'Quality Management-Toyota Essay\r'

'This composing explores multiple published names discussing Toyota get confederation’s strengths, impuissancees, opportunities and threats. A limited review of Toyota’s decisions to hide big information prior to sequesters leads us to a discussion of where Toyota abide go from here. The paper implys recommendations for Toyota motor association in order to movement forward after their 2010 reelects.\r\nIn asset, organisational stirs bequeath assist Toyota locomote keep company in overcoming their recall conundrums. graphic symbol anxiety 3 grapheme caution within Toyota Motor order After a come of discouraging recalls at Toyota Motor gild in 2010, a effect of timberland concern techniques were implemented. Toyota Motor partnership’s work up abstract played into the in the rawly implemented smell forethought techniques.\r\nToyota’s strengths allowed them to fight back quickly against these recalls that could eat ultimatel y led to Toyota’s fall from integrity of the snuff it motor company’s. Toyota Motor friendship’s strengths acknowledge dominant stance in the market place placeplace, self-coloured shit credit, strong guidance on research and development, and broad overlapion and distribution mesh. In addition to Toyota’s strengths, their weaknesses were reviewed in order to arrive opportunities to capitalize upon.\r\nThe recalls were obviously a large weakness at Toyota. Opportunities were reviewed which included the growth of the international self-propelling fabrication. Last, Toyota’s threats were reviewed. Here it was ensn be that powerful competition is a worry for Toyota Motor Company. After the review of Toyota Motor Company’s SWOT analysis, the gross sales show up permit of the recalls was assessed. outline shows the issue within Toyota Motor Company did not appear overnight. However, secretive direction styles let the company astray. A draw was created by utilitarian argona to summarize how Toyota has responded to these recall problems.\r\nThe functional areas reviewed include focussing, production design and preventative, quality, and manufacturing. Last, the analysis of Toyota Motor Company’s recall and quality management issues are discussed from a point of solving the problem. Recommendations are discussed that allow help Toyota Motor Company to turn their weaknesses into strengths. type forethought 4 Method backchat SWOT Analysis Internal Factors Strengths Weaknesses point of intersection • Dominant position in the marketplace • Strong brand recognition • Strong focus on Research & angstrom unitere; Development • Broad production and distribution profit.\r\n• Product recalls fork out the ability to negatively affect brand image • Declining sales in crucial geographic areas External Factors Opportunities Threats Competition • Growth of the global self-propelled industry • Potential acquire from partnering with BMW •The outlook for the natural global car market is strong • goodly competition • Appreciation of the Japanese Yen • environmental regulations •Natural disasters Strengths. Toyota has a number of internal product strengths as noted in the SWOT Analysis table above. Toyota’s market share in 2011 was 16. 5 percent, its highest market share in 4 old age.\r\nThis strong market share allowed Toyota to hold a competitive advantage against their competition. In addition to memory a dominant position in the marketplace, Toyota possesses strong brand recognition through a number of brands. These brands include Toyota, Lexus, Prius, Corolla, Yaris, Camry, Sequoia, 4Runner, Scion tC, Highlander, Land Cruiser, and a number of different brand names. These brands are some of the most desired premium brands in the world according to the Company Profile report for Toyota M otor Company enter by MarketLine. QUALITY care 5 other strength of Toyota is their strong attention to research and development.\r\n match to the Company Profile report, Toyota’s focus on research and development is pointed towards the creation of new(a) and modify products. Research and development operations are conducted at 14 facilities located around the world. This strength has allowed Toyota to augment the technology included in existing products. whiz of these products, a Pre-collision System (PCS) helps drivers avoid collisions. Overall, the strong focus on research and development has been a large-scale strength for Toyota. Last, Toyota’s production and distribution internet has been a big strength for the company.\r\nToyota produces automobiles, related parts, and other components through to a gravider extent than 50 manufacturing companies throughout 27 countries and regions, not including Japan. As mentioned on the Toyota Motor Company website, m ajor locations include Japan, the unify States, Canada, the United Kingdom, France, Turkey, Thailand, China, Taiwan, India, Indonesia, federation Africa, Australia, Argentina, and Brazil. As reported by Toyota Motor Company, during monetary year 2013 the company had consolidated fomite sales totals of 8. 871 million units (TCM, 2013). As reported by Toyota Motor Company, this was an increase of 1.\r\n519 million units compared to the previous fiscal year. In addition to the widespread production of Toyota products, the company has a large distribution ne twainrk. Toyota’s distribution network is one of the largest in Japan encompassing foursome sales channels (Toyota, Toyopet, Corolla, and Netz). In 2012 the distribution network of these channels was comprised of 283 dealers. In addition to this network, Toyota operates over one hundred seventy Lexus sales channels in Japan. QUALITY precaution 6 As reported by Toyota Motor Company, in fiscal year 2013 these networks acco unted for the following vehicle sales: •JAPAN gross sales agreeED 2.