Toyota Contemporary Business And Management Management Essay

Toyota Contemporary Business And Management Management EssayToyota abundant mobilises and fibre issues have become the serious concern for the company add tone management principle Toyota Way.Toyota company overviewToyota came into existence from year 1867 with headquartered in Japan. Toyota travel its some operation in 1957 to North America sub division. The companys main primary business is in automobile production. Toyota has brand name and the company became the foodstuff leader in the auto sales. The Toyota has geo graphical presence around the world in North America, Europe, Asia, Africa, Latin America and Middle East. The Toyota sales and production graph is shown below for geographically location of Europe. This graph shows the market position of Toyota from year 2005 to year 2009. As it is shown in the graph Toyota has major portion of market contend in auto effort and the Toyota is loosing the edge of leader as the graph shows the sales in 2009 is going downward. Th is sales trend is not a satisfactory sign for the Toyota future and shows the some problems facing by Auto market leader. (Toyota, 2010c)Europe market Sales historyUltra LuxuryBentley, Ferrari, LamborghiniThe auto industry overview behind be summarized in the strategic groups of market makers in the auto industry are shown in the graph below.LuxuryAcura, BMW, Lexus, Mercedes, PorscheCost/ Price voltaic pile MarketChrysler, Ford, GM, Honda, Hyundai, Nissan, Toyota, VolkswagensPrestigeToyota has a long history of success and it is usually termed as the most profitable automaker and provides best auto performance in the industry. In 2007, Toyota sold 9.4 million vehicles globally only about 3,000 fewer than General motors (GM)Toyota fictional character issuesBut with series of success and market reputation, in youthful years, Toyota has facing serious issues with whole step, defects in cars and large recall of different models around the world. All these issues have put a serious concern for the reliability on Toyota model. The sales have dropped and Company is facing series of law suits and challenges with more recalls. Toyota consumers are not very happy with quality issues in Toyota product. (Kageyama, 2010)Literature revueTQM concept is utilized around the world by organization to achieve the competitive advantage and to get improved financial results. (Edge man, 2006) TQM concerned about the total quality management of the organization from supplier to customer. Edward Deming provides 14points on how to implement TQM in the organization. In literature it is to a fault utilise Japanese term Kaizen for the continuous utility to achieve goals and improvement in business process. (Heizer Render, 2008, p.198-200)The points are listed as belowCreate consistency of purposeFocus to commence changeBuild quality into product and serviceBuild strong ties based on performanceContinuous involvement in quality improvement activatesStart training mark leadership control and managementDrive out fearBreak down roadblock between non-homogeneous departments to promote open communication.Respect workers render support, help and understandingRemove barriersPromote pedagogy and program of improvementPut everybody in workforce in the transformation trackTo analyze the problems with Toyota, lets oppose the Toyota TQM program named Toyota way with these 14 principles to determine the reasons for the quality issues. Toyota way is guiding principles prepared by the president of Toyota Group Fuji Cho (2003). The principle states that these principles are tools for heap and the principles are more centric for people suggestion that actually bring the improvement and quality in production and service.( Fuji Cho, 2003)14 principles of Toyota Way equivalence with Deming TheoryMake decision based on long term dodging even in case of short term lossThis is concord to Deming principle of quality improvement.Right process will produce the right resultUs e pull production to produce only what is pauperisationed fundamentally lean production strategyLevel out work and eliminate wasteToyota laid the foundation of building first time right quality so that it does not need any future fixThis is according to Deming principle of quality improvementStandardized task for continuous improvement and employee sanctionIn accordance with Six Sigma and Deming Principle of TQMUse visual control so that no problems left unseenUse reliable and tested engine room to serve people and processDevelop leadership quality in employees and add value to organizationThis is according to Deming principle of quality improvement commonwealth should follow your company philosophyRespect and help networks of partners and suppliers to improveThis is according to Deming principle of quality improvementSolving the problems from rootMake decision late but implement it fastLearning organization with continuous improvementThis is according to Deming principle of qua lity improvement and Six Sigma implementation tincturesThe various components of TQM to make the effective TQM program are listed belowFirst component of continuous improvement is already taken care by Toyota Company. Toyota principle also focuses on eliminating the waste and utilizing lean production system. Toyota philosophy is to produce in amount which is needed. Just in time will eventually helps to cut the be of quality, improves quality and lastly, better quality ends up with less inventory and better control over system.The