ASSIGNMENT

Principles of TQM in Toyota

AISWARYA AS
I MBA
SVPISTM
 The Toyota Corporation has the implementation of total quality management
(TQM) meant to improve the overall performance and operations of this automobile
company. TQM involves the application of quality management standards to all
elements of the business. Toyota has limited interdepartmental barriers, excellent
customer and supplier relation, spares time to be spent on training and the recognition
that quality is realized through offering excellent products as well as quality of the entire
firm, including personnel, finance, sales, and other functions. The organization
management elements required when implementing TQM, identifies, and investigates
the challenges facing Quality Managers or Executives in implementing Quality
Management Systems.
In order to implement TQM, Toyota corporations focused on the following phases:-

 The company extended the management responsibility past the instantaneous

services and products

 Toyota examined how consumers applied the products generated and this
enabled the company to develop and the improve its commodities

 Toyota focused on the insubstantial impacts on the procedures as well as how

such effects could be minimized through optimization

 Toyota focused on the kaizen (incessant processes development) in order to

ensure that all procedures are measurable, repeatable, and visible.
Quality management in all organization management system:-
Total Quality Management becomes achievable at Toyota through setting up the
mission and vision statements, objectives, and organizational goals. In addition, the
TQM is achievable via the course of active participation in the organizational follow up
actions. These actions denote the entire activities needed and involved during the
implementation of the set-out ideologies of the organization. From Toyota Corporation’s
report, TQM has been successful through the commitment of executive management
and organizational workforce (Toyota Motor Corporation, 2012). Through inventory and
half the bottlenecks at half cost and time, the adopters of TMS (Toyota Management
System) are authorized to manufacture twice above the normal production. To manage
the quality in all organizational management system, the Toyota Production System
incorporates different modernisms like strategy use, overall value supervision, and just-
in-time assembly.
The TQM and the creativity of Toyota proprietors both support the quality at the
source. The rectification and discovery of the production problems require the
executives to be committed. At the forefront of Toyota operations, the managers
integrate a number of forms of operational quality checks to ensure quality management
at all levels. The Toyota process owners set up the mistake-proofing (Poka-yoke)
procedures and devices to capture the awareness of management and involuntarily
correct and surface the augmenting problems. This is essential for the critical production
circumstances and steps that prove impractical and tricky for the Toyota employees to
inspect.
Nevertheless, the policy deployment system decentralizes the process of
decision making at Toyota. This context of implementing Total Quality Management
originates from Hoshin kanri’s management by objective (MBO).
The aspect becomes more advantageous to Toyota when dealing with quality
management. The system initially puts into practice the coordinated approach and
provides a clear structure for the suppliers, producers, and consumers through inter-
organizational cost administration. Moreover, the Toyota executives are capable of
solving the concurrent delivery, cost, and quality bottlenecks, thus replace and increase
the relatively slow accounting management mechanisms.
Focusing on manufacturing quality:-
Customer focus that leads to the desired customer satisfaction at Toyota
Company is one of the major success factors in TQM implementation. For every
business to grow, it should have understanding, reliable, and trustworthy customers.
The principle of customer satisfaction and focus has been the most presently well-
thought-out aspect in Toyota manufacturing quality. The TQM may characteristically
involve total business focus towards meeting and exceeding customer’s expectations
and requirements through considering their personal interests. The mission of improving
and achieving customer satisfaction ought to stream from customer focus.
Thus, when focusing on the manufacturing quality, this aspect enhances TQM
implementation. The first priorities at Toyota are the community satisfaction, employees,
owners, consumers, and mission. The diverse consumer-related features from liberty.
The concern to care is eminent in Toyota Corporation during manufacturing.
Toyota has three basic perspectives of TQM that are customer-oriented. These are
based on its manufacturing process traced back to the 1950s. The strategies towards
achieving quality manufacturing, planning, and having the culture towards quality
accomplishment are paramount for TQM implementation to remain successful. To
enhance and maintain quality through strategic planning schemes, all the managers and
employers must remain effectively driven.
This involves training workers on principles concerning quality culture and
achievement. The scheduling and planning are analytical applications at Toyota
Company that purposes in assessing customer demand, material availability, and plant
capacity during manufacturing. The Toyota Corporation has considerable approaches
that rank it among the successful and renowned implementers of TQM. From the
inherent and designed structure of Toyota, it becomes feasible to comprehend why
quality manufacturing is gradually becoming effective. The inspection department is
responsible for taking corrective measures, salvaging, and sorting in the desired
manufactured product or service quality.
The Toyota Corporation also has a quality control system that is involved in
determining quality policies, review statistics, and establish quality manual or
presentation data. Furthermore, quality assurance is one of the integral principles in
quality implementation that is practically present at Toyota. The quality assurer and
quality inspectors all through the Toyota Company structure also manage research and
development concerning quality of manufactured products and services.

