Total Quality Management - Toyota 6r4a8

TOTAL QUALITY MANAGEMENT

• Toyota Motors is the tenth most important company in the world according to Fortune Global 500. • One of the only companies on the list to directly address TQM. • Toyota Motors Co., Ltd. has received, • The Deming’s Application Prize in 1965 and • The Japan Quality Control Award in 1970. • For Toyota, TQM is based on the concept of: • 1. Customer first. • 2. Kaizen meaning continuous improvement and • 3. Total participation which means the involvement and input of all employees.

Toyota’s Core Principles: Customer First

• Over its 75-year history, Toyota has strived to listen to the Voice of the customer. • In 2005, Toyota established - Customer Quality Engineering Division • Global problem registration system. • Established the Customer First (CF) Committee: CF principle in entire company. • The CF principle - Foundation of Toyota’s history of Customer Relations Activities. • Heavy Focus on the “Voice of the customer” • Voice of Customer – enhances customer satisfaction and the quality. • E.g. :- Customer Service Telephone line was made tollfree in 1990. • They have “Customer Month” in which the company holds even more customer satisfaction events, seminars and reviews

Toyota’s Core Principles: Kaizen

•  Kaizen - continuous improvement. • Aim- To improve and obtain zero defects. • Techniques for continuous improvement: 1. Eliminating waste of time. 2. Eliminating fear of workers to report problems to their supervisors 3. Elimination of mistakes from the root of the cause. 4. Creating a relationship of satisfaction between customers with their providers;. 5. Creating long-term solutions through intellectual and mathematical rationalization rather than quick, short-term solutions.

Toyota’s Steps to induce TQM • Toyota launched the Creative Idea Suggestion System in 1951 to and encourage employees in making effective contributions to the company’s development. • Toyota introduced Statistical Quality Control (SQC) in 1949. • Toyota has continued to make advancements in TQM through employee training in QC, target-setting and even TQM employee networks.

Implementation of TQM • Toyota Motors has a world-wide reputation for efficient and lean manufacturing, called TPS (Toyota Production System). • TPS is based on five principles: 1. Always be faithful to your duties, thereby contributing to the Company and to the overall good. 2. Always be studious and creative, striving to stay ahead of the times. 3.  Always be practical and avoid frivolousness. 4. Always strive to build a homelike atmosphere at work that is warm and friendly. 5. Always have respect for spiritual matters, and to be grateful at all times.

Chart of Toyota’s TPS

Pull system or Kanban

The 5S system at Toyota

The 5S System at Toyota • 5S is one of Toyota Production System’s (TPS) many renowned philosophies, which aims to keep things in order, make problems more visible and in turn, quicker to solve.  • “Sort”: Sort through all items at a workstation and separate what is needed on a daily basis  •

“Straighten” or “Set in order”: This step involves painting marks around each tool or piece of equipment. every time a tool is taken from its place, it is indicated that it is missing. 

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 “Shine”:  Once everything has been “set in order”, workers take on a thorough cleaning process which they will practice daily.

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“Standardize.”: After setting things in order and cleaning, it’s time to reflect on the three previous steps and now implement them effectively.

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“Sustain”: The aim is to turn each of the four previous steps into a habit. 

CONCLUSION • The Toyota production system is a practical and effective as it popped out from the real life experience of the organization. • This system is enriched with practical effects, actual practices and implications over the analysis. • This system has a vital role in developing the quality of operations of the companies all around the world. • Even to this date hundreds of western companies are using the Toyota quality management methods which are a clear indication of Toyotas success.