Quality Management-Toyota Essay

This paper explores multiple published articles discussing Toyota aim c tout ensembleer-ups effectivitys, weaknesses, opportunities and threats. A review of Toyotas decisions to hide most-valuable information prior to adjourns leads us to a give-and-take of where Toyota provoke go from here. The paper accepts recommendations for Toyota force back order in order to move forwards subsequently their 2010 pull backs.In step-up, organisational changes testament assist Toyota Motor Company in overcoming their recollection conundrums. spirit focus 3 Quality direction within Toyota Motor Company After a form of discourage recalls at Toyota Motor Company in 2010, a chip of choice counseling techniques were implemented. Toyota Motor Companys grind synopsis compete into the currently implemented quality concern techniques.Toyotas strengths allowed them to fight venture quickly against these recalls that could have ultimately led to Toyotas fall from iodin of the conduct motor companys. Toyota Motor Companys strengths take on dominant position in the securities perseveranceplace, strong trademark realisation, strong heighten on research and development, and broad payoff and dispersal nedeucerk. In addition to Toyotas strengths, their weaknesses were reviewed in order to find opportunities to capitalize upon.The recalls were obviously a large weakness at Toyota. Opportunities were reviewed which implicated the emergence of the global self-propelling industry. Last, Toyotas threats were reviewed. Here it was ready that powerful contest is a puzzle for Toyota Motor Company. After the review of Toyota Motor Companys SWOT Analysis, the outcome of the recalls was assessed. Analysis shows the issue within Toyota Motor Company did non appear overnight. However, airless management styles let the company astray. A diagram was created by functional bea to summarize how Toyota has responded to these recall problems.The functional ara s reviewed include management, intersection design and caoutchouc, quality, and manufacturing. Last, the analysis of Toyota Motor Companys recall and quality management issues are discussed from a point of solving the problem. Recommendations are discussed that will help Toyota Motor Company to turn their weaknesses into strengths. QUALITY heed 4 Method Discussion SWOT Analysis Internal Factors Strengths Weaknesses harvest-time Dominant position in the securities industryplace Strong brand recognition Strong focus on Research & Development Broad carrefourion and distribution net ferment. Product recalls have the ability to forbidly affect brand image Declining sales in crucial geographic areas External Factors Opportunities Threats rivalry Growth of the global automotive industry Potential benefit from partnering with BMW The scene for the new global car market is strong Powerful argument Appreciation of the Japanese Yen Environmental regulations Natural disaster s Strengths. Toyota has a number of internal product strengths as noted in the SWOT Analysis table above. Toyotas market share in 2011 was 16. 5 percent, its highest market share in 4 forms.This strong market share allowed Toyota to grasp a competitive advantage against their rivalry. In addition to holding a dominant position in the marketplace, Toyota possesses strong brand recognition through and through a number of brands. These brands include Toyota, Lexus, Prius, Corolla, Yaris, Camry, Sequoia, 4Runner, Scion tC, Highlander, Land Cruiser, and a number of new(prenominal) brand names. These brands are some of the most desired premium brands in the world according to the Company Profile report for Toyota Motor Company documented by MarketLine. QUALITY worry 5 An new(prenominal) strength of Toyota is their strong attention to research and development.According to the Company Profile report, Toyotas focus on research and development is pointed towards the creation of new and change products. Research and development operations are conducted at 14 facilities located around the world. This strength has allowed Toyota to increase the technology included in quick products. One of these products, a Pre-collision System (PCS) helps drivers avoid collisions. Overall, the strong focus on research and development has been a big strength for Toyota. Last, Toyotas production and distribution network has been a big strength for the company.Toyota produces automobiles, related parts, and other components through more than 50 manufacturing companies throughout 27 countries and regions, not including Japan. As mentioned on the Toyota Motor Company website, major locations include Japan, the fall in States, Canada, the United Kingdom, France, Turkey, Thailand, China, Taiwan, India, Indonesia, South Africa, Australia, Argentina, and Brazil. As describe by Toyota Motor Company, during fiscal year 2013 the company had consolidated vehicle sales totals of 8. 871 millio n units (TCM, 2013). As reported by Toyota Motor Company, this was an increase of 1.519 million units compared to the previous fiscal year. In addition to the widelyspread production of Toyota products, the company has a large distribution network. Toyotas distribution network is one of the largest in Japan encompass four sales carry (Toyota, Toyopet, Corolla, and Netz). In 2012 the distribution network of these channels was comprised of 283 dealers. In addition to this network, Toyota operates over 170 Lexus sales channels in Japan. QUALITY MANAGEMENT 6 As reported by Toyota Motor Company, in fiscal year 2013 these networks accounted for the prolonging vehicle sales japan gross revenue TOTALED 2.279 billion UNITS IN NORTH AMERICA vehicle SALES TOTALED 2. 