Quality management can be defined as a change agent which will assist organizations to survive in this tough, unforgiving & changing environment. Implementing and sustaining total quality management is not a smooth sailing for any organization and many issues will have to be addressed. To survive in this turbulent environment, companies further needs to improve their performance, and the beast way forward is to become a high performance organisation. A high performance organization would have several traits, which would support it, and one of the important ones is Job design. Toyota E-GPC being a company with a rich history and being renowned for being the largest food manufacturing company in the world incorporates all the things defined and practiced. Company overview: Toyota is one of the world‟s largest automobile manufacturers. A Top 10 Fortune Global 500 enterprise, Toyota ranks among the world‟s leading global corporations and is proud to be the most admired automaker, an achievement the company believes stems from its dedication to customer satisfaction. Toyota has been shaped by a set of values and principles that have their roots in the company‟s formative years in Japan. Toyota's decision to establish a manufacturing operation in Europe was announced in 1989 and Toyota Manufacturing UK was established in December that year. Toyota Manufacturing UK, in partnership with Rapid Electronics, organizes the Toyota Technology Challenge- a national engineering and technology competition aimed at secondary schools within the UK. Toyota has invested almost £7 billion throughout Europe since 1990 with the aim of designing and manufacturing vehicles that address the needs of European customers. [ Task 1]
1.1 Quality in terms of product quality and services provision
At the most basic level, quality means meeting the needs of customers. This is also known as "fit for use." The focus of this simple definition of quality is where it should be, on the customer.
Product Quality in terms of business: At Toyota Manufacturing UK, Members build in quality to the vehicles at every process. To achieve total quality control, Toyota Manufacturing UK uses standardized work together with visual control to clearly indicate the current status
and make it very easy to spot problems. Each member is responsible for the quality of their work and aims never to pass on poor quality to the next stage. Emphasizing on Quality Management will assure world-class standards, allowing the organization to be more market and customer driven, while having increased competition and employee empowerment. In addition, the organisation will be able to keep abreast of technology while being innovative and creative in its environment. As a result, methods of quality improvement must be put into practice. Quality in terms of service provision at Toyota: In terms of service quality is defined to measures customer‟s perception of quality from a certain service experience. Its original format was finding the gap between expectation and perception while service is being delivered. While adaptation from the original, there were several concerns, these issues would cause indeterminate respondent bias. Toyota service design provision the Cruiser car. They considered the distinguishing feature of the brand and the manner in which they should apply to the design of the car. Since the price range of Toyota Etios (2010) is generally higher; hence, the furnishing and engineering of Toyota should be more luxurious and of higher quality. For example, the Toyota FJ Cruiser is targeted toward richer consumers as it is designed as a compact executive car made to compete with the luxury sport sedans of other leading European brands. 1.2 Process of quality assurance and inspection and compare and contrast with them: Quality assurance and inspection is the activity of providing evidence needed to establish confidence among all concerned, that quality-related activities are being performed effectively. All those planned or systematic actions are necessary to provide adequate confidence that a product or service will satisfy given requirements for quality. Toyota E-GPC carry out quality assurance activities based on the three quality principles: Customer expectation determines the quality required. Quality is built in at every stage of the process. Quality is continuously improved (kaizen).
Toyota E-GPC created continuous process flow to bring problems to the surface. Their Work processes have been redesigned in order to accomplish high-value added continuous flow. The goal here is to eliminate any time that a project sits idle waiting for someone to perform an operation on it. The production flow move
materials and information quickly and connect all involved together so that any problems can be recognized right away. Comparing and Contrasting the Processes of Assurance and Inspection
Quality Assurance Refers to the process used to create the deliverables, and can be performed by a manager, client, or even a third-party reviewer. Quality assurance is generic and does not concern the specific requirements of the product being developed.
Inspection Inspection is used to verify that deliverables are of acceptable quality and that they are complete and correct. Inspection is about adherence to requirements
Quality assurance activities are 3) Time of Perform determined before production work begins and these activities are performed while the product is being developed. Examples of quality assurance 4) Example include process checklists, project audits and methodology and standards development 1.3 Four approaches of quality management Six Sigma
Inspection activities are performed after the product is developed
Examples of inspection include deliverable peer reviews and the testing process
Six Sigma is a process improvement set of tools and strategies, originally developed by Motorola in 1986. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization who are experts in these very complex methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction and/or profit increase).
