Total Quality Management Assignment Sample

Total Quality Management

ACKNOWLEDGEMENT

I am grateful to my professor and senior peer groups those who have supported me in completing this study in effective manner. I certify that this assignment is done by myself, it is based on research and my personal study. I have taken support of books, journals, lecture notes for completing this project. I acknowledge that I have not copied any material from any website.

EXECUTIVE SUMMARY

Present study demonstrates story of Toyota motor corporation LTD. It is the multinational auto mobile firm that operates its business across the world. In the recent time its sales are continuously decreasing and its many of the vehicles are being recalled by the company due to fault in the vehicles. Report discusses the quality issues that are faced by entity and improvement areas in the business that can help the organization in gaining competitive advantage and increasing its profitability.

The report describes current status and improvement areas by taking support of total quality management (TQM) concept. Study uses rout cause analyses method and check sheet method for identifying the problems and measuring the priority areas. Entire process of the company is being analysed by using several tools. These are brainstorming, decision matrix, fish bone diagram, pareto diagram, PDCA cycle, etc.

By taking support of PDCA cycle, quality team has found that there is required to implement effective action plan and need to take support of evaluation indicators so that issues can be resolved. With the help of quality management methodology Toyota can improve its performance and can attract more consumers towards the brand.

INTRODUCTION

Background

Total quality management is considered as management approach which ensures that company makes continuous improvement in its products and services so that it can meet with needs of customers. In the modern era competition is very high, in such condition firms have to make positive changes in their operational planning so that they can provide quality products and services to its valuable consumers. TQM pays attention on long term success rather than short term financial gains (Dale, 2015). Quality is the major component that assist in deciding inferiority of firm's products and services. It is the major attribute that makes the firm different from others. Quality is the components that plays significant role in business. In the recent time fluctuations in oil prices impact on economy of the nation to great extent. In such condition people like to spend their money at right place to get right goods and services. Thus, markets concentrates on quality more as compare to quantity. That assist organization in gaining long term success. If consumers do not receive quality products then they may easily move to other brands which may give financial loss to the corporation (Goetsch and Davis, 2014). For retaining them in the firm for longer duration it has become essential for entities that to offer them high quality products and services. Companies are applying total quality management in the workplace for continuous improvement in products and services. Sig sigma, PDCA etc. are various models that aid in continuous quality improvement.

Present report is based on Toyota Motor corporation which is the multinational firm that manufacture cars and sell it across the world. In the year 2011 many consumers have complained for errors in its auto-mobile products. That has decreased satisfaction level of customers and after that sales volume of the organization has got down to great extent. Total quality management is the approach that will aid in enhancing satisfaction level of customers. The main aim of the report is to identify effectiveness of TQM approach by applying various models such as PDCA etc. Purpose of the report is to identify problem in products and services of Toyota and find out improvement areas.

Aim and Objectives

Current study will design flow chart of team members those who will be involved in the improvement process. Furthermore, it will explain cause and effects of issues by taking support of Fishbone Diagram (Oakland, 2014). In addition, It will identify priority area for improvement by using decision matrix model. Evaluation of the problem will be done by using appropriate tools and techniques and feedback loop will be illustrated in this study.

Scope

Toyota motor corporation is working in the industry since 1937, it has conducted market research before starting its operations. In the year 1950 it has manufactured approx 100000 cars. Till the year 2010 it was in the number one position in term of produced units of cars. But in the year 20100 its performance got dropped and cited firm has lost its market leading position. Report explains requirements of developing quality management system in the workplace so that entity can come back to its leading position (Akgün and et.al, 2014). In this respect core operations of Toyota will be analysed at initial level so that problems can be identified and accordingly suggestions will be given so that entity can develop quality of its products and services. This study will be beneficial for the Toyota and rest other auto mobile firms for improving their operational efficiency so that they can meet with the requirements of the consumers and can sustain in the market for longer duration (Fu and et.al, 2015).

This study will support in detecting the reason of continuous decreasing sales of Toyota. Furthermore, it will assist in setting corrective action plan so that issues can be resolved and quality of products can be improved. It would be beneficial in improving process and procedure of the organization.

