Strategic Quality and System Management Report: Toyota Analysis

This report provides a comprehensive analysis of strategic quality and system management within Toyota Motor Corporation. It explores the importance of effective operations management, evaluating the success of existing practices in achieving organizational objectives, and the significance of quality management in accomplishing these goals. The report delves into the planning of strategic quality changes, defining resources and systems to support business processes, and examining the implications of these changes. It further addresses the implementation of strategic quality changes, embedding a quality culture, and monitoring the implementation process. The report concludes by evaluating the outcomes of these changes and recommending areas for improvement, all in alignment with Toyota's organizational objectives. The analysis covers key areas such as supply chain management, the Toyota Production System, lean manufacturing, Six Sigma methodology, and customer relationship management (CRM) to provide a holistic view of Toyota's approach to quality and system management.

STRATEGIC QUALITY AND SYSTEM
MANAGEMENT
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK ...................................................................................................................................................3
1.1 Importance of effective operations management in achieving organizational objectives.........3
1.2 Evaluating the success of existing operations management......................................................4
2.1 Importance of effective quality management in accomplishing organizational objectives.......4
2.2 Evaluating the success of existing quality management processes in meeting organizational
goals.................................................................................................................................................5
3.1 Plan a strategic quality change to amend overall organizational performance..........................6
3.2 Define resources, tools and systems to support business process in strategic quality change. .6
3.3 Implications of planned strategic quality change in an organization.........................................7
3.4 Design systems to monitor the implementation of strategic quality change.............................8
4.1 Implement the strategic quality change.....................................................................................8
4.2 Embed a quality culture to ensure continuous monitoring and development .........................10
4.3 Monitor the implementation of strategic quality change.........................................................10
5.1 Evaluating the outcome of strategic quality change................................................................11
5.2 Recommend areas for improvement to a strategic quality change that align with organizational
objectives.......................................................................................................................................11
CONCLUSION...................................................................................................................................11
REFERENCES...................................................................................................................................13
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INTRODUCTION
Strategic quality management is considered as one of the significant factors for every business
organization as it leads operational activities to the great level of success. In other aspect, it can also be
stated that strategic quality and systems management provide effective assistance to the
accomplishment of industrial objectives (Alukal, 2007). It consists of diverse factors that provide better
opportunities to business such as total quality control, quality standards, etc.
In the present report, learning will focus on work culture of Toyota Motor Corporation in order
to understand the concept of strategic quality management. It will focus on various roles of operations
management in an organization. It will also provide information regarding the importance of managing
quality in operational activities of Toyota. It will also have a spot light on planning of various strategic
changes in context to the quality within organizational environment. Along with that, it will provide
learning about effective implementation of strategic changes in the quality of work process.
Furthermore, it will also assist in effective evaluation of various outcomes with regard to strategic
quality change.
TASK
1.1 Importance of effective operations management in achieving organizational objectives
As per the structured study, it can be said that operation management is considered as a
significant activity for every business organization. In this respect, by focusing on operation
management, Toyota Motor Corporation can have effective designing, controlling and supervision of
various operational activities (Antony and Preece, 2002). Classification of key operational activities
can be as production process, monitoring of inventory, etc. It is also essential for restructuring the
organization and meeting objectives in an appropriate manner. Operation management is also
beneficial for improving the product line of business firm as well as work conditions so that
effectiveness and efficiency factors can be maintained in the most suitable manner (Beckford, 2009).
Improved focus on effectiveness and efficiency factors within process are the key aspects that facilitate
business firm in the accomplishment of organizational goals.
Toyota Motor Corporation is considered as an international auto mobile manufacturer firm. So,
it is necessary for the management to focus on quality aspects of products in order to meet the goals.
With an assistance of quality and operation management, business firm can attain various benefits in
order to accomplish the objectives within desired time period (Brue, 2005). Operations Management
plays a critical role in the organization as it leads to effective strategic decision making as well as in its
effective implementation. Moreover, improvement in flexibility can also be attained in the organization
by considering operation management effectively (Eckes, 2003). Number of creative ways can also be
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identified in context to amend the production process by considering strategic quality management. In
other words, it can be said that manufacturing process of Toyota Motor Corporation can be improved to
a great extent by using reliable methods of quality improvement.
