ETM 419 Toyota Total Quality Management By Mark

ETM 419 Toyota Total Quality Management By: Mark Jent, Todd Patrick, Matthew Scott Pfau, Justin Brian Phipps.

Table of contents Introduction of Toyota pg. 4 Definition of total quality management pg. 5 14 principles for management pgs. 6 & 7 Toyota strengths and weaknesses pg. 8 Threats Toyota faces pg. 9 Toyota just in lean time pg. 10 Toyota's Total Quality System pg. 11 Quality awards that Toyota has won pg. 12 Pareto chart pg. 13 Control chart pg. 14 Failure Modes and Effects Analysis (FMEA) pg. 15 Statistical Data Analysis pg. 16 Run Charts pg. 17 Scatter Diagrams pg. 18 Toyota's Six Sigma Performance pg. 19 Conclusion pg. 20 Works Cited pg. 21

What we will be covering over Toyota Identify their mission and vision statements, their core values, goals, etc. Describe the type of Quality System (ISO 9000, Six Sigma, etc. ). Highlight any Quality Award(s) that the organization has won. Arrange meeting(s) with the company/organization to learn about how they implement TQM, to what extent they have implemented it, etc. (The meetings can be in person, by phone, or electronic means). Ask about their opinions on Continuous Improvement (Kaizen) and/or Just-In-Time/Lean Systems (Kanban). Outline how the organization utilizes Problem Solving Tools, such as Pareto Charts, Cause-and-Effect Diagrams, Gantt Charts, Quality Function Deployment (QFD), etc. , . Briefly describe how the organization utilizes Failure Modes and Effects Analysis (FMEA). Collect as much SPC data as possible which you can use in developing charts such as Pareto Charts, Run Charts, Scatter Diagrams, Control Charts, Process Capability, etc. o Analyze all the charts. Based on the data and the charts developed analyses, assess the organization’s Quality/Six Sigma performance Make appropriate recommendations to enhance the organization’s TQM practices.

Introduction of Toyota’s largest vehicle manufacturing plant in North America, Toyota Motor Manufacturing, Kentucky, Inc. (Toyota Kentucky) produced the first Americanmade Camry in 1988. Nearly 10 million vehicles have rolled off Toyota’s assembly line in Georgetown, where full-time employment is around 7, 000 people and investment tops $5. 9 billion. In addition to the Camry, America’s best-selling car, Toyota Kentucky manufactures the Camry Hybrid, Avalon Hybrid and Venza, and four-cylinder and V 6 engines. Beginning late 2015, the plant will begin production of the first U. S. -assembled Lexus, adding 50, 000 vehicles to its current annual capacity of 500, 000 (engine production capacity: 600, 000).

Definition of total quality management. a system of management based on the principle that every staff member must be committed to maintaining high standards of work in every aspect of a company's operations. A management psychology that seeks to integrate all organizational functions such as marketing, finance, design, engineering, production, customer’s satisfaction et al. to focus on meeting customer needs and organizational objectives.

Total quality management has 14 principles for management. 1. Create constancy of purpose 2. Adopt a new philosophy of cooperation 3. Cease dependence on mass inspection to achieve quality 4. End the practice of awarding business 5. Improve constantly, and forever 6. Institute training 7. Adopt and institute leadership for the management of people, 8. Drive out fear and build trust

Total quality management has 14 principles for management. Contd. 9. Break down barriers between departments. 10. Eliminate slogans, exhortations, and targets asking for zero defects or new levels of productivity 11. Eliminate numerical goals, numerical quotas and management by objectives 12. Remove barriers that rob people of joy in their work 13. Institute a vigorous program of education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation. Companies use these principals to better themselves and to help employees to become A part of a fully functional group that is constantly growing and learning.

Toyota strengths and weaknesses. Strength of Toyota The organization through careful segmentation, Targeting and positioning offers the right product mix to the market. Toyota is highly efficient in its manufacturing which uses total quality management. Toyota has a strong brand name which is a house hold brand name all around the world. Weakness of Toyota is excessively focused on US and Japanese markets. Thus suffers from fluctuating economic and political conditions of these countries. Toyota has few layers in its hierarchy and as a result there are few opportunities for promotions. Heavy emphasize on techniques such as kaizen has led to higher level of stress among workers.

Toyota facing threats. Threats Global recession has drastically affected the performance of the global auto industry. Rising gas prices due to the OPEC decision of price hike is a severe damage. In 200, 2010 the product recall of Toyota was estimated to be million units. This can have adverse effects the organizations reputation. Toyota faces strong competition from rivals. New entrants from China, South Korea and India are growing rapidly.

