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Review of studies on total quality management
Review of studies on total quality management
Background of toyota
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If you enter the lobby of Toyota’s headquarters in Japan, you will see two small portraits and one big one hanging there. The two small ones show the founder and the current chairman of the company. The large portrait shows an American. It is Dr. Edward Deming. Who is Edward Deming you might ask? And indeed who is he? But it’s a long story and one cannot explain who Edward Demings is without involving characters like the Japanese, the Americans and the Toyota Company. So here goes… Long Ago and Far Away… World War II had barely ended, the Japanese were left with a devastated country, ruins that were previously houses and a battered economy. But there was something left that helped them overcome all this destruction. They did not sit and lament their fates but began thinking…where do we go from here and to get there what do we need to do? Factories began production again firstly to supply all the basic necessities and after around 15 years when everyone had the basic goods they needed, they turned their energies towards overcoming the surplus of imports. Japan needed to offer something more in their goods if they had to succeed on foreign shores.... The Japanese car manufacturers namely Toyota wanted to start operations in America. That was all very well. But how could they make the Americans buy their cars rather than local ones. Enter Dr. Edward Demings and hey presto! They had the secret recipe! The man who according to his biographer Rafeel Agumayo(1) is the American who taught Japan what quality management is. Dr. Edwards Deming was a physicist specialized in the field of statistics and worked in United States Bureau of Census. His greatest contribution on the evaluation of statistical methods for ensuring the quality of census assessment established him as a leader in the field of Total Quality Management. In fact he is considered as the "Guru" of Total Quality Management. Deming also enunciated 14 principles for quality management which include innovation, the philosophy of quality to be inculcated in all individuals, appropriate and complete supervision, absence of fear and openness, ensuring quality from design through to maintenance, work standards in production, training of every worker in statistical methods, retraining people to new skills and so on. The world saw Toyota take over America by storm, they offered better, faster, more comfortable and more efficient cars and Americans came to buy cars from them in droves.
The Japanese government believed that the only way to solve its economic and demographic problems was to expand into its neighbor’s territory and take over its import market, mostly pointed at China. To put an end on that the United States put economic sanctions and trade embargoes. We believed that if we cut off their resources and their source of federal income than they would have no choice but to pull back and surrender. But the
Starting in the early 1930’s, the Japanese began to display their great imperialistic dreams with ambition and aggression. Their goal was to create a "Greater East Asia Co-prosperity Sphere" where they controlled a vast empire in the western Pacific.1 In September of 1939, Japan signed the Rome-Berlin-Tokyo Axis Treaty, allying themselves with Germany and Italy in an effort to safeguard their interests in China from the Soviet Union. Japan’s only major obstacle left lay in the significant size of the United States Pacific Fleet. To rid themselves of this, Japan attacked the United States Pacific Fleet in hopes of crippling it enough to prevent any further hindrance from the US. Although Japan began the War in the Pacific on the offensive, winning many battles and gaining significant territories, the tide quickly turned in favor of the US because of the their dominating industrial capacity. Thus, the Japanese began to resort to ghastly measures to prevent a humiliating defeat.
In summary, Japan’s military buildup before the Pacific War coupled with its recent combat experience left Japan’s prewar preparation only slightly more resolute than the United States and this advantage was deleted by time. Japan’s current technological position was superior to that of America’s at the start of the war where craftsmanship generated higher-quality products to defeat quantitative numbers of a larger foe. Japanese doctrine and training were simply better. Finally, Japan’s limited strategy was logically sound and culturally acceptable to them.
Japan in modern times is one of the most technologically advanced countries in the world. This “modern” image that Japan hasn’t been around forever, Japans decision to change from an old traditional country to a westernised one came in 1868, and it took only 50 years for the improvements to be made. In order to successfully modernise Japan had to make several sacrifices, risks and well planned out strategies. These developments can be explained in 5 areas: the Meiji Restoration, Government, Industrialisation, Education and Armed Forces.
In 1995, Hiroshi Okuda, president of Toyota Motor Corp., considers whether to push for a more aggressive launch of the Toyota Prius--an automobile that incorporates Toyota's new and technically advanced hybrid power train. This launch decision allows discussion of the importance of the Prius in Toyota's overall product strategy and explores issues ranging from market structure to competitive advantage and competitive dynamics.
“Kaizen” highlighting on quality assurance, this involve collective responsibility and team work for quality improvement in the firm. The Toyota management systems comprised the concept of zero defects which included of quality circles to highlight on all issue that related to quality. The theory of “Kaizen” makes sure that all workers are quality conscious concentrates on quick problem solving. The team leaders in the association encourage their members to frequently focus on quality improvements in the manufacturing process. All personnel are trained to build the knowledge and skills required for quality manufacturing. The TPS is an action oriented method that supports a problem solving approac...
