Total Quality Management and ISO in Toyota Motor Corporation - Dissertation Example

Total Quality Management and ISO in Toyota Motor Corporation Introduction Toyota Motor Corporation is one of the largest and most recognized automotive companies in global market. The company produces high quality motor products acceptable by a good number of the global population. The company is mainly focused on the creation of automobiles products that includes sports and luxury vehicles. The Toyota Motor Corporation is also an international largest invention and innovation company. Due to its exceptional performance, the companies have received several rewards and certification from various global organizations that include: Total Quality Management (TQM) award as well as ISO Certification. On the other hand, over the last few decades, local and international companies have consistently experienced a period of drastic change in their daily operations and marketing. Globalization and intricate international competition has as well forced numerous organizations to experience unreceptive business environment and an increasingly turbulent market. The increased pace of technological development, complex customer demand as well as local and global market competition has turned out to be more sophisticated and intense, complicating the entire global business activities. To counter the ever increasing contemporary business challenges, a good number of modern global organizations have embarked on utilizing most of their resources in the introduction of up to date expansion and technologically oriented approaches in their daily business undertakings (Mackerron 89). This has led to the emergence of various quality management standards such as Total Quality Management as well as ISO 9000. Total quality management is an effectual and variable management system restrained not only in quality assurance department but also in the entire organization businesses. Therefore, Total Quality Management can be implicated to be an incredibly influential intervention mechanism that can last for a long period of time if properly managed and modified to lime with emerging technology and demands. Total Quality Management is based on four major philosophical assumptions (Rampersad 79). For a starter, Total Quality Management is presumed be cheap compared to other conventional mechanism and it is incredibly decisive for long term development of an organization. Secondly, employees are always concerned about their responsibility in improving the quality of the product and service delivery. Therefore, employees only require to be provided with the necessary tools, skills, and maximum respect from the management to improve their performance. Thirdly, the entire organization system is composed of highly independent sections. For this reason, the crisis in one section affects extensively the entire operations in an organization. Finally, the quality of products and services offered in an organization are view as the main and inevitable responsibility of the top organization management. Additionally, Total Quality Management is composed of ten main elements, customer focus, quality passion, teamwork, scientific approach, long-term dedication, training and education, constant improvement systems, freedom through control unity of purpose and employee empowerment and participation (Porter 67). On the other hand, International Organization for Standardization (ISO) came into existence in the late 1980s. This was due to the increased significant of globalization to international businesses that led to the call for the introduction of an acceptable international quality standard. The ISO series was as a result established among 135 countries in 1987. Initially, lack of a suitable global standards led to severe technical trade barriers in the world market. Therefore, the main intension of ISO certification was to rationalize global markets barriers through the identification of an opposite global standard. As a result, ISO served as trade language during trade liberation of free market and international investments. In addition, due to its essentiality in the accumulation of quantitative information, the ISO has also played a recommendable role in the establishment of modern technologies and innovations. Moreover, dependable standardization is as well vital in developing countries as it helps in infrastructural development, improved productivity, advanced export capability as well as in necessitating quality and productive market competition. Therefore, ISO can as well be rated as one of the Internal Quality Management Standards due to its role in external quality assurance (Evans 37). The ISO justifications therefore include: ISO 9001 that covers model of quality assurance in servicing, installation, design production, and development, ISO 9002 that addresses quality assurance on installation, production, and servicing, ISO 9003 that assesses the quality of final testing and inspection as well as ISO 9004 that offers guideline on quality system elements and quality management. The essay below focuses on cases study of Toyota Company, one of the global renowned companies that have earned Total Quality Management International Organization for Standardization certification (ISO). The essay will address the stages undergone by Toyota Company in its effort to acquire the ISO and TQM certification. The essay will address the problems encountered by the company in the process as well as benefits of the process to the company. The Toyota Motor Corporation was established in 1933 as a sub-division of