toyota example

1. Total Quality Management
Toyota
Presented by:
Rajat Tiwari
Richa Vaish
Shipra Singh
MBA (G) Sem II
Sec B
ABS

2. Total Quality Management
• Total quality implies quality: in all activities by all
people in the organization
• TQM empowers an entire organization, from the most
junior employee to the CEO, with the responsibility
of ensuring quality in their processes. In
particular, TQM provides management with the
ability to ensure quality through more streamlined
and effective process-improvement channels
• for all stakeholders
• for all customers
• for all vendors
• at all times

3. TQM Encompasses
• Quality of design
• Quality of input materials
• Quality of processing
• Quality of performance
• Quality due to product support

4. Deming Cycle
• The philosophy of Deming cycle cut down through
theory and present ideas in a simple way, which could
be meaningful right down the worker level, with an
objective to reduce variations
• Bench marks for standardization
• Programs for implementation
• Monitor for deviations
• Success factors corrective actions

5. Core Concept of TQM
Deming cycle provides core concept of TQM
Deming cycle provides
core concept of TQM
Monitor performance Determine bench marks
Create programs to achieve
targets

6. Bench Marking
• Bench marks are reference levels for setting
standards.
• The best in the world is rated at 100.
• An organization is then evaluated in comparison to
the best and a rank is assigned.
• The organization then acts to improve to close the gap
in relevant areas.

7. Traditional Style TQM
• Concern: quality
• Concern: productivity
• Emphasis: profit • Emphasis: customer
• Inspection : post facto satisfaction
• Function: formation of • Approach defect
compartments prevention
• Suppliers: a liability • Function: integration
• Operation: employee including suppliers
based • Management involved
• Short term plans
• Long term plans

8. Toyota’s Quality Policy
“We will strive to meet customer's expectations by
providing world-class products and services through
total employee commitment and continuous
improvement.”

9. Basic Concept of Quality
Assurance
Toyota purchases components from as many as two
hundred suppliers therefore it is difficult to conduct
detailed acceptance inspection. Hence, in order to
secure quality of the components, it relies on the
manufacturing and assembling process of these
components for excellent process capability.

10. Toyota’s approach to quality
Toyota has achieved a reputation for the production of
very high quality vehicles in all countries around the
world. This has been achieved by an approach to quality
control and quality assurance.
Customer satisfaction is at the heart of all Toyota
activities. In order to satisfy customer needs Toyota
includes all Members in quality control activities.
Toyota quality relies on the flexibility and teamwork of
its Members. Careful selection and continuous structured
training has resulted in a workforce which is multi-
skilled, flexible and highly motivated; committed to
maintaining and improving the Company performance.

11. How Toyota Implemented TQM
TQM comprises of four process steps
Focus on Continuous Process Improvement, to make
processes visible, repeatable and measureable.
Focus on intangible effects on processes and ways to
optimize and reduce their effects.
Examining the way the user applies the product,
leads to improvement in the product itself.
Broaden managements concern beyond the
immediate product.

12. TQM requires that the company maintain this quality
standard in all aspects of its business.
This requires ensuring that things are done right the first
time and that defects and waste are eliminated from
operations.

13. 14 Toyota-Way Principles
Sec I – Long-term philosophy
Principle 1: Base your management decisions on a long-
term philosophy, even at the expense of short-term
financial goals.
Sec II – The Right processes will produce the right
results
Principle 2: Create continuous process flow to bring
problem to the surface.
Principle 3: Use “pull” system to avoid overproduction.

14. Principle 4: Level out the workload (heijunka). (work
like a tortoise not the hare.)
Principle 5: Build the culture of stopping to fix
problems to get quality right the first time.
Principle 6: Standardize tasks are the foundation for
continuous improvement and employee
empowerment.
Principle 7: Use visual control so no problems are
hidden.
Principle 8: Use only reliable, thoroughly tested
technology that serves your people and processes.

15. Section III – Add value to the organization by
developing your people and partners
Principle 9: Grow leaders who thoroughly
understand the work, live the philosophy, and teach it
to others.
Principle 10: Develop exceptional people and teams
who follow your company’s philosophy.
Principle 11: Respect your extended network of
partners and suppliers by challenging them and
helping them improve.

16. Section IV
Principle 12: Go and see for yourself to thoroughly
understand the situation.
Principle 13: Make decisions slowly by
consensus, thoroughly considering all
options, implement decisions rapidly.
Principle 14: Become a learning organization through
relentless reflection and continuous improvement
(kaizen).

17. Toyota Production System
The Toyota Production System is a paradox. On one
hand, every activity, connection, and production flow
in a Toyota factory is rigidly scripted.
Yet at the same time, Toyota's operations are
enormously flexible and responsive to customer
demand.

19. 4 principles of how Toyota sets up
all its operations
1st rule governs the way workers do their work.
2nd rule, the way they interact with one another.
3rd rule governs how production lines are constructed.
And the 4th rule, how people learn to improve.

20. Thank You!