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Content
 Introduction
 Scope
 Abstract
 Production system
 Roots of production system
 Toyota approach to quality assurance
 Toyota total quality management
 Design quality
 Product quality
 Assurance quality
 Problem faced by the company
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 Solution
Recommendation
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 Conclusion
 Reference
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Introduction
Toyota Motor Corporation (TM) is one of the
world’ s largest automaker. It was established in
1937 Japanese auto industry developer. The
company’s name originated from the family name of
its founder, Kiichiro Toyoda. He was the son of a
successful businessman who developed an automatic
manufacturing company in Japan. Toyota Motor
Corporation, commonly known simply as Toyota and abbreviated as TMC, is a multinational
corporation headquartered in Japan. Toyota started in 1933 as a division of Toyoda Automatic
Loom Works devoted to the production of automobiles under the direction of the founder's
son, Kiichiro Toyoda. Its first vehicles were the A1 passenger car and the G1 in 1935. Toyota
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Motor Corporation was established as an independent company in 1937. TMC is part of the
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Toyota Group, one of the largest conglomerates in the world.
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Toyota Motor Corporation’s headquarters is located in Aichi Prefecture, Japan. The company
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has seen many ups and downs in its 80year of history. The company arrived in market with
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the first export of Japanese passenger cars to the United States. Company manufactures and
sells vehicles and spare parts internationally. At this time, the company operates its business
worldwide with 53 manufacturing companies in 28 countries and regions. The company’s
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vehicles are sold in more than 170 states and regions. Toyota had a global market share of
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11.0%, higher than General Motors’s 10.8% market share in 2015. Toyota was the first
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automobile manufacturer to produce more than 10 million vehicles per year and it is also
reported the production of 200-millionth vehicle. The production has reached almost nine
million units in year ended March 31, 2019.
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Scope
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Abstract
The principles of the Toyota Production System (TPS), or Lean manufacturing, are well
known in the auto manufacturing industry. Many companies, utilizing aspects of the TPS
focus on creating higher quality products and, at the same time, less waste in ever
increasingly competitive global markets. Since the advent of Six Sigma programs, many
companies have identified themselves as being a Lean manufacturer or a Six Sigma company,
and in some cases both. This study explores the root of the TPS and how they assure the
quality of the product design and customer satisfaction. Finally, a proposed behavioral
management model for understanding the layers of tools and actions necessary to deploy a
comprehensive TPS-style manufacturing enterprise is presented. The results of this research
reveal that Total Quality Management and Lean Manufacturing have much in common.
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Based on Lean strategies, Total Quality Management, similar to numerous improvement
approaches, can be a tool to support and create synergy for inducing a more competitive
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market among companies.
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Toyota Production System
In the 1930, Toyota Motor Corporation was making trucks by hamming body panels and the
quality was very poor. It was an early struggling phase for Toyota. Toyota leaders ford tested
the system, machine tools, and the economics of scale ideas. They found Ford was almost
10 times in the 1930s. Toyoda had found too many problems in the U.S. production systems.
They observed that the large quantity of products were stored in inventories and they saw
during their visit. After returning back to Japan, Eiji Toyoda gave Taiichi Ohno, a plant
manager of the time an assignment to better production system of Toyota and the production
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of Ford. He rapidly analyze that Japanese automobile workers were working as hard as their
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American workers. The inefficiency in the process were the major weaknesses which were
causing differences in production of Toyota more productive than Toyota. After that in 1950,
Eiji Toyoda (a cousin of Kiichiro Toyoda) and his managers were expecting to manufacturing
process of the US automakers during his second visit to the US for the purpose of knowledge
and good manufacturing from the major US auto makers. Managers are surprised that the
process hadn’t change since their first visit.
Toyota Production System House with Elements
Toyota Motor Corporation's vehicle production system is a way of making things that
is a "lean manufacturing system," or a "Just-in-Time (JIT) system," and has come to be well
known and studied worldwide. The production control system was based on many years of
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continuous improvements and with the objective of making the vehicles order by customers
in the quick and most efficient way, in order to deliver the vehicles as speedily as possible.
The Toyota Production System (TPS) was established based on two concepts: "jidoka" which
translated as "automation with a human touch" as when a problem occurs, the equipment
stops immediately, preventing defective products from being produced; and the "Just-in-
Time" concept, in which each process produces only what is needed for the next process in a
continuous flow.
Roots of the Toyota Production System

