Question

The case:
Toyota is one of the most successful companies in Japanese automobile industry, and it
constantly strives to maintain and improve its current position in the market. Toyota has
maintained and improved its leading position over the years. This positioning in the market
is the result of harmonized efforts from the top executives to the floor operators, who work
in the factories every day.
Quality assurance at Toyota is understood as means to achieve quality in products that
makes customers willing to buy products, confident in using them, and satisfied with their
performance. To achieve this quality assurance, management introduced the total quality
control (TQC) method in the company. The reason for introducing the TQC method was
Toyota's poor results in product quality in comparison with its competitor Nissan. As
compared to Nissan’s Bluebird, Toyota’s Corona had many technical problems and instead
of gaining shares Toyota only gained a poor reputation. Toyota management anticipated to
make use of the TQC method as a tool to increase both the value of the company and the
knowledge of their employees.
Then Toyota implemented Quality Control (QC) Circle activity to educate its employees in
the TQC method. From its beginning in 1962, the framework for Toyota’s QC Circles
involved all personnel in every factory from the top managers to the floor operators. In
1967, Toyota’s QC Circles adopted a theme of Zero Defective Merchandise Activity, and
they started competing amongst themselves to reduce the numbers of defective products.
By 1974, the essential goals were met, new Circles were formed and new themes were set.
But till that time, this activity came to be systematic and more concerned with just winning
prizes than with making good use of the QC Circle activity method. Despite the fact, quality
circles gained good reputation and highly refined presentation skills, this activity started to
losing company reputation.
In 1993, Toyota’s management introduced the “NEW QC Circle Activity” and they decided
to set the framework of this activity on core objectives of establishing quality circles.
Requirements:
1. Keeping in mind the quality management system, you are required to discuss the
responsibilities of senior management in implementation of TQC method in Toyota.

Answer 1

The implementation of TQC method in Toyota was mainly for improving quality of their product. It focused on resolving problems and improving processes, such that the automobile manufactured was of highest quality and reliability. Ultimately, the aim was to improve the vehicle to gain higher customer satisfaction and build-up a good reputation for the company. This required huge participation and involvement of all employees, including the senior management.

The responsibilities of senior management in the implementation of the TQC method in the company were:

• Facilitate communication. There must be free flow of information. This means, communication must be upwards, downwards and horizontal.
• The management must encourage employee empowerment. This includes giving authority to employees to take decisions with respect to their respective tasks.
• Provide training and guidance to those who require it.
• The senior management must have leadership skills to motivate staff and inspire them to focus on improving quality.
• They must encourage employees to be innovative and provide them with opportunities to prove their ideas and solutions.
• Provide equal opportunities to all.
• Respect the rules and regulations. Follow them first and then expect others to do so.
• Be persistent and encourage the employees.
• Provide support in case of failure.