Effective Organizations and the Consultancy Process: Toyota and TQM

This report provides an in-depth analysis of Toyota Motor Corporation, exploring its historical background and its adoption of Total Quality Management (TQM). The report begins with an overview of Toyota's establishment in 1936, detailing its evolution from a textile manufacturer to a global automotive leader. It highlights key milestones, including the development of its first engine, expansion into various markets, and strategic mergers and acquisitions. The core of the report focuses on Toyota's TQM process, defining its principles, such as customer focus, employee involvement, and continuous improvement. It examines the practical application of TQM within Toyota, including the 'Creative idea suggestion system' and the 'Toyota Way,' emphasizing the company's commitment to customer satisfaction and operational efficiency. The report also discusses the impact of TQM on various industries and Toyota's use of the 'Just-in-time' system and its role in enhancing productivity. In conclusion, the report underscores the significance of TQM in Toyota's success and provides a comprehensive understanding of its implementation and benefits.

EFFECTIVE ORGANISATIONS AND
THE CONSULTANCY PROCESS

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
History of Toyota...................................................................................................................1
Total Quality Management of Toyota-...................................................................................2
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
An organized group of individuals who have certain or specific purpose to accomplish
goals and objectives within time, like business and government department. An organization
becomes effective when it fulfils the customers’ expectations or provides qualitative products
and services. Company is a combination body of multiple people those have common objectives
and linked with external environment (Bryson, 2018).
Toyota Motor Corporation is a Japanese auto mobile manufacturing company; it came in
the market in 1936. It is one of the best motor car manufacturers in the world. Its corporate
structure consisted of 364,445 workers. It was the first world's auto mobile producer which
manufactured more than 10 million vehicles in a year. Toyota is the market leader in sales of
hybrid electric motors and one of the largest organizations to motivate the mass market adoption
of this kind of vehicles. It is headquartered in Toyota city, Aichi. Its Tokyo office is located in
Bunkyo. It also provides financial services through Toyota Financial Service division. In
September 1936, this ran a public competition to design a new brand logo.
This report will explain Toyota’s background as well as its TQM process. Toyota
introduces the world with its first total quality management. With this, any corporation can
improve their productivity or produce qualitative products through this process. These goods
satisfied customers at high level. Toyota will continuously work on TQM to increase their
customers and produce the best products or services in the market. It is a profitable opportunity
to cover more market share among the competitors.
MAIN BODY
History of Toyota
Toyota Motor Corporation is a Japanese automotive manufacturer company. It’s the
world's second largest automotive producer. It started in 1933 being a part of Toyota Automatic
loom that worked for the production of cars. Company sought to contribute to society with the
production of auto mobiles, run business with focus on manufacturing or sales of vehicle. This
loom work encouraged the Japanese government to develop auto mobile production at a large
level. In 1934, it created its first product which was Type A engine, and introduced its 1st
passenger car in 1936 with the name of Toyota AA.
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Corporation produces different brands vehicles including Toyota brand, Lexus, Daihatsu,
Hino and Ranz. It had joint ventures with various countries at specific stake percentages like
China, India, Czech Republic (Carnall, 2018). Technology and Maintenance Council is also a
part of this growing company which is one of the biggest conglomerates in Japan. The Toyota
Group is one of the known names in today’s car market, and it is still in textile and
manufacturing automatic looms (now computerized) and sewing electric machines worldwide.
Toyota Motor Corporation became an independent business body in the year 1937. In
world war ll, it was completely dedicated to produce trucks for the Japanese Army. Because of
drastic shortage in country’s economy, it manufactures simple vehicles for military purposes. It
had one headlight in the mid of bonnet. Commercial passenger car model SA started in 1947. In
1949, this company was almost on edge of bankruptcy, to reduce this issue obtained due to a
loan from banks and that time, Toyota only produced 300 trucks till mid of year.