Toyota- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling.
As one of the leading automobile manufacturers in the world, Toyota ranks within the top three worldwide. Due to their unique business model, they are now have a market share of 14% in the first four months of this year. That is an astonishing 2.3% jump from the previous year. According to Autodata.com, the Toyota City based automaker ranks fourth in United States sales.
First of all, Toyota has been very successful in differentiating on the basis of superior design and quality. This has led to Toyota being able to create a brand image that is very strong and one that brings to mind quality, long lasting cars when a potential customer sees it. The strength of Toyota’s brand image has been seen in recent years with the recalls and problems Toyota faced in dealing with these recalls. Toyota was able to survive these problems because they had such a long and proven track record of quality and superior. Another, area that Toyota differentiates is in technology. Toyota was the first successful mass produce the hybrid car on the market when it released the Prius in 2003. Being the first to get their hybrid on the market allowed Toyota to gain a large portion of the market share in the area of hybrid
As stated, the Toyota brand has and will continue to maintain a competitive advantage due to the quality of their product. They are able to charge a premium price while still utilizing the differentiation strategy. Their customer service is even superior to others. From a personal experience, I have enjoyed the small things, such as my dealership interactions, especially with Lexus, over a company such as Ford. Although miniscule to some, their kindness, helpfulness, and even additional resources within the waiting area make you proud to be
...high power status, Japan had to have a self-reliant industrial common ground and be able to move all human and material resources (S,195). Through the Shogun Revolution of 1868, the abolition of Feudalism in 1871, the activation of the national army in 1873, and the assembly of parliament in 1889, the political system of Japan became westernized (Q,3). Local Labor and commercial assistance from the United States and Europe allowed Japan’s industry to bloom into a developed, modern, industrial nation (Q,3). As a consequence production surplus, and food shortage followed (Q,3). Because of how much it relied on aid of western powers, Japan’s strategic position became especially weak. In an attempt to break off slightly from the aid of the west Japanese leaders believed that it would be essential for Japan to expand beyond its borders to obtain necessary raw materials.
GM’s objective from this business decision was to learn how Japanese manufacturers are able to manufacture smaller cars with better quality & competitive prices and thus enable GM to enter the Japanese market. For Toyota, this was an opportunity to penetrate the USA market and to gain experience from GM as a market leader.
Fifty years after the end of the second World War, it is easy to look back on the American occupation of Japan and see it as a mild nudge to the left rather than a new beginning for the country. We still see an emperor, even if only as a symbol. Industry, when it was rebuilt, was under much of the same leadership as before the war. Many elements of the traditional lifestyle remained–with less government support and in competition with new variants. The Japanese people remained connected to a culture which was half western and half Japanese. Nevertheless, it is irrefutable that the surrender in 1945 had a major impact on the lives of the Japanese. Political parties, elected by the populous, became a great deal more influential in the government. This changed the dynamics of Japanese industry, even if the zaibatsu were sill the foundation of the economy. Financial success took on a new character; the production of high tech goods for sale to the world’s most developed countries was now a better source of income. The affluence of the upper class was more evenly distributed. On a broader scale, for the first time, America had more influence than European powers. The prevention of the formation of a military put the focus of the government on trade, the United Nations, and the cold war rather than an empire in Asia. Simultaneously, social attitudes and lifestyle were more independent of the government and consumer led.
O'Bryan, Scott. 2009. Growth Idea : Purpose and Prosperity in Postwar Japan. University of Hawaii Press, 2009. eBook Collection (EBSCOhost), EBSCOhost (accessed December 4, 2011).
This method produced and delivered parts to the production line before they needed to be used. It also helped the Toyota Company from going bankrupt to the third most successful automotive dealer in the world behind G.M. and Ford. Ohno visited the United States to learn why they were able to mass produce automotive vehicles. He found out that the American’s had the market that allowed them to create so many vehicles. He went back to Japan and with the help of some associates, and his engineering expertise, he tailor made the Ford production system to fit that of Toyota’s. Coupled with his engineering degree, and his Just-in-Time program, Ohno later became the Vice President of Toyota. After retiring in 1975, he remained an advocate for the Toyota Company. During this time, Ohno wrote books titled, “Toyota Production System”, “Workplace Management”, and “Just-in-Time for Today and Tomorrow.” These books are still read by current and future Industrial Engineers. Today, after his death in 1990, Toyota still used Ohno’s program to help them build their cars more efficient and