Total Quality Management: Toyota Motor Corporation Case Study Report

This report provides a comprehensive analysis of Total Quality Management (TQM) practices at Toyota Motor Corporation. It begins with an introduction to TQM, outlining its core principles and emphasizing its role in achieving long-term business success through customer satisfaction. The report then delves into Toyota's specific approach, highlighting its commitment to quality, innovation, and environmental responsibility. It details the company's vision, principles, and the tools it employs, including Just-In-Time (JIT) inventory management and Jidoka (automation with a human touch), as key components of the Toyota Production System. The report explores the implementation of these tools, explaining their objectives and operational mechanisms. Furthermore, the report covers the importance of Kaizen (Continuous improvement). The report highlights Toyota's commitment to customer satisfaction, employee involvement, process orientation, and continuous improvement, and the tools and strategies that support these principles.

Total Quality
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
About the venture Toyota Motor Corporation........................................................................3
Main body .......................................................................................................................................4
What is total quality management..........................................................................................4
Different tools and most effective tool of total quality management used by the Toyota Motor
Corporation.............................................................................................................................6
Successful of Kaizen total quality management by Toyota Motor Corporation..................10
Best tool for the venture and what did it change..................................................................10
RECOMMENDATION AND CONCLUSION.............................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Total quality management is the management approach which helps the venture to have long
termed success in their business which the helps of proper customer's satisfaction. It is the effort
which is made by the venture in order to maintain their quality in different processes, products,
services, culture, organisation structure, strategies, aim, objective etc. There are being 8 principle
of total quality management by which firm can manage their quality in the business that are
customer focused, total employee involvement, process oriented, integrated system, strategic and
systematic approach, continuous improvement, fact based decision making and proper
communication. For this report, Toyota Motors have been selected which has been very
renowned for total quality management and lean manufacturing. Toyota Motor Corporation is a
multinational automotive manufacturer headquartered in Toyota, Aichi, Japan. In 2017, they are
having more than 364445 employees worldwide (Bolatan and Zaim, 2016). In 2016, they have
been the world's largest automotive producer. Toyota was the world's first auto-mobile
manufacturer to produce more than 10 million vehicles per year. Toyota is the market leader in
sales of hybrid electric vehicles, and one of the biggest ventures to promote the mass-market
acceptance of hybrid vehicles in all over the world.
About the venture Toyota Motor Corporation
The main vision of Toyota is to manufacture effective vehicles as well as sustainable
development of society by producing innovative or high-quality goods and services. There are
seven main principles of the Toyota which helps them to gain quality management in the
organisation that are as follows:
 Respect every culture and tradition of the country
 Produce clean and safe vehicles and provide quality services
 Foster an organisational culture that increase both individual creativity and the value of
teamwork.
 Achieve growth with the help of harmony
 Have proper partnership with the different stakeholders in order to fulfil the stable, long
term growth and mutual benefits of the business.

 Honour the language and spirit and the law of every country.
 Manufacture advanced technologies and provide differentiated products and services.
Total quality management can always be achieved with the help of production system, this
is because customers always judge the venture on the basis of their quality of products and
services. Thus, they need to focus on their production system so that they can cater to needs and
wants of customers related to quality and provide them maximum satisfaction. Toyota motors
always have major focus on their production system, they have adopted Just In Time system,
lean manufacturing and Kaizen (Continuous improvement) approach in order to maintain their
quality (Sin and Ishak, 2016).
Main body
What is total quality management
Total quality management is the process by which organisation adopt different system in
order to maintain the quality of their products in order to cater the needs and wants of the
customers. Total quality management can be implemented with the help of different system of
the business such as their processes, procedures, manufacturing system, organisational culture
and structure etc. But when total quality management comes to the point of customers, then
venture need to focus on inventory and production system. In simple words, it can be said that it
helps the venture to reduce their efforts related to manufacturing, contour supply chain
management, enhancing the customer experience, and ensuring that employees are up-to-speed
with their training. The key aim of total quality management is to hold all the stakeholders of the
venture in proper production process where all of them are accountable and responsible for the
quality of organisation products and services. It is the process by which venture ensure that all
the members of the organisation from top executive to the low-level workers which have focus
on the improving the quality or their products and services in order to deliver the highest
customer satisfaction (Khanam and Talib, 2016). There are 8 basic principles by which venture
can achieve the highest quality in their organisation, processes, goods and services that are as
follows:
Customer-focused: Customers are the person to which the goods and services are ultimately
delivered, thus customers are the key focus of the venture when they are managing the quality. It
is very important for the Toyota to find out that what quality of products and services for their

