Quality Management of Toyota Company - Research Paper Example

? A Quality Management Paper Introduction The fast growing worldwide competition that many businesses and organizations have been encountering over the past years, linked with hasty changes in technology, and increase in a variety of products, have led to a new state of affairs whereby organizations and businesses must put up excellent principles of management, and technologies so as to remain competitive. In response to this, many works have been created to emphasize the significance of operations that are strategically managed. Quality management has also been emphasized so as to achieve competitive lead. Dimensions like quality, flexibility to adapt to different demands, cost, innovation, delivery dependability, and speed determine a company’s competitiveness. The continuous advancement of an organization’s process of operation plays a vital role in search of competitiveness in the long run. This is in addition to the alignment of functions, while employing strategic priorities. Continuous improvement reflects an organization’s course of continuous and focused incremental advancement (Crosby 1979, p. 36). This paper will look at the Toyota Company and analyze how it is applying Quality Management principles to increase its competitive advantages and become more profitable than other competitors. Toyota started most of the quality principles of business, for example, lean management, and Just-In-Time, which are currently fundamental principles of very many organizations all over the world. Toyota managed to win over detractors with its long-term strategy perseverance, in due course, overtaking many of its competitors and turning out to be one of the most profitable automobile companies worldwide in a short duration. Continuous improvement in Toyota entailed attempts to find and deal with the serious problems associated with the company. Continuous improvement ordinarily entails small-steps improvements or numerous incremental, as opposed to a single innovation that is tremendous. From a perspective of the Japanese, continuous improvement is the foundation of their culture of business (Stevenson 1999, p. 76). This is a philosophy that infuses the culture of the Japanese and also tries to progress all issues that relate to the process of transformation on a continuous basis. The process of continuous involvement takes in every person, labor and management, to find and reduce waste in labor, production techniques, materials, and machinery. Kaizen is a Japanese word that is used to refer to continuous improvement. Kai refers to change, while zen means pleasant or improvement. Even though kaizen is a concept that hails from Japan, many organizations from all over the world have employed it. There has been a significant amount of success to businesses that have mixed the kaizen concept with their business practices. This is enhanced by combining team work benefits with a person’s innovation (Cane 1996, p. 40). In addition, when the principles of kaizen and just-in-time are put together, they form the base for the lean manufacturing idea. Part A Quality management frameworks play a role to the success of an organization or business. The contribution of management frameworks is exhibited in many ways. Quality management frameworks like lean management and just-in-time have reduced the cost of inventory requirements. In addition, the management frameworks have helped in the repair of machines and equipment that has seen Toyota company increase its savings. Continuous improvements have been enhanced by the union and employee buy-in, formation of work teams that are led by employees, and advantages that are realized after execution of streamlined procedures and improvements put forward by employees. The success of any quality management framework depends on the improvement enhanced by the employees. Employees recognize the value and importance of instigating these different techniques because they are not forced to them by the management (Crosby 1979, p. 96). This also makes workers resistant to the changes that are introduced to the organization. Quality management frameworks also help people in an organization to come up with better and additional ideas than before (Etienne-Hamilton 1994, p. 61). The lean management framework increased the number of ideas registered in Toyota Company that were either being worked on or waiting for the employee teams to start working on them, after a short period. The new ideas brought forward saw the company attain more financial benefits than before the inception of the quality management frameworks. Additionally, the management frameworks increased the percentage of participation across the Toyota Company. On the other hand, headship at all departments of the Toyota Company has led to the organization’s success. People enable and encourage others to take action, model behaviors, take risks, inspire a common vision, and challenge the status quo. Through lean management, kaizen and Just-In-Time frameworks, Toyota Company has been able to offer high quality services and products at affordable prices. In turn, this has bestowed superior satisfaction of customers compared to its competitors. Toyota’s products are of better quality, affordable, reliable, more advanced, and more customer