The Toyota Production System (TPS), which is based on the philosophy of the complete
elimination of all waste in pursuit of the most efficient methods, has roots tracing back to
Sakichi Toyoda's automatic loom. TPS has evolved through many years of trial and error to
improve efficiency based on the Just-in-Time concept developed by Kiichiro Toyoda, the
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founder (and second president) of Toyota Motor Corporation.
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The automatic loom invented by Sakichi Toyoda not only automated work that used to be
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performed manually, but also built the capability to make judgments into the machine itself.
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By eliminating both defective products and the associated wasteful practices, Sakichi
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succeeded in rapidly improving both productivity and work efficiency. Kiichiro Toyoda, who
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inherited this philosophy, set out to realize his belief that "the ideal conditions for making
things are created when machines, facilities, and people work together to add value without
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generating any waste." He conceived methodologies and techniques for eliminating waste
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between operations, between both lines and processes. The result was the Just-in-Time
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method.
Via the philosophies of "Daily Improvements" and "Good Thinking, Good Products, TPS has
evolved into a world-renowned production system. Even today, all Toyota production
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divisions are making improvements to TPS day-and-night to ensure its continued evolution.
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The Toyota spirit of making things is today referred to as the "Toyota Way." It has been
adopted not only by companies in Japan and within the automotive industry, but in
production activities worldwide, and continues to evolve globally.
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Toyota’s Approach to Quality Assurance

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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.
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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.
Toyota Total Quality

Management
 Focus on Continuous Process
Improvement, to make processes
visible, repeatable and
measurable.
 Focus on intangible effects on
processes and ways to optimize and
reduce their effects.
 Investigative the way the user
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applies the product, leads to
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improvement in the product itself.
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 Broaden managements concern beyond the immediate product.
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TQM requires that the company maintain this quality standard in all aspects of its business.
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This requires ensuring that things are done right the first time and that defects and waste are
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eliminated from operations. oyota`s management in building quality techniques extends past the
auto industry in to manufacturing as well as business generally. Industries through finance to
healthcare have started adopting Toyota`s manufacturing system. Toyota offers achieved high quality
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in its processes via decades associated with continuous enhancement. Its mission would be to
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generate, as rapidly and efficiently as you possibly can, products which satisfy clients -
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Administration decisions provide a long-term considering, even in the expense associated with short-
term monetary goals. Toyota is offering any feasible problem by developing a continuous circulation
of procedures. Company is while using pull system to prevent overproduction. They tend to be fixing
problems as quickly as possible by creating a stopping lifestyle. Company standardizing duties for
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constant improvement. They`re using dependable technology to prevent wasting of your time,
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resources as well as efforts. The supervisors should accept the Toyota vision and become models for
those; it can help teach as well as develop individuals and groups. There will vary models to
recognize the tone of voice of client (VOC). Quality Perform Deployment (QFD) is really a standard
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6 Sigma methodology accustomed to convert client needs in to specific product/service style features.
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Designing Quality
Every new model undergoes rigorous testing, using computer modelling, laboratory tests and
thousands of kilometres of real-world driving. When it comes to product development, scrutinise
every detail to look for potential problems and to share knowledge and experience among
engineering teams. They strict standards and well-established processes enable us to build the
foundation for the quality built-in at every stage.
Producing Quality
The commitment to building vehicles of the highest
quality requires precision production processes and a
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skilled and dedicated workforce. They invest in manufacturing and training so that we have the right
methods and people to ensure the products meet our demanding standards. Quality assurance teams
carry out thousands of checks on every vehicle that comes off the line. Quality is at the heart of their
training programmes, both the apprenticeships we offer young people and the skills development
provided for established workforce.
Assuring Quality
They deliver the highest quality and providing complete customer satisfaction by constantly
improving products and services. They have designed effective procedures so that when a customer
encounters a problem, company can assess the issue and put things right, with the least inconvenience
for the customers. The "customer first" philosophy is a part of Toyota DNA and means always listen
to what their customers have to say and use their opinions and experiences to make improvements.
Problem Faced by the Company
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 Product problems with defective seats.
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 Company’s deviation from its normal production plan and lack of a recovery system.
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 Run ratio dropped from 95% to 85%.
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 This means 45 less cars were being produced per shift.
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 This translated in overtime of workers.
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 Too many cars needed off-line operations of one type or the another before they could
go on shipping.
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Analysis
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 The Problem rise in number of Camry’s with defective seats, leading to a reduced run
ratio at the TMM Georgetown Plant.
 On April 27th the run ratio was down from 95% to a damaging 85%.
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 Decrease in per-shift production is close to 50 car.

