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Toyota case study By Brian Monaghan

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Brian Monaghan

on 18 October 2013

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Transcript of Toyota case study By Brian Monaghan

TOYOTA About TOYOTA TPS CASE STUDY TOYOTA 2010 crises conclusion Agenda in Time line TQM Stages of Toyota Quality control problem, big recall 2009 People control strategy Labor market crisis and
Asset crisis export to US
was not successful 1992 Started to develop oversea market in 3 major market North American, Europe and Japan "Quality rewards" TPS 1975 1930 Toyota Founder Recommandation Benefit reduce all wast using lean
The cost reduction
Rely on suppliers
High risk to default if no enough inventory and suppliers not reliable
Change of quality of supplier
Oversea suppliers may have different quality standard problem & Benifits Build long-term relationship with CEOs of main suppliers
regular meeting
provide strategic and financial support
purchase shares and get control

Insure quality
-Have regular quality check with suppliers and improve your team
- eliminate all wast & ask 5 Why's Recommendation Cost saving
Flexibility Respect for people
Efficient problem solved People controlled automation Continuous Improvement Benefit High pressure & Death Insufficient working hours &
heavy repeat work problem limiting overall working hour

Build a culture with improved communication, more sports activities.
-improved communication with managers
-cycling, win testing and football Recommendations Benefits
Quickly rebuild its TPS and Zero defects using 5S
Toyota is most valued and credible car company in the world
The big recall may happen again if the company begin to achieve cost leadership strategy problems and Benifits Quality Control Continuous Improvement System and Automation Just-in-time Toyota Standard Sedan Model AA announced in 1936 1896 Model AA
1934 Establish the TPS & TQM in 1960s and 1970s http://prezi.com/bbhmxjxbmn6v/edit/#1 KIZEN TOYOTA QUALITY AWARDS Toyota is a leading global Japanese automotive manufacturing company.

Toyota provide a good quality products where the demand exist” for the benefit of customer, employee & products

The company's approach to both product development and distribution is environment-friendly & market-driven. Tiichi Ohno 1955—1960 leader (TQM). quality is more than product.also
after-sales service,
management quality ,
company ,and
human life. Kaoru Ishikawa Toyota was awarded its first Japanese Quality Control Award 1970 Deming , Juran visited Japan,
(CWQC) movement started to develop. Japan products were known worldwide for high quality and reliability. 1980s 2008 adaptation of (ISO) serial by 91 nations
Many companies will not buy from you unless you are ISO 9001 certified. Specific rules and objectives -administrative (cost reduction)
-social control (Leadership,Led by managers and board of directors) Specific rules and objectives -Administrative control (procedures, rules)
-social control (Leadership,Led by managers and board of directors) TQM summary 4P for Toyota Way
KAIZEN Jidoka 1950 JIT & kanban Japanese products were perceived worldwide as being very inexpensive, but with poor quality Eiji Toyoda Always try to remember Toyota Way of work and try to apply it in everything u do. “It is not the strongest nor the most intelligent of the species that survives, but the one that is most adaptable to change”
-Charles Darwin- 14 TQM princible ishikawa Administrative control
Give and reaffirm its requirements and high standards of quality control
- issue new brochure to direct activities
- clear penalties for improper activities

Social control
Encourage employees to participate into the whole quality control system TOYOTA & ISO 9001 The decision to pursue ISO9000 in the absence of a mandate to do so is an important one.
Automobile manufacturers do not fall into the category of "required to register".
The engine plant at Toyota looked carefully at the value produced by pursuit of / registration to ISO9000 and found it added little value 'for them'.
Toyota as a whole has a mature, robust approach to Quality Management - one which includes the requirements of ISO9001:94 and the recommendations of ISO9004:94.
Since pursuit of registration would not likely improve their competitive position, nor would it enhance either bottom or top line performance, their choice was entirely appropriate.
Mindless pursuit of anything is a waste of resources. Toyota did their homework - including an aggressive pilot, and made a choice.
We should all be as smart..... Toyota Japan rejects ISO 9000

My thanks to Takaji Nishizawa, a leading industrial consultant in Japan,
for this item:

The following was reported in Nikkei Business. Nikkei Business is published
weekly and one of the most popular business journals in Japan.

In October of 1999 it featured a three-week series about ISO 9000 problems in
Japan. In the articles it said that Toyota decided not to get ISO9000
because it saw no value in terms of quality and thus saw no need to register.

The decision had been made after the Shimoyama factory, which is an engine
plant, had registered to ISO9001. When introducing new things, Toyota's
philosophy is to test actually before installation rather than discuss on
the desk. The Shimoyama factory had been selected as a test plant.

And after the test, Toyota concluded there was no value in ISO9000


No surprise there! Our advice remains the same: do not register to ISO
Takaji Nishizawa also said that the ISO 9000 assessors are charging
high fees in Japan - reflecting the seller's market. Why do Japanese
companies register? Same as for all other countries: market-place coercion. Group 4
Edel Feeley
Karen Mc Donald
Brian Monaghan
Brian Kelly
Gary Connaughton
Full transcript