Total Quality Management of Toyota Motor Company - Assignment Example

?Running head: TOTAL QUALITY MANAGEMENT Total Quality Management Insert Insert Insert 25 February Total Quality Management Introduction Management in modern world has become concerned with improvement in quality issues, especially in production, distribution, and consumption of goods and services (Paladino, 2011). As the concept of quality improvement becomes important in modern world, business environment remains dynamic, and consumption behavior changes, there is need for emphasis on total quality management (Mukherjee, 2006). Total quality management looks at entire performance improvement of people, systems, and organization at large (Kanji 1995). In other words, it is concerned with conceptualizing quality improvement in wholesale, rather than in single unit. Toyota Motor Company Toyota Motor Company, based in United States of America, is considered as the world’s largest automobile company involved in design and manufacture of different kinds of luxury and sports vehicles. Some of the best-known models the company manufactures include SUVs, trucks, minivans, and buses. In some cases, the company’s vehicles are produced either with combustion or hybrid engines, for instance, in the case of Prius (Toyota Motors Company, N.d). At the same time, Toyota Motor Company has some selected subsidiaries such as Daihatsu Motor, which is involved in production of mini-vehicles, and Hino Motors involved in production of trucks and buses (Toyota Motors Company, N.d). Moreover, apart from producing vehicles, the company is involved in production of automotive parts, which it uses and sells some. Today, Toyota Motor Company prides in having some of word’s credited models that include Camry, Corolla, Land Cruiser, Tundra truck and Lexus (Toyota Motors Company, N.d). Main customers Toyota Motors sells its products to diverse groups of customers. The customer base is found in USA, Europe, Asia, Africa, and Latin America. In North America, Toyota Motors has established strong markets. Customers for the company are spoilt for choice, since the company produces numerous types and diverse range of vehicles for all consumers in the society. As a result, the company prides in having vehicles such as large trucks that include Tundra in the American market. At the same time, the company has beefed up efforts to produce hybrid vehicles such as the Prius, Camry Hybrid, Highlander Hybrid, and Lexus in the American market. At the moment, Toyota Motors is regarded to sell more hybrid vehicles in USA than any other manufacturer (Toyota Motors Company, N.d). Order qualifiers and orders winners In order for organizations to be successful, it has to identify what exactly customers desire or want and identify ways and means to satisfy them. Organizations therefore have duty or responsibility to identify those factors that are likely to influence customer decisions of buying a particular product or service (Khanna, 2007). In this regard, it is important for organizations to identify order qualifiers and order winners. Order qualifiers are seen as those elements that manufacturers provide, which in turn determine the purchasing behavior of customers. Order Qualifiers are perceived to be aspects of competitiveness where the overall operation performance is expected to be above particular level in order to be considered by the customer (Khanna, 2007). Subsequently, order qualifiers are not regarded as major competitive determinants of success, but, in one way or the other, contribute to improvement in performance of the company. On the other hand, order winner constitute features that influence the final buying decision of customers. Order winners are seen as those aspects, which directly and in significant way contribute to the success of the business organization. As a result, order-winning elements are the critical or vital reasons why a customer makes a particular purchase of product or service. In this manner, it is likely that when performance in an order-winning factor is raised, the business is in a position to improve its chances of success and at same time create more business opportunities. For a company like Toyota Motor Company, order qualifiers elements include aspects like price, quality, and product variety. Toyota Motors has been able to create market competitiveness using these order qualifier aspects. On the other hand, order-winning elements can be regarded to be aspects to do with technology and innovation (Seuring 2003). Such aspects at Toyota Motors include technological innovations like Just-in-Time (JIT) and Lean Systems concepts. JIT concept has enabled Toyota to win and remain relevant in the market. Main operational processes that are needed to deliver Toyota products There are three main processes involved in the delivery of products or services for any organization. The first process involves designing, second process involves