Question

Hi, can you answer this question in more detail?

Subject: Quality Management and Practices

3.

Research on the current state of Toyota's Company quality management covers the following topics, demonstrate your theoretical understanding and skills in evaluating existing operational management issues, and use a quality management framework for analysis.

• Total Quality Management…

(Words: 1000)

Answer 1

Operations managers are also responsible for maintaining TQM, planning for capacity, management of materials as well as purchasing of raw materials and scheduling all the activities.

Improve the quality of products.

To achieve the corporate goals consistently, TMC has decided various objectives. The objectives are as follow: “a unique management system-focused on prompt decision-making and speeding up operations” “a system that emphasizes problem-solving and preventative measures-done by immediately flagging problems and sharing them with the appropriate individuals/departments” (TMC, 2006).

*To achieve strategic goals, strategic objective are planned and are as follows:

* Capacity of the production will increase,

* Develop new innovative products,

* Improve Just In Time (JIT) system thus improve the logistic system,

* Improve the Kanban System so reduced production process time,

* Reduced the complain index by controlling system of defects

* To improve the quality production by focusing the quality circles

* Improve the quality and skills of employee through Kaizen

Porter’s Five forces as Strategic analysis tool

The strategic goals and objectives are decided on the basis of the environment factors that affects automobile industries. There are number of important factors that affects at supply and demands as well as costs of the products (Johnson and Scholes, 1993). Porter’s 5 Forces is one of the useful strategic tool to analyze the environment of the business in term of completion intensity which affect the profitability of industries. Porter’s five forces are as follow:

*Threat of New Entrants –

*Supplier’s power

*Power of Buyers

*Availability of Substitutes

*Competitive Rivalry

Quality audit and review systems at Toyota.

Quality audit defined as “a systematic and independent examination to determine whether quality activities and related results comply with planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve objectives” (Patel and Patel, 2009). Quality audit is carried out by qualified auditors and is the systematic review of a quality system. It is crucial part of quality management system of any organization and ISO quality system is one of most used one. Toyota has ISO 9001 certification (1994 version) and QS 9000 certification. In 2003, Toyota got ISO 9001 (2008) certification & and TS 16949 certification for automobiles (Toyota, 2004).

Even though there is strict monitoring system, there many product defects and recall the product from the market. Toyoya has history to recall the products such as Camry sedans, new Prius and other hybrid cars due to some steering fixing and braking problems (Crawley and Kim, 2009). To reduce the manufacturing defects and ultimately reduce the cost of products, Management should have to follow CMMI (Capability Maturity Model Integration) model as audit system for new product development.

Recommended model to improve quality system at Toyota

Toyota is pressurised to produced quality of products with high speed and low cost. On other hand products are becoming more complex in nature. Today, it is not possible to develop all the part required for the products are developed at same locations. There are multi lateral coordination and always need to improvement in process. CMMI quality audit system help to Toyota improving its overall quality of organization (Horst et al (2005). Fig 1 shows stages involved in CMMI. Audit system follows the CMMI will help to Toyota in development of quality services of organization.

Toyota established with principle of manufacturing and weaving advanced in 199 looms. Toyota has started automobile business by selling the patents of textile machineries. First car manufactured by Toyota in 1936 and established Toyota Motor Corporation by next year. Today, Toyota is truly global market leader in the automobile business and have six manufacturing facilities across the globe and employed more that approximately 320,000 people worldwide as well as it is the world’s largest automobile maker by sales. In 2009, Toyota has made significance loss and later in 2010 they recall many cars due to defects in the products. It was recognised that there is urgent need to improve the quality management system to improve the quality of products and improve the functional of operations to achieve the objective of Toyota. First Porter’s five forces used to analysed the external environment and set the measurement of performance objectives. Further the quality audit and new quality improvement system is recommended to improve the quality of the products and develop a defect free products. Recommendations also suggested improving business process and overall quality management system of organization as well as check the feasibility of the recommendations within organization. Finally, plan do check and action plan suggested to evaluation and corrective actions. In conclusion, systematic implementation of continuous improvement process will help to improve the quality, business process and operations management system at Toyota

It is observed that the UK automobile industry at the stage which facing problem of globalization as the competitors provides better products and satisfied the customer’s wide range of needs. Thus, detail analysis of these forces gives directions to the organisation to develop suitable strategies to be successful in their market (Thurlby, 1998).

Performance operations objectives of Toyota

TMC is always concerned about the customers need and requirement as well as try to satisfy the customers by providing the product at reasonable price within possible short time. The company has set up the five performance objectives as follow:

*Quality: Toyota is famous for producing the quality vehicles since long time and customers are highly satisfied. TMC has developed a car that make less noise and emits less than 40 emission control system. Advanced technology uses to improve the safety of the passengers (Bremmer et al, 1997).

*Speed: Speed is considered as produce the stuff as soon as possible so reduce the time between order and product availability. Thus customers get things without delay. TMC has focused on operations and developed a system in such way that reduced the complexity of production by using simple machines. They have rearranged the process flow and increased] speed of the production. By doing so the production of per worker is also increased (Slack et al, 2007).

*Dependability: Produce the things within time so customers will receive as per the given promises. TMC has developed JIT production system and team work with multi skilled worker for fast production and deliver the product according the promise made, TMC has implemented kanban control system (Slack et al, 2007).