Total Quality Management (TQM)
Total Quality Management (TQM) is considered an important approach in managing quality. TQM derived its teachings mainly from the following disciplines -- Statistics, Organizational Theory, Strategic Management, and Industrial Organization. The efforts of the company employing TQM are targeted towards meeting crossfunctional goals utilizing management techniques, productivity improvement efforts, and various problem solving tools and techniques in disciplined manner. The ultimate objective of TQM is to achieve customer satisfaction all the time.
ISO's Process Approach
The process approach is a management strategy. When managers use a process approach, it means that they manage the processes that make up their organization, the interaction between these processes, and the inputs and outputs that glue these processes together. ISO 9001, ISO 9004, ISO 13485, and AS9100 use a process approach. Clause 4.1 of ISO 9001, ISO 13485, and AS9100 makes it very clear that organizations must identify and manage the processes that makeup their quality management systems.
Kaizen Approach Kaizen Approach, Inc (KAI) is a certified Service-Disabled Veteran-Owned Small Business (SDVOSB) specializing in Instruction Systems Design, Program Management, Systems Integration, Information Assurance, and Network Engineering services. Kaizen, a Japanese word adopted into English, refers to the practice of focusing on continuous improvement in business activities. Our name, Kaizen Approach, expresses our commitment to the philosophy of continuous improvement, which we employ to help our customers achieve their goals.
A key element of the Toyota Production System (TPS) is kaizen. Although literally translated to simply mean „improvement‟, in a lean context, the Japanese word has come to symbolize a somewhat bolder concept. Kaizen has been proven effective in a number of major Japanese and Western companies, and many large corporations in America and Europe are adopting the model even corporations which have for year‟s utilized hard-line Western approaches such as business process engineering.
1.4 Compare and contrast of the quality management approaches The main difference between TQM and Six Sigma is the approach. At its core, Total Quality Management (TQM) is a management approach to long-term success through customer satisfaction. On the other hand Six Sigma originally, it referred to the ability of manufacturing processes to produce a very high proportion of output within specification means reducing defects by minimizing variation in processes. A quality management system is made up of many processes. The main concern of process approach is to identify, analyze and allocate all resources and tasks so that each step of the production process will more effectively deliver the desired results. Kaizen refers to activities that continually improve all functions, and involves all employees from the CEO to the assembly line workers. It also applies to processes, such as purchasing and logistics that cross organizational boundaries into the supply chain. The term Six Sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modeling of manufacturing processes. The maturity of a manufacturing process can be described by a sigma rating indicating its yield or the percentage of defect-free products it creates. Whereas total Quality Management participate with every aspects of the business such as customer, leadership of quality strategic issues, training and education of employees and so on. Toyota‟s philosophy is to establish a long term working relationship with its suppliers, through early selection and continuous joint development. This has enabled suppliers as well as Toyota Manufacturing UK to actively contribute improvements to design and the production process. [Task 2]
2.1 Quality in terms of customer satisfaction for Toyota E-GPC
Customer satisfaction is not an objective statistics but more of a feeling or attitude. If a customer is happy with a product or a service it has hired or purchase they will pay their bills promptly, which greatly improves cash flow-the lifeblood of any organization.
Customer satisfaction can be secured through high quality products and services (Getty & Getty, 2003). Edvardsson (1996) reflected that the concept of quality should be approached from the customer's point of view, since it was his/her perception of the outcome that constituted the quality. Customers' evaluations and opinions are an expression of their expectations of Toyota E-GPC, so Toyota receives them sincerely and responds in good faith, in the belief that making use of them in its quality corporate activities will lead to customer satisfaction. Toyota always tries to grasp shifts in customer demands, constantly checking for conformity with its standards, and acting swiftly to resolve any discrepancies. The voice of the customer is quickly relayed to all related departments and divisions in development, production and sales, where they are helpful to product planning, raising product quality and improving Toyota's corporate activities. 2.2 Continuous improvement of Toyota E-GPC Continual improvement should be a permanent objective of the organization. Steps in application of this principle are as following Make continual improvement of products, processes and systems an objective for every individual in the organization. Apply the basic improvement concepts of incremental improvement and breakthrough improvement. Use periodic assessments against established criteria of excellence to identify areas for potential improvement. Continually improve the efficiency and effectiveness of all processes. Promote prevention based activities.