attractive in the long-term. Various researches conducted on Toyota Company draw attention to management commitment and employment empowerment as the main reason for Toyota’s business success over its various competitors. In addition, there are other studies that have highlighted various principles that facilitate efficiency in Toyota Company. These principles place Toyota way ahead of other manufacturers of automobile. The kaizen principle was seen as the main factor for the excellence of Toyota Company. The kaizen principle of continuous improvement focuses on dealing with ineffectiveness (Cane 1996, p. 45) Moreover, the just-in-time principle of production also helps the company to have an edge over its competitors. The just-in-time principle of production assists the company to acquire effectiveness and aids the early discovery of quality flaws. The consequence of quality management approach employed by Toyota is improved financial accomplishments compared to its competitors, in addition to an increase in share development in the American market. Part B Employees’ empowerment is necessary in implementing an organization’s quality strategies into operational practices that are effective. The design of an environment that is supportive and permits continuous learning, as well as an on-the-job training plans that are comprehensive are vital procedures to ensure employees have the ability to do their work efficiently and effectively. At the same time, the leadership should ensure an increased motivation and instill a sense of enthusiasm to everyone in the company so as to develop a sense of unity when trailing a goal of common quality (Stonebraker & Keong 1994, p. 83). Toyota Company utilizes feedback in its management. Feedback helps the management to remove fears of alterations and promote innovation and creativity in employees, consequently encouraging commitment and pro-activeness (Foster 2010, p. 37). Toyota Company management gives its employees the necessary autonomy and responsibility over their responsibilities and works. Standards of work that are fixed and predefined are not productive when maintaining the status quo quality. This is because these standards do not point towards improvement that is continuous, thus lacking efficient stimulus for workers to go beyond benchmarks that are implemented. The main objective in the management of employees is to create a working environment that spawns employee commitment and pride. Moreover, during the lifecycle of a product, there is the application of free communication between various company departments (Hiam 1992, p. 67). The open communication between various departments of Toyota Company has led to a design of products that focus on intra-departmental units that are affianced in parallel, instead of the approach of inferior departments to design products in which only a department at any given period is engaged with the product. Estranging employees from the conventional company objective, putting pressure on them and hollow slogans instead of motivating and aligning them will not persuade employees to withstand responsibility. Additionally, many companies ignore that problems associated with quality are as a result of systems that have been inefficiently implemented, rather than from the performance of employees (Hunt 1992, p. 53). Nonetheless, Toyota Company emphasizes quality management to form a basis of every employee’s daily work. Also, Toyota Company’s success is accomplished by satisfying the client. The wants and needs of a client function as the principle that guides the goals of Toyota Company. This is because the business competition experienced at the worldwide level is mainly focused on fulfilling customer needs. Toyota Company has a customer care principle that takes care of client-producer relationship. This comprises the necessary implications that are developed from the urge to satisfy the clients. Measurement is an essential requirement for enhancement in quality management. The significance of every step or process should be measurable, and should be a regular undertaking of the measurements. The surplus of the process that has been created can be measured by analyzing the usefulness of the service or product prior to and after the process. This will help to reduce the wastage of resources that also is in line with a focus on prevention. There should not be a repeat of mistakes, and quality of the company will be ensured if the source of the defect or problem is established and removed (Foster 2010, p. 87). Toyota Company’s production system has established seven mudas that need to be dealt with at different levels or stages. The company has negative thinking that helps to achieve zero delays, removing inventory that is excessive, improving organizational processes through zero paper, as zero accident, zero downtime, and zero defects are the objectives to be attained. Toyota Company involves all participants in all systems so as to achieve quality management. To satisfy everyone at a similar moment will illustrate a company’s prospect to be successful in every relationship with the shareholders. Toyota Company has well defined principles of quality management. The company has a goal and a vision that is well illustrated with the mission. Additionally, Toyota Company’s model is focused