Toyoda Automatic Loom Work. The Toyota Motor Cooperation is a multinational company with its head quarter in Toyota Aichi in Japan. The company was designed to produce automobile products under the leadership of Kiicho Toyoda, the son of the founder of Toyada Automatic Loom Work. The company launched its first two vehicles in 1935, the G1 passenger car and A1 passenger car. Over years, the company has been one of the biggest players in the automobile sector and is a major competitor to popularly automobile companies that includes the General Motors’ of United States of America. Some of the commonly known vehicles sold by Toyota Company include: Toyota Masters, Toyota Classic, Toyota Belta, Toyota Carina, Toyota, Mega Cruiser, Toyota Succeed, Toyota Motorsport and Toyota Sprinter Marino. The current success of Toyota Motor Cooperation is chiefly brought about by the company inspiring philosophy as well as good leadership and governance styles. The Toyota Motor Cooperation philosophy was borrowed from ideologies presumed by the company’s founders. To succeed in contemporary global market, the company introduced its own operation and managerial plan commonly known as Toyota Way 2001” plan. The Toyota Way 2001” plan was established to counter the alarming globalization process, global financial crises as well as increased intricacy in global market. The execution of this operation and management approach has played an incredibly decisive role in necessitating the achievement of Total Quality Management awards as well as the ISO certification. The “Toyota Way 2001” plan offered a guideline to be embraced by all employees, managers, and other stakeholders in the organization to facilitate the accomplishment of the company goals and objectives. The policy is subdivided into two main facets, the continuous improvement and respect for people. The policy has as well summarized the company’s success values. The subsequent are the main stages followed by the company in the implementation of the company Toyota Way 2001” plan in the effort to have quality products and services that can lead to the achievement of the Total Quality Management award and the ISO certification. Stage one To solve the emerging issues of financial crises and global market competition complexity, the Toyota Motor Cooperation management instituted the “Toyota Way 2001” plan with an aim of improving its productivity; advance the quality of the company’s products and services as well as increasing its productivity. The plan was intended at incorporating employees, customers, and other stakeholders in running of the daily activities of the company. The first step in this first stage was to update and inform the company’s employees on the principles that guide the plan. These principles included: addressing holistically all emerging predicament in local and global market, focusing on the improvement of the company’s reputation and performance, the relevance and significant of teamwork in the company’s main operations, need for intensive research to necessitate the achievement of the required development goals as well as respect to individual’s contribution and knowledge. In this stage, the company terminated the movement of workers from one machine and working station to another. As a result, the Toyota Motor Cooperation management was sensitive on the need for specialization and division of labor in the company’s operations. This as a result increased the level of teamwork and cooperation in the company’s production line. The company’s employees were as well required to keep a good record of their machines and production development. This process was as well aimed at ensuring that, all the company’s employees improve their performance and understand the functioning of their machines. In this stage, the employees were as well required to not only document the machine operation and performance but also, to document the machine internal operations and maintenance history. This requirement consequently forced the company’s employees to learn more facts on the usage of their machines to enrich their documentation process. The understanding of the machine operations that was necessitated by keeping good record on its operation and management resulted to an increase in the quality of the company’s products. The process also increased the knowledge and skills among employees on the most effective ways to improve the quality of the company’s products. As a result of successful implementation of this stage in 2002, the Toyota Motor Cooperation was rated as one of the fastest growing company in the world in terms of production of quality products and services and profitability. Second stage In the second stage, the Toyota Motor Cooperation instituted diverse mechanisms to counter machine breakdowns as well as adding value to the organization employees through developing training programs to its employees. The company therefore introduced various training programs to its employees, suppliers, and customers. The employees were trained on the most cost effective means of improving the quality of the company’s products. The training included educating employees on the most essential technical skills in the manufacture of quality automobile machines as well as the most effective means of maintaining sustainable performance of the machines. Teamwork skills were also part of the training component in a good number of the company’s seminars. The company’s employees were as well informed on the helpful problem solving mechanism. Suppliers were trained on the most effective way of producing acceptable and