469 MILLION UNITS IN EUROPE VEHICLE SALES TOTALED 799,085 UNITS ASIA CAME IN AT TOTAL VEHICLE SALES OF 1. 684 MILLION UNITS CENTRAL AND SOUTH AMERICA, OCEANIA AND AFRICA CAME IN AT 1. 640 MILLION UNITS As you can see, Toyotas distribution network is widespread allowing for diversification and a wide reach of clientele, ultimately boosting revenues and sales. Weaknesses. A large focus of the case cartoon focuses on the weakness of Toyotas product recalls. As many are aware, Toyota has encountered a number of recalls in the late(a) past.It is a concern that these recalls could negatively affect Toyotas brand imagine ultimately leading to lessen sales for the company. When searching for Toyota recalls it was easy to find a few recent recalls. The most recent is a recall of 700,000 Toyota Prius models which were recalled over electronic issues in the United States (csmonitor. com, 2014). Another very recent recall includes certain versions of the Lexus RX crossover. In this case, more than 261,000 vehicles are being recalled due to a brake issue (csmonitor. com, 2014). In addition to the many recalls, Toyota has been involved in a number of lawsuits.In December 2012, Toyota settled a suit by pay $17. 4 m illion to the National High mode Traffic Safety brass to settle claims related to the June 2012 recall of potential accelerator pedal entrapment issues. This problematic press will ultimately result in a negative effect on consumers confidence in Toyotas brand. In addition, the settlement of suits ultimately decreases Toyotas QUALITY MANAGEMENT 7 profits. As a result of this bad press Toyota saw a descent in 2012 sales in important geographic areas. Declining sales in fiscal year 2012 were seen across North America, Asia, and Europe. Opportunities.As reported by the article, Global automotive industry to welcome modest growth in 2012, a number of opportunities exist in the global automotive industry (2012). The Japanese auto industry responded from natural disasters which had featured reduced inventories and production. It is forecasted that the industry will continue to grow increasing Toyota revenues. In June of 2012, BMW and Toyota signed a long-run partnership. The two com panies are partnering on the developments that will help to increase market share and sales.This relationship is expected to increase technology between the two companies as well as result in new product development. In addition to these opportunities, the new car market is experiencing moderate growth which will assist in increased sales and profits. Threats. Intense competition in the universal car market has become very competitive. This competition will likely increase in the upcoming years as competitors add more technology and increase developments. In addition to the impetuous competition, the appreciating Japanese Yen has become a big concern for Toyota.Last, surroundings regulations have the potential to increase production costs. Emissions regulations that are updated periodically could cause issues in new car production. Evolvement of Quality Management Issues At world-class glance, it seems that Toyotas gas pedal issue appeared overnight. However, upon further researc h, evidence was found to prove the opposite.As reported in the article Secretive glossiness Let Toyota Astray, evidence that Toyota cars could suddenly speed up had been piling up for years (2010). At the time of the recalls, Toyota had known about this gas QUALITY MANAGEMENT 8 pedal problem for more than a year. The problem was stated to be Toyotas secretive corporate culture in Japan which ultimately conflicted with United States requirements that auto makers disclose galosh threats. peeled initiatives brought to the table by Toyota have attempted to correct the previous secretive culture of Toyota. Total quality management initiatives have been put in place to assist in better customer service and safety and repair issues. According to Jacobs and Chase, total quality management can be defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer (Chase and Jacobs, 2014, p. 296). The table following th is discussion addresses the steps Toyota has taken in response to its recent quality recall problems.Functional Area Quality Management Steps Management Managing film director names to oversee any safety-related issues Top down management approach Product Design & Safety Troubleshooting teams known as spry Market Analysis Response Teams work to find any safety issues that need to be reported Quality TAQIC Toyota Advanced Quality instruction Center staffed by a group of employees who compile repair reports from dealerships worldwide 1000 engineers hired to spot-check quality Manufacturing No drastic changes to company lines QUALITY MANAGEMENT 9 Results/Discussion Problem Solution As discussed in the diagram above, there were many opportunities for Toyota after their encounter with the recall situation.Akio Toyoda, the head of the company, acted quickly by implementing a top down management