Total Quality Management Analysis and Improvement Plan for Toyota

This report provides a comprehensive analysis of Toyota Motor Corporation's quality management challenges, focusing on the decline in sales and vehicle recalls. The study employs Total Quality Management (TQM) principles to identify root causes and propose improvement strategies. The report utilizes various tools such as brainstorming, decision matrix, fishbone diagrams, Pareto charts, and the PDCA cycle to analyze the company's processes and pinpoint areas for improvement. The analysis highlights the importance of addressing quality issues to regain consumer trust and improve the company's market position. The study emphasizes the need for effective action plans, evaluation indicators, and feedback loops to ensure continuous improvement. By implementing quality management methodologies, Toyota can enhance its performance, attract more customers, and regain its competitive advantage in the automotive industry. The report also covers mission and problem statements and the use of the Normal Group Technique for problem identification.

TOTAL QUALITY
MANAGEMENT

ACKNOWLEDGEMENT
I am grateful to my professor and senior peer groups those who have supported me in
completing this study in effective manner. I certify that this assignment is done by myself, it is
based on research and my personal study. I have taken support of books, journals, lecture notes
for completing this project. I acknowledge that I have not copied any material from any website.

EXECUTIVE SUMMARY
Present study demonstrates story of Toyota motor corporation LTD. It is the
multinational auto mobile firm that operates its business across the world. In the recent time its
sales are continuously decreasing and its many of the vehicles are being recalled by the company
due to fault in the vehicles. Report discusses the quality issues that are faced by entity and
improvement areas in the business that can help the organization in gaining competitive
advantage and increasing its profitability.
The report describes current status and improvement areas by taking support of total
quality management (TQM) concept. Study uses rout cause analyses method and check sheet
method for identifying the problems and measuring the priority areas. Entire process of the
company is being analysed by using several tools. These are brainstorming, decision matrix, fish
bone diagram, pareto diagram, PDCA cycle, etc.
By taking support of PDCA cycle, quality team has found that there is required to
implement effective action plan and need to take support of evaluation indicators so that issues
can be resolved. With the help of quality management methodology Toyota can improve its
performance and can attract more consumers towards the brand.
2

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
Background.............................................................................................................................1
Aim and Objectives................................................................................................................1
Scope......................................................................................................................................2
MAIN BODY...................................................................................................................................2
1.1 Problem statement and mission statement........................................................................2
1.2 Problem identification......................................................................................................4
1.3 Team.................................................................................................................................5
1.4 Priority area to improve by using Decision Matrix..........................................................9
1.5 Cause and effects............................................................................................................12
1.6 Check Cheet for ensuring the problem...........................................................................15
1.7 Identification of priority area by using Pareto chart.......................................................18
1.8 Planning for improvement by using PDCA model.........................................................20
1.9 Evaluation of problems By using Evaluation tool..........................................................23
2.0 Feedback loop.................................................................................................................24
CONCLUSION..............................................................................................................................26
REFERENCES..............................................................................................................................27

Illustration Index
Illustration 1: Flow chart of team members.....................................................................................6
Illustration 2: Fish bone diagram...................................................................................................13
Illustration 3: Pareto chart..............................................................................................................20
Illustration 4: PDCA cycle.............................................................................................................21
Illustration 5: Tree diagram for planning improvements...............................................................22
Illustration 6: Feedback loop.........................................................................................................25
Index of Tables
Table 1: decision matrix.................................................................................................................11
Table 2: Check sheet......................................................................................................................16
Table 3: Ensuring rout causes of problems....................................................................................17
Table 4: Final check sheet of problems.........................................................................................17
Table 5: calculation for Pareto chart..............................................................................................19
Table 6: Do improvement..............................................................................................................23

INTRODUCTION
Background
Total quality management is considered as management approach which ensures that
company makes continuous improvement in its products and services so that it can meet with
needs of customers. In the modern era competition is very high, in such condition firms have to
make positive changes in their operational planning so that they can provide quality products and
services to its valuable consumers. TQM pays attention on long term success rather than short
term financial gains (Dale, 2015). Quality is the major component that assist in deciding
inferiority of firm's products and services. It is the major attribute that makes the firm different
from others. Quality is the components that plays significant role in business. In the recent time
fluctuations in oil prices impact on economy of the nation to great extent. In such condition
people like to spend their money at right place to get right goods and services. Thus, markets
concentrates on quality more as compare to quantity. That assist organization in gaining long
term success. If consumers do not receive quality products then they may easily move to other
brands which may give financial loss to the corporation (Goetsch and Davis, 2014). For retaining
them in the firm for longer duration it has become essential for entities that to offer them high
quality products and services. Companies are applying total quality management in the
workplace for continuous improvement in products and services. Sig sigma, PDCA etc. are
various models that aid in continuous quality improvement.
Present report is based on Toyota Motor corporation which is the multinational firm that
manufacture cars and sell it across the world. In the year 2011 many consumers have complained
for errors in its auto-mobile products. That has decreased satisfaction level of customers and
after that sales volume of the organization has got down to great extent. Total quality
management is the approach that will aid in enhancing satisfaction level of customers. The main
aim of the report is to identify effectiveness of TQM approach by applying various models such
as PDCA etc. Purpose of the report is to identify problem in products and services of Toyota and
find out improvement areas.
Aim and Objectives
Current study will design flow chart of team members those who will be involved in the
improvement process. Furthermore, it will explain cause and effects of issues by taking support
of Fishbone Diagram (Oakland, 2014). In addition, It will identify priority area for improvement
1