upgraded raw materials required in the company. On the other hand, the Toyota Motor Cooperation customers were trained on the maintenance company’s machines procedures. Moreover, to maintain productivity of the company’ production machines, the company management instituted a mechanism of maintaining the cleanliness of the company’s machines. In the late 1990’s, the Toyota company factory was extremely duty and inadequately maintained. The untidiness in the company machines was therefore responsible for the wears in the machine that interfered with the operation in the company. Therefore, the company started the process of cleaning the entire company’s operation areas. The process started from outside with the development of cleaning and sweeping regimens. The company also introduced a schedule for cleaning the company’s machines. Additionally, to ensure high quality and timely delivery of its customer’s orders, the company employed experts to work and design special cover and guard to permanently keep chips and duty out of the machines Third stage The final stage in the plan was intensive and continuous training and evaluation on the employees’ performance and their commitment toward improving the quality of the company’s products. The company instituted a procedure of developing its leaders to be helpful global manager. It is also at this stage that the company undertook intensive researches to understand its customers’ need and demands. The company top and middle level managers were as well trained on the most effective way of incorporating all employees in the decision making process. The new managers were as well informed on the significant of understanding the company operation as well as long term and short term goals of the company. To ensure total compliance with the global quality standard, the Toyota Motor Corporation employees and management teams were as well trained on the need to incorporate modern development and technology in the company’s manufacturing and promotion process. On the other hand, the top leaders were also informed on the company’s quality improvement philosophy and its impact on the company development. The most practical and cost effective means of implementing this plan was also part of the training to the company top management. The need and the importance of improving the respect of the ever increasing company’s suppliers and other stakeholders also dominated the Toyota Motor Corporation seminars and conferences (Toyota Motor Corporation Para. 3). Specify the problems that the company has encountered in this process Total Quality Management and International Standard Organization certification are more of philosophical quality improvement approaches that management tools and techniques. In the process of attaining Total Quality Management and ISO certification, Toyota Company encountered long term and complicated challenges that required a lot of commitment and resources. For a starter, the processing of informing the company’s employees on the need to introduce the Toyota Way plan was very challenging and demoralizing. The Toyota Company therefore faced consistent difficulty in the introducing and in sustaining the Toyota Way of running its operations. There was inadequate financial and work force resources and commitment among various employees and senior management officials to initiate the process. On the other hand, lack of the will and commitment among top managers in the company and negative attitude toward the Toyota Way plan was also key obstacles on the introduction of the process. Additionally, workload, time constraints as well as lack of consistent commitment among employees were also the main inhibitors of sustaining the process. The Toyota Motor Corporation top management was transactional leaders as opposed to transformational form of leaders required in implementing the Toyota Way plan. In some stages, the company leaders reacted to event rather than shaping future events of the Toyota Motor Corporation. The Total Quality Management principle emphasizes on the need for integrating quality aspects into design through the adoption of effective quality planning procedure. Transactional leadership therefore led to significant loss of many essential opportunities due to increased conflict of interest among key players. The company also encountered the problem of fear of change among operation managers and junior and senior staffs. Therefore, changing from conventional method of operation to modern method required substantial effort. The Toyota Motor Corporation encountered severe social challenges due to consistent clash between change advocates, recipients, and the company’s culture. The recipients of change were not give adequate time to prepare for the social change in the company. The top manager also failed to set good examples of adopting the introduced quality transformation. The improvement process as well lacked supporting competence and information. In most cases, the productivity of improvement process depends on the availability of reliable, relevant, and objective information as well as acceptable communication skills and model. However, the Toyota Motor Corporation failed to provide the necessary attention to the available information on the implementation of Toyota Way plan. The plan also lacked the necessary recording mechanism of the emerging changes and its impact to the company’s future development. There was also lack of adequate, skilled, and competent personnel to implement the process. There was lack of cross-functional and inter-departmental skills that derailed the