*Flexibility: In response to dynamic environment, any organization should have changed the products or services according the market demand and this flexibility of the organization (Peters, 1998). TMC has adopted flexibility in the manufacturing plant and Launch the varieties of products. TMC produced the products in small batches with wide range of varieties with maintaining the productivity quality without any extra cost. This is achieved only through by focusing on flexibility (Slack et al, 2007).

*Cost: Good quality of product with low price attracts the customers and this most important factor. TMC maintain low cost by focusing the operations by reduced the logistics by established more plants, defect free production, automatic process plan help to reduce the cost (Slack et al, 2007).

Resources, systems and tools used in Toyoto to support its Business Process

The resources considered as the input required fulfilling the operations. The resources are two types: 1. Facilities covers the machineries, buildings, processing plant and technology, 2. Staffs as human resources required to plan and manage the operation functions (Slack, 1997). System is defined procedure of work to produce product to services under the particular conditions. The resources used at Toyota are transformed e.g. Raw materials, some expensive parts, New information for products, customers requirements and transforming resources e.g various plants of production, in house production some parts of products as well as human resources that used to make possible operations. Most of the business trying to updates their business processing and adopt new initiative to remains in the competitive market. Toyota has adopted the Lean manufacturing system is well known for reducing the cost of product by eliminating the waste. The logic behind the lean manufacturing system is reducing the waste, empowerment of employee and reduction of cost (Modern, 1998).

To achieved the lean manufacturing, various tools such as Just in time, cellular manufacturing, single minutes exchange of dies, total productive maintenance etc are used at Toyota. Just In Time is most important tool to achieve lean manufacturing system and help to reduce the waste such as poor scheduling of delivered parts, defects as well as work in process material by producing the products in the right place at the right time (Modern, 1993). Just in Time is very useful tool in the development of internal process that can easily adopt the sudden change in the environment. Further, Just in time is help to Toyota in managing external activities associated purchasing and distribution as well. Thus the transforming resources make possible to develop better lean system by applying new tools and techniques for better performance (Toyota Supplier Support Center, 1998).

Quality audit and review systems at Toyota.

Quality audit defined as “a systematic and independent examination to determine whether quality activities and related results comply with planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve objectives” (Patel and Patel, 2009). Quality audit is carried out by qualified auditors and is the systematic review of a quality system. It is crucial part of quality management system of any organization and ISO quality system is one of most used one. Toyota has ISO 9001 certification (1994 version) and QS 9000 certification. In 2003, Toyota got ISO 9001 (2008) certification & and TS 16949 certification for automobiles (Toyota, 2004).

Even though there is strict monitoring system, there many product defects and recall the product from the market. Toyoya has history to recall the products such as Camry sedans, new Prius and other hybrid cars due to some steering fixing and braking problems (Crawley and Kim, 2009). To reduce the manufacturing defects and ultimately reduce the cost of products, Management should have to follow CMMI (Capability Maturity Model Integration) model as audit system for new product development.

Recommended model to improve quality system at Toyota

Toyota is pressurised to produced quality of products with high speed and low cost. On other hand products are becoming more complex in nature. Today, it is not possible to develop all the part required for the products are developed at same locations. There are multi lateral coordination and always need to improvement in process. CMMI quality audit system help to Toyota improving its overall quality of organization (Horst et al (2005). Fig 1 shows stages involved in CMMI. Audit system follows the CMMI will help to Toyota in development of quality services of organization.

Fig 1: Stages of CMMI model

Source: Horst et al (2005)

Fig 2 shows the step for implementing and adopting new quality audit system. In the figure, it is explain the stage wise development and implementation process. Organisation has to follow the step to improve the process of production and ultimately quality of the products.

Fig 2 Implementation of new quality audit system

It was found that there is some problem in the maintaining quality of the product and may be this due to loopful in the process of auditing. CMMI model audit system is recommended because there are several time Toyota has recall their products from the market and there is huge loss in revenues. So need to implement the process that make defect free products and help to produce right product first time. CMMI process more focus on the process development and thus help to improve the quality of the prodtion

Quality culture at Toyota and continuous improvement process of culture.

Corporate culture is explained in many ways. Culture us defined as” the way we do things about here”. The culture is determined on the base of behavior, thinking and believe of the employee. Quality culture define as “the degree of awareness, commitment, collective attitude and behavior of the organization with respect to quality” (Schein, 1996). In Toyota, customer is always first, problems considered as opportunity, believed that what is measured is managed, Training save the money, always tried to achieved best. It is believed that focus on the customer requirement and quality is responsibility of every employee In Toyota’s culture. Managers are not a boss but they are facilitators for making process easy. At Toyota, there is freedom to everyone from top executive to shop floor worker to experiment and implement their thought and creative idea to learn from it. For example, when Toyota has set the lines for assemble, they selected intelligent worked and gave freedom to solve their problems and grow in their job (Toyota Motor Corporation, 1997).

Toyota is famous for its corporate culture and other organisation follow the culture of Toyota. But need to continuous improvement in the culture is important for success of any organisation. By implementing Kaizen, culture can improve as the Kaizen help to improve system and process of the organisation. It joint effort of all employee towards the improvement of organisation’s total quality management. Under this system, the creative idea invited from the employees and implement to its viability. This help to get real practical idea from the people who are working close to system. To develop new culture strategy, it is necessary to monitor customer complaints, results of audits and nonconforming, data analysis, records of quality management system, process and product management as well as lesson from past experience. This will help to design the strategy for developing and implementing new quality culture at Toyota (Meier and Liker, 2006)..