\r\n279 one million million UNITS •IN NORTH AMERICA fomite SALES TOTALED 2. 469 MILLION UNITS •IN EUROPE VEHICLE SALES TOTALED 799,085 UNITS •ASIA CAME IN AT TOTAL VEHICLE SALES OF 1. 684 MILLION UNITS •CENTRAL AND sec AMERICA, OCEANIA AND AFRICA CAME IN AT 1. 640 MILLION UNITS As you can see, Toyota’s distribution network is widespread allowing for diversification and a wide reach of clientele, ultimately boosting revenues and sales. Weaknesses. A large focus of the case study focuses on the weakness of Toyota’s product recalls. As numerous are aware, Toyota has encountered a number of recalls in the upstart past.\r\nIt is a concern that these recalls could negatively affect Toyota’s brand imagine ultimately leading to diminish sales for the company. When searching for Toyota recalls it was easy to find a few recent recalls. The most recent is a recall of 7 00,000 Toyota Prius models which were recalled over electronic issues in the United States (csmonitor. com, 2014). Another very recent recall includes received versions of the Lexus RX crossover. In this case, more than 261,000 vehicles are being recalled collectable to a brake issue (csmonitor. com, 2014). In addition to the many recalls, Toyota has been involved in a number of law grammatical cases.\r\nIn December 2012, Toyota make up ones mindd a suit by paying $17. 4 million to the topic Highway Traffic galosh Administration to settle claims related to the June 2012 recall of potential accelerator cycle entrapment issues. This fearful press entrusting ultimately number in a negative effect on consumer’s confidence in Toyota’s brand. In addition, the settlement of suits ultimately decreases Toyota’s QUALITY MANAGEMENT 7 profits. As a result of this bad press Toyota saw a decline in 2012 sales in principal(prenominal) geographic areas. Declining sal es in fiscal year 2012 were seen across pairing America, Asia, and Europe. Opportunities.\r\nAs reported by the article, Global automotive industry to experience lowly growth in 2012, a number of opportunities exist in the global automotive industry (2012). The Japanese auto industry responded from natural disasters which had caused reduced inventories and production. It is forecasted that the industry will pass on to grow increasing Toyota revenues. In June of 2012, BMW and Toyota signed a long-term partnership. The two companies are partnering on the developments that will help to increase market share and sales.\r\nThis descent is expected to increase technology between the two companies as well as result in new product development. In addition to these opportunities, the new car market is experiencing moderate growth which will assist in increased sales and profits. Threats. terrific competition in the worldwide car market has engender very competitive. This competition wi ll potential increase in the upcoming years as competitors add more technology and increase developments. In addition to the intense competition, the appreciating Japanese Yen has become a big concern for Toyota.\r\nLast, environment regulations chip in the potential to increase production costs. Emissions regulations that are updated periodically could cause issues in new car production. Evolvement of prime(a) counsel Issues At first glance, it seems that Toyota’s splatter pedal issue appeared overnight. However, upon further research, evidence was found to prove the opposite.\r\nAs reported in the article stuffy Culture Let Toyota Astray, evidence that Toyota cars could shortly speed up had been piling up for years (2010). At the time of the recalls, Toyota had known about this particle accelerator QUALITY MANAGEMENT 8 pedal problem for more than a year. The problem was stated to be Toyota’s secretive corporate last in Japan which ultimately conflicted with U nited States requirements that auto makers key out safety threats.\r\nNew initiatives brought to the table by Toyota perk up attempted to correct the previous secretive culture of Toyota. Total quality management initiatives have been launch in place to assist in fracture customer service and safety and repair issues. correspond to Jacobs and Chase, total quality management can be defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer (Chase and Jacobs, 2014, p. 296). The table following this discussion addresses the travel Toyota has taken in response to its recent quality recall problems.\r\nFunctional Area Quality Management Steps Management • Managing Director names to wangle any safety-related issues • Top down management advent Product Design & deoxyadenosine monophosphate; Safety • Troubleshooting teams known as Swift Market Analysis Response Teams work to find any s afety issues that need to be reported Quality • TAQIC †Toyota modernistic Quality Information Center staffed by a group of employees who compile repair reports from dealerships worldwide • molar concentration engineers hired to spot-check quality Manufacturing • No forceful changes to assembly lines QUALITY MANAGEMENT 9 Results/Discussion Problem Solution As discussed in the diagram above, there were many opportunities for Toyota after their encounter with the recall situation.