1.2 Evaluating the success of existing operations management
The key objective of Toyota Motor Corporation is to provide good quality products and services
to its customers in order to gain better market share and to improve its sales ratio. Company is also
considering low cost operations in order to meet the objective of enhancing its profit margin ratio
(Hino, 2006). But, organization is not approaching effective aspects in order to develop the operation
management.
In respect to this, it can be said that company is operating its business in auto mobile sector
since traditional era in which market was attracted towards inferior products and high prices. But,
when other Japanese business firms entered in the market, the whole market conditions have changed
in a diverse manner (Mills, 2002). In addition to this, the operation management approach of other
Japanese firms are more effective as compared to Toyota as they were more focused towards various
technological tools and developments in this sector. Business organizations were considering lean
manufacturing process and time production approaches to meet the objectives in an effective manner.
These kinds of strategies are beneficial to amend the production effectiveness and to reduce the
wastage of diverse raw materials (Pardy, 2009).
After sometime, business firm has developed Toyota Production System as per the
consideration of various approaches such as lean manufacturing process and time production. It has
reduced the wastage of raw materials in an effective manner and impacted business opportunities
positively (D’Amico, 2009). Company has also considered Six Sigma methodology in order to boost
the productivity and to help the manufacturer in ensuring that production process has least number of
defects.
2.1 Importance of effective quality management in accomplishing organizational objectives
With respect to this, it can be said that Toyota is considered as a leading Japanese auto mobile
manufacturer business firm in the world (Globalcarsbrands. 2014). In the past recent years, business
organization has developed its brand image in the market which facilitates Toyota to meet
organizational goals in an effective manner (Lotich, 2013). In the recent era, company is taking into
account as an auto mobile manufacturer which develops the best products in terms of quality. In order
to accomplish their objectives, management of Toyota Motor Corporation has considered various
quality management practices and tools that have been associated with the work culture of
organization.
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Moreover, company considers its customers as a king and provides number of products with an
effective focus on quality. Company maintains certain standards which help management to attract
more customers and to accomplish the goals in an effective manner (Ahire, 2001). Organization is also
ensuring about various management standards in order to meet the current and future needs. Other than
this, Six Sigma standard has also been followed by the management to meet their goals. Six Sigma
quality standards is the combination of diverse techniques and tools that can improve the overall
process in order to meet the desired objectives. In support of this, it can be stated that Six Sigma
mainly focuses on factors that can ensure about the effective accomplishment of process. Classification
of factors can be define, measure, analyze, improve and control. With an assistance of Six Sigma,
company can have continuous development and improved quality of work. Company is also having
effective checking and monitoring of activities in order to ensure that whether standards are being
followed well or not so that manufacturing resources wastage can be reduced (Dantzig, 2002). In
addition to this, the business firm is also reducing obstacles within production process by ensuring the
roles and responsibilities of authorities which will be beneficial for the effective development of
collective work conditions within Toyota Motor Corporation.
2.2 Evaluating the success of existing quality management processes in meeting organizational goals
The current quality management system of Toyota Motor Corporation is effective and useful as it
provides number of benefits to the business firm in monetary as well as non-monetary context. In other
words, it can be said that results which have been yielded by current quality management system are
unprecedented and auto manufacturer has performed immensely well (Gorman, 2011). With an
assistance of this kind of process, business firm has created optimistic brand image in the market which
has impacted its overall growth rate in a positive manner. For example, with an improved focus on
effective quality management, the production process has improved in a diverse manner which has
impacted positively on sales. As per the statistical aspects, it can be said that the production of
organization has increased to 8,736.5 units in the year 2012. It has also increased the sales to 8717.3
units (Toyota, 2014). The figures highlighted above are increasing and they are representing that
business is directly benefitted through quality management processes. Sales along with profitability
level of Toyota have increased due to rise in the level of quality of its vehicles.
