Total Quality Management

Toyota

Presented by:
Rajat Tiwari
Richa Vaish
Shipra Singh
MBA (G) Sem II
Sec B
ABS
 Total Quality Management
Total quality implies quality: in all activities by all
people in the organization
TQM empowers an entire organization, from the most
junior employee to the CEO, with the
responsibility of ensuring quality in their processes.
In particular, TQM provides management with the
ability to ensure quality through more streamlined
and effective process-improvement channels
for all stakeholders
for all customers
for all vendors
at all times

 TQM Encompasses

Quality of design
Quality of input materials
Quality of processing
Quality of performance
Quality due to product support

 Deming Cycle

The philosophy of Deming cycle cut down through

theory and present ideas in a simple way, which
could be meaningful right down the worker level,
with an objective to reduce variations
Bench marks for standardization
Programs for implementation
Monitor for deviations
Success factors corrective actions

 Core Concept of TQM

Deming cycle provides core concept of TQM

Deming cycle provides

core concept of TQM

Monitor performance Determine bench marks

Create programs to achieve

targets
 Bench Marking

Bench marks are reference levels for setting

standards.

The best in the world is rated at 100.

An organization is then evaluated in comparison to

the best and a rank is assigned.

The organization then acts to improve to close the gap

in relevant areas.
Traditional Style TQM

Concern: quality
Concern: productivity
Emphasis: profit Emphasis: customer
Inspection : post facto satisfaction
Function: formation of Approach defect
compartments prevention
Suppliers: a liability Function: integration
Operation: employee including suppliers
based Management involved
Short term plans
Long term plans
 Toyotas Quality Policy

We will strive to meet customer's expectations

by providing world-class products and services
through total employee commitment and continuous
improvement.
 Basic Concept of Quality
Assurance
Toyota purchases components from as many as
two hundred suppliers therefore it is difficult to
conduct detailed acceptance inspection. Hence, in
order to secure quality of the components, it relies on
the manufacturing and assembling process of these
components for excellent process capability.

 Toyotas approach to quality

Toyota has achieved a reputation for the production of very
high quality vehicles in all countries around the world.
This has been achieved by an approach to quality control
and quality assurance.

Customer satisfaction is at the heart of all Toyota activities.

In order to satisfy customer needs Toyota includes all
Members in quality control activities.

Toyota quality relies on the flexibility and teamwork of its

Members. Careful selection and continuous structured
training has resulted in a workforce which is multi-
skilled, flexible and highly motivated; committed to
maintaining and improving the Company performance.

 How Toyota Implemented TQM

TQM comprises of four process steps
Focus on Continuous Process Improvement, to make
processes visible, repeatable and measureable.

Focus on intangible effects on processes and ways to

optimize and reduce their effects.

Examining the way the user applies the product, leads

to improvement in the product itself.

Broaden managements concern beyond the immediate

product.
TQM requires that the company maintain this quality
standard in all aspects of its business.
This requires ensuring that things are done right the

first time and that defects and waste are eliminated

from operations.

 14 Toyota-Way Principles
Sec I Long-term philosophy
Principle 1: Base your management decisions on a

long-term philosophy, even at the expense of short-

term financial goals.

Sec II The Right processes will produce the right

results
Principle 2: Create continuous process flow to bring

problem to the surface.

Principle 3: Use pull system to avoid overproduction.

 Principle 4: Level out the workload (heijunka).

(work like a tortoise not the hare.)

Principle 5: Build the culture of stopping to fix

problems to get quality right the first time.

Principle 6: Standardize tasks are the foundation

for continuous improvement and employee
empowerment.

Principle 7: Use visual control so no problems are

hidden.

Principle 8: Use only reliable, thoroughly tested

technology that serves your people and processes.

 Section III Add value to the organization by

developing your people and partners
Principle 9: Grow leaders who thoroughly
understand the work, live the philosophy, and teach it
to others.

Principle 10: Develop exceptional people and

teams who follow your companys philosophy.

Principle 11: Respect your extended network of

partners and suppliers by challenging them and
helping them improve.

 Section IV
Principle 12: Go and see for yourself to
thoroughly understand the situation.

Principle 13: Make decisions slowly by

consensus, thoroughly considering all options,
implement decisions rapidly.

Principle 14: Become a learning organization

through relentless reflection and continuous
improvement (kaizen).

 Toyota Production System

The Toyota Production System is a paradox. On
one hand, every activity, connection, and production
flow in a Toyota factory is rigidly scripted.

Yet at the same time, Toyota's operations are

enormously flexible and responsive to customer
demand.

 4 principles of how Toyota sets up

all its operations
1st rule governs the way workers do their work.

2nd rule, the way they interact with one another.

3rd rule governs how production lines are constructed.

And the 4th rule, how people learn to improve.

Thank You!