production, while the third process involves distribution (Bicheno and Elliot, 1997). Toyota Motors process of product development and subsequent availability in the market follows these three processes. Product design stage for the company involves input effort of engineering and innovation units, together with research and development units. These units become together and are involved in outlining the best design concepts that can later be conceptualized into meaningful ideas for market product. At the same time, the goal of product design team should largely be to design a product that has ability to fulfill market demand. In doing so, the product should be able to fulfill the needs of multiple users over the life of the product (Mital, Desai, and Subramanian, 2007). At the same time, it has been conceptualized that, product design becomes successful when there is input of key aspects of strategic and systematic issues regarding product demand and consumption (Mital, Desai, and Subramanian, 2007). On the other hand, production process of the company receives input from diverse aspects that in most cases are inform of knowledge, skills, and expertise. At the same time, production of the ideas depends on the available technology, resources the company has, and capacity available for the company (Mital, Desai, and Subramanian, 2007). Furthermore, production is likely to be efficient when the company has structural policies that guide production in terms of environmental and social consequences. As a result, input to the production process is likely to consider numerous measures in place. The last process involves distribution, where the idea is to get produced products to the market or closer to consumers. Distribution is therefore the critical process that eventually results into an idea of production being transformed into a product. Key input aspects to distribution process include factors of supply chain that may include transport and warehousing. Transport has to do with ensuring the product reach the destination where the consumer is while warehousing has to do with aspects of packaging and storage of the product. Total Quality Management As it has been seen earlier, quality is today the most emphasized concept in many organizations and with regard to production and consumption of products. As a result, quality in modern world is aimed at the needs of the consumer in the present and in the future (Charantimath, 2003). In light of increased emphasis on quality, there has emerged concept of total quality management that encompasses diverse aspects of people, systems, and organization as far as quality is concerned (Pfeifer, 2002). Quality management is regarded as the process concerned with identification and administration of activities that are needed in order to achieve objectives of quality in an organization (Charantimath 2003). According to Bagad (2008), quality management incorporate overall management function in an organization and it constitute concept that determines and implements the quality policy. As a result, the author observes that quality management is concerned with specific aspects of quality assurance, quality control, quality planning, and quality auditing (Bagad, 2008). On the other part, Samuel (2004) notes that evolution of total quality management was preceded by development of inspection, followed by quality control, quality assurance, before the emergence of total quality management (Samuel, 2004). Accordingly, the author observes that total quality management has emerged to be concerned with process performance of data, quality planning, statistical tools and control instrumentation. Moreover, total quality management has evolved and today is largely involved with customer performance, employer involvement, continuous improvement, and overall performance measurement (Samuel, 2004). In basic terms, total quality management is largely concerned and incorporate both human and system component. As a concept, total quality management (TQM) gives a lot of consideration to customers, which results into transformation of an entire organization, and every individual is motivated to work towards common vision, in an ideal environment and to continuously improve their performance resulting in better business opportunities (Salaheldin, 2008). At the same time, Raju (2001) notes that TQM is ingrained in the fact that business want to remain relevant in the dynamic business environment and to do so it has to rely on its customers. Therefore, to ensure customers get the best, the company is forced to initiate activities aimed at improving and enhancing performance in key areas of organization. As a result, TQM can be perceived as a concept that promote and encourage interdependency. In this manner, TQM has been linked to aspects of good management that incorporates total systems view and integrates various business processes with aim of providing flexible response