Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. This management approached originated in the 1950’s and become more popular since the early 1980’s is a description of the culture and attitude inside the organization that let provide customers with products and services that satisfy their needs. It needs quality in all aspects of the company’s operations, with processes being done right the first time and defects and waste eradicated from operations.
The aim of the combination of quality and management is increasing business and reducing losses due to wasteful practices to low cost. This method has been applied by very well known recognised corporations but one of the most successful is Toyota Motor Corporation which has been voted the global most admired motor vehicle company by the Fortune magazine in 2005 and 2006 and ranking first in the industry for quality, social responsibility and global care.
The company was voted the 2nd most admired global company overall. The current report paper was meant to give an in depth look at the Toyota Quality Management implementation and the very well recognized Toyota Production System and its effects on the automotive industry. The revolutionary ideas and concepts created by Tashiido Ohno at Toyota have been used in many other organizations and industries throughout the world.
Value as Toyota has set the standard for the rest of the auto industry to follow. Toyota – General Overview Name of Company: Toyota Motor Corporation Head Office: 1 Toyota-Cho, Toyota City, Aichi Prefecture 471-8571, Japan Toyota Motor Corporation (TMC) is one of the global leading manufacturing companies with nearly 70 years in the market and has become the world’s third largest vehicle manufacturer with a wide range of models and high technology.
Toyota was founded in 1919 and the first motorcar was built in 1936. It owns 12 plants in Japan and other manufacturing subsidiaries and as a truly global business, Toyota has built up 52 manufacturing companies in 26 different countries around the world Toyota’s market capitalization is more than ? 50 billion, more than the value of General Motors, Ford and Daimler Chrysler put together. Total Quality Management in Toyota Toyota Motor Corporation introduced total quality control or TQC in 1961.
Fours years later, the company was awarded the Deming Application Prize for their efforts and continued with this award 40 years since then due to Quality Circles activities started in 1964. TQM’s primary aims at Toyota are improving the quality of work and supporting people working for the company. They apply three principles for these aims: putting the customer first, continuous kaizen (improvement), and 100% participation. Toyota has been awarded with different prizes every year worldwide and actually has ISO 9001 and ISO 14,001, about quality and environmental excellences respectively.
1- Customer Satisfaction Customers Toyota customers are the most important for the company and is full orientated in customer satisfaction. In order to provide and excellent service has been ensured that all its customers receive the best level of service and have easily access to communicate any queries. Toyota’s Customer Relations Department across the world is responsible for assisting customers with their questions, concerns, and experiences and for maintaining a positive relationship.
The communication with customers includes telephone, e-mail, fax, mail, or in person. It is integrated by a professional, friendly, and qualified team assisting every question or enquiries making the customer experience very pleasant. Toyota understands that the feedback of the customers is very important for improving the service provided. In USA, according the survey of J. D Power Association, Toyota is the number one in customer loyalty for 2007 with 68. 7% of customers buying another Toyota car.