Toyota E-GPC production control system has been established based on many years of continuous improvements, with the objective of "making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible." The Toyota E_GPC was established based on two concepts: The first is called "jidoka" (which can be loosely translated as "automation with a human touch") which means that when a problem occurs, the equipment stops immediately, preventing defective products from being produced; The second is the concept of "Just-inTime," in which each process produces only what is needed by the next process in a continuous flow.
2.3 The types of added values and benefits of Toyota E-GPC Toyota is present in virtually all segments of Europe‟s passenger car vehicle market, offering an extensive range of innovative, high-quality Toyota and Lexus vehicles and engines. All are designed and produced to satisfy the varied demands of Toyota‟s customers, while delivering superior quality and reliability. Toyota E-GPC saving time is influenced for measuring profit margins and focusing on where the larger costs are that may be impacted or estimating future costs to justify future spending decisions. In short, Toyota‟s managerial accounting transforms expenses collected in the general ledger into calculated time. Design – well designed products can either improve functionality, make products more aesthetically pleasing or stand them apart from competitors' products Marketing – effective marketing can encourage customers to buy products for higher prices Convenience – customers may pay more for convenience e.g. at a local shop than at the supermarket Values – if an organization appears to have the same values as the customers then value may be added
2.4 The importance of information made availability to customers and marketing information to quality management by the corporation Information is very powerful instrument to a company success. The idea that information has strategic value emerges out of the idea of information as an organizational resource and the related concept of competitive intelligence or environmental scanning. Thus, the information held in corporate databases may have strategic value in identifying new market opportunities or may it constitute new information products. Such new opportunities and new products are strategic in the sense that they aid the competitive position of the organization and, given the tendency towards the adoption of market-oriented management in public services, today all organizations may need to adopt a competitive stance. To expand the market and increase customer relationship different information must be available in the customer market. They –
Features and benefits the product or service is providing Information about production system Information about product and service quality Price of products or expenses the customer have to incur to get the services and so on.
Toyota, taking to heart the customer feedback it has received, reaffirms, together with its dealers, suppliers and employees worldwide, its commitment to unwavering quality in products and services, and to the spirit of 'customer first'. Toyota will continue to endeavour to provide products that are safe and reassuring, the automaker added. [Task 3] 3.1 Measure the corporation quality There are a number of key quality indicators that can be used to measure quality and about which there is broad agreement (although as with any management discipline there are areas of disagreement as to importance). They are documentation of a policy for quality; training employees to improve performance; the use of work-based teams; involvement of customers in development of products and services; the measurement and analysis of waste and scrap; the collection of numerical data on processes by employees; the use of written task specifications; and, Calculation of the costs of quality.
By using these eight steps as the basis for Toyota E-GPC business to develop a quality management plan you can be confident of following in the footsteps of some of the finest minds in quality management history. Work is a process, not an event, and we need to understand a process to improve it. All activities must be analysed and considered if we are to improve quality. It should be remembered that each of us within a business fulfils the roles of both customer and supplier to others within the business. 3.2 Benefit of user and non-user surveys to determining customer needs User satisfaction surveys are conducted in order to measure to what extent the supply and quality of products and services satisfy the needs of users. Hence, these surveys are used as tools for examining strengths and weaknesses of product and services and identifying the areas which are most in need of development and improvement. Non user survey is a type of survey conducted on the people who are not the user of the product or services. Toyota E-GPC Corporations must identify methods for meeting customer needs. he most important set of decisions any corporation can make are those involving selection--of the products and services the enterprise will provide, of the customers for whom it will provide them and of the channels through which it will market them. Since most firms have only limited resources to deploy resources, selection decisions can make or break a company. In the best of all possible worlds, the
company will target those customers who allow it to earn the return it needs to grow and prosper. The best fit occurs when the targeted buyers' needs and the way in which they want to buy align consistently with the product and service delivery your firm proposes. 3.3 Four techniques for consultation to promote increased participation by assembly line operatives in customer quality management The principles in this section empower employees in spite of the bureaucratic processes of Toyota, as any employee in the Toyota Production System has the authority to stop production to signal a quality issue, emphasizing that quality takes precedence Toyota E-GPC. The way the Toyota bureaucratic system is implemented to allow for continuous improvement (Toyota E-GPC) from the people affected by that system so that any employee may aid in the growth and improvement of the company. 1. Adjust Employees' Daily Efforts Contribute with Business Objectives Establishing a formal process for creating relevant goals for each employee, and monitoring/measuring performance against company objectives, unquestionably results in both individual and company success. The benefits of this approach deliver a host of positive results, 2. Keep Employees Energized and Engaged Building a culture in which employees are energized and engaged to perform at maximum levels requires both strong management skills, and a consistent process for providing accurate, quality feedback. But recent progress in Toyota HR-software designer specifically tries to address this challenge is helping significantly. There are now effective means like writing assistants and coaching tools that can significantly improve the overall quality of feedback, and help managers provide more relevant reviews; richer, more meaningful feedback; stronger, more relevant coaching and so an. 3. Develop, Implement and Reinforce a Pay-for-Performance Culture The importance of having the best people in key areas is critical to the success of your business. It's no secret the key to retaining the best and brightest talent is recognizing and compensating top performers. Establishing a pay-for-performance culture is considered the important tool for achieving financial results by senior executives. Today's Toyota E-GPC HR technologies now give managers easy access to all the information they need to reward individuals for actual performance– 360 degree feedback, goal alignment metrics, review data and performance notes taken throughout the year.