to customers (Raju, 2001). Due to this, the author agrees that, total quality management rests on the need for improvement. At the same time, the process is continuous where it focuses on quality deliver and cost where all these aspects affect customers (Raju 2001). Adoption of TQM is seen to accrue some benefits to the organization and the overall production, distribution and consumption process in an organization. For instance, the process is credited with numerous improvements in both business processes and functional processes. Business processes are seen to have direct linkage with the company goals while functional processes have to do with structures of the organization (Raju 2001). Emergence of TQM in the organization results into achieving effectiveness in the business. Furthermore, total quality management has been associated with call for change or modification of style of management. In most cases, management style requires the conversion of management from being expert protector of function to facilitator and barrier eliminator (Raju 2001).In such way, management activities are not just concentrated at the top but are delegated to other support management members in a collaborative move. When this happens, consensus is forged in the company, which becomes essential for realization of long-term vision. The successful implementation of the vision will in turn transform the company’s organizational structure into a horizontal management that is committed to customer satisfaction (Raju 2001). In the coming years, total quality management is likely to remain a concept of concern in many organizations. The concept is likely to remain and dominate operation management in many organizations. Businesses are likely to remain strategic as far as business is concerned. Many changes are likely to be realized in business environment world, a situation likely to inform and put more pressure on business to improve quality of their operations (Hakes 1991). At the same time, as globalization become more ingrained in modern world, customers are likely to demand more quality products and services. This situation coupled by the desire of the business entity to remain competitive and profitable is likely to results into more opportunities for total quality management (Hakes 1991). Factors for the success of total quality management Success of total quality management depends on numerous paths or strategies that an organization adopts. However, in many cases, there is no particular set of factors that can results into success of TQM in an organization. It all depends on each organization strategies and vision, which in turn translate into which particular TQM procedures or processes are adopted. As a result, what may work well for one company will not necessary work for another company, and this therefore require each company to adopt specified strategies that will resonate well with the business environment it operates in. The most prevalent factors that have been studied by many authors, which influence and determine whether TQM succeed or fail, include leadership commitment, customer focus, training, communication, and involvement (Pekar, 1995). Leadership is key in the success of any aspect especially in an organization. Leadership is perceived to have skills, authority, knowledge, and organizational goodwill to steer and propel the process of change management in an organization. In other words, leadership has both intrinsic and extrinsic goodwill and incentive to manage any process geared towards strategic management (Pekar 1995). At the same time, leadership in any organization is at good position to have the power to collectively rally the organization’s manpower and stakeholders into the realization of set objectives and goals, which may include TQM. Therefore, when leadership is committed to the course of TQM, the process receives vital input that is necessary to propel and accelerates the process of TQM in the organization. At the same time, leadership commitment is likely to see organization transform both internally and externally as key aspects of operations are realigned in order to fulfill and satisfy the goals of TQM (Sebastianelli and Tamimi, 2003). Customer focus is another factor that is critical to the realization of TQM goals (Antony and Preece, 2002). Customers remain the main reason why organizations conduct their business affairs. Customers thus remain the engine for the sustainability of the business (Ho 1999). When customers concerns and needs are fulfilled adequately, then the organization is likely to see its operations continue into future (Pekar 1995). Consequently, customer demands and needs determine the behavior and overall consumption patterns of consumers. Customer focus has to do with how consumers’ needs are addressed in the most appropriate way. For instance, when customers manifest changes in consumption behavior, the organization is likely to respond to such