Quality Management in Toyota: A Comprehensive Analysis

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Quality Management in Business for Toyota
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Table of Contents
Introduction................................................................................................................................3
LO1.Task-1................................................................................................................................3
A. Define quality from point of view of business and service, through exemplification of
your selected organisation P 1.1.............................................................................................3
B. Determine the meaning of quality assurance and exhibit the assurance and inspection
process of your organisation P 1.2.........................................................................................4
C. Examine the different quality management methods and assess the similarities and
differences between these approaches P 1.3 and P 1.4..........................................................4
LO2.Task-2................................................................................................................................6
A. Examine different aspects of customer satisfaction and ways to improve it in the
selected organisation [P 2.1 & P2.2]......................................................................................6
B. Explain how provision of quality services facilitates provision of value and satisfaction
to the customers in your selected organisation [P2.3]............................................................7
C. Assess the information provided to customer and its importance in effectiveness of
marketing [P2.4].....................................................................................................................8
LO3. Task-3...............................................................................................................................8
A. Through examples, determine the methods of quality measurement and advantages of
survey for assessing customer needs in your selected organisation. [P 3.1& P 3.2].............8
B. Examine the methods used for encouraging the participation of under-represented
groups, by implementing particular scheme [P 3.3]..............................................................9
C. Assess the significance of complaint process and their use in improvement of quality in
your selected organisation [P3.4].........................................................................................10
LO4.Task-4..............................................................................................................................11
A. Report self- assessment’s role for determining current health status of service provision
in your organisation and assess the importance of record keeping and communication [P
4.1 & P 4.2]..........................................................................................................................11
B. Identify staff consultation and emulate the guidelines for effective implementation of
quality schemes [P 4.3]........................................................................................................12

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C. Provide a new framework or modification for improvement in the current quality system
in your selected organisation [P 4.4]....................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................15

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Introduction
In today’s business world, being at the top positions in market is very crucial as well as very
difficult due to the fierce competition going on in the market. For achieving this top position,
it is very necessary to provide optimum satisfaction to the customers. For this purpose,
provision of quality is the best and most popular tool used by majority of companies. Toyota
has been on such company, which has been a leading brand in case of quality management. In
this report, different aspects of quality and quality management will be discussed in the
business context of Toyota plc. It is the second largest producer of automobiles and has been
a role model in quality management. Different process and methods used in quality assurance
and management will be discussed along with the importance of customer satisfaction and
their roles in effectiveness of marketing and business of Toyota.
LO1.Task-1
A. Define quality from point of view of business and service, through exemplification of
your selected organisation P 1.1
Quality is defined as a degree of excellence, which is used for comparing the standards of
different products of same kind. According to Fullerton et al. (2014), in business, quality is
the expected standard of the customers, from the services and products offered by the
company. This standard expected by the customers is very crucial to be matched while
producing the prudes as it is the major key to customer’s satisfaction. As opined by Khan et
al. (2015), quality of products and service determine the position, reputation and image of an
organisation. Toyota has been able to be a global leader in automobiles manufacturing due to
its provision of best quality of services and products, which meets the demands and
requirements of its customers effectively.
In the opinion of Yang et al. (2011), it is very necessary for business organisation to maintain
a positive perception to the customers regarding the products and services offered by the
organisation. This will ensure the success and growth of the company. Toyota has been
effectively managing to match the perception of its customers and provide them more than
they expected from the products and service of the company. Through this, the loyalty and
trust of the customers are gained by Toyota motors. This has enabled a rapid growth and
success of Toyota in the global market. However, negative perception of the customer will

