CASE 3

TOYOTA

Statement of the Problem

All Japanese industry was impacted negatively by American bombing in 1945, but
Toyota's major problems emerged five years later. This economic and labor crisis served as the
impetus for the Toyota Production System. The Japanese auto industry was on the verge of
collapse following World War Two. American automakers like Ford and General Motors, on the
other hand, were dominating.

Background of the Case

The history of Toyota began in the Japanese weaving industry when Sakichi Toyota
created the first mechanical loom and founded the Toyoda Spinning and Weaving Corporation
in 1918. Because a loom would not continue utilizing the thread and manufacturing faulty fabric
once a problem occurred, his invention decreased flaws and enhanced yields. The Toyota
Production System still relies heavily on constructing machinery so that it can stop
automatically and signal issues immediately. The Deming Application Prize in 1965 and the
Japan Quality Control Award in 1970 are only two of the top honors for quality management
that Toyota Motors Co. Ltd. has won. Toyota's Total Quality Management (TQM) philosophy is
built on the ideas of "customer first," "kaizen" (constant improvement), and "complete
participation" (involvement and input from all employees). Toyota established the Innovative
Idea Suggestion System in 1951 to assist and motivate staff members to make valuable
contributions to the growth of the business. Toyota first implemented Statistical Quality Control
(SQC) in 1949. These ideas are at the heart of the Toyota Production System (TPS), which has
led to higher-quality work and improvements in all areas of the organization, from people to
services. The company also takes a lot of effort to give back through community-based
programs and environmental initiatives.
Alternative Courses of Action

A loaner Lexus sedan's accelerator became stuck in August 2009 due to a dealer's faulty
installation of an all-weather floor mat from an SUV. This tragedy resulted in fatalities and set
off the most challenging crisis in Toyota's history. The American press, the government, and
expert witnesses for plaintiff lawyers demonized this legendary corporation, synonymous with
safety and excellence. Details typically unimportant to the public, such as internal memos that
disagreed on public relations strategy turned into smoking guns that persuaded the press and
the people that Toyota vehicles had electronic issues that could cause runaway vehicles — and
that the company was concealing this from the public. To safeguard their reputations and
money, Toyota held off making a statement about the problem and delaying the investigation,
demonstrating its lack of ethics and refusal to accept responsibility for the harm it caused to the
public. We can infer that Toyota's rapid expansion puts pressure on its workforce, which results
in poor quality. It demonstrates that they have a problem with their business and
communication practices, emphasizing the number of cars rather than the features that
endanger life and disregarding public safety.

According to Toyota, employees are frequently required to give up their personal life
and happiness for the firm's benefit, which has a history of making allegations that many
people are overworked to death. And when an employee sustains an injury while working, they
are terminated without receiving any compensation. Two things Toyota workers should have
are our employee health benefits, which would allow Toyota workers to visit the hospital for a
checkup if desired, and payment for extra labor.

Conclusion

The principles of "customer first," "kaizen" (continuous improvement), and "total

participation" were the foundation of Toyota's Total Quality Management (TQM). However, in
2002, Kenichi Uchino, a quality control manager who was 30 years old, collapsed and died at
work, allegedly due to overworking himself. Also, in 2009, the issue surfaced that was brought
on by plastic material within the pedal that might cause the accelerator to become stuck in a
partially depressed position, leading to a previous recall. Businesses should consider their
customers' needs before thinking about how to turn a profit quickly. The corporation made a
mistake by ignoring the material's shortcomings and waiting for accidents to occur. Finally, if
the corporation committed an error, we should immediately be upfront about it. Making
ensuring there are no issues requires checking the products' quality. To ensure that their
employees are in excellent health, which might improve their attitude at work, companies
should care for their well-being and provide them with perks. To prevent problems from
happening, businesses should learn from past errors and enhance their procedures and working
methods.

Recommendation

Quality components should be used rather than inexpensive ones to ensure the safety
of automobile vehicles. Meetings should hold meetings and talks on the design, development,
manufacture, marketing, and sale of motor vehicles. Being transparent with the public
regarding the methods and materials utilized to create automobiles is beneficial in this line of
work. Testing autonomous cars are essential to ensure the safety of all vehicles. Overtime pays
and employee health benefits benefit employees for their incentive schemes.