4. Automate Performance Management from Start-to-Finish ` Toyota E-GPC technology designed specifically to help organizations manage and optimize employee performance has advanced considerably over the years. Yet it's interesting to note that most companies still rely on paper-based processes and outdated performance management methods. By adopting a system that manages the entire employee life cycle–from performance assessment to goal alignment to employee retention–it's safe to say automation can truly transform their business. 3.4 Complaints procedures and discussion to improve quality The purpose of an effective complaints procedure is to ensure all complaints are resolved quickly and efficiently. The credibility of the Investors in a company is paramount and it should be perceived as a benchmark of quality. The information gained from complaints should be used to inform and improve practice within the both the company and the delivery network. It should also be used to influence the executive board of the Investors in People UK in defining and setting organizational strategies. In Toyota E-GPC Corporation complaints are handled by quality projects manager who will then ensure that the complainant receives some form of response. In most cases this will be a written acknowledgement using e-mail or letter, unless the complainant‟s preferred communication method in the telephone. If this is the case then the detail of the conversation will be recorded. The management of the Toyota E-GPC Corporation is required to investigate complaints against organisations that are located in their defined geographic locations, regardless of whether the quality management department has previously been responsible for assessment and review of the organisation concerned. In Toyota E-GPC corporation details of the complaint and associated information will then be entered into the Investors in People Enquiry Management System Database. Each complaint will automatically receive a numeric identifier, which should be quoted on all written correspondence, should the complaint require formal investigation. [ Task 4] 4.1 Role of self-assessment in order to determine Toyota’s corporation performance: Self-assessment is the process of critically reviewing the quality of one‟s own performance and provision to assess the other organization. An integrated approach is to conduct an organizational self-assessment with a purpose to assess an organization's readiness and risk for a planned change.
Toyota believes that the way to achieve “quality assurance” and to “spread the Toyota Way” is by educating people: “Making things is about developing people.” So, in 2003, we established the Global Production Center (GPC) within the Motomachi Plant in Toyota City. Furthermore, in 2006, we established regional GPCs in the United States, the United Kingdom and Thailand to carry out corresponding activities in the North American, European, and Asia-Pacific regions respectively. Some people understand quality assurance to mean thoroughly inspecting parts after they are made or by promptly complying with claims on products in the market. This is not the belief at Toyota. Total quality control is carried out using two basic principles: quality is built in at every stage and quality is continually improved. The new European Global Production Centre (E-GPC) in the UK is a major asset to quality control in Europe, providing production and maintenance skills training to employees across all of Toyota‟s European manufacturing operations. 4.2 The importance of horizontal and vertical communication as well as record keeping to improving the corporation’s performance An organization's structure dictates who is in a position of authority, how work is divided and how employees are assigned duties. Both horizontal and vertical organizational structures have advantages and disadvantages in helping an organization operate efficiently. Vertical communication has directly linked to upward and downward communication. Upward communication may be defined as information that flows from subordinates to superiors. One of the biggest benefits of upward communication for the corporation is problem-solving. Once a subordinate has brought a problem to his superior‟s notice, chances are that the problem will not recur, since the subordinate learns from his superior how to tackle it the next time. Downward communication has defined as information that flows from superiors to subordinates. Downward communication that provides regular feedback will be beneficial if the feedback or review of performance is constructive for the corporation. Record keeping is an important key role of an organizer and the main aspect is to assist planning and set future learning goals to the learner. Records may contain company‟s physical information as well as manager‟s observation on the performance. In Toyota Corporation co-workers communicate amongst themselves through proper communication. Keeping records of lesson plans and scheme of work enables the manager of the Hilton to reflect on how their quality scheme plans are progressing. This form of record has the benefit of allowing the management to critically evaluate the process on an individual basis and the implementing techniques they use to transmit knowledge.
