Toyota Total Quality Management

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Toyota Total Quality Management Introduction Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. This management approached originated in the 1950's and become more popular since the early 1980's is a description of the culture and attitude inside the organization that let provide customers with products and services that satisfy their needs. It needs quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations. The aim of the combination of quality and management is increasing business and reducing losses due to wasteful practices to low cost. This method has been applied by very well known recognised corporations but one of the most successful is Toyota Motor Corporation which has been voted the global most admired motor vehicle company by the Fortune magazine in 2005 and 2006 and ranking first in the industry for quality, social responsibility and global care. The company was voted the 2nd most admired global company overall. The current report paper was meant to give an in depth look at the Toyota Quality Management implementation and the very well recognized Toyota Production System and its effects on the automotive industry. The revolutionary ideas and concepts created by Tashiido Ohno at Toyota have been used in many other organizations and industries throughout the world. Value as Toyota has set the standard for the rest of the auto industry to follow. Toyota – General Overview Name of Company: Toyota Motor Corporation Head Office: 1 Toyota-Cho, Toyota City, Aichi Prefecture 471-8571, Japan Toyota Motor Corporation (TMC) is one of the global leading manufacturing companies with nearly 70 years in the market and has become the world’s third largest vehicle manufacturer with a wide range of models and high technology. Toyota was founded in 1919 and the first motorcar...

Transcript of Toyota Total Quality Management

Page 1: Toyota Total Quality Management

Toyota Total Quality Management

Introduction

Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services.This management approached originated in the 1950's and become more popular since the early 1980's is a description of the culture and attitude inside the organization that let provide customers with products and services that satisfy their needs. It needs quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations. The aim of the combination of quality and management is increasing business and reducing losses due to wasteful practices to low cost.

This method has been applied by very well known recognised corporations but one of the most successful is Toyota Motor Corporation which has been voted the global most admired motor vehicle company by the Fortune magazine in 2005 and 2006 and ranking first in the industry for quality, social responsibility and global care. The company was voted the 2nd most admired global company overall.

The current report paper was meant to give an in depth look at the Toyota Quality Management implementation and the very well recognized Toyota Production System and its effects on the automotive industry. The revolutionary ideas and concepts created by Tashiido Ohno at Toyota have been used in many other organizations and industries throughout the world. Value as Toyota has set the standard for the rest of the auto industry to follow. 

Toyota – General OverviewName of Company: Toyota Motor CorporationHead Office:   1 Toyota-Cho, Toyota City, Aichi Prefecture 471-8571, Japan

Toyota Motor Corporation (TMC) is one of the global leading manufacturing companies with nearly 70 years in the market and has become the world’s third largest vehicle manufacturer with a wide range of models and high technology. Toyota was founded in 1919 and the first motorcar...

Page 2: Toyota Total Quality Management

Total Quality Management

Total Quality Management 

Introduced in the 1950s and made more popular in the 1980s Total Quality Management is a very

radical management style. A strong Total Quality Management plan relies on internal as well as

external team building. A

mistake to avoid before the implementation of a Total Quality Management strategy is an inaccurate

analysis of the precondition and current state of an organization. Leadership styles and the

organizations culture need to work well together. If they do not, this process should be delayed until

an accurate assessment and favorable conditions exist. This paper defines Total Quality Management

and examines the impact of globalization on quality. In addition, traditional management styles and

quality focused management styles are compared and contrasted. Finally, how Federated Department

Stores applies Total Quality Management is explained.

Total Quality Management Defined

Total Quality Management is the techniques an organization uses to improve the quality and

production level. This technique involves teamwork and is used horizontally across an organization.

Internally all departments and employees are included. Externally all suppliers and clients/customers

are included. The most important objective of Total Quality Management is to implement effective

quality and productivity plans that will raise profits and give an organization a competitive boost.

According to Hashmi (2006), "Total Quality is a description of the culture, attitude and organization

of a company that strives to provide customers with products and services that satisfy their needs.