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bear negative outcomes for the company. As mentioned by Kuye and Sulaimon (2011),
Toyota adheres to various quality control and management principles, which help the
company in improving the quality of its services and products, which eliminates any type of
complaints from the customer regarding quality of the products and service of the company.
All these points depict that the business functions of Toyota are customers and quality
oriented.
B. Determine the meaning of quality assurance and exhibit the assurance and inspection
process of your organisation P 1.2
Quality assurance is a process or a method of ensuring that all the expectation and desires
regarding quality are matched and fulfilled appropriately. As opined by McKemmish (2013),
this process is carried out in different ways, but generally, quality is assured through
inspecting and analysing the quality of products at every step of production processes.
Through this procedure, nay kind of defect and mistake regarding quality are prevented or
avoided in the products and service of the organisation.
In Toyota motors, there are several kind of processes carried out for quality assurance and
inspection. As stated by Jones et al. (2011), Toyota uses quality control approach for quality
assurance and inspection. The quality inspection in Toyota is carried out by exterior and
interior teams. The products of Toyota are inspected by these teams for eliminating minor to
major quality defects in the products.
C. Examine the different quality management methods and assess the similarities and
differences between these approaches P 1.3 and P 1.4
These are the different quality management approaches, which are used in Toyota Company.
Planning: In this approach of, the requirements and demands of the customers are identified
and assessed and their expectation from the products and services of Toyota are examined.
After this, as stated by Cooren et al. (2011), the gap between present and expected quality
expectations is measured and plans are formulated accordingly for bringing those gaps. This
process is carried out by including various tools like benchmarks, various analysis tools and
different kind of charts. Finally, a proper plan is formulated for accomplishing the targeted
quality in the products and service of Toyota.
Assurance: This process is very crucial and time taking as in this process; quality is checked
at every stage of production process. Metaxas et al. (2015), has stated that through inspecting

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quality at very production level, even minor mistakes and issues in quality of products of
Toyota can be eliminated, which help Toyota in producing best quality in its products.
Various approaches are used at this level of quality assurance in Toyota.
Total Quality management: This approach is one of the major approaches of quality
assurance and management used in Toyota motors. This approach is also famous by its short
form: TQM approach. According to Ooi et al. (2011), in this approach, all the relevant
aspects and areas of quality are enhanced through developing the skills of the employees
through different training and development program, this helps in better creation of quality in
Toyota.
Figure.1- Total Quality Management
(Sources: Previews.123rf.com, 2019)
Comparison Planning Assurance TQM
Similarities  Team work is required in all these approaches
 All approaches are carried out by adhering to quality management
principles and guidelines
 Statistical procedures are practices in all these approaches.
 All the processes are customer and quality oriented.
Differences  Plan is made for
conducting quality
management process.
 Main role is played by
management of Toyota
motors.
 Quality is assured
through analysing
production plan.
 Only specific
employees are
delegated this
 In this approach,
various programs
are included for
enhancing quality
related areas.
 Employees are

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 Different methods and
concepts are included in
plan.
task.
 Methods and
concepts are
implanted in
processes.
trained for
enhancing quality
management
process.
 Short-term
Training
programs are
initiated for
employees.
Table.1- Similarities and differences between various quality management approaches
(Source: Learner)
LO2.Task-2
A. Examine different aspects of customer satisfaction and ways to improve it in the
selected organisation [P 2.1 & P2.2]
Toyota operates its functions by undertaking and considering the preferences of its
customers, where, the operations of Toyota are customer oriented. Therefore, as opined by
Yang et al. (2011), customer satisfaction is the focus of Toyota. Through fulfilling all the
demands and requirements of the customers, Toyota enhances its position in the global
market. For providing satisfaction to the customers, Toyota provides quality in its services
and products as well. There are many strong and fierce rivals of Toyota present in the global
market, and therefore, only one tool can be used Toyota motors for gaining competitive edge
in its business. That tool is customer satisfaction. As mentioned by Chassin and Loeb (2011),
while functioning and operating its business, Toyota also adheres to all legislations, providing
authenticity in its services and products. This factor enforces the customers to trust Toyota
and its products and services. This helps the company in building a trustworthy relation with
its customers and developing a reliable and loyal customer base for the company. Yang et al.
(2011) has mentioned that the products in Toyota are manufactured by sticking to the
customer rights and laws, as this ensures the reliability and safety of the products offered to
the customers by Toyota Company.