demands differently. When the organization appear to be concerned with issues of consumers and address them more appropriately, then such response is likely to translate into how the organization responds to the needs of consumers and subsequently TQM (Pekar, 1995). Communication is another critical aspect in the success or failure of total quality management (Padhi and Palo, 2005). Communication defines how ideas are transmitted and conceptualized regarding TQM. Communication is the means members of an organization are able to interact and express their ideas and perception regarding TQM (Pekar 1995). Communication at the same time is the main avenue that defines social exchange relationships, which is the key to success or failure of TQM. Communication in an organization should be productive in such a way that both participants know what to do and how to do it. This is to say, effective communication is vital to success of TQM objectives. Communication in such way has to be involving, participative and collaborative (Pekar, 1995). As a result, key stakeholders of the organization have to understand each other and adequately know their role in the entire process of TQM process. Communication at same time should be the binding force for key stakeholders in the organization to ensure the goals of TQM are realized without many barriers. Conclusion Total quality management has progressively become key aspect of concern in the modern world. Today, organizations have realized that in order to achieve strategic goals and long-term vision, there is need to integrate TQM in organizations. TQM has to do with total systems of the organization, where transformation of entire organization system is seen to be the best way of responding to customer needs. TQM put more focus on customer and this has resulted into TQM goals and strategies to dwell more on customer needs. Nevertheless, TQM in an organization succeed when critical aspects of leadership, customer focus, communication, and training are fulfilled. Reference List Antony, J., & Preece, D., 2002. Understanding, Managing and Implementing Quality: Frameworks, Techniques and Cases. NY: Routledge. [Online]. Available from: http://books.google.com/books?id=j6fHM89gLDoC&pg=PA139&dq=factors+that+influence+success+of+total+quality+management&hl=en&sa=X&ei=iqpHT4DFJ4qj8gP6kcyfBA&ved=0CFgQ6AEwBg#v=onepage&q=factors%20that%20influence%20success%20of%20total%20quality%20management&f=false [23 February 2012]. Bagad, V. S., 2008. Total Quality Management. USA: Technical Publications. [Online]. Available from:http://books.google.com/books?id=nTPgHVUjkb8C&printsec=frontcover&dq=total+quality+management&hl=en&sa=X&ei=lIVHT9LXKdLq8QP9uJC7Dg&ved=0CFMQ6AEwBQ#v=onepage&q=total%20quality%20management&f=false [23 February 2012]. Bicheno, J., Elliot, B., 1997. Operations Management: An Active Learning Approach. MA: John Wiley & Sons. [Online]. Available from: http://books.google.com/books?id=2e1h8Bw1UWgC&pg=PA2&dq=Key+Concepts+for+the+total+quality+management+to+succeed.&hl=en&sa=X&ei=7slHT7zuL-e_0QXLqPFs&ved=0CFsQ6AEwBjgK#v=onepage&q=Key%20Concepts%20for%20the%20total%20quality%20management%20to%20succeed.&f=false [23 February 2012]. Charantimath, P. M., 2003. Total Quality Management. New Delhi: Pearson Education India. [Online]. Available from: http://books.google.com/books?id=FW3oHcAwc_0C&printsec=frontcover&dq=total+quality+management&hl=en&sa=X&ei=lIVHT9LXKdLq8QP9uJC7Dg&ved=0CDwQ6AEwAQ#v=onepage&q=total%20quality%20management&f=false [23 February 2012]. Hakes, C., 1991. Total Quality Management: The Key to Business Improvement: A Pera International Executive Briefing. NY: Springer. [Online]. Available from: http://books.google.com/books?id=7vf1w9EPe78C&pg=PA3&dq=future+of+total+quality+management&hl=en&sa=X&ei=36dHT9KuJ4Td8AOnzp3ZDg&ved=0CDsQ6AEwAQ#v=onepage&q=future%20of%20total%20quality%20management&f=false [23 February 2012]. Ho, S. K., 1999. Operations and Quality Management. OH: Cengage Learning EMEA. [Online]. Available from: http://books.google.com/books?id=bTUtd2R5LeYC&pg=PA30&dq=Key+Concepts+for+the+total+quality+management+to+succeed.&hl=en&sa=X&ei=japHT4e7F8q68gP_pcmnDg&ved=0CD8Q6AEwAg#v=onepage&q=Key%20Concepts%20for%20the%20total%20quality%20management%20to%20succeed.