vechile their target market wants. Toyota need to manage their quality no matter what they want
to do which may consist training of employees, bringing quality into the design process, up-
gradation of computers or software, or buying various measuring tools etc. Toyota should
identify the needs and wants of customers that what they need in their vehicle
Total employee improvement: It is one of the most important factor of quality management in
organisation where all the employees need to work together in order to gain conman goal. This
can be achieved by developing proper organisation environment (Muruganantham and Ramesh,
2016). Toyota need to manage the atmosphere in such a way they employees find comfortable
there and can effectively produce quality products.
Process oriented: A important part of TQM is that it focuses on the process thinking. Process is
the series of action which start with the procurement of raw material form the suppliers and ends
with the production of qualities finished products and delivering them to the customers. Other
than that Toyota need to monitor the quality regularly in their vehicle.
Integrated system: There are two key process in the Toyota which need to be integrated in order
to achieve maximum quality that are Micro-processes and integrated business system. All the
micro process should be added to the larger one so that firm can implement different strategies
(Filippini and Forza, 2016). All the stakeholders of the Toyota should understand the importance
of mission, guiding principles including the policies, objectives and various critical operations of
the organization. With that these should be integrated properly so that quality can be managed.
Strategic and systematic approach: The most critical part of the quality management is the
Toyota's strategies which consist of their vision, mission, and goals. The core strategic plans
should be made in such a way that it can help the employees to gain proper quality.
Continual improvement: it is also another major and significant component of the quality
management. Toyota not only make quality product and services once, they need to improve
them continuous so that customers can able to buy the products again and again (Bolatan and
Zaim, 2016).
Fact-based decision making: Other than that decision making is also another important aspect
of the total quality management where Toyota need to decide that at what level they need to

maintain their standard. This decision should be based on customers’ needs and wants and
competitors’ products and services quality (Hirano, 2016).
Communications: Proper communications plays a important role in maintaining morale as well
as motivating employees at different levels. Communications involve strategies, actions, and
timeliness. All these factors are essential in total quality management.
Different tools and most effective tool of total quality management used by the Toyota
Motor Corporation
Toyota Motor Corporation is very renowned organisation which is being adopting several
strategies of quality management. This helps them to gain new customers and retain old clients.
They are committed to the quality where they continuously raise their standard for reliability,
dependability and customer's satisfaction (Bookbinder and Dilts, 2016). Other than they also
focus on constant innovation where their goal is to serve always better cars, induce new
technologies and stay ahead of our competition or gain competitive advantage. With that they
also focus on environment, they try to produce those products which does not harm environment
on large basis. They investigate and promote systems and solutions that are eco-friendly. Other
than that they try to exceed the expectation of the customers. Other than that they are engaged in
enhancing the passion and talent of the people. Quality products and services can be achieved
with the help of skills and diversity of the team members of the company (Pape and Hirschfeld,
2017).
The corporate philosophy of the company is to keep customers and quality first, in order
to support their philosophy, Toyota Motor Corporation have implemented different quality
management strategies such as lean manufacturing, Kaizen (Continuous improvement) and Just
In Time approach of production. Famed for its thin production system, Toyota Motors is the
tenth most crucial company in the world according to Fortune Global 500 and one of the few
companies on the list to perfectly address TQM. The tools which is used by the venture for total
quality management are as follows:
Just In Time
It is the tool which is used by the firm in order to improve their productivity. In simple
words it can be said that producing only what is required by the customers, when it is needed and

in what amount needed by the organisation and target market. This technique is totally dependent
on the customers’ needs and wants and estimation of what amount of goods and services are
need by the target market (Bolatan and Zaim, 2016). It is the strategy used by the company to
reduce the wastage and shortage of inventory and increase in the efficiency of the inventory. This
method requires producers to forecast demand accurately. This strategy work on the basis of
demand pull which work on the basis of production push. It is the process by which organisation
orders the inventory from the suppliers on the basis of demand and supply of finished goods to
the customers (Sin and Ishak, 2016). In simple words it can be said that just in time technique is
the way by which firm estimate the demand of their product and services on the basis of past and
present data comparison, after analysing the demand, firm order the inventory from suppliers or
keep stock accordingly. It is inventory management plan which can result to stock-outs. The
Objective of JIT is to increase the return on investment by reaction in non-essential costs. It is
also known as lean manufacturing and sometimes referred as the Toyota production system
(TPS).
Working and implementation of Just In Time by Toyota
The organisation need to deliver the vehicle to the customers as quick as possible when it
is being ordered by them. The vehicle is built with efficiency in the shortest possible period by
adhering to the following:
 First the vehicle order is accepted by the venture, the instruction is given to the
production department to begin the vehicle production line as soon as possible (Kudva
and Sughandini, 2016).
 The production and assembly line need to collect the inventory (Raw material) with the
needed number of parts from their different suppliers.
 The assembly line should supplant the parts used by acquiring the same amount of parts
from the parts-producing process (Para-González and Martínez-Lorente, 2016).
 Then the assembled parts are being sent for production process so that it can be given to
the customers as soon as possible.
Jidoka: Manufacturing high quality products

It is the quality management tool used by the company which is related to the Toyota
production system which means automation with the help of human touch. Sakichi Toyoda,
Founder of the Toyota Group have made this word Jidoka which means invention in their
automotive loom (Pun and Yiu, 2017). Automotive loom is the machine which spins thread from
the different cloths and weaves textiles with the help of machinery. When the automation was
not introduced then the firm was using the back-strap looms, ground looms, and high-warp
looms. But after the introduction of automation then Toyoda Power Loom have been made.
Illustration 1: Jidoka Manufacturing high-quality
products
(Source: Toyota production system, 2017)
Other than that they have made other changes in that loom that are weft-breakage
automatic stopping device, Warp supply device as well as the automated shuttle changer. Weft-
breakage stopping device is the device which indicate the person when the thread is braked in the
machine. It is the world fist automation loom which can change shuttles without stopping any
operation (Khanam and Talib, 2016). According to the Toyota, Jido is the term which define the
machine which make judgement as the human made, whereas in Japanese, Jido is the automation
machine which moves by itself. And Jidoka mention to mechanization with human touch which

simply states that the machine works under the supervision and monitoring of the human
operator.
Kaizen approach (continuous improvement) which is most effective tool
It is the process by which organisation does continuous improvement or doing some
small changes in their internal part of the business in order to enhance the quality of products and
services as well as efficiency of workers. This approach is implemented by employees, thus they
are the only way by which venture can enhance their quality of products, process, operation,
services etc. it is long termed approach which work in very systematic way in order to achieve
increment and small changes in the process of manufacturing in order to enhance efficiency and
quality of different goods and services (Muruganantham and Ramesh, 2016). It can be applied to
any kind or work where venture want to improve efficiency and quality but generally is applied
to production process in order to enhance quality of products and services in order to serve the
highest satisfaction to the customers. It is being best known for being used in lean
manufacturing and lean programming. It is the responsibility and accountability of the every
worker not for some people. There are several philosophies which is being adopted by the
Toyota implement of Kaizen, that are as follows:
 Create stability of purpose toward betterment of product and service, with the aim to turn
competitive and to stay in business and to provide jobs.
 Adoption of different, new and innovative philosophy (Filippini and Forza, 2016).
 Keeping the inspection of goods and services on regular basis in order to avoid mass
inspection in order to enhance the quality of products and services.
 End the practice of awarding organisation on the basis of price tag, rather minimize total
cost of production.
 Constantly enhance the system of production and services in order to enhance the
efficiency and quality of their products and services.
 Serve proper training to the employee so that they can work on different machine in
effective way (Hirano, 2016).
 Removal of different barriers which stop the workers to work in effectively and
efficiently.

 Stop asking for Zero defects, this created bad relationship and lead to low productivity.
Successful of Kaizen total quality management by Toyota Motor Corporation
All the tools was very successful for the Toyota as it serve them several benefits that are
as follows:
 Eliminate waste and overproduction
 Create a bureaucratic system by which employees have been given the right to give
suggestion to implement change
 High value on human participation (Bookbinder and Dilts, 2016).
 Approval for further innovation, consensus and ideas for betterment.
 This helps them to create two main principles of the Toyota Way are ‘Customer First’
and ‘Respect for people’.
Best tool for the venture and what did it change
Toyota is auto-mobile organisation where products and services like cars plays very
significant role in satisfying the needs and wants of customers (Pape and Hirschfeld, 2017).
Thus, just in time is the best technique or tool which helps them to have proper and best quality
of the products and services. As well as it helps them to reduce wastage or raw material and
finished goods.
RECOMMENDATION AND CONCLUSION
It can be concluded from the project report that total quality management is very
significant part for every organisation. For this report Toyota have been taken, which knows the
importance of quality management and implement different tools of it such as Kaizen, lean
manufacturing, just in time etc. This helps them to gain high quality and efficiency and reduce
wastage of inventory. It can be recommend to the venture that they need to train their employees
in such a way they become capable to improve quality and adopt different tools of quality
management.

REFERENCES
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Online
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