Under the consideration of existing quality management system, business firm is providing its
products to the customers with the availability of best possible quality (Wouters, 2000). One of the key
reasons behind providing optimistic quality of products to its customers is that company is looking for
long term customer base and loyal growth in the market. Toyota is providing the best quality products
to its customers with the consideration of affordable and reliable aspects in terms of price (Brown,
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2013). In support of this, it can also be said that Six Sigma, Lean Manufacturing, JIT, etc. have also
been taken into account for the effective quality management. Manufacturing process has also been
improved with the consideration of current quality management system. Company believes that Six
Sigma policy provides better commitment regarding diverse resources which are beneficial for the
improvement in quality management process. With the help of effective quality management, Toyota
has become one of the significant parts of industry in context to the quality that department is
maintaining for better experience of its customers (Brown, 2013).
In order to have effective measurement of quality management system, business organization
focuses on inspection and monitoring system. Company is focused on considering effectual
development and implementation of diverse tools that can provide information regarding the outcomes
of process (Han, 2009). It also facilitates in re-engineering process and effective development of new
product for better accomplishment of market share.
3.1 Plan a strategic quality change to amend overall organizational performance
Supply chain management is one of the crucial aspects at Toyota Motor Corporation as it helps
in effective accomplishment of diverse operational activities. In support of this, Toyota Production
System is developed as per the consideration of philosophy aspects. In this respect, supply chain
management process is effective in Toyota because company is effectively managing trust and
interlocking structure in an appropriate manner (Garcia, 2014). However, the market trends in auto
mobile sector are changing so; company is facing various challenges such as high ratio of competition.
This means it is necessary for the management to have various improvements in supply chain in order
to accomplish the objectives.
Moreover, the operational division of organization must focus on effective development of
production process that can meet the SMART objectives in appropriate manner. It is also essential for
management to ensure that the smart tools are being used to ensure about supply chain process
development. Number of equipment, machineries and tools also need to be taken into account to
improve the overall process and quality of product (Neely, 2007). It will also promote work efficiency
culture within organization and reduce the cost of operational activities. Authorities at Toyota will need
to arrange for the latest and advanced machineries so that manufacturing capability of business firm
can be improved in effective manner. Other than this, number of quality standards can also be adopted
to have continuous improvement in supply chain and operation management (Virender, 2010).
In addition to this, CRM is also beneficial as it will amend the relationship with suppliers and
provide effective allocation of resources in order to meet the production goals. Company can also set
a benchmark for suppliers in order to ensure about the quality of resources (Beer, 2012). Improved
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focus on employees needs is also one of significant aspect for the organization so management must
ensure that they are providing proper facilities, training and development to them in order to meet
their requirements.
Activities Time frame
Identify needs 4 weeks
Supply chain issues determination 2 weeks
Smart objectives design 2 week
Alternative methods consideration 2 week
CRM Application 2 week
Training and development 4 week
Evaluation and review 2 week
3.2 Define resources, tools and systems to support business process in strategic quality change
There are number of resources, tools and systems that can amend the operational process in
context to strategic quality change. In other words, it can be said that the tools and systems can be
applicable to work process of Toyota Motor Corporation in order to amend overall organizational
performance (Rothe, 2012). In this respect, the company is considering improvement in health and
safety aspects that are present within organization. Production department authorities ensure that the
employees are using safety tools during production process so that health and safety aspects can be
maintained in proper way. In this respect, the management focuses on diverse activities such as
observation, monitoring, etc. With an assistance of CCTV monitoring the management make sure that
the employees are using safety tools during production process. Other than this, sensors and robotic
technology also being used by the management to ensure that employees are using safety tools during
production process and to maintain production speed (Lotich, 2013). Moreover, the safety check
department has also been established within organization to make sure that the workers are focusing on
safety measures in order to amend the effectiveness of business process in strategic quality change.
Moreover, company is also considering CRM digital tools to amend the relationship with
customers. It also assists in effective acquisition of feedback information regarding products and its
quality. Gathered information is beneficial for business organization in order to amend the quality of
product (Forrester, 2006). New interactive policies can be adopted by business firm or HR team in
order to amend relationship with employees and influence overall performance in positive manner. In
the support of this, it can be said that the management of Toyota Motor Corporation can have
implementation of total quality management approach in order to ensure about the quality of products
and services. It will also facilitate business firm in meeting key needs of customers (Tarí, 2010). It
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means with an assistance of TQM, the management can be sure that the product offered to customer
are of best quality. In addition to this, company can also focus on ISO 9000 in order to meet the global
standards and improve its production process. It will also provide consideration of various standards
that are established by various government and international authorities so that process can have better
developments and accomplish goals in effective manner (Wang, 2012).