MAIN BODY

1.1 Problem statement and mission statement

Problem statement

The main objective of Toyota Motor corporation is to enhance revenues of the business and increase satisfaction level of consumers. For that company wants to attract more customer towards the brand and want to retain them in the organization for longer duration. The major problem currently faced by the cited firm that its most of the products are unable to meet with the needs of consumers (Psomas and Antony, 2015). Due to ongoing vehicle recalls brand image of the company has got affected badly. This was due to poor equality vehicles provided by the firm to its consumers. Company has focused on recent trend but forgot to concentrate on safety due to which many of its sold goods have been recalled after certain period of time. Earlier to that people were very satisfied with the products and services of Toyota but after getting faulty vehicles which was unsafe for them they become negative towards the brand. Most of the consumers have claimed to get refund of their amount that was paid to the firm at the time of buying cars. This has seriously damaged the firm's reputation in the auto mobile industry (Quality and performance management in Toyota, 2017). Due to recalling of its cars Toyota has faced loss of 21 billion dollar. Now people are unable to believe on the entity which is decreasing its sales volume continuously.

Toyota not only recalled its defective and causing fatalities products but also tries to find out rout cause of the problem. This has resulted that company fails to meet with its objective of attracting consumers towards high value products and services. It has affected stock prices of the corporation and impact on the involvement of stakeholders (Nominal Group Technique: An Alternative to Brainstorming, 1984). Quality issues have not only decreased trust of consumers but also impact on the stakeholder's expectation as well. This has reduced financial gains of the business unit to great extent. Now it is hardly required to improve its quality so that company can meet with the expectation of the customers and can retain them in the firm for longer duration.

Mission Statement

Mission statement of Toyota reflects its innovative strategies and strategic objectives. Its vision reflects long term planning of the business unit. Mission statement of cited firm is to create quality vehicle that can meet with the requirements of customers. Firm always concentrates on pReferences and expectation of the consumers and try to make changes in its strategy so that it can meet with their expectations (Psomas and Antony, 2015). It aims to enhance its quality so that it can provide safer cars to consumers and can excess their expectations.

Toyota mission statement pays attention on increasing satisfaction of customers by offering them high quality vehicles. It identifies the needs of consumers by conducting market research and tries to modify its operations by using advance technologies so that it can meet with their requirements. Cited firm wants to earn high profit and want to be in the leading position in the auto mobile manufacturing industry (Akgün and et.al, 2014). For that it is essential for the organization that to understand needs of end users and develop products accordingly. This can support the firm in attracting new buyers and retaining them in the workplace for longer duration. Its vision is to retain skilled employees in the workplace for longer duration. For that it also pays attention on needs of workers and create healthy workplace environment. This assist business unit in satisfying talented people and retaining them in the firm for longer duration. Skilled people can be able to produce high quality products and provide quality services to the consumers. By this way mission of the organization of achieving financial gains and becoming market leaders can be fulfilled significantly (Dale, 2015).

1.2 Problem identification

There are various techniques through business entity can identify its issue and can take action to resolve this problem.

Normal group technique (NGT)

It is considered as one of the most common technique for identification of problem and planning for resolution of issue. NGT ensures that group members participate equally for making improvement decisions in the organization. In the first phase group members write down their innovative idea that can assist in identifying the problems. After that each persons present their ideas orally in front of management (Nominal Group Technique: An Alternative to Brainstorming, 1984). In the third phase group discussion held between all involved persons and at the end common decision is made by the higher authorities by looking at the effectiveness of ideas.

By taking support of NGT technique management of Toyota Motor corporation can identify the business problem easily. In the discussion it can get to know about rout cause of recalling of large number of vehicles of the organization. By this way higher authorities can make plan to resolve this problem. By taking support of NGT technique it is identified that Toyota was manufacturing unsafe cars and its accelerator pedal was of poor quality. Its gas pedal can be stuck any time which increases risk of accidents (Psomas and Antony, 2015). In the year 2011 approx 2.2 million vehicles of Toyota was recalled by the firm due to issue in its gas pedals. In the year 2006 and 2007 many of its GS300 and GS350 models were found with problems. In the NGT process higher authorities can identified that even luxury products of cited firm are not safe. It is announced in the report of 20074 that quality of vehicles of Toyota is continuously declining because company is not using quality equipment in its manufacturing process. Apart from this its manufacturing process has some loop fall.