on the customer. Apart from that, the company treats its employees as assets and the main reason for its success in the motor industry and as a business organization. The company’s functions move towards a continuous improvement of quality to its products. There are also sufficient and effective techniques and tools that advance the improvements. Toyota Company employs benchmarking as a way improving the quality of its services and products. The company uses customer market evaluations as a quality management framework (Deming 1982, p. 111). This is an essential technique that supports an approach that addresses the concerns of the customers. The management of Toyota Company ensures that work is adequately distributed to every employee. This is referred to as the heijunka. Nonetheless, the company has formulated a culture that ensures employees deal with a production issue so as to ensure products are of high quality the first time they are produced. The company realizes that standardized processes and tasks are the basis for employee empowerment and improvement that is continuous. There are also visual controls installed in the company houses of production. These visual controls help to expose any issue present in the respective places The Company also recognizes the need to use technology that is tested and reliable (Etienne-Hamilton 1994, p. 81). This helps effectively serve the processes and company employees. Toyota Company trains and employs individuals and teams that are exceptional because these people can follow the philosophy of the company. The company has also developed leaders who practice the philosophy, adequately comprehend their duty, and pass it on to others. Managers in Toyota lay down policies and reach decisions that are in line with the guidance and input of the junior workers who will have to apply and stick to the instructions. This method enhances operation grasp by the higher management and, more significantly, motivates employees to have a feeling of ownership and control of the activities in which they engage. In addition, Toyota acknowledges small, incremental advances on the way to the purpose of absolute quality. Over the long term, tremendous benefits are achieved by improvements that are small and sustainable. This idea requires an approach by managers that are long-term, and have the readiness to invest for gains that will appear in the future. The management and employees should have confidence and cultivate a comprehension for quality management frameworks with the passing of time (Liker 2003, p. 43). Toyota employs the teamwork technique to achieve quality management frameworks. Employees are organized into different cross-functional units in the company. This ensures employee opportunity and problem identification, knowledge sharing, and a broad understanding of their responsibilities in the company in regard to its objectives. The duty of putting into practice quality depends on the individuals who will be part of the factors of success. Individuals perform processes, and by concentrating on measures that enhance quality, being noticed by the leaders, and ensuring commitment with improvement activities, the requirement situation is ready to make possible the quality management system’s success. After the strategic guidelines for an organization quality process have been established, performance measures should be set up to check and regulate the standard of quality so as to maintain the quality policy (Hiam 1992, p. 127). Toyota’s management decisions are founded on a long-term principle. This is at the expense of financial goals that are considered short-term. The management has also established a process of continuous flow that helps to highlight the company’s concerns to the surface. In addition, Toyota employs the pull system to prevent unnecessary production of products. Part C Six Sigma is a process that is extremely disciplined that assists organizations and businesses to concentrate on creating and providing services and products that are almost perfect. General Electric, one of the first promoters of Six Sigma, highlights everything about what surrounds the philosophy. Business strategists in America developed the Six Sigma principle as a retort to the superiority of Japanese product quality over the products from America. This made quality part of business strategists’ focus. Nonetheless, Six Sigma was used as a response to the increasing United States industry and public awareness. Six Sigma was also developed to advance the process of manufacturing and deal with defects in an organization (George 2004, p. 25) Six Sigma defines a defect as any process output that could facilitate the making of a product that will not satisfy the specifications made by the customer or a product that does not meet specifications of the customer. Six Sigma was first applied at Motorola in the period dating 1970 and beyond. This was due to the criticism of poor quality of Motorola products. This criticism made the company find out an association between the increase in product quality and a reduction in production costs. During this time, people associated quality with additional costs. In contrast, the application of Six Sigma decreased total costs by lessening the cost for control or repair. A Six Sigma project will concentrate on