&f=false [23 February 2012]. Kanji, G. K., 1995. Total Quality Management: Proceedings of the First World Congress. NY: Springer. [Online]. Available from: http://books.google.com/books?id=kdMY3vAgRwQC&printsec=frontcover&dq=total+quality+management&hl=en&sa=X&ei=aWBHT62uJJGm8gPpkuHBDg&redir_esc=y#v=onepage&q=total%20quality%20management&f=false [23 February 2012]. Khanna, R. B., 2007. Production and Operations Management. New Delhi: PHI Learning. [Online]. Available from: http://books.google.com/books?id=GgxdXnfKhHgC&pg=PA16&dq=order+qualifiers+and+order+winners&hl=en&sa=X&ei=-HdHT7PNO8HN0QXWjvWyDg&redir_esc=y#v=onepage&q=order%20qualifiers%20and%20order%20winners&f=false [23 February 2012]. Mital, A., Desai, A., & Subramanian, A., 2007. Product Development: A Structured Approach to Consumer Product Development, Design, and Manufacture. MA: Butterworth-Heinemann. [Online]. Available from: http://books.google.com/books?id=AE1kFh_sdVAC&pg=PA13&dq=product+design,+production+and+distribution+processes&hl=en&sa=X&ei=b4FHT-inNqiq0QWFrKGmDg&ved=0CEEQ6AEwAg#v=onepage&q=product%20design%2C%20production%20and%20distribution%20processes&f=false [23 February 2012]. Mukherjee, P. N., 2006. Total Quality Management. New Delhi: PHI Learning. [Online]. Available from: http://books.google.com/books?id=RxQIWc28__AC&pg=PA156&dq=factors+that+influence+success+of+total+quality+management&hl=en&sa=X&ei=iqpHT4DFJ4qj8gP6kcyfBA&ved=0CFMQ6AEwBQ#v=onepage&q=factors%20that%20influence%20success%20of%20total%20quality%20management&f=false [23 February 2012]. Padhi, N., Palo, S., 2005. Human Dimension of Total Quality Management. USA: Atlantic Publishers & Distributors. [Online]. Available from: http://books.google.com/books?id=eUBNJh10A0cC&printsec=frontcover&dq=Key+Concepts+for+the+total+quality+management+to+succeed.&hl=en&sa=X&ei=japHT4e7F8q68gP_pcmnDg&ved=0CDkQ6AEwAQ#v=onepage&q=Key%20Concepts%20for%20the%20total%20quality%20management%20to%20succeed.&f=false [23 February 2012]. Paladino, B., 2011. Five Key Principles of Corporate Performance Management. NY: John Wiley and Sons. [Online]. Available from: http://books.google.com/books?id=0enuYh-39fIC&pg=PT54&dq=Key+Concepts+for+the+total+quality+management+to+succeed.&hl=en&sa=X&ei=japHT4e7F8q68gP_pcmnDg&ved=0CGcQ6AEwCQ#v=onepage&q=Key%20Concepts%20for%20the%20total%20quality%20management%20to%20succeed.&f=false [23 February 2012]. Pekar, J. P., 1995. Total Quality Management: Guiding Principles for Application. USA: ASTM International. [Online]. Available from: http://books.google.com/books?id=MuQq55b6TB4C&pg=PP9&lpg=PP9&dq=what+lead+to+success+of+total+quality+management&source=bl&ots=as5Sjy91ht&sig=UkvyszMyb14D-tMD-zkigvRLIP0&hl=en&sa=X&ei=9apHT6uBBMfx8QOx8ISLDg&ved=0CCcQ6AEwAA#v=onepage&q=what%20lead%20to%20success%20of%20total%20quality%20management&f=false [23 February 2012]. Pfeifer, T., 2002. Quality Management. Germany: Hanser Verlag. [Online]. Available from: http://books.google.com/books?id=C5s1pqsQgWMC&pg=PA5&dq=factors+that+influence+success+of+total+quality+management&hl=en&sa=X&ei=iqpHT4DFJ4qj8gP6kcyfBA&ved=0CF8Q6AEwBw#v=onepage&q=factors%20that%20influence%20success%20of%20total%20quality%20management&f=false [23 February 2012]. Raju, S., 2001. Total Quality Management. New Delhi: Tata McGraw-Hill Education. [Online]. Available from: http://books.google.com/books?id=ZIcXWo-YZOkC&printsec=frontcover&dq=total+quality+management&hl=en&sa=X&ei=lIVHT9LXKdLq8QP9uJC7Dg&ved=0CGcQ6AEwCQ#v=onepage&q=total%20quality%20management&f=false [23 February 2012]. Salaheldin, S. I., 2008. Critical Success Factors for TQM Implementation and their Impact on Performance of SMEs. International Journal of Productivity and Performance Management, Vol. 58, No. 3, pp. 215-237. [Online]. Available from: https://docs.google.com/viewer?a=v&q=cache:BoNDXBBRbg4J:qspace.qu.edu.qa/bitstream/handle/10576/10459/Critical%2520success%2520factors%2520for%2520TQM%2520implementation%2520and%2520their%2520impact%2520on%2520performance%2520of%2520SMEs.pdf?sequence%3D1+what+lead+to+success+of+total+quality+management&hl=en&gl=ke&pid=bl&srcid=ADGEESiZJLxD5hSzJFJh4YZt4ftvnI4eMTAe3WnpJa9pqdAUDeWXE00xTKknGvkYilMdt6QYxfxJZhSUGROU_f-keHF-PP-z9KmsIdIOWbw0DEm8usejUg0IrQV7MFxmAi3OsNwlfVnj&sig=AHIEtbRghtZ5Qyxdn1uJ2gbeJTME190tog [23 February 2012]. Samuel, A. A., 2004. Total Quality Management. New Delhi: PHI Learning. [Online]. Available from: http://books.google.com/books?id=F-v3AdcJP9kC&printsec=frontcover&dq=total+quality+management&hl=en&sa=X&ei=lIVHT9LXKdLq8QP9uJC7Dg&ved=0CGIQ6AEwCA#v=onepage&q=total%20quality%20management&f=false [23 February 2012]. Sebastianelli, R., & Tamimi, N., 2003. Understanding the Obstacles to TQM Success. Journal of Quality Management, Vol. 10, No. 3. [Online]. Available from: https://docs.google.com/viewer?a=v&q=cache:lZK57i8P6qoJ:asqcincinnati.org/Library/qm/UnderstandingTheObstacles.pdf+what+lead+to+success+of+total+quality+management&hl=en&gl=ke&pid=bl&srcid=ADGEESj9QYAGuToEgeHSzHWxGRZA9E5ke6G9jT86UM6Rpjr5BE8sZCQ4lNy51oBry4QBLGBHFa9Kj274eAF2hsXCATX2D6dZ4BeeAs4X7GTEcXQ1d5g6ZQTScBJ41ABEqlvVMjpVIKRI&sig=AHIEtbTCVd0-Oc5nMhRvy8GN1-2yo-IETA [23 February 2012]. Seuring, S. A., 2003. Strategy and Organization in Supply Chains. NY: Springer. [Online]. Available from: http://books.google.com/books?id=BVktTO2T_3oC&pg=PA206&dq=order+qualifiers+and+order+winners+in+automobile&hl=en&sa=X&ei=GcdHT_nMLqml0QXh3bGiDg&ved=0CEQQ6AEwAw#v=onepage&q=order%20qualifiers%20and%20order%20winners%20in%20automobile&f=false [23 February 2012]. Toyota Motors Company. N.d. Toyota Company Profile. [Online]. Available from: http://www.toyota.com/ [23 February 2012]. Read More