Brainstorming

It is another model that aids in identifying problem of the business unit. It is the technique in which company asks to its employees and other stakeholders to make list of ideas that can encourage creativity and can discourage criticism (Oakland, 2014). All involved persons give ranks to products and services of the company can define their point of view of giving this rank to particular product or services. In this technique entity evaluate all alternative ideas of involved people and find out valuable alternative that can support in identifying rout cause and resolving the business problem (Dale, 2015). Brainstorming is considered as informal approach that encourages people or stakeholders to share their innovative ideas about the issue and discuss about the ways through which problems can be resolved soon. It concentrates on quirky ideas and encourage individuals for their positive contribution so that entity can resolve business problems. In the brainstorming session participants are involved from various departments such as graphic designing team, copywriting department, marketing, production, research etc. all departments. They all are well aware with the manufacturing process of Toyota so they can give better information about the issue or drawback in the manufacturing process (Goetsch and Davis, 2014). By this way issues can be identified easily that will assist in taking action for the improvement in the quality.

Toyota can take support of Brainstorming method top identify the issue in its products or services. In this entity involves individuals in the session and ask them to write down their specific issues that they found have with the vehicles of the company. People point out their views about issue from the discussion it can be identified that what is the major business problem and why its large number of vehicles are being recalled or having defects. After that all involved participants can discuss on the topic and they can make grid of several ideas for resolving this issue. This brainstorming is the technique that helps in screening of ideas (Psomas and Antony, 2015). This support in taking appropriate action and improving quality of the products and services of the firm. By using these techniques it is identified that Toyota has many issues, these are such as delay on delivery, poor sales services, Poor training on sales, low quality products, Poor after sales policies, Operational complications.

1.3 Team

Team plays significant role in total quality improvement procedure. Involvement of skilled employees support in making the improvement process successfully. In the absence of experienced and talented people Toyota would not be able to meet with its objective effectively. One of the major problem in products of Toyota are loop fall in its gas pedals. It was the major issue that have been identified by brainstorming and NGT technique (Quality and performance management in Toyota, 2017). Many experienced people have shared their views and they have discussed on the rout cause of the problem.

There are many people those who are involved in the total quality management in the cited firm, their contribution supports the entity in improving quality of its process and products and reducing errors. Customers play significant role in the business unit, if they are satisfied that shows that entity is having quality products and services (Oakland, 2014). Toyota manufactures car, there is required to make changes in its manufacturing process and it is required to improve quality. In the quality management process many people are involved. Team working is the main element to gain success in TQM procedure. Team supports in continuous improvement in the process and finding the best solution for making positive changes in the business unit.

Team members involved in the TQM process are as following:

• Quality manager
• Production manager
• Team leaders
• Quality executives
• Production executives
• Steering committees (Quality councils)
• Senior marketing specialist
• Maintenance department manager
• Training consultant
• Accountant

All these people are involved in the quality management of Toyota. Quality manager plays significant role in this process, individual manage the work and is responsible to monitor entire performance of the improvement (Psomas and Antony, 2015). If manager feels that things are not working in the expected direction then manager take support of steering committees and according to their guidance individual makes changes in the improvement process so that positive results can come out. In addition, production manager is another person involve in the team, individual is responsible for ensuring entire production process. It is the responsibility of the production manager that to effectively utilize all resources so that positive results can come out (Quality and performance management in Toyota, 2017).