To break the union strike, management made an accoutrement about lay-offs or wages
deduction of every employee. This problem resolved by an agreement between owner and
workers. Organization's management played important role in its success. It entered in the
American market in 1957 but it was not sustained for long time. In other countries, it was
continued in the mid 1960's. It received the first Japanese Quality Control award in early 1980’s
and started participating in motor sports cars. Oil crisis in 1973 encouraged to produce small but
better fuel economy vehicles (Church and Waclawski, 2017).
In the year 1982, it was the biggest turning point for auto mobile sector where Toyota
Motor Company and Toyota Motor Sales merged into one business body that is Toyota Motor
Corporation. After this merger, it entered into a joint venture with General Motors or kept its
name as New United Motor Manufacturing, Inc.
In 1989, it started to produce luxury model 'Lexus'. It entered in Formula One team and
made joint ventures with French motoring companies (2002). Its ranked 8th on Forbes 2000 and
in 2011, it fell to 55th.
Total Quality Management of Toyota-
Total Quality Management- A system of management that depends on the principles that
every staff member should be committed to manage high standards of work with respect to
organization's work. It is the process of detecting and reducing, eliminating drawbacks in
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producing, design chain management, improve customers’ satisfaction, experience or ensures
that worker perform well after their training. The total quality management main aim is to
maintain all parties including manufacturing process, and is responsible for quality of end
products and services. It was developed by William, who was a management consultant, and
whose work influenced the Japanese manufacturing process (Gorli, Childerstone and Nicolini,
2017). It is almost similar to six sigma quality improvement process but not just like that.
Quality management pays attention on internal guidelines and process standards to
reduce errors and six sigma look to reduce defects. TQM is a structured approach of the
organizational management. The main purpose is to improve the outputs quality, products and
services through continuous improvement in internal practice.
This method is applicable everywhere, that is worldwide and in all kinds of sectors, and
its implementation is necessary and vital for a company’s overall growth and development so
that consumers are satisfied with quality as well as pricing and are ready to empty their pockets
happily.
Organization standards are defined at various levels or has their involvement in
government rules & regulations for specific business operation. Total Quality Management
originated in industrial sector of Japan in 1954.
After that time, this concept has been improved or used for all organizations like
education, motor maintenance, hospitality services etc. This is also useful in electronic business
and objectives of TQM are process of doing things right in the first time over and repeat it again.
It saves the company time to correct work errors or failed products implementations. It can be
established separately for an industry but must follow international standardization in ISO 9000
series for organization. This uses strategies, data communication channels to manage the
required company’s quality principles. Total quality management provides a framework to apply
effective quality and productivity which can increase the profit or competitiveness of company.
Total Quality Management principle- It has various number of principles which are below-
Focus on customer- Use of total quality management is important to determine that only
Toyota's consumers decide the quality of products and services (Harding, 2017). Customers
satisfaction, experience, feedback are those factors who measure the improvements level of
goods & services.
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Employee involvement- Workers are the internal customers of an organization. Their
involvement in the product and service development determine the quality of end product. It is
the responsibility of industry that it maintains such environment where employees feel part of an
organization and give their best in production.
Process centred- It is a design method, which proposes organization’s centric approach for user
interfaces.
Integrated system- In this system, organization must produce those products and services which
come under ISO 9000, which is a quality standard measurement process.
Strategic and systematic approach- A perfect strategic plan is the main supporter to maintain
quality of goods and services of company.
Decision making based on facts- Organization decision making process that should be based on
real facts, emotions or personal interest based decision are not appropriate. Data must support
decision process.
Communication- Communication strategy should be formulated in this way that it covers
mission, vision and objectives of Toyota. This comprises stakeholders, timeline, quality
effectiveness, communication medium etc.
Continuous Improvements- continuous improvements are necessary to maintain their products
and services quality. With the help of this process organization produce qualitative products and
services.
Practical approach of Total Quality Management-
When an organization applies total quality management process, that means it should
manufacture better products. It is a quality measurement process which measures products'
productivity and give qualitative outputs.