by using decision matrix model. Evaluation of the problem will be done by using appropriate
tools and techniques and feedback loop will be illustrated in this study.
Scope
Toyota motor corporation is working in the industry since 1937, it has conducted market
research before starting its operations. In the year 1950 it has manufactured approx 100000 cars.
Till the year 2010 it was in the number one position in term of produced units of cars. But in the
year 20100 its performance got dropped and cited firm has lost its market leading position.
Report explains requirements of developing quality management system in the workplace so that
entity can come back to its leading position (Akgün and et.al, 2014). In this respect core
operations of Toyota will be analysed at initial level so that problems can be identified and
accordingly suggestions will be given so that entity can develop quality of its products and
services. This study will be beneficial for the Toyota and rest other auto mobile firms for
improving their operational efficiency so that they can meet with the requirements of the
consumers and can sustain in the market for longer duration (Fu and et.al, 2015).
This study will support in detecting the reason of continuous decreasing sales of Toyota.
Furthermore, it will assist in setting corrective action plan so that issues can be resolved and
quality of products can be improved. It would be beneficial in improving process and procedure
of the organization.
MAIN BODY
1.1 Problem statement and mission statement
Problem statement
The main objective of Toyota Motor corporation is to enhance revenues of the business
and increase satisfaction level of consumers. For that company wants to attract more customer
towards the brand and want to retain them in the organization for longer duration. The major
problem currently faced by the cited firm that its most of the products are unable to meet with the
needs of consumers (Psomas and Antony, 2015). Due to ongoing vehicle recalls brand image of
the company has got affected badly. This was due to poor equality vehicles provided by the firm
to its consumers. Company has focused on recent trend but forgot to concentrate on safety due to
which many of its sold goods have been recalled after certain period of time. Earlier to that
people were very satisfied with the products and services of Toyota but after getting faulty
vehicles which was unsafe for them they become negative towards the brand. Most of the
2

consumers have claimed to get refund of their amount that was paid to the firm at the time of
buying cars. This has seriously damaged the firm's reputation in the auto mobile industry
(Quality and performance management in Toyota, 2017). Due to recalling of its cars Toyota has
faced loss of 21 billion dollar. Now people are unable to believe on the entity which is
decreasing its sales volume continuously.
Toyota not only recalled its defective and causing fatalities products but also tries to find
out rout cause of the problem. This has resulted that company fails to meet with its objective of
attracting consumers towards high value products and services. It has affected stock prices of the
corporation and impact on the involvement of stakeholders (Nominal Group Technique: An
Alternative to Brainstorming, 1984). Quality issues have not only decreased trust of consumers
but also impact on the stakeholder's expectation as well. This has reduced financial gains of the
business unit to great extent. Now it is hardly required to improve its quality so that company can
meet with the expectation of the customers and can retain them in the firm for longer duration.
Mission Statement
Mission statement of Toyota reflects its innovative strategies and strategic objectives. Its
vision reflects long term planning of the business unit. Mission statement of cited firm is to
create quality vehicle that can meet with the requirements of customers. Firm always
concentrates on preferences and expectation of the consumers and try to make changes in its
strategy so that it can meet with their expectations (Psomas and Antony, 2015). It aims to
enhance its quality so that it can provide safer cars to consumers and can excess their
expectations.
Toyota mission statement pays attention on increasing satisfaction of customers by
offering them high quality vehicles. It identifies the needs of consumers by conducting market
research and tries to modify its operations by using advance technologies so that it can meet with
their requirements. Cited firm wants to earn high profit and want to be in the leading position in
the auto mobile manufacturing industry (Akgün and et.al, 2014). For that it is essential for the
organization that to understand needs of end users and develop products accordingly. This can
support the firm in attracting new buyers and retaining them in the workplace for longer
duration. Its vision is to retain skilled employees in the workplace for longer duration. For that it
also pays attention on needs of workers and create healthy workplace environment. This assist
business unit in satisfying talented people and retaining them in the firm for longer duration.
3

