Total Quality Management Toyota Presented by: Rajat Tiwari Richa Vaish Shipra Singh MBA (G) Sem II Sec B ABS
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
TQM Encompasses• Quality of design• Quality of input materials• Quality of processing• Quality of performance• Quality due to product support
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
Core Concept of TQMDeming cycle provides core concept of TQM Deming cycle provides core concept of TQM Monitor performance Determine bench marks Create programs to achieve targets
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.
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
Toyota’s Quality Policy“We will strive to meet customers expectations byproviding world-class products and services throughtotal employee commitment and continuousimprovement.”
Basic Concept of Quality AssuranceToyota purchases components from as many as twohundred suppliers therefore it is difficult to conductdetailed acceptance inspection. Hence, in order tosecure quality of the components, it relies on themanufacturing and assembling process of thesecomponents for excellent process capability.
Toyota’s approach to qualityToyota has achieved a reputation for the production ofvery high quality vehicles in all countries around theworld. This has been achieved by an approach to qualitycontrol and quality assurance.Customer satisfaction is at the heart of all Toyotaactivities. In order to satisfy customer needs Toyotaincludes all Members in quality control activities.Toyota quality relies on the flexibility and teamwork ofits Members. Careful selection and continuous structuredtraining has resulted in a workforce which is multi-skilled, flexible and highly motivated; committed tomaintaining and improving the Company performance.
How Toyota Implemented TQM TQM comprises of four process stepsFocus on Continuous Process Improvement, to makeprocesses visible, repeatable and measureable.Focus on intangible effects on processes and ways tooptimize and reduce their effects.Examining the way the user applies the product,leads to improvement in the product itself.Broaden managements concern beyond theimmediate product.
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.
14 Toyota-Way PrinciplesSec I – Long-term philosophyPrinciple 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 resultsPrinciple 2: Create continuous process flow to bring problem to the surface.Principle 3: Use “pull” system to avoid overproduction.
Principle 4: Level out the workload (heijunka). (worklike a tortoise not the hare.)Principle 5: Build the culture of stopping to fixproblems to get quality right the first time.Principle 6: Standardize tasks are the foundation forcontinuous improvement and employeeempowerment.Principle 7: Use visual control so no problems arehidden.Principle 8: Use only reliable, thoroughly testedtechnology that serves your people and processes.
Section III – Add value to the organization bydeveloping your people and partnersPrinciple 9: Grow leaders who thoroughlyunderstand the work, live the philosophy, and teach itto others.Principle 10: Develop exceptional people and teamswho follow your company’s philosophy.Principle 11: Respect your extended network ofpartners and suppliers by challenging them andhelping them improve.
Section IVPrinciple 12: Go and see for yourself to thoroughlyunderstand the situation.Principle 13: Make decisions slowly byconsensus, thoroughly considering alloptions, implement decisions rapidly.Principle 14: Become a learning organization throughrelentless reflection and continuous improvement(kaizen).
Toyota Production SystemThe Toyota Production System is a paradox. On onehand, every activity, connection, and production flowin a Toyota factory is rigidly scripted.Yet at the same time, Toyotas operations areenormously flexible and responsive to customerdemand.
4 principles of how Toyota sets up all its operations1st 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.