Assumptions- This assumption includes about the current market environment, customers
experience, product quality etc., An organization has to provide training to seniors on total
quality management principles and encourage them to do their work effectively and give the best
results (Hosking and Anderson, 2018). It makes an effective product quality plan with the help of
basic methods of total quality management. Toyota has to create teams that only work on
improvement process and produce goods to satisfy the users; the managers support all teams by
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framing planning, provide required resources and organize training session to give technical
knowledge. They have to take decisions for desired changes on daily improvement. After the
implementation of developed process, quality or standardized products and services will
produce. Employees’ awareness and response is the result of overall improvement of the entire
quality process.
Primary principles of Total Quality Management- It focuses on customers’ needs or demands
and provide them qualitative products and services. It ensures all workers must work to improve
quality of goods & services. High level of contribution is motivation for maintaining employees’
involvement in progressing process.
Industries using total quality management- When total quality management gets implemented
in Toyota's producing sector, all principles would be applied on the entire organization. It has
focused on long term changes over short term objects and provides a cohesive vision for
improvements (Macdonald, Burke and Stewart, 2017). Total quality management is useful in
many industries like manufacturing, finance & investment and medicine. All techniques are
applied to different departments within a company.
 Features- There is no widespread agreement for total quality management which
organization requires. Few features of it are Below-
 Customers’ requirements- Quality defined on consumers’ requirements and feedback.
If they are satisfied with goods & services, then that means the quality of product is good.
 Management- It is the responsibilities of organization's top management that they take
such decisions to improve quality.
 A better or increased quality is the result of systematic analysis and improvement in
manufacturing process.
 Quality improvement results from the entire organization’s efforts. Without effective
planning and techniques, production of the best products and services are not possible.
Total Quality Management in Toyota- for Toyota, total quality management works on
customers’ satisfaction with the help their employees. In 1951, this organization launched
“Creative idea suggestion system” for customers support and motivation to give workers
effective contribution in their growth or development. Company established 'The Toyota way' a
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set of principles in 2001. Toyota is a Japanese auto mobile organization which use total quality
management process during producing products and services
Toyota's two main work fact is that it pays more attention on customers’ needs and shows
respect for their feelings through products and services. In 1960, Toyota was a truck
manufacturer, who decided to produce passengers’ cars and made efforts to improve methods at
fundamental level. This company produced the highest qualitative auto mobiles goods at
worldwide level in mid of 1980’s and they called this new technological method as 'Total
productive maintenance' (Manley and Titchen, 2017).
Organization tried to find out product’s defective reason and problems which was
following the American techniques to operate machine and its breaking point. Toyota used total
quality management to improve product quality or make more customers. Toyota management
system is also known as 'Toyota production system.' Just-in-time was invented by Toyota after
World War ll.
It adapted Ford’s system which emphasized the elimination of wasted material. Total
Quality Management is important for Toyota to increase their productivity.
Improve the process- Firstly, they prevented employees moving from one department to
another and assigned a single machine responsibility to individual’s worker. Next decision they
took that employees have their notebook to note important instructions by seniors during training
and work. Employees didn't have any knowledge of operating machines and how it works
internally. They started taking apart their machines to learn more about them or documents
findings.
Priorities efforts- Systematic preventative maintenance is the last step of this process. In the
new way, they will immediately stop this equipment use in production which vibrating and start
discovery of new tools or machines (Margerison, 2017). In few cases, this manufacturer led
Toyota to actually redesign and improvement parts inside tooling to modify it.
Quality measurement- Management of company decides division performance with their own
checking list for single department to measure their quality. This is because every division have
their own working process. The checklist from time to time can measure the quality and to
continuously modify it. This process provides a brief guidelines to organization where they have
improvement requirements (Mouzelis, 2017). It is a necessary method for company to produce
products and services according to customers’ needs and demands.
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Developing relationship- For the organization’s brilliant performance, there are two requisites,
one is where everybody has to agree on their demand and secondly, they all agree on causes and
impacts. Let's take an example that each worker in company agrees on results, i.e. whatever they
want, their values or priorities, trade off which they willing to make their goal achievable (North
and Kumta, 2018).