Producing the missing cars via overtime capacity will cost TMM in excess of $16,000
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
per shift.
 This translates to around $8.4 Million per year considering two shifts and a 5-day
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workweek.
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Question Raised
 Will the sales company get cars on time as promised?
 What does it mean to implement JIT and Jidoka principles to this situation?
 Is TMM handling seat defects correctly on the line?
 Is the current routine for handling seat-defect cars really a legitimate exception to
TPS, or could it be a dangerous deviation from TPS?
 Is there a way to kaizen TMM’s off-line routine?
Solution
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a) Toyota wants to serve the best quality motors for their customer in every diversifying
country as well as their own country.
b) Toyota Motor Corporation needs to relate the better relationship with other countries’
government, political oppositions, companies, customers, suppliers and the business
related personnel. Sales also may be increased.
c) Negotiation policies must be cleared for Toyota.
d) Close relationship should be maintained between KFS, TMM and TMC to over come
barriers.
e) TPS integration will benefit the Toyotas supplier network.
f) TMM should recommend a reduction in the variety of seats with TMC.
Recommendation
 It is recommended to expand the production capacity and develop new innovative
product with better feature according to demand of customers.
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 There is need to logistic system to supply the product on right time as per the given
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promises.
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 There is need to improve the production processing so produce less numbers as per
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customers’ requirements and reduced the inventory.
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 There are many complaints and many recall the products from the market. It is highly
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recommended to improve the quality of products and produce defect free products.
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 By implementing Toyota organization, improve its quality of culture and business

process. If the quality is better, help to increase the customer needs. By improving the
logistic system, covers more geographic location. Improved system helps to reduce in
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waste and ultimately overall cost.

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 Good quality and defect free products increase customer satisfaction index and reduce
the cost of due less process of recall and replacement. Thus reduce the cost of total
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operations.
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 If Toyota expand the facility of their production plant, they can produce more and
variety of products. Further, it has developed innovative products with environmental
friendly. Thus, volume of product is increased and cost of product decrease.
Conclusion
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Toyota is famous for its operations and quality management system worldwide. Toyota is
pioneer in the development of effective production from the collective experience and
experienced from other actors as well. The Toyota Production System (TPS) become famous
globally and adopted by others to improve their system. There was important of operation
management and quality system in the organization for sustaining in the business. Even
though the quality and production system of Toyota followed by many organizations, there is
some gap in the business process system and Toyota reported financial loss as well as defects
in production system. There is continuous improvement required in the business process and
operation management. Porte’s five forces used to analyzed the environment and designed
strategic objective to reduce the operation cost, improve business process and quality system.
Toyota has revised the operations performance objectives and improve the production system
by improving JIT and Jidoka. Further Kanban system will help to improve the logistic
system. Quality audit and culture will help to improve the system at Toyota. It can be
summed up that an effective Quality Management Plan should at the end result to higher
quality as far as Toyota cars are concerned. Higher quality would in the longer run result to
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more sales due to the strong brand that Toyota would be able to build around the higher
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quality perception. In addition, if Toyota implemented an effective Quality Management Plan,
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the company would witness a drastic reduction in number of recalls something that has been
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common with most of car manufacturers of late.
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Reference
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file:///C:/Users/muham/Desktop/VYAS-MASTERS-REPORT.pdf
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http://blog.bid-org.com/toyota-production-system-tps/
tutorhunt.com/resource/3008
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http://www.toyota-global.com/company/vision_philosophy/toyota_production_system/
https://www.ukessays.com/essays/marketing/quality-and-system-management-at-toyota-marketing-
essay.php
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https://www.uniassignment.com/essay-samples/business/toyota-strategic-problem.php
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Content

Roots of the Toyota Production System

Toyota’s Approach to Quality Assurance

Toyota has achieved a reputation for the

Toyota Total Quality

Problem Faced by the Company

 Decrease in per-shift production is close to 50 car.

 By implementing Toyota organization, improve its quality of culture and business

waste and ultimately overall cost.

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