby: According to this approach the performance of a system or an organization
can be termed as effective if it can achieve zero defects. This approach can benefit the
organization like Toyota to achieve competitive advantage.

These quality gurus provide a systematic ways through which the organization can
ensure quality in their products and services. The Kaoru Ishikawa approach specifies
that quality should be checked and ensured in the early stages itself. Hence the
problems can be rectified initially itself. These systematic ways can ensure quality
control and will enable the organization to provide quality assurance to the clients.
Through this total quality management and competitive advantage can be achieved.

Similarities and Differences

QM Approaches Similarities Differences
 Quality is determined by the
system
 Statistical process of
 It focuses on continuous
quality control is
improvement and customer
recommended in all
orientation
W. Edwards approaches.
 There is no optimum quality costs
Deming and its structure includes 14
quality management points

 80% of the quality issues are due

to 20% of the causes.
 It gives importance to human
 All approaches provide
relations
importance to team
 Here quality is not considered as
work to achieve quality.
free but there are optimum
quality costs. Its structure includes
Joseph M Juran 10 steps of quality improvement.

 All approaches provides  Its quality view point is

quality assurance and
quality control options
which can gain the
organizations
competitive advantage
Kaoru Ishikawa
companywide quality control.
 Has introduced many quality tools
like pareto histogram etc..
 Give importance human aspects
on quality.

 Quality is determined by the

Conformance to the requirement
and Zero defect.
 Focuses on prevention of quality
issues
 Cost of quality is free and its
structure includes 14 steps.
Philip B Crosby

Task 2

a) Discuss what is meant by customer satisfaction in the context of Toyota

Customer satisfaction can be described as the term which can be used to measure how
the quality and the benefits of a particular product or service meet the expectations
and preferences of the customers. Customer satisfaction is achieved when these
expectations are met. This has to be achieved by the organizations as it can bring
success and profitability to the organization. The higher the customer satisfactory
level the higher will be the growth of the organization. The organization Toyota can
achieve customer satisfaction level through providing high quality and products and
services. For this the organizations like Toyota can first stick on the quality standards
and specifications put forward by the legislations. It can also focus on customer
requirement and their expectations about quality. Through this the organization can
satisfy the customers. Already Toyota is following a companywide quality control and
management to provide high quality products to the customers (Kärnä, 2014). The
organization Toyota being in an automotive industry has to face high degree of
competition. Achieving customer satisfaction is the only way for it to gain
competitive advantage. Hence it becomes essential to improve the quality of the
products and to become more innovative in it to hold a dominant position in the
market. Apart from this the government has also introduced laws which protect the
rights of the customers which compels the organization to provide quality and risk
free products.

b) Explain the meaning of continuous improvement with reference to Toyota

The term continuous improvement in business can be described as the continuous or

ongoing effort taken by the management of the organization so as to improve the
quality and the efficiency of the product and services they provide. This continuous
improvement can gain success and many loyal customers for the organization. In the
case of Toyota which is an automobile manufacturing company it has to focus on the
continuous improvement of the product and the service they provide. There are many
technological changes happening in the automobile industry. The continuous
improvement can help the organization to achieve competitive advantage through the
adoption of modern technologies. Continuous improvement in the service quality can
also gain more customer satisfaction (Delgado, 2014). The quality concept Kaizen
which is meant by continuous improvement is widely implemented in almost all
business organizations. In Toyota also the concept of the kaizen I widely implemented.
The quality principles of Toyota highlight the continuous improvement of all
activities or business operations which includes the effort and participation of all
employees. It applies the companywide quality principles which are supported by the
concept kaizen.
c) Illustrate the type of added values and benefits Toyota would gain
from implementing effective quality management

Effective quality management is very essential for an organization to produce quality

products and to provide quality assurance to the clients. Some of the benefits and
added values of managing quality in the organizations like Toyota are mentioned
here.