approach instead of the more popular Japanese bottom up approach that slows down the decision making. In addition, Akio cut board of directors by fifty percent and cut out management layers. Akio also began confrontation with his top five advisers on a weekly basis. In these meetings decisions were do quickly. Akio pushed his team to make always better cars. This change in the way the organization is managed helped Toyota to stay on top even through the recalls. Recommendations some(prenominal) recommendations have been made to assist Toyota Motor Company in better the recall situation they encountered in 2011. Some recommendations Toyota should follow include as recommended by the North American Quality Advisory Panel include the following GIVE NORTH AMERICAN operations MORE freedom IN MAKING RECALL DECISIONS STRENGTHEN QUALITY CONTROL PROCESSES consort DEVELOPMENT TIME OF NEW PRODUCTS TO INCLUDE MORE SAFETY TESTS attain A ROLE OF CHIEF SAFETY TECHNOLOGY OFFICER.CREATE AND set up A SAFETY RESEARCH CENTER FOCUSED ON defend THE MOST IMPORTANT clientele (chi ldren, teens, and seniors) QUALITY MANAGEMENT 10 These ideas follow the concept of total quality management which focuses on two implicit in(p) goals CAREFUL DESIGN OF THE PRODUCT (IN THE CASE OF TOYOTA ride COMPANY, THE VEHICLE) ENSURE THAT TOYOTA MOTOR COMPANY SYSTEMS CAN PRODUCE THIS DESIGN IN A uniform manner Quality at the source seems to be a bang-up way for Toyota Motor Company to proceed.Quality at the source agent that the person who is doing the work is taking the responsibility for making sure the work meets specifications. As previously discussed, safety control will be a huge initiative for Toyota Motor Company going forward. If implemented, these recommendations can do a lot to help Toyota Motor Company increase their organisational effectiveness.As previously discussed, many organizational steps were taken by Akio Toyoda after these recalls. It seems that Toyota could greatly benefit from organizational learning. As stated by Operations and Supply Chain Managemen t, it has been argued that organizational learning is critical to sustaining a competitive advantage (Chase and Jacobs, 2014, p. 138).Organizational realignment was important to Toyota Motor Company after the 2010 and 2011 recalls. According to a Toyota news release in December of 2008 organizational changes include the establishment of the below QUALITY MANAGEMENT 11 A GOVERNMENT AND PUBLIC AFFAIRS assemblage WHICH WAS FOCUSED ON affectionate RESPONSE TO inquiries from around the world while also unifying earthly concern affairs functions.AN ACCOUNTING GROUP AIMED AT STRENGTHENING THE BUSINESS MANAGEMENT AND FINANCIAL management system of Toyota Motor Company. A EUROPE AND AFRICA OPERATIONS GROUP INTENDED TO ASSIST WITH BUSINESS PLANNING IN African and Central Asia.The group was also established to conduct business furtherance events in both Europe and Africa. A PRODUCTION ENGINEERING GROUP AIMED AT INCREASING THE STRENGTH OF THE QUALITY control system for semiconductors for c risscross vehicles. The recommendations made are important to Toyotas future.Reorganization and creation of new groups within the organization will help Toyota to overcome these recalls. QUALITY MANAGEMENT 12 References Ingram, A. (2014, Feb 12). Toyota recall 1. 9 million Prius vehicles recalled to fix software glitch. Retrieved from http//www. csmonitor. com/ billet/In-Gear/2014/0212/Toyota-recall-1. 9-million-Prius-vehicles-recalled-to-fix-software-glitch Jacobs, F. R. , & Chase, R. (2014). Operations and supply chain management. (14 ed. ). New York, NY McGraw-Hill/Irwin. Lassa, T. (Feb, 2012). U. s. market share for the top five automakers.Retrieved from http//www. motortrend. com/features/auto_news/2011/1202_u_s_markets_share_for_the_ top_five_automakers/ Linebaugh, K. , Searcey , D. , & Shirouzu, N. (Feb, 2010 08). Secretive culture led toyota astray. Retrieved from http//online. wsj. com/news/articles/SB10001424052748704820904575055733096312238 ? mod=WSJ_hpp_LEADNewsCollectio n&mg=reno64-wsj&url=http//online. wsj. com/artic le/SB10001424052748704820904575055733096312238. html? mod=WSJ_hpp_LEADNewsCollection Marketline. (2013, Jan). Toyota motor corporation turn out analysis.Retrieved from http//web. a. ebscohost. com. library3. webster. edu/ehost/detail? vid=4&sid=6ef29150-7574-461b-8281-afd6e7a8edf6sessionmgr4001&hid=4212&bdat a=JnNpdGU9ZWhvc3QtbGl2ZQ== Ridley , G. (2012, Jan 06). Global automotive industry to experience modest growth in 2012. Retrieved from QUALITY MANAGEMENT 13 http//www. ey. com/GL/en/Newsroom/News-releases/Global-automotive-industry-to-exp erience-modest-growth-in-2012 Taylor, A. (2012, Feb 27). Toyotas comeback kid.Fortune, 165(3), 72-79. Retrieved from http//web. b. ebscohost. com. library3. webster. edu/ehost/detail? sid=51dc3e8b-84d1-4dcd-85bf-3342162ffef8sessionmgr110&vid=1&hid=126&bdata= JnNpdGU9ZWhvc3QtbGl2ZQ TMC. (2013, May 08). TMC announces year-end monetary results for fiscal year ended march 31, 2013. Retrieved from ht tp//www2. toyota. co. jp/en/news/13/05/0508_1. html Voss, M. (2011, May 23). Toyota receives recommendations from compass north american quality advisory panel. Retrieved from http//corporatenews. pressroom. toyota. com/releases/toyota receives recommendations north american quality advisory panel. htm.