Total Quality Management Toyota

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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 processimprovement channels for all stakeholders for all customers for all vendors at all times

GOAL Total customer satisfaction

STRATEGY Do the right thing, right the first time, and every time

TQM

Objective
To create a culture of continuous improvement for zero defect, zero loss, and zero accident

TQM

FOUR PILLERS OF TQM

Satisfying Customers

Improveme nt tools

Systems / Process

People

TQM

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.

TQM

Wednesday, August 06, 2010

Example of Kaizen: poor mans approach

TQM

Traditional Style
Concern: productivity Emphasis: profit Inspection : post facto Function: formation of compartments Suppliers: a liability Operation: employee based Short term plans

TQM
Concern: quality Emphasis: customer satisfaction Approach defect prevention Function: integration including suppliers Management involved 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 shortterm 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 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 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

TQM