Total Quality Management - Toyota Company - Case Study Example

L QUАLIТY МАNАGЕМЕNТ University Student Id Course Date Table of Contents ТОТАL QUАLIТY МАNАGЕМЕNТ 3 Introduction 3 Reasons for benchmarking 4 Improve productivity 4 Strategy for achieving competitive advantages 4 Enhancing learning 5 Increased growth potential 5 Performance assessment 5 Continuous improvement 5 Steps to implement benchmarking practices 6 Step 1: Business Problem identification 6 Step 2: Change preparation 6 Step 3: Team development 7 Step 4: Knowledge Audit 8 Step 5: Key features definition 8 Step 6: Knowledge Management blocks 9 Step 7: connecting knowledge and people 9 Challenges facing the implementation process 10 Organizational resistance 10 Lack of set goals 11 Recommendations 11 References 13 ТОТАL QUАLIТY МАNАGЕМЕNТ Introduction The organization I have chosen in the process of evaluating the benchmarking process is the Toyota Company. Toyota Company has managed to make its operations competitive in the market through meeting the needs of the customers. Toyota Company has been operating in the automobile industry that has been experiencing a high level of competition making benchmarking necessary (Anand and Kodali, 2008). Benchmarking can be defined as the process that involves identification of the highest level standards of processes, services, and products. The primary objective of benchmarking is guarantee improvements in the production process. This can entail looking for the best practices that Toyota Company can employ in making its products competitive in the industry. Benchmarking is critical to the improvement of the service delivery of the Toyota Company because the organization can be in a position to keep pace with the industry trend. Besides, the management of the Toyota Company can compare its operations with those of the competitors in the industry. The services and products of the company can be improved based on those of the major competitors and the organizations that are considered innovative in produce designing (Dolan and Moré, 2002). This report evaluates the reasons that can make Toyota company interested to benchmark process, steps in the implementation process and challenges that are likely to be experienced. Lastly, recommendations are provided that are necessary for mitigating difficulties and risks faced by the organization. Reasons for benchmarking The Toyota Company has various reasons that would make the organization interested in the benchmarking processes. Considering the high competition in the automobile industry, the management of Toyota Company can be interested in benchmarking it practices to achieve competitive advantages in the market. Also, the increased need for meeting the needs of the customers benchmarking can be critical for Toyota Company to achieve competitiveness through meeting customer needs. Benchmarking can be valuable to the operations of Toyota Company through adopting the best practices that can improve productivity (Doll, Deng, and Scazzero, 2003). Following are some of the reasons that can make Toyota company interested in the benchmarking processes. Improve productivity The Toyota Company can be interested in benchmarking process to improve its productivity through assessing the best practices in production. This can entail comparing the company operations with those of the other organizations in the industry making it possible to employ the use of most competitive practices in production (Donthu, Hershberger, and Osmonbekov, 2005). The company can be able to get new ways of achieving increased productivity in operations of the enterprise. Strategy for achieving competitive advantages Toyota Company can be able to compete in the industry through benchmarking. This can entail realizing new ways of achieving competitive advantages from the other companies that are successful in the industry. The organization can be able to adopt the best strategies through analyzing the strategies used by the competitors (Doll, Deng, and Scazzero, 2003). The analysis of the competitors’ strategies can open opportunities for growth hence using benchmarking as the strategic tool for becoming competitive. Enhancing learning It is through benchmarking the Toyota Company can enhance the learning of the employees and overcome disbelief. The management of Toyota can be in a position to train the employees to compete better in the industry (Donthu, Hershberger, and Osmonbekov, 2005). It is through the benchmarking process that the company can learn the practices and strategies employed by the competitors hence improving its operational policies. Increased growth potential Benchmarking increases the chances of growth as management can be able to realize new opportunities for achieving growth in the industry. The necessary change strategies necessary for company growth can be best adopted through benchmarking (Gleich, Motwani, and Wald, 2008). The Toyota Company can look outside for potential areas of growth during the benchmarking process where the management can easily realize the market gap is existing. Performance assessment The management of Toyota Company can be in a better position to achieve its position in the market through benchmarking. The company can be in a position to assess its performance against that of the competitors hence realizing its market position. Through the benchmarking process, Toyota can identify the problems areas and the best solutions for the company problems (Anand and Kodali, 2008). The organization can make use of the shared information during the benchmarking to make the operations competitive and improve quality. Continuous improvement It is through benchmarking processes that the management of Toyota Company can continuously improve its operations. Also, the benchmarking process can