Quality Management of Toyota

Report on Improving the Quality Management System

To: Mr. Simon, Chief Quality Manager, Toyota Motor Corporation

From: Ben, QC Officer, Toyota Motor Corporation

Date: 9th January 2017

Contents

1.0 Introduction        1

2.0 How Quality Management in Toyota Can be Measured        2

2.1 Benchmarking        2

2.2 Competitive Benchmarking        3

2.3 Internal Benchmarking        6

3.0 Evaluate the Benefits of User and Non-user Surveys in Determining Customer Needs in Toyota        7

3.1 The Benefits of User Survey        8

3.2 Benefits of Non-user Survey        9

4.0 The Methods of Consultation Employed in Toyota to Encourage Participation by Underrepresented Group        9

4.1 Methods of Consultation        10

5.0 Identify The Value of Complaints Procedures and How They May Used to Improve Quality        11

5.1 Value of Complaints Procedures and How to Handle Complaints        11

6.0 Role of Self Assessment to Determine Current State of Health of Toyota        13

7.0 Importance of Communication and Record Keeping        15

7.1 Communication        15

7.2 Record Keeping        17

8.0 Guidelines on the Stages of Staff Consultation        18

9.0 New System or Modify to Existing System to Improve Service Quality        22

9.1 Current Service System at Toyota        22

9.2 Modification Service System at Toyota        24

10.0 Conclusion        27

References        28

Appendix

List of Figures

Figure 1: Companies that have benchmarked manufacturing performance        

Figure 2: Automotive brand value ranking        

Figure 4: The process of 160 point inspection in Toyota        

Figure 5: Why do customer leave a compan        

Figure 6: Importance of communication        

Figure 7: The service system at Toyota        

Figure 8: The new customer information system of Toyota        

Figure 9: POS system that apply to Toyota (POS system)        

List of Tables

Table 1: SWOT analysis of Toyota company        

Table 2: SOWT analysis of Honda company        

Table 3: Balance scorecard of Toyota company        

Table 4: The characteristics of document being used to consultation        

1.0 Introduction

The aim of this report is to enable readers to understand a range of quality controls and how service to the customer can be improved and be able to apply the principles of quality management to improve the performance of Toyota.

Toyota Motor Corporation is a Japanese automotive manufacturer headquartered in Aichi, Japan in 1933. It has become the biggest automotive manufacturer in Japan and top ten automotive manufacturer throughout the world. In 2014, the multinational corporation consisted of 338,875 employees worldwide (Toyota).

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This report has two parts. In the first part, the writer will explain how quality management can be measured in Toyota Motor Corporation, evaluate the benefit of user and non-user surveys in determining customer needs, list the methods of consultation to encourage participation by underrepresented group and identify the value of complaints procedures and analyze how they may be used to improve quality. In second part, the writer will report on the role of self assessment in order to determine Toyota current state of health, evaluate the importance of communication and record keeping, follow guidelines on the stages of staff consultation necessary for effective implementation of a quality scheme along with propose new system or modification to existing systems that could improve service quality in Toyota Motor Corporation.

2.0 How Quality Management in Toyota Can be Measured

2.1 Benchmarking

There are so many ways that can measure the quality management in an organization, however, the most popular and useful method is benchmarking. It is a process to compare business processes and performance metrics between two businesses in the same or similar industry. The general process of benchmarking involves identifying problem areas, selecting top competitors who excel where a company falls short and making the necessary changes. This allows companies to see how well they are performing and identify ways they can become more competitive in the industry (What is Benchmarking). Benchmarking has different types, which consists of strategic benchmarking, competitive benchmarking, process benchmarking, functional benchmarking internal benchmarking, external benchmarking and international benchmarking. By using benchmarking, an organization can get a host of benefits. For example, it can let an organization to understand it performance relative to close competitors and better understand what makes an organization successful. On the other hand, it can also improve the product quality by analyzing and studying competitor’s products thus increase sales and profits. From another perspective, benchmarking will also lead to some cost. For example, time cost caused by researching problems and finding exceptional companies to study along with benchmarking database cost (Ho, 2016)