Course Project Week 7
Toyota Motor Company
BSOP588 Managing Quality
Toyota Motor Company Quality Management
Toyota Motor Corporation (TMC), is commonly known as Toyota in the stock markets was founded in 1933 By Kiichiro Toyoda. Toyota has enjoyed continuous growth in the automotive industry for decades as the largest automobile manufacturer and multinational automaker with an excess of five million vehicles per year, employing over 320,000 employees, and 14 plants in North America.
After years of success in the auto industry as a credible and quality driven automaker, near the end of 2009 a horrifying car crash in Southern California ...view middle of the document...
2 million vehicles for pedal entrapment/floor mat issue, and an additional 2.3 million vehicles for the accelerator pedal issues, with approximately 1.7 million vehicles were subject to both. The following day Toyota expanded the recalls to include 1.8 million additional vehicles in Europe and 75,000 vehicles in China, bringing the grand total of recalled vehicles to over 9 million worldwide (Chinook). To further complicate matters vehicle production and sales was briefly halted for various vehicles as Toyota attempted to sort through its issues (Christian Science).
As Toyota faced cost that could run as high as $2 billion and braced for a U.S. Congressional hearing about massive vehicle recalls necessitated by design issues with multiple models, Toyota reps must prep themselves to answer the following two questions form a crisis management perspective.
How does Toyota plan to handle this recall issue?
And going forward what must Toyota do to restore public trust?
The fact that the company president, Aiko Toyoda, apologized and discussed personally heading a task force that would deal with quality issues is the first step in repairing the problem, but a far cry from solving the issue. Essentially Toyota has conceptualized the whole problem as an engineering issue, but the bigger issue has nothing to do with accelerators or brakes. The bigger issue begs a very fundamental question: Has Toyota lost its way with respect to quality?
We can address this question through Toyota’s implementation of new initiatives that included equipping all 2011 and future vehicles with Smart Stop Technology and enhanced data recorders. Additionally Toyota has also launched a training center that will be utilized specifically for quality training, and training team members in customer-first practices. Toyota will take an approach to what it calls performance-based facilities management (PBFM). PBFM is essentially facility management with a twist, in which the focus will be more on what needs to be done, rather leaving those decisions to employees who can focus on performing their individual task. This will allow Toyota to spend more time looking at strategic planning as opposed to the micro-managing approach of the past. These actions will allow Toyota to get back to Total Quality Management, which has been its strength over the years.
The Toyota Production System (TPS) is aimed at identifying and reducing/eliminating waste and variance in processes is key in improving overall customer value. Along with TPS Toyota should implement statistical process control (SPC) as a means of controlling and measuring quality during the manufacturing process. Statistical process control is a methodology for monitoring a process to identify special causes of variation and signaling the need to tae corrective action when it is appropriate (Scribd). When special causes are present as in the cause of Toyota’s recalls, the process is deemed to be out of control. If...