Team leaders are another member of the quality improvement team, they are responsible to lead the all employees those who are involved in the improvement process. They motivate team members and measure their performance. This supports them in retaining skilled workers in the Toyota for longer duration. Quality executives are another team members, they have to follow instruction of quality managers and other supervisors. Production executives are responsible to manufacture the vehicles with quality. Steering committee is plays significant role in the Toyota, they give instruction and guide others as well (Psomas and Antony, 2015). This supports in improving knowledge of team members and meeting with the real objectives. Problem solving team members are the another important person those who plays the role of planners. They make contingency plan so that issues can be resolved on time.

Higher authorities of Toyota involve people in the decision making process. They ask them for sharing their views so that innovative ideas can be gathered by the management. This supports in giving new direction to the manufacturing process and improving quality of products and services of the cited firm. Employee's involvement help in improving morale of workers and increase productivity as well. It supports in brining innovation in the workplace so that company can gain competitive advantage. For working in the team members it is essential for the higher authorities that to be honest (Oakland, 2014). If all people are honest towards their work then it can support in improving quality of the products and services.

Functional team are responsible to perform specific functions. Cross functional team is another type of team in which people from different departments work in the same direction. They have knowledge of different departments and coordinate with each others well so that overall goal of the company can be achieved significantly (Quality and performance management in Toyota, 2017). Senior marketing specialist is another person who plays role of facilitator, individual is responsible for implementing effective marketing practices that can enhance brand image of the company and can support in increasing its sales volume. Effective marketing tactics can support the organization in identifying the business problems and promoting satisfactory products and services to consumers so that their needs can be accomplished. This is the way that helps in increasing brand image of the organization and expanding business across the world. It is the responsibility of senior marketing specialist that to identify the loop fall in the products and adopts accurate solution so that such issues can be resolved and positive brand image can be developed in the mind of customers.

Maintenance department manager is another person involve in the quality improvement team, individual is responsible for maintaining operational process of the firm so that quality products can be manufactured by Toyota that can meet with the needs of the consumers. Before some time many of the products of Toyota were recalled, it is because of fault in these vehicles. In such condition it becomes essential for the entity that to maintain all department and ensure the loop fall areas so that necessary actions can be taken for minimizing these gaps. Training consultant is another team member in the quality improvement process who will be responsible for providing necessary training to the production department team members and sales persons. So that they can learn the issue in current production and selling process, this can develop their knowledge and understanding by this way they will be able to manufacture quality products that does not have any fault. This will support the cited firm in satisfying needs of consumers and expanding its business across the world. Accountant would be another person in the team who will be responsible for managing financial resources. Accountant will bes liable to allot funds to each department for completing the manufacturing process, individual will be liable to keep record of cash inflow and cash outflow so that net flow can be recorded and financial strength of the company can remain maintained.

1.4 Priority area to improve by using Decision Matrix

Decision matrix is the technique that support the manager in making sound decision for improvements. There are various factors that need to be look upon for the improvement. If all these elements are taken into consideration then it may assist in making positive changes in the business unit. The major priority areas that need to be improved are production quality, improvement in workplace and improvement in supply chain system (Oakland, 2014). Before making changes in the process, it is essential to identify priority areas that need improvement. If these areas have been identified by the team members then it will support in improving condition of the business and raising its quality as well. It is the responsibility of all team members that to coordinate well and perform their duties well so that company can fulfil its objective. One of the main agenda of Toyota is to spread its brand image across the world and earn more financial benefits. There are many other firms such as BMA, AUDI etc. those which are tough competitors of the entity. If Toyota fails to provide satisfactory goods and services to its consumers then it will be difficult for the entity to sustain in the market for longer duration and it will not be able to fulfil its goal significantly. For that it is very important that team members identify improvement areas and take appropriate action that can support in resolving business problems and raising its product's quality to great extent.

Product quality improvement includes quality assurance and new product development. Toyota is required to pay attention on quality of its vehicles. If it is able to provide high quality cars to the consumers then it will support entity in improving its sales revenues and consumers will feel satisfied with the business unit. Furthermore, product quality improvement also required to pay attention on new product development (Psomas and Antony, 2015). Some times existing products are unable to meet with the needs of consumers so it is essential for the cited firm that to look upon the new product development as per the market needs and demand. This would support in making positive changes in the business unit.