next component of TQM is Six Sigma and it is focused on strategy to bring customer satisfaction. It describes the process, excogitation, product in high capabilities and in more statistical sense. Sigma and its symbol agency standard deviation and this particular component is used to minimize the production defect.Six Sigma Process Source Dilioa.2009Six Sigma has five step implementation process abbreviated as DMAIC. It means define, measure, analyze, improves and control the quality process. The plat shown below illustrates the process of Six SigmaSix Sigma Management KitToyota has utilized this component of employee empowerment. Toyota has a strategy to involve the employees in every step of transformation. The main focus is given on the process improvement and providing more responsibilities to employees and authority so that they perform better.Next component of Benchmarking defines the standardization of process, service, cost and practices. The benchmarking training process involved determine what needs to benchmark, form a team and identify benchmarking partners, collecting information and analyze if the process is correctly define in terms of benchmarking and lastly, match the process to the level of benchmarking (Heizer Render, 2008, p.201). Toyota did implement the standardization of process but, the internal benchmarking should be more consistent and inclined to remove any barrier in case of different geographical s ub division like Toyota has around the world.Taguchi concept believes in the fact that quality issues arise because of poor design of product or process. The concept also aimed to improve the quality by utilizing quality robustness, quality loss function and target oriented quality. Robustness means consistency in the production process to meet the consumer demand. Quality loss function is a mathematical relationship illustrated by equationL = D2CWhere L = Loss to societyD2 = Square of distance from targeted value or qualityC = Cost of deviation at the specification limitIn former(a) words, this function identifies all cost related with poor quality and show how the cost increase as the product quality align with customer needs. The diagram shown below illustrates the distribution of specification of products produced. Target oriented quality is mechanism to bring the product to target quality through continuous improvement in process. (Heizer Render, 2008, p.203)The Taguchi Loss F unctionThe last component of TQM is to have proper knowledge and training of using TQM tools. at that place are seven TQM tools defined as get word sheets, Scatter Diagram, Cause and effect diagrams, Pareto Charts, flow charts, Histograms and Statistical process control (SPC). (Heizer Render, 2008,p.204)ConclusionToyota lacks several Deming principles and six sigma implementation steps in its program Toyota way. There is no education and training program for the employees. Also, there is no communication strategy within the various sub division of the organization. There is no program to remove the barrier and to provide openness in the work environment. The company principle lacks behind in providing any vigorous education program to bring change in form of quality improvement. Toyota way principle has also not catered fully all the aspects of six sigma component in their guiding principle. testimonialBased on the analysis of TQM and Six Sigma concept Toyota needs to bring some major strategic changes in there processes to handle the quality defects and recall issues. Toyota needs to revise its Toyota Way program to focus more on the quality management. Although, its process and product whose standardization effect the performance.But, after this analysis it can be recommended that it is people who run those processes and they also need to give special attention for the standardization service to bring quality in product. Toyota has already undertaken the need for quality process, but it should also bring knowledge propagation, education and training for employees to bring consistency and quality in their work. The controls and performance measurement program should be made more vigorous to meet the customer expectation and gain the competitive edge as before Toyota has.The knowledge and training of TQM tools and other education program to increase the quality performance of Toyota product should be provided to employees on regular basis. The other issues related to quality improvement can be end by increasing the frequency of communication and company strategic philosophy in different geographical regions around the world.The company has already taken essential steps to handle this problem by executing these three major steps. First, Toyota has unleashed the program Toyota way which consists of its core-value and respect for people principles. Toyota has also announced to provide massive training program around the world in various production facilities. In the last effort Toyota has emphasized on the facilitation of knowledge transfer and erudition across its all sub division. (Toyota, 2010a)To sum up, Toyota is on the right track to fix the quality problems and company needs to have better control and watch of this improvement process. Toyota restricting effort is in accordance to the Total quality management principle and it would benefit Toyota to regain the confidence of customer and improve quality standards in its producti on. Toyota has renowned name in auto industry and this research report supports the Toyota actions to correct the quality issues.