Skilled people can be able to produce high quality products and provide quality services to the
consumers. By this way mission of the organization of achieving financial gains and becoming
market leaders can be fulfilled significantly (Dale, 2015).
1.2 Problem identification
There are various techniques through business entity can identify its issue and can take
action to resolve this problem.
Normal group technique (NGT)
It is considered as one of the most common technique for identification of problem and
planning for resolution of issue. NGT ensures that group members participate equally for making
improvement decisions in the organization. In the first phase group members write down their
innovative idea that can assist in identifying the problems. After that each persons present their
ideas orally in front of management (Nominal Group Technique: An Alternative to
Brainstorming, 1984). In the third phase group discussion held between all involved persons and
at the end common decision is made by the higher authorities by looking at the effectiveness of
ideas.
By taking support of NGT technique management of Toyota Motor corporation can
identify the business problem easily. In the discussion it can get to know about rout cause of
recalling of large number of vehicles of the organization. By this way higher authorities can
make plan to resolve this problem. By taking support of NGT technique it is identified that
Toyota was manufacturing unsafe cars and its accelerator pedal was of poor quality. Its gas pedal
can be stuck any time which increases risk of accidents (Psomas and Antony, 2015). In the year
2011 approx 2.2 million vehicles of Toyota was recalled by the firm due to issue in its gas
pedals. In the year 2006 and 2007 many of its GS300 and GS350 models were found with
problems. In the NGT process higher authorities can identified that even luxury products of cited
firm are not safe. It is announced in the report of 20074 that quality of vehicles of Toyota is
continuously declining because company is not using quality equipment in its manufacturing
process. Apart from this its manufacturing process has some loop fall.
Brainstorming
It is another model that aids in identifying problem of the business unit. It is the
technique in which company asks to its employees and other stakeholders to make list of ideas
that can encourage creativity and can discourage criticism (Oakland, 2014). All involved persons
4

give ranks to products and services of the company can define their point of view of giving this
rank to particular product or services. In this technique entity evaluate all alternative ideas of
involved people and find out valuable alternative that can support in identifying rout cause and
resolving the business problem (Dale, 2015). Brainstorming is considered as informal approach
that encourages people or stakeholders to share their innovative ideas about the issue and discuss
about the ways through which problems can be resolved soon. It concentrates on quirky ideas
and encourage individuals for their positive contribution so that entity can resolve business
problems. In the brainstorming session participants are involved from various departments such
as graphic designing team, copywriting department, marketing, production, research etc. all
departments. They all are well aware with the manufacturing process of Toyota so they can give
better information about the issue or drawback in the manufacturing process (Goetsch and Davis,
2014). By this way issues can be identified easily that will assist in taking action for the
improvement in the quality.
Toyota can take support of Brainstorming method top identify the issue in its products or
services. In this entity involves individuals in the session and ask them to write down their
specific issues that they found have with the vehicles of the company. People point out their
views about issue from the discussion it can be identified that what is the major business problem
and why its large number of vehicles are being recalled or having defects. After that all involved
participants can discuss on the topic and they can make grid of several ideas for resolving this
issue. This brainstorming is the technique that helps in screening of ideas (Psomas and Antony,
2015). This support in taking appropriate action and improving quality of the products and
services of the firm. By using these techniques it is identified that Toyota has many issues, these
are such as delay on delivery, poor sales services, Poor training on sales, low quality products,
Poor after sales policies, Operational complications.
1.3 Team
Team plays significant role in total quality improvement procedure. Involvement of
skilled employees support in making the improvement process successfully. In the absence of
experienced and talented people Toyota would not be able to meet with its objective effectively.
One of the major problem in products of Toyota are loop fall in its gas pedals. It was the major
issue that have been identified by brainstorming and NGT technique (Quality and performance
5

management in Toyota, 2017). Many experienced people have shared their views and they have
discussed on the rout cause of the problem.
There are many people those who are involved in the total quality management in the
cited firm, their contribution supports the entity in improving quality of its process and products
and reducing errors. Customers play significant role in the business unit, if they are satisfied that
shows that entity is having quality products and services (Oakland, 2014). Toyota manufactures
car, there is required to make changes in its manufacturing process and it is required to improve
quality. In the quality management process many people are involved. Team working is the main
element to gain success in TQM procedure. Team supports in continuous improvement in the
process and finding the best solution for making positive changes in the business unit.
Illustration 1: Flow chart of team members
Team members involved in the TQM process are as following:
 Quality manager
 Production manager
 Team leaders
 Quality executives
 Production executives
 Steering committees (Quality councils)
 Senior marketing specialist
6

 Maintenance department manager
 Training consultant
 Accountant
Name Title Role
Abdullah Zaid Quality manager Quality assurance
John sinha Production manager Production assurance
Kansour Zil Team leaders Motivators, monitors
Sadd Al Onazy Quality executives Practical implication of work
Wael Ezat Production executives Practical implication of work,
team members
Sheeriya Steering committees (Quality
councils)
Decision makers
Khaled Attah Senior marketing specialist Facilitator
Moh Hawzy Maintenance department
manager
Scriber
Riynakza Accountant Team members
Smith Training consultant Team members
All these people are involved in the quality management of Toyota. Quality manager
plays significant role in this process, individual manage the work and is responsible to monitor
entire performance of the improvement (Psomas and Antony, 2015). If manager feels that things
are not working in the expected direction then manager take support of steering committees and
according to their guidance individual makes changes in the improvement process so that
positive results can come out. In addition, production manager is another person involve in the
team, individual is responsible for ensuring entire production process. It is the responsibility of
7