Furthermore, improvement in workplace includes cost reduction, safety, and product improvement. Company is required to reduce its manufacturing cost so that revenues of the firm can get improved soon. It is essential for the cited firm that to pay attention on cost reduction this is the major improvement area identified in the Toyota (Quality and performance management in Toyota, 2017). Furthermore, cited firm is required to pay attention on safety as well, if in the manufacturing process it improves safety feature then it will enhance overall quality of the products and services of the company. For that entity needs to provide training to its staff members and have to implement advance technologies so that it can meet with the objective of improvement.

Furthermore, another priority area is improvement in supply chain system and meeting delivery schedules. If company concentrates on both these elements then it will assist in improving quality of products and increase satisfaction level of consumers (Psomas and Antony, 2015).

Decision matrix matrix is the tool that support the quality team in measuring the extent to which issue is creating problem to the business and restructuring the process so that these issues can be resolved soon. In this respect team members of Toyota have to specify needs of improvement and they have to set priorities of the improvements areas. After that it is essential to evaluate ad compare different solutions so that best solution can be implement in the workplace for improving these areas. Fin al selected solution needs to be implement by the team members in effective manner. This can support in resolving issues of business and enhancing its market performance to great extent.

Decision Matrix

Table 1: decision matrix

(1= low (yellow), 3= medium (green), 5= high impact (pink))

From the above table it is shown that cost is the major issue in the Toyota, its manufacturing cost is tool high that is why sometimes it fails to implement the latest technologies in the manufacturing process because this can enhance its costing to great extent. Due to high costing overall revenues of the organization get decreased. High costing impact on consumer's satisfaction level to great extent. It also impacts on financials and overall sales volume of the firm significantly. Toyota is required to improve its safety measures in its products and services. In the absence of proper safety equipments it will not be able to offer safe driving experience to its clients. This impact on satisfaction level of customers and impact on competition as well (Coccia, 2017). That is the main reason that now sales of Toyota vehicles has got down and now its loyal consumers are moving towards BMW and other companies. Thus, it is major improvement areas so Toyota needs to pay attention on this aspect so that it can gain competitive advantage and can sustain in the market for longer duration. Furthermore, it is essential to improve workplace culture and leadership style in the Toyota for minimizing errors and improving its performance in the market (Chang, 2015). Due to poor cultural aspects and poor leadership entity is unable to retain its skilled employees in the workplace for longer duration. In such condition it has recruit fresh new candidates and have to train them again and new workers are unable to perform well as compare to experienced employees. Thus, it is the priority improvement area that need to be looked by Toyota for improving its quality.

There is loop fall in the supply chain system of Toyota that is the main reason that cited firm is unable to get quality raw material easily on time. In the absence of strong relationship with suppliers it has to wait for the longer duration for getting raw material. Thus, it fails to deliver the products to the end user on time (Elshenawy and et.al, 2018). Slow delivery timing is the major concern for the quality improvement team members because if it provides timely delivery to the consumers then it can help the company in increasing its profitability and enhancing number of consumers as well. By this way customers will feel satisfied ad they will be loyal towards the brand.

1.5 Cause and effects

Cause and effect is considered as one of the best tool that support in identifying the rout cause of the issue and finding the best solutions through which such type of problems can be resolved soon. In order to identify the causes of any issue quality improvement team can take support of fish bone diagram. Causes can be identified by using brainstorming sessions. It helps in sorting of ideas into useful categories (Chew, 2017). This is the approach that supports in examining that why products of Toyota has loop fall and finding the effective solution for its improvement., This is the process which is applied in the time when something it gone vary badly and it is essential to take immediate action to resolve the main problems. Rout cause analyses is associated wit three major parts: what is problem, why the condition is happening and what actions can be taken to prevent it.

The fish bone diagram helps in identifying the possible causes of the problem of the business and support in taking appropriate action so that such issues can be resolved permanently (Karasu and et.al, 2014).