 Through managing quality the costs which are incurred in the recall of the products can be
reduced. Through effective quality management systems the zero defect products can be
manufactured which can lower the costs incurred.
 The wastage of the time, resources and money can be reduced through this as it is a
systematic approach (Bloom, 2015).
 The customer loyalty can be enhanced through delivering high quality products and services.
 Through managing quality the management can create awareness about quality among the
staff members which can enhance the quality.
 Toyota can achieve good reputation and brand image in its industry through which
competitive advantage can be achieved.

d) Describe importance Toyota gives to effective marketing and the types

of information made available to customers by Toyota

For organizations like Toyota effective marketing is very essential to communicate

the information regarding quality and specifications to the customers. This type of
marketing is very important as it can generate a positive customer perception. For
providing quality assurance and to make the credibility of the products it is very
important for the organization to adopt effective marketing techniques. The Toyota
communicates the information relating to quality like the specifications, reliability,
durability, engine efficiency, details regarding the standardization of the spare parts
etc. Through this quality information the customers can evaluate the quality of the
product by themselves. Some of the other types of communications informationwhich
the organization Toyota made available to the customers through their marketing
activities include the details of the show room which includes the opening and closing
timings, address etc, the contact details which includes the telephone number, email
address, web address etc. They also share the price details which will be helpful for
the customers to compare the cost with the competitors. The promotional offers are
also disclosed with the customers. They also communicate relevant information to
create a good reputation. They have introduced Amlux Toyota through which they
gathers information and reveals information to and from the customers.

Task 3

a) Explain how quality management can be measured by Toyota

Measuring quality is relevant for organizations like Toyota for ensuring quality and
further improvement. For this the quality management approaches adopted by the
organization Toyota should be examined and measured. Some of the approached
adopted by Toyota includes Juran & Ishikawa quality management approach. These
two methods include the concepts SPC, quality circles, TQM and six-sigma which
make it an efficient one.

The Statistical process control tools like the Pareto analysis, control charts etc
specified in the Ishikawa approach can minimize the defective parts in the
manufacturing unit of Toyota. The SPC is the tool used in six-sigma which
statistically measures any sort of deviation in the quality. Hence the quality can be
measured appropriated in this approach (Santiago, 2014). In Juran approach the
quality circles and the TQM plays a major role in the measurement of quality.
Planning, quality control and improvement enables the appropriate measurement of
quality. This method records the statistical output of the quality management for
further improvements. These two approaches are appropriate in measuring and
solving the quality related issues and to provide satisfaction to the customers through
total quality management.

b) Evaluate the benefits of user and non-user surveys in determining

Toyota’s customer needs

The user surveys are the surveys which are conducted on the existing customers of
Toyota. For example the surveys which are conducted on the show rooms and online
for identifying the customer satisfactory level can be a user survey. The non user
survey is the survey conducted on the non users of Toyota. For example the survey
conducted for market research for identifying the expectations and preferences of a
specific target market can be a non user survey.
The surveys which can be conducted on the users and the non users can gather
information which can benefit Toyota in many ways. Some of them include

 Through survey the management of Toyota can identify the customer perception about the
organization.
 From users Toyota can identify what they can be done for improving their product quality
and service. Their feedback can help the organization in making modifications.
 They can also get the information regarding the customer expectations, preferences etc.
 From non users of Toyota the details regarding its competitor’s products and their hold in
the market can be identified.
 The strength and weakness can be of Toyota can be identified when compared to the
competitors through conducting non user surveys..

c) List the methods of consultation employed by Toyota in one quality

scheme to encourage participation by under- represented groups

Customer consultation is the process of customer engagement program through which

the customer feedback, expectations and preferences are collected. Through this
activity the customers are involved in the decision making process while
implementing a quality scheme. The staff consultation is the activity trough which the
flow of information regarding the quality scheme communicated clearly. The roles
and responsibilities of each members associated with this scheme is specified here.
The under-represented groups are the customers of Toyota who are not in contact with
the company, less influence over the organization like individual buyers, international
customers etc (Littlechild, 2014).

Some of the methods through which these customers can be encouraged to participate
in the program include

 Online and offline surveys through which these customers can register their feedback and
opinions.
 Social media is the most quick and cost effective method which can be opted for this
purpose.
 Open meeting and conferences through which the organization and the customers can meet
directly and share the opinions.
 Company websites can also be used for this purpose.

d) Identify the value of complaints procedures and analyse how they may
be used to improve quality at Toyota

The customer complaints should be considered as the opportunity of the organization

like Toyota to make the unhappy customer happy which can make them more loyal
towards the organization. If the customer complaints are dealt carefully and
systematically and resolved it efficiently then it can add value to organizations.

The organization Toyota provides importance to the customer complaints and realizes
how important is it to handle it properly to retain the image of the organization.
Toyota has public relations officers in almost all its branches and franchises to hear
and resolve customer complaints. Apart from this there is a customer complaint
service scheme through which the customer can contact the corresponding local and
regional offices through telephones and emails. The authorized personal will contact
the customers back to resolve the issues. Once the problem is resolved the customer is
again contacted for feedback about service. The customers are also free to post their
grievances in the social media and also in the company website. Toyota’s fast
response to the complaints generates a positive perception in the customers. The
management also accumulates and categorizes the customer complaints and
appropriate actions are taken so that those mistakes are not happened in the future.

