Toyota was founded in 1933 and became known for its high quality cars. However, as Toyota rapidly expanded production globally in the 2000s to become the top automaker, it compromised on manufacturing techniques, leading to safety issues and recalls that damaged its reputation. To address quality problems, Toyota's president formed a committee to inspect processes and ensure quality products. Toyota needed to refocus on quality to prevent further damage to its brand image.

1. Zubair Afzal
52/FMS/BSAF/S16

2. Toyota Motor Company
Losing its quality edge?

3. Introduction :
In 1933 company was founded by Kiichiro Toyota. In 1934
department of Toyota industries manufactured first product the
product called Type A engine and its first passenger car AA in 1936.
Toyota bought some other companies also and own and operates
Lexus, Scion, Daihatsu and Hino Motors and shareholdings in Fuji
heavy industry, Isuzu, Yamaha, and Mitsubishi Aircraft Corporation.
All these and some other in total includes around 522 subsidiaries.
Toyota is worldwide famous and well known company because of
their high quality manufactured cars, Toyota is doing very well and
growing very fast globally they have their operations, manufacturing
facilities and valuable loyal customers all over the world. The new
technology Hybrid in Toyota cars gave a new pride to Toyota and the
sales of Toyota going up day by day. In last few years Toyota became
number one in automotive industry and became a number one in
mostly selling their cars worldwide.

4.  Quality Management at Toyota
Analysts were of the view that Toyota recognized quality as an
important aspect of customer satisfaction and strove to deliver
quality products to the market. Experts opined that quality,
considered as the DNA of Toyota, was inbuilt into each process...

5. PROBLEMS:
With the globalization of its production, Toyota faced quality
assurance problems. Quality assurance required that no matter
where Toyota vehicles were manufactured, the same quality should
be maintained...

6. CASE SANARIO:
Toyota adopted the "Toyota Way" - a set of management principles
and communicated them to all its overseas manufacturing plants.
Due to its efficiency in manufacturing, Toyota became one of the
most trusted brands in the global automobile industry.

7. But some analysts felt that Toyota had become a victim of its own
success. In the mid-2000s Toyota expanded its production facilities
rapidly in a bid to grow globally and to achieve its goal of becoming
the number one auto maker in the world. Toyota's rapid growth
affected its product quality with the company reportedly
compromising on its manufacturing techniques. Customers began to
face safety related problems in Toyota vehicles. Later a series of
recalls followed which put the company's hard-earned reputation for
quality at risk. Analysts opined that constant recalls had damaged
the reputation and brand image of Toyota and hindered its return to
profitability.

8.  Has Toyota Lost its Quality Edge?
Some analysts expected Toyota's quality problems and the
subsequent recalls to affect the brand image of the company in the
long run and lead to a short-term effect on earnings. Toyota dealers
would suffer losses and brand loyalty would get eroded, they said...

9. SOLUTION:
Toyota had sacrificed its legendary quality and ignored its own
management principles and customers, they said. To verify the cause
of recalls and improve quality, Toyota set up a committee headed by
its president Akio Toyoda in early 2010. The committee was to
inspect every process in the Toyota Production System to ensure
delivery of quality products to customers.

10.  Analyze the importance of quality in the Toyota Production System.
 Understand the manufacturing principles adopted by the Toyota
Production System.
 Examine the reasons for the quality-related problems faced by
Toyota
 Discuss and debate whether Toyota was losing its quality edge.
 Explore strategies that Toyota could adopt in the future to regain its
quality edge

11. C0NCLUSION:
In order to prevent its image from slipping further, Toyota had to
focus on its quality aspect. The company needed to closely monitor
quality and overhaul its design, engineering, and manufacturing
operations...