From the above fish bone diagram it is analysed that there are several issues due to which Toyota is unable to manufacture quality products and unable to satisfy needs of consumers. On of the major issue is with the Toyota is that most of its vehicles are found faulty and are below quality. That is the main reason that these cars are being recalled by the company for further improvements (Kamila and Sutikno, 2016). Environment, material, process, method and machines are main element that contribute well in the development of high quality products and services. The main reason of environmental issue in the Toyota is that company does not have good culture. That is the main reason that people do not feel satisfied and they leave their jobs frequently. High competition create negative environment and create pressure of the business due to which it has to enhance its production capabilities but in the absence of skilled employees it fails to meet these criteria soon (Karasu and et.al, 2014).

Measurement is another major element that is related with the problems in the company. Improper manufacturing methods, incorrect specifications and faulty testing equipments are the major cause of measurement faults. These are the major causes that create difficulty for the firms in manufacturing high quality vehicles. Human errors are the major aspect in the business that leads to faulty products. There are several causes due to which human errors are increasing in the firm and company is unable to provide satisfactory product and services to its consumers. One of the main cause of increasing human errors is poor supervision of higher authorities. There are many managers working in Toyota but they are not performing their duties well. This poor supervision of management create difficulty in the business and employees of cited firm fail to perform their duties well (PARETO CHART, 2017). In such condition they make many mistakes that increase problem of producing faulty products. Furthermore, another major cause of human errors is unskilled employees. Cited firm hire freshers in the organization and give them training in the workplace. This training is not sufficient to fill the gap between experience staff and inexperienced staff members. Actually the main issue in the entity is that higher authorities do not motivate the workers in the business and do not provide any additional monitory benefits. In such condition people feel demotivated and they leave their jobs soon. In such condition Toyota has to fill this vacancy by hiring unskilled works though it provides training but it is not sufficient to produce such high quality products as per the market demand. Toyota adopts classroom training methods in the workplace that is not sufficient to provide practical knowledge to the new comers. This is the main cause that most of the people those who are not having experience in the relevant field fail to perform their work effectively (Coccia, 2017).

Machinery issues are another major aspect that increase the issue in the business unit to great extent. There are many causes of machines problems: out of adjustments of machines are the main cause that increase faults in the firm. Equipments that are used in the manufacturing process and technologies that are being used by people in manufacturing process are not being adjusted properly in such condition machine fail to give accurate results as per the expectations. Tooling problems are another major cause of machinery problems that is why Toyota feels unable to produce high quality products (Chang, 2015). Process is another main element in the total quality improvement. It is analysed that process that are implement by the Toyota in its production process are not enough good. One of the main cause of this problem is poor process designing and ineffective quality management. Though there is steering committee which takes all necessary decision after looking at all areas. But still quality of the products are not good as compare to other company's products. Apart from this, deficiencies in the products designing is another major causes of process faults. Due to gap in designing process, people are unable to produce high quality vehicles that can meet with the needs of consumers in the market. Poor supply chain is the main cause of issue in process (Elshenawy and et.al, 2018). Due to poor supply chain management Toyota fails to get raw material at time and with quality. In such condition it becomes difficult for the entity to provide products to the end users on time. That is why service delivery has become the major issue in the business unit. If it improves it's supply chain management then it can help the company in improving its process to great extent. In addition, material is another problem in the entity, the cause of material issue in the firm is handling policies of the company is not good enough in such condition it fails to handle material well. Improper specification is another cause of material issue (Kamila and Sutikno, 2016). These are main reasons due to which Toyota's many products are having fault and it is being recalled by the entity. This affects sales and financial condition of the organization to great extent.

1.6 Check Cheet for ensuring the problem

Check sheet is the way of measuring the facts so that correct decision can be taken by the higher authorities for making changes in the business units for further improvements. In this tool company collect data that are based on facts rather than edictal evidences. Check sheet is the blank document that is filled by the concern authorities on the bases of collected real information (Karasu and et.al, 2014). For ensuring problems and its rout causes it is essential to conduct survey so that real facts can be gathered about the issue and improvements areas can be identified. For preparing the check sheet questioners is being used that supports in verifying rout cause of each issues.

Table 2: Check sheet

Table 3: Ensuring rout causes of problems