\r\nAkio Toyoda, the head of the company, acted quickly by implementing a top down management approach instead of the more popular Japanese â€Å"bottom up” approach that slows down the decision making. In addition, Akio cut tabular array of directors by fifty percent and cut out management layers. Akio withal began meeting with his top quintet advisers on a weekly basis. In these meetings decisions were do quickly. Akio pushed his team to make â€Å"always better cars.\r\ n” This change in the way the organization is managed helped Toyota to stay on top even through the recalls. Recommendations Many recommendations have been made to assist Toyota Motor Company in improving the recall situation they encountered in 2011. nearly recommendations Toyota should follow include as recommended by the join American Quality Advisory Panel include the following: •GIVE NORTH AMERICAN operations MORE INDEPENDENCE IN MAKING swallow DECISIONS •STRENGTHEN QUALITY CONTROL PROCESSES •EXTEND knowledge TIME OF NEW PRODUCTS TO INCLUDE MORE resort TESTS •CREATE A ROLE OF CHIEF pencil eraser TECHNOLOGY OFFICER.\r\n•CREATE AND LAUNCH A natural rubber RESEARCH CENTER FOCUSED ON defend THE MOST IMPORTANT clientele (children, teens, and seniors) QUALITY MANAGEMENT 10 These ideas follow the concept of total quality management which focuses on two fundamental goals: • thoughtful foundation OF THE PRODUCT (IN THE CASE OF TOYOTA MO TOR COMPANY, THE VEHICLE) • contain THAT TOYOTA MOTOR COMPANY SYSTEMS CAN PRODUCE THIS DESIGN IN A CONSISTENT manner Quality at the source seems to be a great way for Toyota Motor Company to proceed.\r\nQuality at the source means that the person who is doing the work is pickings the responsibility for making sure the work meets specifications. As previously discussed, safety control will be a huge initiative for Toyota Motor Company going forward. If implemented, these recommendations can do a ring to help Toyota Motor Company increase their organisational effectiveness.\r\nAs previously discussed, many organizational go were taken by Akio Toyoda after these recalls. It seems that Toyota could greatly benefit from organizational learning. As stated by operations and Supply Chain Management, â€Å"it has been argued that organizational learning is fine to sustaining a competitive advantage” (Chase and Jacobs, 2014, p. 138).\r\nOrganizational realignment was important to Toyota Motor Company after the 2010 and 2011 recalls. According to a Toyota news release in December of 2008 organizational changes include the establishment of the below: QUALITY MANAGEMENT 11 •A GOVERNMENT AND PUBLIC personal matters GROUP WHICH WAS FOCUSED ON QUICK rejoinder TO inquiries from around the world while also consolidative public affairs functions.\r\n•AN ACCOUNTING GROUP AIMED AT STRENGTHENING THE BUSINESS MANAGEMENT AND FINANCIAL management system of Toyota Motor Company. •A EUROPE AND AFRICA operations GROUP INTENDED TO ASSIST WITH BUSINESS training IN African and Central Asia.\r\nThe group was also established to conduct business promotion events in both Europe and Africa. •A PRODUCTION design GROUP AIMED AT INCREASING THE STRENGTH OF THE QUALITY control system for semiconductors for hybrid vehicles. The recommendations made are important to Toyota’s future.\r\nReorganization and creation of new groups within the organization will help Toyota to subordinate these recalls. QUALITY MANAGEMENT 12 References Ingram, A. (2014, Feb 12). Toyota recall: 1. 9 million Prius vehicles recalled to fix software glitch. Retrieved from http://www. csmonitor. com/Business/In-Gear/2014/0212/Toyota-recall-1. 9-million-Prius-vehicles-recalled-to-fix-software-glitch Jacobs, F. R. , & adenosine monophosphate; Chase, R. (2014). Operations and supply chain management. (14 ed. ). New York, NY: McGraw-Hill/Irwin. Lassa, T. (Feb, 2012). U. s. market share for the top five automakers.\r\nRetrieved from http://www. motortrend. com/features/auto_news/2011/1202_u_s_markets_share_for_the_ top_five_automakers/ Linebaugh, K. , Searcey , D. , & Shirouzu, N. (Feb, 2010 08). Secretive culture led toyota astray. Retrieved from http://online. wsj. com/news/articles/SB10001424052748704820904575055733096312238 ? mod=WSJ_hpp_LEADNewsCollection&mg=reno64-wsj&url=http://online. wsj. com/artic le/SB100014240527487048209045750557330963 12238. hypertext markup language? mod=WSJ_hpp_LEADNewsCollection Marketline. (2013, Jan). Toyota motor corporation swot analysis.\r\nRetrieved from http://web. a. ebscohost. com. library3. webster. edu/ehost/ level? vid=4&sid=6ef29150-7574-461b-8281-afd6e7a8edf6@sessionmgr4001&hid=4212&bdat a=JnNpdGU9ZWhvc3QtbGl2ZQ== Ridley , G. (2012, Jan 06). Global automotive industry to experience modest growth in 2012. Retrieved from QUALITY MANAGEMENT 13 http://www. ey. com/GL/en/Newsroom/News-releases/Global-automotive-industry-to-exp erience-modest-growth-in-2012 Taylor, A. (2012, Feb 27). Toyota’s comeback kid.\r\nFortune, 165(3), 72-79. Retrieved from http://web. b. ebscohost. com. library3. webster. edu/ehost/detail? sid=51dc3e8b-84d1-4dcd-85bf-3342162ffef8@sessionmgr110&vid=1&hid=126&bdata= JnNpdGU9ZWhvc3QtbGl2ZQ TMC. (2013, may 08). TMC announces year-end financial results for fiscal year ended edge 31, 2013. Retrieved from http://www2. toyota. co. jp/en /news/13/05/0508_1. html Voss, M. (2011, May 23). Toyota receives recommendations from northwestward american quality advisory panel. Retrieved from http://corporatenews. pressroom. toyota. com/releases/toyota receives recommendations north american quality advisory panel. htm.\r\n'