The end of result of improvements are well known, not only Toyota start making the
largest qualitative trucks or cars at worldwide level but since 1980 they dominated import world
market. Today it is one of the profitable cars producers in the world with a large margin figure.
This kind improvement built a healthy or trustable relationship between company and
customers’. They would like to purchase this brand again and again.
Customer satisfaction- With the use of all internal system of tools, equipment, techniques,
training or improvement of organization processes used in Toyota to reach goals and objectives
which satisfied its customers. Malaysia is the biggest car consumer of Toyota. In the customers’
words, company can hear compliments on its car. Some user admires it for reliability like
customer service, safety features, high or effective market value.
TQM at different level of Toyota- Major Thrust of TQM is to achieve productivity and process
efficiently by recognized or eliminating problems in work and system. Its intervention is helpful
with predicting and per-emptying such mistakes, unproductive activities. It is useful in various
sectors-
TQM and customers’ satisfaction- Its major long term profit relates to customer satisfaction.
TQM’s main aim is at improving qualities or identifies the best measure of product quality as per
customers’ expectation in way of service, product & experience. Toyota improves its cars quality
with the use of TQM and provides satisfactory products to users. According to Bryson, (2018)
Toyota with the use of total quality management can increase customers satisfaction by reducing
the waiting time via changing the method of appointment scheduling or handling the customer
properly. Company can change the delivery process so that products deliver the users faster. The
Best quality cars requiring no repairs services or improve customer loyalty. Carnall, (2018) said
that TQM requires a long term management commitment and constant user involvement.
Changing an organization’s environment is a difficult challenge.
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TQM and organization development- Total quality management improves organization
development. It is change in the work environment by educating all workers on quality and
making this concern of everyone not only for quality department. Focus on quality encourage
proactive work culture aimed at preventing errors rather than correct them. Toyota's TQM focus
on teamwork to the formation of department or share the function knowledge. According to
Church and Waclawski, (2017) TQM plays role in company’s development, improving
communication skills in entire organization workers. Flexibility of the company in developing
personnel, cost competitiveness. Sharing information or knowledge among employees creates a
learning culture in Toyota's. This organization also known for their working environment. Cook,
(2017) said that TQM focus on task standardization to consist discourages creativity or
innovation. It demotivates new ideas which may be helpful in productivity improvement.
TQM and Human Resources- Total quality management also related to human resources
department of organization. It extends the ownership of company process to every worker
involve in the process by empowering them to detect errors. It creates intrinsic encouragement
and develops an atmosphere of zeal or satisfaction among workload. Toyota's Total Quality
Management thrust on quality leads to identifying skill in employees and conduct training for
them.
According to Gorli, Childerstone and Nicolini, (2017) the enhanced productivity brought
by total quality management translates to great profitability for the company and consequently
smart wages. Farmer, (2017) said that TQM is costly to implement. This system requires
continuous investment for employees refreshing training, process and equipment inspections,
quality measurement etc. So, for human resource department, it is an expensive process.
TQM and competitive advantage- This system brings 4th all round profit and makes company
more competitive among competitors. In Toyota, culture is marked by demolition of challenges,
free flow of knowledge and products, to retain competitive benefits by reducing cost, price, and
improvement in existing goods, innovation of new products or services.
According to Hosking and Anderson, (2018) TQM is a business plan which allows company
to accomplish all objectives. This system proves that quality is the key of decreased cost, better
productivity as a critical element of business benefits. Harding, (2017) said that Organization
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which functions in high competitive environments hard to manage their time in luxury products
production.
CONCLUSION
Above report explained the value of TQM for companies’ effectiveness. The positive
response from customer is the result of total quality management in an organization. It was
applicable and company has improved their manufacturing process, prevent defection, efforts of
priorities, frame better decisions and importantly improve customers’ satisfaction. It is the most
profitable car in today’s world. Customers like to purchase cars and give positive response to
Toyota. Total quality management implementation is a sign of improvement in products or
service quality and sales after service of company. It also generated a systematic control on the
working environment to run smooth business and produce qualitative products.
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motors-the-king-of-total-quality-management/>.
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