4.3 Staff consultation for effective implementation at Toyota Corporation Consultation is more than just good government and good business. It is a strategic tool. It is used to assess markets, research need, find solutions to problems, build mutual understanding, build consensus and is, of itself, an important expression of accountability. The following are important stages of consultationStage-1: Initial Planning Toyota establishes principles and boundaries of the process at corporate level. Identify and commit resources including staff, budget, skilled support and time. This will include identifying resources to manage and facilitate the process. Decide whether the facilitators or researchers can be employed internally or externally. Stakeholders may need resources to enable them to participate properly. Identify internal stakeholders, communicate corporate intentions, possibly through a visioning process, and identify training needs. Establish how consultation outcomes will be fed back, to whom and how action will be delivered.
Stage-2: Stakeholder Identification and Recruitment Toyota decides how to identify stakeholders. This can be done through advertising in media that stakeholders are likely to use, reviewing mailing lists and contacts with the managing organization. Public Relations will have important information. If consultation is to be broad based then it is important to meet with key stakeholders first. Initial discussions with leadership figures are often important before widening out the stakeholder base. Explain the processes for decision making. Transparency is essential to building trust and respect. If an individual does start to take a different view from those that they are representing then this needs to be conveyed to other participants within the dialogue and consideration should be given to that Individual‟s continued involvement. Stage-3: Implementation Much of this stage is initiating and reviewing what has been planned and agreed on in the previous stages. However this is where the difficult work begins. Toyota EGPC will be through dialogue and engagement that genuine understandings and trusting relationships are built. Relationships have to be established, trust has to be developed and roles bedded down before a group will start performing to its optimum. Consideration needs to be given to how information can best be imparted. There is a need to regularly review how far stakeholder representatives are reporting back and how far they are bringing their constituents with them. Attention needs to be paid to quality of communication, recording and facilitation.
Stage-4: Endings and Evaluation There is often value in building an on-going dialogue process whereby new issues can be discussed as they arise. If time and resources of Toyota have been invested in building a successful dialogue process then careful consideration needs to be given to ending it if there is more work to be done. Relationships can not be turned on and off at will and survive. On the other hand it is important not to waste people‟s time. Do not arrange meetings to keep someone in a job or because they have become a comfortable habit.
4.4 The ways Toyota Corporation improve service quality of their products Through the TQC implementation Toyota improved their products as well as increasing their responsibility to their consumers. They also established their own recall system that enabled them to address any vehicle defects and make sure the defective vehicles were repaired. Toyota them returned to the Customer First principle and worked to regain the customers‟ trust in Toyota and their products. The company also decided to gather market information, make quality checks at each station, and improve upon their process to eliminate defective products. Toyota‟s just-in-time methods allows to “efficiently and quickly produce vehicles of sound quality, one at times that fully satisfy the customer requirements”. This system calls for equipment to stop working when a problem occurs so that defective products are not manufactured. Their Just-in-Time concept is based on the premise of producing only what is needed from process to process to create a continual flow. This allows Toyota to manufacture quality vehicles that satisfy consumer needs and create loyal customers. Conclusion: The history of quality management, from mere 'inspection' to Total Quality Management, and its modern 'branded interpretations such as 'Six Sigma', has led to the development of essential processes, ideas, theories and tools that are central to organizational development, change management, and the performance improvements that are generally desired for individuals, teams and organizations. Quality management consist of varies items. Customer satisfaction and information system are the core of the quality management. This also incorporates measuring all process elements, the analysis of performance and the continual improvement of the products, services and processes that deliver them to the customer. Quality management is also referred to as business management or integrated management. Corporations must control and maintain quality in every aspects of the business. Toyota is a best example of maintaining best quality in production system. Toyota maintains and manages quality in every aspects of their working and production system.
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