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However, providing better customer satisfaction is the main objectives of Toyota and for this,
continuous improvements are brought in to the process of quality management in Toyota.
This help the company in proving more developed and enhanced quality products to the
customers aiding to their increased satisfaction levels. Williams and Naumann (2011) has
stated that for facilitating continuous improvement in the business environment and quality
management system of the organisation, Toyota implies Kaizen theory, which also known as
theory of continuous Improvement.
Figure.1- Kaizen theory
(Source: Presentationzen.com, 2019)
In this theory, all the employees of Toyota are made to participate and get involved in the
process of quality management. As opined by Elnaga and Imran (2013), through application
of this theory, the employees are trained to bring development and improvement in their
particular areas, which in turn affects the quality management system in a positive manner.
Employees are also able to develop their personal skills and thus are able to perform better in
the organisation (Agus, 2011). In this way, continuous improvement is done in the quality
management system of Toyota Company.
B. Explain how provision of quality services facilitates provision of value and
satisfaction to the customers in your selected organisation [P2.3]
As opined by Khan et al. (2011), providing effective quality services and products is very
beneficial and advantageous for organisation. Toyota has brought considerable amount of
changes in its cost cutting strategies through provision of satisfaction to its customers. Toyota
manufactures products with the aim of zero defects and at very low production costs. It has

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been opined by Priede (2012), this is the result of adding value in the quality management
system and customer satisfaction provision. Through adding values, Toyota has gained
appropriate time management skills in its working environment and the creation of wastage
has been reduced to vey lower levels. This has saved a lot of capital and time, which can be
invested for further development of the organisation.
Toyota has also reduced the wastage of resources by adding value in its business operations
and quality management system. As opined by Zehir et al. (2012), adding value in quality
management system along with providing satisfaction to the customers is very advantageous
for Toyota. This is because it helps in adding loyal customers to the customer base of the
company. This has aided to the growth and success of the company.
C. Assess the information provided to customer and its importance in effectiveness of
marketing [P2.4]
According to Jaafreh and Al-abedallat (2013), Toyota facilitates effective communication
with its customers and provides all essential information, which is to be acknowledged by
them. All the necessary information and detail regarding the products and services of Toyota
motors are communicated with the customers. Along with this, specifications of the products
of Toyota motors are also made acknowledged to the customers. As opined by Goetsch and
Davis (2014), various other information regarding the automobile parts like engine capacity,
fuel efficiency, body material, durability, reliability and many such other information related
to the automobiles of Toyota are communicated with the customers. This helps the customers
in making decision regarding purchasing and they get an overview of the products that are
offered by Toyota. There are some other information like contact details, customer care
number, etc which are also provided to the customer. As mentioned by Kim et al. (2012), all
the other non-confidential information regarding the company are revealed and
communicated with the customers. This creates good bond between the company and the
customer. Through which, the company is also able to acknowledge the demands of the
customers. This help Toyota motors in increasing the effectiveness of their marketing.

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LO3. Task-3
A. Through examples, determine the methods of quality measurement and advantages
of survey for assessing customer needs in your selected organisation. [P 3.1& P 3.2]
Measuring quality is very essential part for the quality management system of Toyota
Company. As stated by Agus (2011), this helps the company in improving its process of
continuous quality development. Through measuring quality, the gap between the current
quality status and the desired quality level set in Toyota as per the demand of the customers.
There are several approaches used in Toyota Company for measuring quality, which
encompasses Ishikawa and Juran analysis methodology, charts, SPC and other several
statistical tools. It has been stated by Ooi et al. (2011), that these tools along with TQM, Six-
sigma approach and other several approaches are used in measuring quality and eliminating
any quality related defects in the products of Toyota motors.
The deviation in quality standards are measured by SPC whereas Juran approach is used for
recording of statistical results of quality management, which are used for bringing further
development in the quality management of Toyota. As mentioned by Yen-Tsang et al.
(2012), survey is also essential in this part, as through survey, the expectation and opinions of
general customers are acquired regarding quality management. Survey is an easy way of
collecting data and reviews from the customers and the data acquired from surveys are
authentic. According to Metaxas et al. (2015), survey questionnaires can be asked for
acquiring data regarding whole as well as specific sector of quality management. This factor
makes it more significant for quality management in Toyota motors. User survey i.e.
surveying the current customers of the company will help the company in assessing the
expectations and demands of the customers. Whereas, non-user surveys i.e. surveying non-
customers of Toyota will help the company is assessing the required measures, which are
applied by its rivals. As opined by Cooren et al. (2011), this will also be beneficial in making
comparison with the rivals. The improvements and modifications in the quality management
system of Toyota are done by considering the data assessed from survey. In this way, all
these approaches are used for improving and measuring quality.
B. Examine the methods used for encouraging the participation of under-represented
groups, by implementing particular scheme [P 3.3]
Participation of underrepresented groups is also vital for Toyota Company. As suggested by
Kaufer and Carley (2014), for facilitating the participation of underrepresented groups, there