assist in improving planning, and budgeting aiming at achieving efficiency in company operations (Gilleard and Wong, 2004). For instance, the Toyota Company can rely on benchmarking in the process of managing its costs of operations. Steps to implement benchmarking practices Step 1: Business Problem identification This step entails identifying problems facing the Toyota company where the workers who are charged with the formulation of a skill management system encounter anxiety at the first since they feel hopeless concerning a lot of work they perform. The transformation of information from the databases to the internet usually makes it much easier for the workers to have access to that information at any time (Gilleard and Wong, 2004). The fear of feeling hopeless is based on the attitude concerning the knowledge management in all different proposition. Additionally, the term knowledge management entails the components of both enterprise practices as well as the implementation of the technology. However, the knowledge management is used by various business enterprises for their proper management of the intellectual type of knowledge (Kyrö, 2004). The constructive aspects of business concerning the knowledge management are always common in the benchmarking process where the possible problems can be identified. Step 2: Change preparation The Toyota Company can be required to prepare for the necessary changes because for successful implementation of the adjustments; some changes are usually needed concerning the technical adjustments. However, there is always a challenge which is usually common in all the individuals who are in charge of the knowledge management of an individual project. This problem is the desire of the individuals to make use of the technology. According to Maire, Bronet, and Pillet, (2005), almost two-thirds of the total knowledge management in most of the cases requires focusing on the aspects which are non-technical. The moment the majority of the workers are provided with enough time, training, and also incentives they will manage as well as share their knowledge with a lot of enthusiasm (Gleich, Motwani, and Wald, 2008). The creation of the collaborative culture usually needs both the restructuring of the values of Toyota Company as well as the formulation of the incentives. Step 3: Team development Team development is a major step in the benchmarking process. At this step, the identified problems that are facing the Toyota Company and the goals of the organization concerning the formulation of knowledge management is made clear. The organization can then consider the necessary knowledge required to solve the problems (Anand and Kodali, 2008). The construction as well as implementing the system of knowledge management usually needs a broad range of expertise in the organization team. All the individuals who belong to the organization of knowledge management are often linked together by the Company`s targeted goals and the problems. However, the members of this organization may be having both skills and experiences which are quite different. A strong leader in the organization is usually a significant factor which makes the formulation of knowledge management of a project to be successful. On addition, the leader who is in charge of the knowledge management should also have the necessary knowledge concerning the organization. Step 4: Knowledge Audit The knowledge Audit starts with the process of locating the necessary knowledge which is required by the workers in solving a certain problem which was identified during the first step. Through the experience, it has been fully proved that this process is not the right way of proceeding. Also, a knowledge audit which is successful mostly concentrates on the necessary knowledge which is required for solving the problem which is targeted (Gilleard and Wong, 2004). However, the knowledge audit usually categorizes information into two divisions which are; the knowledge which recently existing and the knowledge which is missing. After the identification of the information which is missing, now the information which is relevant can be found without difficulties. The relevant information which is selected is usually used in the process of designing the system of knowledge management (Doll, Deng, and Scazzero, 2003). However, the team for the knowledge management should identify the explicit resources existing in the company. Step 5: Key features definition Defining the major features in the benchmarking process helps in knowledge management where there are some similarities despite the differences. These common characteristics include; the openness, measurability, and also customizability (Gilleard and Wong, 2004). Open systems, as well as the Distributed Open Systems, are the systems that make the workers acquire the necessary information required for a particular location at a given time. The compliance to the standards of the industry usually facilitates the organizations to introduce some technologies which are new to their systems. However, the majority of the projects which are under the knowledge management require components for the purpose of distribution. The capability of the knowledge management to tackle the distribution is significant to the Toyota Company as well as its system development (Kyrö, 2004). When determining the outstanding solutions concerning the knowledge management, the organization should ensure that the solution chosen has both tools and capabilities for measuring the performance. Step 6: Knowledge Management blocks An organization system accumulates the necessary information concerning the technologies which is utilized in the process of organizing and exchanging knowledge among the workers. The projects which are successful in most cases employ the technique of ‘building blocks’ as their technological approach. However, when using the ‘on-ramp’ way of formulating the knowledge management results to the set of the building blocks to be much crucial (Gleich, Motwani, and Wald, 2008). Each of the building blocks contributes to the system of the knowledge management and also it provides results that are positive. Also, the blocks also assist in the provision of the significant results which can be observed by each stakeholder of the Toyota Company. The building blocks lay a base for the implementation of the next phase (Gilleard and Wong, 2004). During this step, all the necessary information concerning both the building blocks which are used as well as the implementation method is usually shown. Step 7: connecting knowledge and people Any organization is primarily concerned with searching of an individual who possesses the right knowledge for solving a particular problem. However, when an organization is encountered by a requirement for certain knowledge at a significant point of a project, it is advisable to make use of the skills databases. The various databases for skills rely on the individual users whereby they update their profile as well as changing their competencies (Anand and Kodali, 2008). Therefore, the Toyota Company has to develop link people and knowledge in the process of making the benchmarking process successful. The administrator for the database should be assigned to continue with the process of updating the database of Toyota Corporation as new workers are employed whereas the old workers leave the team. A knowledge directory facilitates workers to identify a certain subject matter so that they can be able to share their various experiences (Dolan and Moré, 2002). However, the significant aspect of the knowledge directory is that they involve defined rules in the management process. Challenges facing the implementation process Organizational resistance Resistance to change can be possible in the implementation process. The organizational resistance can then be an obstacle to change making the benchmarking process a challenge. Change is always tough to take place since the majority of the individuals will try as much as possible to avoid the change or ignore it. Also, there are various reasons as to why certain changes in an organization fail to be successful such as poor planning among other reasons (Doll, Deng, and Scazzero, 2003). It is critical to understand that various resistances are useful in that they help an individual to get to know about both of the fears and concerns. Lack of set goals The lack of clear set goals can result in challenges in the implementation process due to lack of proper direction and planning. The failure of the management to outline clear objectives as the organization requires a formulation of a process relating to the framework; then the company most probably will experience organizational resistance. This is usually as a result of unclear communication, ineffective resource allocation and also the absence of guiding principle concerning the prioritization. Besides, an organization that does not have pre-established objectives tends to rely on the various tactical aspects such as the improvement and mapping (Anand and Kodali, 2008). Therefore, when Toyota Company lacks the goals for the various aspects, consequently the organization is likely to waste a lot of resources. Recommendations Different ways can be employed in the process mitigating the difficulties and risks that the Toyota Company can face. These ways can include engaging different stakeholders of the company to eliminate the possibilities of resistance (Kyrö, 2004). After the benchmarking process, the management has to adopt certain changes in the course of making the necessary adjustments. The various stakeholders can resist change hence engaging them can be important in avoiding the resistance. The management of Toyota needs to ensure that organizational goals are supported in the process of benchmarking. Supporting organizational goals can be important in successful benchmarking as the benchmarking aims can be aligned with the set goals of the company. Also, Toyota company need to ensure that the necessary resources are availed to assist in making the necessary adjustments after the benchmarking process. The necessary resources can include human resources and financial resources necessary for the adjustment of the company operations (Kyrö, 2004). Availing the necessary resources for implementing the necessary changes can be crucial in the successful benchmarking process. References Anand, G. and Kodali, R., 2008. Benchmarking the benchmarking models. Benchmarking: An International Journal, 15(3), pp.257-291. Dolan, E.D. and Moré, J.J., 2002. Benchmarking optimization software with performance profiles. Mathematical programming, 91(2), pp.201-213. Doll, W.J., Deng, X. and Scazzero, J.A., 2003. A process for post-implementation IT benchmarking. Information & Management, 41(2), pp.199-212. Donthu, N., Hershberger, E.K. and Osmonbekov, T., 2005. Benchmarking marketing productivity using data envelopment analysis. Journal of Business Research, 58(11), pp.1474-1482. Gilleard, J.D. and Wong Yat-lung, P., 2004. Benchmarking facility management: applying analytic hierarchy process. Facilities, 22(1/2), pp.19-25. Gleich, R., Motwani, J. and Wald, A., 2008. Process benchmarking: a new tool to improve the performance of overhead areas. Benchmarking: An International Journal, 15(3), pp.242-256. Kyrö, P., 2004. Benchmarking as an action research process. Benchmarking: An International Journal, 11(1), pp.52-73. Maire, J.L., Bronet, V. and Pillet, M., 2005. A typology of “best practices” for a benchmarking process. Benchmarking: An International Journal, 12(1), pp.45-60. Read More