implementation of Toyota way plan. Despite of its success, the Toyota Motor Corporation quality process also lacked learning culture, loyalty of purpose transparency in creating new policies, lack of evidence based decision, unrealistic overwork, as well as shortfalls among various departments. Specify the Benefits That the Company Has Gained In This Process After successful implementation of Toyota Way plan, the company not only produced the best products in the world automobile market but also its products dominated the world market. The successful implementation of the Toyota Way plan also enabled the company to acquire ISO certifications for offering quality services and products. The company was later given the Total Quality Management award for portraying superb performance and quality service delivery. The company also experienced a significant reduction in its waste, increase in its outcome as well as improving customers and employees satisfaction. Toyota Motor Corporation also increased its total sale by over 57% of its previous total sales. The company also expanded into new markets that included Africa, European countries and in many section of avian continents. Additionally, through consistent improvement of the company products, the company was also in a position to introduce satisfying solution to its customers vehicles needs thus creating a strong and long term relationship with its customers. Toyota Motor Corporation employees also became aware of their personal and collective roles in the success of a company. Therefore, they took an effective initiative in their personal and professional growth that led to the development of the company. Additionally, Toyota Motor Corporation commitment towards improving its products and service delivery also played a critical in motivating individual’s constant improvement. Moreover, the company’s employees also acquired new knowledge and skills in various relevant areas through consistent training and seminars that included, professional and technical competence, effective marketing strategies as well as modern technology basic skills The process also played a incredibly decisive role in improving the company’s productivity and profitability. The company has also developed an exceptionally strong platform for future development and productivity. Long term growth of the company has also been enhanced by improved research and development initiatives (Kennedy 37). Other Quality Tools in the Company In 1987, the Toyota Motor Corporation was awarded by Rover Group a Sterling Award that recognized the company’s nomination as the most success supplier to Rover Group From 1991 to 1996, the Toyota Motor Corporation was awarded with the Award Of The Best Automobile Suppliers by various organization that include: Fasa Renault and Seat-VW and Peugeot-Talbot In 1994, the company was awarded by VW the award of the Value to the Customers Wards In 1998, Honda awarded the Toyota Motor Corporation with an award of the Cost Award for Best Cost Performance In 2000, the company was also awarded with the ward of the Best Suppliers Award for attaining the world class performance in cost control, delivery, and quality. In 2001 the Toyota Motor Corporation was as well awarded With Supplier Awards for Achievement of Quality Service Delivery. In 2004, the Toyota Motor Corporation also received Quality Assurance Certification System Award In 2005, the company also acquired the Outstanding Performance Award from AGCO Parts Division In 2006, the Toyota Motor Corporation received an award in World Excellent Awards In 2010, the Toyota Motor Corporation the DAF PACCAR Inc awarded the Toyota Motor Corporation with an award of Supplier’s Quality Achievement 50 PPM In 2011, the company also acquired an Award of Supplier’s Quality Achievement from DAF PACCAR Inc Conclusion Toyota Motor Corporation is one of the most flourishing companies in the world. Its current success is purely based on effective implementation of the Toyota way plan. The successful execution of the plan has also enabled the company to acquire various rewards and awards that included total quality management and ISO certification. On the other hand, Contemporary development and current customer demands have in the recent past forced both local and international organization to develop strategies aimed at improving the quality of their service delivery. Successful company should demonstrate exceptional results to its stakeholders including: the community, employees, government, customers. Since the introduction of ISO and TQM, the development and implementation of quality management has become a common phenomenon on modern industries. Therefore, to fit in the current market, international and local organization should establish quality management systems that can satisfy customers’ needs and improve the profitability of an organization. Work cited Evans Lindsay. The management and control of quality,8th Edition. South-Western: Cengage Learning. 2011. Print Kennedy, Norton. Using Customer Relationship Management to increase profits in Toyota Motor Corporation. Journal of Strategic Finance, 23.78 (2004), 37-42. Mackerron, Masson, R. “Self assessment: use at operational level to promote Continuous improvement.” Journal of Production Planning & Control, 14.1 (2003), 82-89. Porter, Tanner. Assessing Business Excellence, Oxford: Elsevier Butterworth-Heinemann, 2004. Print Rampersad, Porter. Total Quality Management: An Executive Guide to Continuous Improvement, Berlin: Springer. 2001. Print Toyota Motor Corporation website: www.toyota-global.com/company Read More