Christian Rey C.

Dibdib BSIE 3-5 October 8, 2021

Cost of Quality – Assignment #1

1. Identify or cite a company with good implementation of its Cost of Control (50pts).

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Toyota Motor Corporation
Toyota Motor Corporation is a Japanese multinational automotive manufacturer and one
of the largest automobile in the world , producing about 10 million vehicles per year. It was
founded by Kiichiro and incorporated on August 28, 1937. Many of its about 1,000 subsidiary
companies and affiliates are involved in the production of automobiles, automobile parts, and
commercial and industrial vehicles. Headquarters are in Toyota City, an industrial city east
of Nagoya, Japan.
This company has a good implementation of its cost of control , In fact it utilizes many
practices in order for productivity and effective in producing a good quality vehicles that
would surely satisfied their customer . In addition , one of the method they used for the cost
control is the TPS or the Toyota Production System that established on many years on
continuous improvement with the objective of making the vehicles ordered by customers in the
quickest and most efficient way, in order to deliver the vehicles as swiftly as possible. The
Toyota Production System (TPS) was established based on two concepts: "jidoka" (which can be
loosely translated as "automation with a human touch"), as when a problem occurs, the
equipment stops immediately, preventing defective products from being produced; and the "Just-
in-Time" concept, in which each process produces only what is needed for the next process in a
continuous flow.
Therefore, this company implement of its cost if control effectively, that would reduce
defects of producing their product and also help to their organization to have a favorable bottom
line and good performance.
2. Cite a company, that has experienced failures in its operation/s (50pts) or Costs of
Failure of Control. State how the Organization manage such failures and what
improvement/s did they applied/implemented.

Jollibee Food Corporation

Jollibee is the largest fast-food chain brand in the Philippines, operating a network of
more than 1,400 stores. A dominant market leader in the Philippines, Jollibee enjoys the lion's
share of the local market that is more than all the other multinational fastfood brands in PH
combined. With a strict adherence to the highest standards of food quality, service and
cleanliness, Jollibee serve great-tasting, high-quality and affordable food products to include its
superior-tasting Chickenjoy, mouth-watering Yumburger and deliciously satisfying Jolly
Spaghetti among other delicious products.
On my point of view every businesses or organization have their own failures , perhaps in
their operation or services to their customers. Nobody is perfect . However, in case of the
Jollibee based on my observation, one time as I viewed in the social media . Jollibee company
has experience failure to its quality of the food product , One customer complaining about the
food which Jollibee served to her. Specifically, the food that she complain is the chicken joy who
has bad quality, that’s why those issues was considered as failure in the company. Maybe , they
have failure in quality check of the product before they served to the customer.
The experienced of the Jollibee food corporation could be result a bad impact to the
company. However, the company resolve the problem by implementing a cost of control to the
operation. Implementing and monitors Food Safety and quality management system .They
implement some prevention such quality check of the product before they served , they
developed a program to elevate the account’s quality and food system through training and
review. They conduct spot food safety audits and restaurant quality evaluation in all Jollibee
store in the country. Lastly, they also implement new safety standard for the improvement of the
company .
Reference :
https://www.britannica.com/topic/Toyota-Motor-Corporation
https://global.toyota/en/company/vision-and-philosophy/production-system/
https://www.jollibee.com.ph/