Task 4

a) Report on the role of self-assessment in order to determine Toyota’

s current ‘state of health’

Through self assessment process an organization like Toyota can determine its state of
health. Through this process the current situation of the organization in business, its
strength and its weakness can be identified. This includes a systematic and periodic
review of the business operations management of the organizations which are
compared against a standardized model (Mascarenhas, Nunes, & Ramos, 2014). The
method of self assessment is a continuous process which is diagrammatically
represented below.

The process of self assessment

Through self assessment process Toyota can analyze its own business operations
based on the standards specified by the associations and other legislations. It can
develop high standard business operations which can gain then good reputation. Some
of the methods self assessments adopted by Toyota includes bench marking, internal
self assessment and external agencies.

Bench marking: This method includes the comparison of Toyotas business

operations with its competitors. Through this the strength and weakness can be
determined and necessary action can be adopted for improvement. The current
performance of Toyota can be identified through this method. This method of self
assessment can support Toyota to understand the technological changes, trends, etc
(Zhu, 2014).

The internal assessment is another method of self assessment through which the
management of Toyota conducts a survey among the employees to identify the
internal strength and potential. The external agencies are also allotted to conduct this
assessment so as to identify whether the operations of Toyota meets the industrial
standards.

b) Evaluate the importance of communication and record keeping at Toyota

For large automotive organizations like Toyota effective communication and record
keeping is relevant. Through effective communication the staff consultation can be
performed effectively. Through various communication methods like seminars,
departmental meeting, newsletters etc the objectives of the quality schemes can be
communicated effectively. This can provide the staffs with a clear understanding
about what and when shall be done. The staffs also can understand whom to report
and how to deal with the customers (Raymond, & Toole, 2014).

Record keeping is the process of documentation through which the action plans are
documented for future references and to identify and review the improvement in the
operations quality. For Toyota frequent market researches and strategic formulations
are necessary to achieve competitive advantage. At this situation documentation of the
operations are relevant to compare with the historical events.

The disadvantage of communication is that a vague and unclear communication can

make the situation complex. If a proper database management system is not
implemented the theft of historical data can happen which can put Toyota at risk.
Time and effort is required for proper maintenance of data.

c) Explain how quality schemes at Toyota can be effectively implemented

by following guidelines on the stages of staff consultation

The quality schemes of Toyota can be implemented effectively through following the
guidelines of the staff consultation. The stages include plan, do, check and act. For
example the organization Toyota wants to implement zero defective quality schemes
in its production department. Its implementation can be explained below.

Plan
  The manager and the top management of the production division of Toyota can paln a
systematic procedure for the effective implementation.
 The employees in the division can also be included in the planning process.

Do

 The objectives of the zero defective scheme and its relevance can be communicated to the
employees.
 An agreement can be made so that all may follow the guidelines mentioned it.
 Benefits, rewards etc can be offered for the employees.
 The roles and responsibilities can be communicated

Check

 Periodic checking is essential for the purpose of identifying the improvement or variations
 For examples inspections can be done to find if there is any defective piece, employee
grievances etc.

Act

 Appropriate actions can be taken to eliminate variations if there is any.

d) Propose new systems or modifications to Toyota’s existing systems

that could improve service quality

The existing system of Toyota follows a companywide quality control which is really
very efficient approach of quality attainment. Under its system it becomes the
responsibility of each employee from the top management to the bottom level to
achieve quality and customer satisfaction. This existing system can ensure quality and
competitive advantage for the organization.

It can be recommended that the organization can adopt the quality approach proposed
by Philip B Crosby which ensures zero defects in its production. Since the industry
which the organization Toyota belongs to is highly competitive this approach can gain
it a high degree of competitive advantage. This method will be more statistical than
the existing method. This can also support Toyota to regain its dominant position in
the market.

Conclusion

This Unit 17 Quality Management Toyota Assignment specifies the relevance or

QM in organization Toyota. The definitions of quality, inspection, assurance etc are
mentioned in context to Toyota. The relevance of customer satisfaction, continuous
improvement in business etc are discussed. Various approaches of quality
management and measuring the quality approaches are discussed. Various principles
of quality management like communication, consultation, etc are discussed.

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