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are several methods, which can be used effectively. These methods can be carried out both on
online as well as offline platforms. One of the offline measures is surveying through forms.
In this survey, forms are filled by the candidates and feedback is gained from them by the
means of these forms. It has been stated by Jones et al. (2011), that this method is found to be
effective as the forms are filled independently and personally, therefore, outcomes that are
more appropriate are achieved from form surveys. Another kind of surveying methods
includes personal interviews, group interviews, mail surveys etc. these are the offline and
online surveying methods, which can be used by Toyota for gaining appropriate guidelines
and ideas for bringing improvement in the quality management system of Toyota company.
It has been mentioned by McKemmish (2013), that customer consultation is also a better
scheme for increasing and encouraging the participation of underrepresented groups. Through
this measure, the decision making process as well as the planning process is carried out in
Toyota by including the ideologies of the customers. Staff consultation is also one such
schemes, which can be used in Toyota for communicating the data flow and information
regarding the quality management scheme (Goetsch and Davis, 2014). In this way,
participation of underrepresented groups can be encouraged in Toyota motors.
C. Assess the significance of complaint process and their use in improvement of quality
in your selected organisation [P3.4]
Gamal et al. (2011) has said that there are many times, when complaints from customers
depress and negatively affect the performance of people in an organisation. However, in
Toyota Company, complaints from the customers are viewed as an opportunity of
improvement and development. The complaints of the customers in Toyota represent the part
of the organisation and management, which have made them unhappy or unsatisfied.
According to Kuye and Sulaimon (2011), these complaints if not reported earlier by client,
could have very adverse effects on the business of the organisation. Therefore, when Toyota
gets any kind of such complaints, the factors causing that issue is removed or resolved in
Toyota. Toyota deals with such type of complaints and makes amendments accordingly,
which in turn add value to their business.
Toyota is greatly concerned regarding these complaints as this affects the image and
reputation of the company in market. Therefore, a special officer of public relations is
designated in almost every sector of the company. It has been mentioned by Servaes and
Tamayo (2013), these officers are responsible for dealing with the customers and their

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complaints from the products and service of Toyota. There are some regional and local
Customer care service centres of Toyota, which are active maximum time of the day. These
centres are contacted by customers, and their complaints are heard and appropriate solutions
and advices are provided to the customers. It has been mentioned by Baird et al. (2011), there
are several department types of sections formed in these offices or centres. These departments
are responsible for dealing with different category of companies. This facilitates better and
appropriate solution of the complaint and issues of the customers.
After sorting out the issues and resolving the complaints of the customers, the customers are
also contacted for getting their feedback. According to Sabella et al. (2014), this helps in
ensuring that the customers are satisfied and their issues are resolved according to them. The
customers of Toyota are free and independent to complaint regarding the products and
services of Toyota. Foster Jr et al. (2011) has stated that this helps in bringing development
and improvements in current and Future Quality management system of Toyota. In this way,
complaints of the customers are used in Toyota for making amendments and enhancing
quality management in the organisation.
LO4.Task-4
A. Report self- assessment’s role for determining current health status of service
provision in your organisation and assess the importance of record keeping and
communication [P 4.1 & P 4.2]
As stated by Jaafreh and Al-abedallat (2013), examining the health status of the organisation
is beneficial for the companies in avoiding any kind of future problems. Toyota evaluates its
current health status through self-assessment technique. Through this technique, the state of
health of the organisation and its business can be assessed easily. It has been mentioned by
Khan et al. (2015) that with the help of this assessment, the strengths and weaknesses of the
organisational structure and quality management system of Toyota can also be analysed
effectively.
In this assessment technique, a standardised framework or model is used for making
comparison with the systematic and periodic reviews pf the different managements of the
company. As mentioned by Yang et al. (2011), this process is a continuous procedure and is
brought into use on frequent basis by the company. In self-assessment method of Toyota,
there are several approaches and methods used like benchmarking, external agencies, internal