accomplishing financial returns that are quantifiable and measurable. In addition, it has an improved prominence on passionate and strong management support and leadership. Apart from that, the Six Sigma approach has a patent commitment on decision making based on data that can be verified instead of guesswork and assumptions like other techniques (Hunt 1992, p. 73). If Toyota applies the Six Sigma approach, it will realize some benefits and problems in some instances. Firstly, Six Sigma will be beneficial to Toyota with its application in future. Six Sigma will deal with problems of costs and quality of products. This is because Six Sigma takes an approach of diagnose-and-solve to problems that may arise from the company. This makes probable for solutions to work effectively. In addition, Six Sigma contains a process-to-goal focus on creating a process that is effective. This means that the processes Toyota Company will adopt will be successful. Apart from that, Six Sigma contains many tools and techniques that are used to deal with problems (George 2004, p. 53). This will make it easy for Toyota to choose the appropriate tool or technique for a quick solution in the event of a problem. Moreover, Six Sigma can scale the Toyota Company’s techniques against activities that are deemed best in the industry. This will assist people to gain insight of how well they are performing compared to others in the business. Adoption of Six Sigma in the future can advance it to a centre of excellence, since Toyota has a significant investment. This is because Six Sigma progresses the company’s top activities through continuous improvement. Six Sigma is efficient when combined with other quality management techniques, like lean management, kaizen, and just-in-time, Lean management, kaizen, and just-in-time are already applied in Toyota; the inclusion of Six Sigma will improve the quality of Toyota management and the products it produces (Maurer 2004, p. 66). Also, Six Sigma establishes essential scales that define, subsequently measure, actual and desired outcomes. Conversely, when a company applies Six Sigma, it faces a number of problems. Six Sigma has less to give that cannot be found in another place. Critics perceive Six Sigma to be a marketing strategy. It is evident that Six Sigma plans have included techniques that have been helpful in prior quality programs. In some situations, Six Sigma does not take adequate, proactive, preventive method to concerns. In these situations, Six Sigma is seen as a system of corrective action or appraisal system. Management is essential to the success of a strategy that tries to alter the manner an organization operates or Six Sigma (Deming 1982, p. 122). Without the leadership, support, and participation of management and the creation of infrastructure that is appropriate, any plan will fail. Conclusion As this paper has shown, the execution of a sustainable and consistent management quality framework is the basis for improvement of the process, particularly in the automobile business. In addition, this paper has highlighted various quality management frameworks that are present. This is in addition to the applicability of these quality management frameworks. As Toyota has revealed, the techniques for achieving quality objectives are secondary to everything. This includes a culture and company philosophy that promotes the commitment of all workers and ensures management participation. Toyota Company has achieved its operational excellence by adopting management quality frameworks that are applied in every level. These frameworks include every employee with an approach that is holistic, and focuses on sustainability. In contrast, if Toyota’s management was barely interested in applying a quality framework that is rigid, then this would be seen as a technique that lacks both practices and commitment for empowerment of employees and extra adjustment processes (Liker 2003, p. 55). In the case of Six Sigma, critics argue that it is oversold by many consulting companies. Many of these companies assert knowledge in Six Sigma when they have a shallow understanding of the concerned techniques and tools. References Cane, S 1996, Kaizen strategies for winning through people, Pitman Publishing, New York. Crosby, P 1979, Quality is free, McGraw-Hill, New York. Deming, WE 1982, Out of the crisis, Massachusetts Institute of Technology Press, Massachusetts. Etienne-Hamilton, EC 1994, Operations Strategies for Competitive Advantage: Text and Cases, The Dryden Press, Texas. Foster, ST 2010, Managing quality: Integrating the supply chain, Pearson Prentice Hall, New Jersey. George, M 2004, The lean six sigma pocket tool, McGraw-Hill, New York. Hiam, A 1992, Closing the quality gap: Lessons from America's leading companies, Prentice Hall, New Jersey. Hunt, VD 1992, Quality in America: How to implement a competitive quality program, Business One Irwin, Illinois. Liker, JK 2003, The Toyota way: 14 management principles from the world's greatest manufacturer, McGraw-Hill, New York. Maurer, R 2004, One small step can change your life: The kaizen way, Workman, New York. Stevenson, WJ 1999 Production operations management 6th ed, Irwin McGraw-Hill, Boston. Stonebraker, PW & Keong, LG 1994, Operations strategy: Focusing competitive excellence, Allyn and Bacon, Boston. Read More