Toyota just in lean time. The idea behind just in time is manufacturing the required amounts in required numbers at the required time. For instance, the assembly line of a car arrives all the sub assembly lines should reach the main assembly line in right quantities. This will eliminate the need for inventories thus removing the requirement for warehouses and storage facilities. As a result, the inventory cost will be drastically reduced giving a higher capital turn out to the company. No sooner an order is received for a vehicle the instructions as well as specifications of the vehicle reach the start of the production line. The assembly line is stored with sufficient parts and components to enable the plant to assemble any kind of vehicle model without any delays. The assembly line must replace the parts used by retrieving the same number of parts from the parts-producing process. The preceding process should store a small number of all types of parts to manufacture only the numbers of parts that were retrieved by an operator from the next process. Although it proves to be a success of following JIT method it is a complicated exercise at Toyota as its business involves hundreds of spare parts and components.

Toyota Quality System The Toyota Way is a set of principles and behaviors that underlie the Toyota Motor Corporation's managerial approach and production system. Toyota first summed up its philosophy, values and manufacturing ideals in 2001, calling it "The Toyota Way 2001". It consists of principles in two key areas: continuous improvement, and respect for people.

Quality Awards that Toyota has won. RAV 4 Top of the class for car seat installation. America’s best selling car still most American made. MIT technology review names Toyota among world’s 50 smartest companies. Toyota receives Hispanic federation’s corporate leadership award in New York city.

Pareto chart A Pareto chart is generally used to analyze data, most commonly a frequency or cost. The measurement of the data collected is generally over a work cycle, full day, or week. After the data is added to the Pareto chart it is then easy to sort though the many problems recorded to focus on the most significant. Toyota uses Pareto charts to determine which problems are the most prevalent and whether the Pareto principle applies to any of their operations. A big advantage for Toyota using a Pareto chart is the speed and simplicity of the chart amongst the many people that will observe it. It’s not filled with clutter, the highest recorded issues will be on the left, lower on the right, and is all factored into a 0 -100% scale to easily tell the significance of the issue.

Control charts are a indicator of six sigma projects, and are based on statistical process control principles. They shows set of data, usually over time, with statistical control limits drawn in. Toyota monitors the process stability of the products produced on the assemble lines by the use of control charts. A process is considered in control when it can be predicted to fall between the upper and lower control limits of past data. Using this type of charts allows the team to unsure time is not being wasted monitoring unrealistic problems, therefore allowing more focus on warranted issues.

Failure Modes and Effects Analysis (FMEA) FMEA is a step by step system that is utilized to identify all potential failures in a process, product, or service. Toyota vastly takes advantage of this analysis by using it on their assembly lines. With the automotive industry being an ever changing design, Toyota can quickly know what failures to expect when an assembly line is altered to form a new or adjusted product. By knowing what failures to expect the engineers can then determine the severity or each failure, and identify what measures should be taken to prepare or alter the process.

Statistical data analysis Often DMAIC (an acronym for Define, Measure, Analyze, Improve and Control) projects require the use of advanced statistical techniques such as analysis of variance. Data analysis for Toyota typically happens during the measure phase while analyzing detailed data about the process and problem.

Run charts Toyota use’s run charts to collect and chart data over time. Reason why Toyota use’s run chart is to find trends or patterns in a process. But Run charts do not use control limits, run charts cannot tell you if a process is stable. But Run charts do show you how the process is running. The run chart can be a valuable tool at the beginning of a project, as it reveals important information about a process before you have collected enough data to create reliable control limits. Here is a Run chart example.

Scatter Diagrams When does Toyota Use a Scatter Diagram. Toyota use’s scatter diagrams when their dealing with numerical data and dependent variables. The reason they plot these data or variables in the scatter diagrams is to see if they are losing profit or gaining profit or the production line is not moving as fast as last year. You can collect all the data from different sources to see how you gain profit or how you lost speed on the production line.

Toyota’s Six sigma performance Six sigma seeks to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing business processes. Toyota invented "lean production. It's also known as the Toyota Production System or TPS for short. Toyota's figured out when you make lead times short and focus on keeping production lines flexible, you actually get better quality, responsiveness, productivity, and utilization of equipment and space. Some of Toyotas core beliefs: The right process will produce the right results. Developing and improving your people and partners adds value. Continuously solving root problems drives organizational learning.

Conclusion Total Quality Management plays a big role in the operations of the Toyota Company. Toyota has been a pioneer in lean manufacturing and has always strived to be the best they can be. Continuous improvement and respect of their employees has got them to where they are today and they will remain a large player in the automotive industry as long as they stick to their core values. Hopefully this report has given an insight into the operations of Toyota and also has given an application to the topics that have been discussed in this class.

Work Cited http: //toyotaky. com/boutdex. asp https: //www. qimacros. com/lean-six-sigma-articles/lean-six-sigma/ http: //asq. org/learn-about-quality/cause-analysistools/overview/scatter. html