3.3 Implications of planned strategic quality change in an organization
Planned strategic change within organization has great influence on the overall organizational
performance. With an improved focus on diverse changes, the management of Toyota Motor
Corporation is attaining better trust and confidence from its diversified stakeholders (Manhawy, 2013).
Classification of key stakeholders can be as government, employees, customers, etc. Due to this
reason the company can also improve its overall performance, which is the prime reason as to why this
plan was developed.
In addition to this, it can be said that the company can also focus on diverse various
frameworks and standards with respect to international authorities so that workplace standards can be
maintained in appropriate manner (Alukal, 2007). With an assistance of key standards the products and
services can be developed in order to meet the goal of providing the best quality products to customers.
Other than this, changes in quality management approaches and other policies will also
facilitate in development of strong relationship with workforce. These kinds of improvement in work
culture are beneficial for positive outcome as it allows members to share new innovative ideas that can
amend the quality of products and effectiveness of the process (Antony and Preece, 2002). In addition
to this, changes in process are also advantageous to develop mutual trust, understanding and respect
among employees and management. Improved level of coordination among is members is also
essential for maximization in performance and lead business to impressive level of success (Beckford,
2009). Other than this, application of planned changes also assist in creating better brand image within
market and provide competitive advantage to the firm.
Implication of planned strategic quality change has various impacts on the documented
stakeholders. For example, quality management process will amend the production quality and amend
the productivity which is beneficial for improvement in sales and profit. It will meet the key
expectations of owners (Brue, 2005). Moreover, the improvement in quality of products is also
advantageous for better customer satisfaction which is one of critical documented stakeholders in
Toyota’s business practises.
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3.4 Design systems to monitor the implementation of strategic quality change
Implementation and operational process within business firm requires effective monitoring
system to that outcome can be identified in appropriate manner. In this respect, it can be said there are
few ways that can be adopted my management to ensure about monitoring system.
Identification of critical factors: It is combination of various factors that assist business firm
in effective identification of diverse systems that can amend the overall performance. In this respect, it
can be said that the management can focus on various aspects such as financial performance,
workforce satisfaction, market share, product and quality, etc. With an improved information regarding
these factors the business firm can amend overall performance of organization. Information gathering
regarding these factors will also provide improvement to monitoring system (Brue, 2005). Through
such critical points the management along with operations department will assess performance in
appropriate manner. This process also requires identification of various standards such as ISO 9000, etc
in order to have better improvement in performance.
Customer feedback: It is also considered as a critical section of operation management as it
provides detailed information regarding various aspects of business. In this respect, with an assistance
of gathered information the management of business firm can easily design various strategies that can
amend overall performance of the organization (Eckes, 2003). In addition to this, company can also
consider market survey as a critical section as it is also a part of feedback process. It is also
advantageous for management to understand the gape among key aspects so that system can be
improved in appropriate manner.
Online data: With an improved focus on online survey process the management of Toyota can
easily have effective implementation of factors that can provide better monitoring abilities. By
accessing diverse detailed information about customers’ needs and market trends the quality standards
can be implemented in appropriate manner (Hino, 2006). Data base storage centre and cloud system
can also assist management of Toyota to amend process and gather information regarding customer
needs and wants.
4.1 Implement the strategic quality change
In order to implement the strategic changes within quality management, it is necessary for
business firm to have effective arrangement of resources so that goals can be accomplished in most
suitable manner. It is also essential for management of Toyota Motor Corporation to ensure that the
activities are implemented in appropriate manner so that business can have impressive level of success
(Mills, 2002).
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In this respect, the collaboration with various divisions within organization is also one of
critical aspect. Classification of departments can be as HR, operations and marketing. All these
departments of Toyota needs proper coordination so that employees can accomplish goals in desired
time period. Company can also consider communication process as key aspect in order to build better
relationship with employees and can motivate them to improve performance (Pardy, 2009). Number of
policies can also be established by the management in order to have effective implementation of
changes. Moreover, it has also been noticed that various tools and machineries can also be installed to
amend the effectiveness of production process (D’Amico, 2009). It will also facilitate in development
of complete action plan which can improve employee engagement to amend overall performance.