The culture requires quality in all aspects of the company's operations, with processes being done

right the first time and defects and waste eradicated from operations" (Paragraph 2). To be effective

Quality Management must be continuously improved upon by management and employees.

Companies that have initiated the Total Quality Management process include; Ford Motor

Company,...

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Submitted by: bry1988

Date Submitted: 08/12/2007 02:12 AM

Category: Business

Words: 1090

Pages: 5

Views: 2465

Rank: 8172 Report this Essay Save Paper

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A Brief Study On Toyota's Operation And Total Quality Management

Operation and Total Quality Management 

Question 1

The company I chose is Toyota Motor Corporation (Lexus).

(i) Goods and service design (product)

This operation management decision is about deciding what type of goods or service to provide to

customers and also how to design these products and services to appeal to the targeted customers.

Toyota Lexus has to come to a conclusion on the type of cars they should manufacture. For example,

should the car be high end or affordable? They need to decide a focus point which is whether the

brand Lexus should appeal to the normal working class or swinging bachelors or rich entrepreneurs.

This important factor needs to be carefully pondered over as it will affect the rest of the production

and the target marketing later on. 

The second important decision made was how Toyota designed the Lexus car. They considered the

distinguishing feature of the brand and the manner in which they should apply to the design of the

car. Since the price range of Lexus is generally higher; hence, the furnishing and engineering of

Toyota should be more luxurious and of higher quality. For example, the Lexus IS is targeted toward

richer consumers as it is designed as a compact executive car made to compete with the luxury sport

sedans of other leading European brands.

Quality

Toyota as an automobile manufacturer definitely has to have quality control, and it has to be

objective, measured against an accepted standard. Toyota’s way of measuring quality is continuous

improvement or in Japanese term, Kaizen. Toyota quality management is also tightly related to their

Just-in-time system.

As the focus is on Toyota Lexus, there is quality differentiation between Lexus and other brands.

Page 4: Toyota Total Quality Management

Lexus is a higher end range of Toyota cars and it is more expensive than other range of Toyota cars.

The slogan of Lexus is ‘The Pursuit of Perfection’ and they have proven themselves to be true. 

For example the series Lexus IS cars has 15 quality gates and each...

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Submitted by: mikoh7

Date Submitted: 07/30/2009 10:56 AM

Category: Business

Words: 2925

Pages: 12

Views: 567

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Tqm

Total Quality Management may be defined as a structured system designed for the purpose of

satisfying internal and external customers and suppliers by the integration of the business

environment, continuous improvement, and successes in breakthroughs with the development, the

improvement and the maintenance cycles and in the process changing the culture of the organization.

(TQM: Definition of Total Quality Management). 

Total Quality Management was the brainchild of Dr. W Edward Deming, who developed it in the mid

1940's. His ideas were not acceptable to the American businessmen, but did meet with success with

the Japanese businessmen. On the cessation of hostilities connected with the Second World War, Gen

MacArthur took a team of scientists and specialists to Japan and Dr. Deming happened to be one of

them. Many of the businessmen attended a lecture of Dr. Deming on the means to achieve quality at

Page 5: Toyota Total Quality Management

reduced costs with the help of statistics. These theories of Dr Deming were later adopted by the

Japanese manufacturing companies and succeeded in producing quality products at reduced costs. By

the 1970s and 1980s several American companies including Ford, IBM and Xerox started using the

principles of Total Quality Management as developed by Dr Deming in an attempt to regain some of

the markets they had lost the Japanese and met with success. This led to the prominence of Total

Quality Management in the private sectors, which has gradually now crept into the public sector too.

(Total Quality Management. History of TQM). 

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The use of the principles of Total Quality Management came into Asia by the Japanese businessmen

utilizing it to develop quality products at lower cost and gain markets around the world, which was

the envy of the developed Western world. The name of the Japanese Ishikawa became known around

the world for the successful development and integration of Total...

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Submitted by: J3LEPHEW

Date Submitted: 11/01/2007 11:48 PM

Category: Business

Words: 2525

Pages: 11

Views: 737

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