TOTAL QUALITY MANAGEMENT

TOTAL QUALITY MANAGEMENTTotal quality management (TQM) consists of organization-wide efforts to install and make permanent a climate in which an organization continuously improves its ability to deliver high-quality products and services to customers. While there is no widely agreed-upon approach, TQM efforts typically draw heavily on the previously-developed tools and techniques of quality control. TQM enjoyed widespread attention during the late 1980s and early 1990s before being overshadowed by ISO 9000.

PRINCIPLE OF TQM        

·   Executive Management – Top management should act as the main driver for TQM and create an                                                           environment that ensures its success.

     Training – Employees should receive regular training on the methods and concepts of quality.

·  Customer Focus – Improvements in quality should improve customer satisfaction.

·  Decision Making – Quality decisions should be made based on measurements.

·  Methodology and Tools – Use of appropriate methodology and tools ensures that non-conformance                                                     incidents are identified, measured and responded to consistently.

· Continuous Improvement – Companies should continuously work towards improving manufacturing and                                                  quality procedures.

· Company Culture – The culture of the company should aim at developing employees ability to work                                             together to improve quality.

·  Employee Involvement – Employees should be encouraged to be pro-active in identifying and addressing                                            quality related problems.

THE COST OF TQM

INTERNAL FAILURE:

·         Waste – Unnecessary work or holding stocks as a result of errors, poor organization or communication.

·         Scrap – Defective product or material that cannot be repaired, used or sold.

·         Rework – Correction of defective material or errors.

·         Failure Analysis – This is required to establish the causes of internal product failure.

EXTERNAL FAILURE:

·         Repairs – Servicing of returned products or at the customer site.

·         Warranty Claims – Items are replaced or services re-performed under warranty.

·         Complaints – All work and costs associated with dealing with customer’s complaints.

·         Returns – Transportation, investigation and handling of returned items.

TOYOTA IMPLICATION OF QUALITY FROM THE HISTORY

Eiji Toyoda was a Japanese industrialist. He was largely responsible for bringing Toyota Motor Corporation to profitability and worldwide prominence during his tenure as president and later, as chairman.

Toyoda studied mechanical engineering at Tokyo Imperial University from 1933 to 1936. During this time his cousin Kiichiro established an automobile plant at the Toyoda Automatic Loom Works in the city of Nagoya in central Japan. Toyoda joined his cousin in the plant at the conclusion of his degree and throughout their lives they shared a deep friendship. In 1938, Kiichiro asked Eiji to oversee construction of a newer factory about 32 km east of Nagoya on the site of a red pine forest in the town of Koromo, later renamed Toyota City. Known as the Honsha ("headquarters") plant, to this day it is considered the "mother factory" for Toyota Motor production facilities worldwide.

Toyoda visited Ford's River Rouge Plant at Dearborn, Michigan during the early 1950s. He was awed by the scale of the facility but dismissive of what he saw as its inefficiencies. Toyota Motor had been in the business of manufacturing cars for 13 years at this stage, and had produced just over 2,500 automobiles. The Ford plant in contrast manufactured 8,000 vehicles a day. Due to this experience, Toyoda decided to adopt US automobile mass production methods but with a qualitative twist.

Toyoda collaborated with Taiichi Ohno, a veteran loom machinist, to develop core concepts of what later became known as the 'Toyota Way', such as the Kanban system of labeling parts used on assembly lines, which was an early precursor to bar codes. They also fine-tuned the concept of Kaizen, a process of incremental but constant improvements designed to cut production and labor costs while boosting overall quality.

As a managing director of Toyota Motor, Toyoda failed in his first attempt to crack the U.S. market with the underpowered Toyota Crown sedan in the 1950s, but he succeeded with the Toyota Corolla compact in 1968, a year after taking over as president of the company.During the car's development phase, Toyoda, as executive vice-president, had to overcome the objections of then-president Fukio Nakagawa to install a newly developed 1.0-liter engine, air conditioning and automatic transmissions in the Corolla.

Appointed the fifth president of Toyota Motor, Toyoda went on to become the company's longest serving chief executive thus far. In 1981, he stepped down as president and assumed the title of chairman. He was succeeded as president by Shoichiro Toyoda. In 1983, as chairman, Eiji decided to compete in the luxury car market, which culminated in the 1989 introduction of Lexus. Toyoda stepped down as chairman of Toyota in 1994 at the age of 81.