Organization management elements:-

The corporation realizes this via offering loyal and express commodities at logical
fees and assisting dealers in progressing commodities proffered. As Slack et al. (2009)
observed, the basic performance objectives, which pertain to all the Toyota’s operations
include quality, speed, flexibility, dependability, and cost. Toyota Company has been
successful in meeting these objectives through its production and operation functions.
Over several decades, Toyota’s operational processes and management systems were
streamlined resulting in the popularly known Toyota Production System. Although the
system had been extensively researched on, many companies, such as Nissan
experienced difficulties in replicating TPS.
The TPS was conceived when the company realized that producing massive
quantities from limited product lines and ensuring large components to achieve
maximum economies of scale led to flaws. Its major objectives were to reduce cost,
eliminate waste, and respond to the changing needs of the customers. The initial
feature of this system was set-up time reduction and this forms the basis of TQM
implementation.
At Toyota Corporation, quality is considered as acting responsibly through the
provision of blunder-gratis products that please the target clientele. Toyota vehicles are
among the leading brands in customer satisfaction. Due to good quality, its success has
kept growing and in 2012, the company was the best worldwide. Moreover, Toyota has
been keen on producing quality vehicles via the utilization of various technologies that
improve the performance of the vehicles.
While implementing TQM, Toyota perceives speed as a key element. In this
case, speed objective means doing things fast in order to reduce the time spent
between ordering and availing the product to the customer. The TPS method during
processing concentrates on reducing intricacy via the use of minute and uncomplicated
machinery that is elastic and full-bodied. The company human resources and managers
are fond of reorganizing streams and design to promote minimalism. This enhances the
speed of production.
Another objective during TQM implementation is dependability. This means
timely working to ensure that customers get their products within the promised time.
Toyota has included just-in-time production system comprised of multi-skilled
employees who work as teams. The kanban control allows the workers to deliver goods
and services as promised. Advancing value and effectiveness appears to be the
distress for administrators, mechanical specialists and other Toyota human resources.
During TQM implementation, Toyota responds to the demands by changing the
products and the way of doing business. Chary (2009) argues that while implementing
TQM, organizations must learn to like change and develop responsive and flexible
organizations to deal with the changing business environment.
Within Toyota plants, this incorporates the ability to adopt the manufacturing
resources to develop new models. The company is able to attain elevated degree of
suppleness, manufacturing fairly tiny bunches of products devoid of losses in excellence
or output. The organizational hierarchy and job descriptions also determine the
successful implementation of the TQM. Toyota is amongst the few companies whose
organizational structure and task allocation have proved viable in TQM implementation.

Team working in TPS:-

Toyota is among the few manufactures in the completely automobile industry that
consistently profited during the oil crisis in 1974. The discovery was the unique team
working of the Japanese that utilizes the scientific management rules (Huczynski &
Buchanan, 2007). The joint effort in Japan, usually dubbed as Toyotaism, is a kind of
job association emphasizing on ‘lean-assembly’. The technique merges just-in-time
production, dilemma answering groups, job equivalence, authoritative foremost-streak
administration, and continued procedure perfection.
Just-in-time (JIT) assembly scheme attempts to accomplish all clients’ needs
instantly devoid of misuse but with ideal excellence. JIT appears to be dissimilar from
the conventional functional performances in that it emphasizes on speedy production
and ravage purging that adds to stumpy supply. Control and planning of many JIT
approaches are concerned directly with pull scheduling, leveled scheduling, kanban
control, synchronization of flow, and mixed-model scheduling (Slack et al., 2009).
Toyota appears to be amongst the principal participants in changing Japan to a
kingpin in car production. Companies, which have adopted the company’s production
system, have increased efficiency and productivity. The 2009 industrial survey of
manufacturers indicates that many world-class firms have adopted continuous-flow or
just-in-time production and many techniques Toyota has been developing many years
ago. In addition, the manufacturing examination of top plant victors illustrates that the
mainstream of them utilize lean production techniques widely. Thus, team-working TPS
assists Toyota Corporation in the implementation of TQM.
The TQM Implementation challenges:-

In the case of Toyota that originated and perfected the philosophy of TQM, the
Executives and Quality Managers meet some intertwined problems during TQM
implementation. The flaw in the new product development is increasingly becoming
complicated for the managers to break and accelerate, thus reliability problem. Besides,
secretive culture and dysfunctional organizational structure cause barrier in
communication between the top management thus, in turn, augmenting public outrage.
 The top executives may fail to provide and scale-up adequate training to the
suppliers and new workforces. As a result, cracks are created in the rigorous TPS
system. In addition, lack of leadership at the top management might cause challenges
in the implementation of TQM. Therefore, in designing the organizational structures and
systems that impact quality, the senior executives and managers must be responsible.

Total Quality Management is a concept applied in automobile industry, including

the Toyota Corporation. It focuses on continuous improvement across all branches and
levels of an organization. Being part of Toyota, the concept defines the way in which the
organization can create value for its customers and other stakeholders. Through TQM,
Toyota Corporation has been able to create value, which eventually leads to operation
efficiencies.
These efficiencies have particularly been achieved by continuous correction of
deficiencies identified in the process. A particular interest is the central role that
information flow and management have played in enabling TQM initiatives to be
implemented, especially through continuous learning and team working culture.
The Toyota way (kaizen), which aims at integrating the workforce suggestions
while eliminating overproduction and manufacturing wastes helps the company to
respect all the stakeholders and give clients first priority. The objectives are realized
through TPS.