In this respect, it is also necessary for management to consider mission and vision as key aspect
as it assist in proper designing of action plan in order to gain various advantages. Assistance of various
stakeholders is also needed in order to amend the quality of products and services. Moreover,
management of Toyota Motor Corporation can also focus on establishment of quality policy that will
ensure about quality standards (Lotich, 2013). In order to develop quality policy, it is significant for
management to consider ISO 9000 and six sigma aspects as it will encourage employees to meet
standards and amend overall performance.
Other than this, organization can also take assistance of change agent in order to have effective
implementation of change within operational activities. It is considered as a person that facilitates
business firm to transform various activities from inside as well as outside the organization. It focuses
on key successive factors which can be classified as organization effectiveness, improvement and
development. For example, individual can conduct meeting with employees as well as suppliers to
provide them information about change and its significance to the organization. It will facilitate in
effective implementation of diverse change management activities.
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Illustration 1: Implementation of strategic quality change
Above diagram is linked with the implementation of strategic quality change which takes into
consideration the series of steps. Further, it takes into consideration various activities such as education
training and development, continuous improvement, measurement of progress, business process re-
designing, etc. Moreover, by employing this process, it is possible for business to bring change in its
quality and in turn, the best product can be delivered to target market. Apart from this, Toyota has
undertaken this tool so that it can offer product of acceptable quality and in turn, sales volume of the
product can be enhanced easily. Implementation of strategic quality change directly aligns with the
vision and mission of business and supports in their accomplishment. Moreover, it also undertakes KPI
for the business on the basis of which business operates in the market. By nature, this model is flexible
where firm can bring change in its operations as per the requirement of its target market and also, it can
enhance long term strength of the management.
4.2 Embed a quality culture to ensure continuous monitoring and development
In order to have continuous improvement it is necessary for management of Toyota to focus on
monitoring process and quality development. Monitoring is also considered as a process in which
management spends lot of time as it provides information about actual condition of business in market.
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In this respect, it is also necessary for management to take assistance of diverse experts that can
provide learning about various operational aspects (Ahire, 2001). It will assist business firm and its
employees to accomplish task in appropriate manner as per the aspects of quality policy. The
organizational structure will also have to be modified and transformed in a way that the best possible
outcome can be attained.
With an assistance of self managed team the employees will start taking responsibilities which
will amend the productivity of organization. It is considered as one of key method that can provide
surety regarding implementation of new quality policy (Dantzig, 2002). In this respect, it can be said
that with an improved focus on quality policy the business firm can gain better competitive advantage
and lead business to impressive level of success. Moreover, self directed is also beneficial as it reduces
interference from the management and allows employees to use various innovative ways that can meet
goals in effective manner.
4.3 Monitor the implementation of strategic quality change
In order to have effective implementation of strategic quality change the business firm also
needs proper monitoring system. For effective implementation it is also necessary for management to
improve relationship with suppliers as their assistance can boost effectiveness of strategy (Beer, 2012).
If suppliers are providing good quality raw material at economic price then it will boost the
opportunities for business firm. It is also necessary for management to create positive environment
within firm so that proper engagement among members can be take place. Payment and other essential
activities must be accomplished in desired time period.
Customer policy is method that also provides surety about quality aspects. It is a tool in which
the authorities will need to do a market research and gather data about customer satisfaction and their
contentment levels with the vehicles. Other than this, organization can also gather information
regarding various aspects through survey and feedback process and determine that the products are
meeting customers’ needs or not (Rothe, 2012). Improved focus on customer policy provides assistance
in this respect and ensures that customers are happy with the offering or not. Various benchmarking
methods can also be used by the management in order to meet the objectives.
Management of Toyota Motor can focus on project cycle in order to have effective monitoring
of implemented activities. In this business firm needs to focus on three key steps of monitoring such as
identification, project preparation and project appraisal. It is necessary for management to set up a
monitoring team which will identify the objective of implementation so that business can design
various strategies in proper way. As per the outcome of identification process the management needs to
ensure about diverse activities that can meet organizational goals in effective manner. In this, various
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