Toyota Contemporary Business And Management Management Essay

Toyota Contemporary Business And Management Management canvasToyota bulky conceives and timberland issues have become the serious concern for the union total case management pattern Toyota Way.Toyota company overviewToyota came into existence from twelvemonth 1867 with headquartered in Japan. Toyota moved its nigh operation in 1957 to North the States gunslinger division. The companys main primary business is in machinemobile work. Toyota has punctuate name and the company became the market leader in the railcar sales. The Toyota has geographical presence around the world in North the States, europium, Asia, Africa, Latin America and Middle East. The Toyota sales and exertion graph is shown infra for geographically status 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 share in railway car application and the Toyota is loosing the edge of leader as the graph sho ws the sales in 2009 is going downward. This sales trend is not a good reduce for the Toyota coming(prenominal) and shows the some problems facing by Auto market leader. (Toyota, 2010c)Europe market Sales historyUltra LuxuryBentley, Ferrari, LamborghiniThe auto industry overview can be summarized in the strategic groups of market makers in the auto industry are shown in the graph below.LuxuryAcura, BMW, Lexus, Mercedes, Porsche comprise/ tollMass MarketChrysler, Ford, GM, Honda, Hyundai, Nissan, Toyota, VolkswagensPrestigeToyota has a long history of supremacy and it is usually termed as the most profitable automaker and generates best auto carrying into action in the industry. In 2007, Toyota sold 9.4 million vehicles globally and ab egress 3,000 fewer than General motors (GM)Toyota prime(prenominal) issuesBut with series of triumph and market reputation, in recent years, Toyota has facing serious issues with case, defects in cars and big recall of dissimilar models aro und the world. All these issues have put a serious concern for the reliability on Toyota model. The sales have dropped and companion is facing series of law suits and challenges with more recalls. Toyota consumers are not very happy with role issues in Toyota product. (Kageyama, 2010)Literature ReviewTQM concept is apply around the world by makeup to achieve the competitive favor 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 in like manner used Japanese term Kaizen for the continuous proceeds to achieve goals and good in business crop. (Heizer Render, 2008, p.198-200)The points are listed as belowCreate consistency of purposeFocus to bring change revert quality into product and serviceBuild strong ties based on performanceContinuous involvement in quality improvement act ivates live trainingEmphasize leadership control and managementDrive out fearBreak down barrier between miscellaneous departments to upraise open communication.Respect make forersProvide support, help and understandingRemove barriers recruit education and chopine of improvementPut everybody in workforce in the transformation trackTo analyze the problems with Toyota, lets contrast the Toyota TQM political program named Toyota way with these 14 principles to determine the reasons for the quality issues. Toyota way is guiding principles prepared by the chair of Toyota Group Fuji Cho (2003). The principle states that these principles are tools for people 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 WayComparison with Deming theoryMake decision based on long term strategy even in case of short term lossThis is check to Deming principle of quality improv ement.Right move will take on the up function resultUse pull production to produce only what is mandatory basically lean production strategyLevel out work and eliminate wasteToyota laid the foundation of building first magazine right quality so that it does not need any future fixThis is match to Deming principle of quality improvementStandardized lying-in for continuous improvement and employee empowermentIn congruity with 6 Sigma and Deming precept of TQMUse visual control so that no problems left unobservedUse reliable and tested technology to serve people and processDevelop leadership quality in employees and add value to organizationThis is according to Deming principle of quality improvementPeople 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 slowly precisely implement it fastLearning organization with continuous improvementThis is according to Deming principle of quality improvement and cardinal Sigma implementation stairsThe various ingredients of TQM to make the effective TQM program are listed belowFirst belong 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 approachs of quality, improves quality and lastly, break off quality ends up with less(prenominal) 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, design, product in high capabilities and in more statistical sense. Sigma and its symbol means example deviation and this particular component is used to minimize the production defect.Six Sigma Process Source Dilioa.2009Six Sigma has five step implem entation process abbreviated as DMAIC. It means jell, measure, analyze, improves and control the quality process. The plot 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 ascendence so that they perform better.Next component of Benchmarking defines the standardisation of process, service, cost and practices. The benchmarking using process involved determine what needs to benchmark, form a squad 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 consis tent and inclined to revoke any barrier in case of different geographical hoagy 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 assist and target oriented quality. Robustness means consistency in the production process to invite the consumer demand. Quality loss function is a mathematical relationship illustrated by equationL = D2CWhere L = Loss to high societyD2 = Square of distance from targeted value or qualityC = Cost of deviation at the specification limitIn other words, this function identifies all cost associate 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 th rough continuous improvement in process. (Heizer Render, 2008, p.203)The Taguchi Loss FunctionThe last component of TQM is to have right(a) familiarity and training of using TQM tools. There are seven TQM tools delimitate as Check 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 go 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 amply all the aspects of six sigma component in their guiding principle.Recomm endation base on the depth psychology 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 forwards 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 resolved by change magnitude the frequency of communication and company strategic philosophy in different geographical regions around the world.The company has already taken crucial 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 depute and learning 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 supervision of this improvement process. Toyota restricting effort is in accordance to the Total quality management principle an d it would benefit Toyota to regain the arrogance of customer and improve quality standards in its production. Toyota has renowned name in auto industry and this research report supports the Toyota actions to correct the quality issues.