Om2 Project GRP 1
Om2 Project GRP 1
Om2 Project GRP 1
Batch: 23-25
Operation Management - II
Project on:
Total Quality Management at Toyota Motor
S. Particulars Page
No.
1 Definition of TQM
2 Importance of TQM in Organizational Development
3 History & Evolution of TQM
4 TQM in Different Era
5 Key Principles of TQM
6 Benefits of TQM
7 Disadvantages of TQM
8 Implementation of TQM
9 Toyota Motors: Company Overview
10 History of Toyota Motors
11 Toyota Production System
12 Principles of TQM at Toyota Motors
13 The Toyota Way
14 Just-in-Time at Toyota
15 Employee Involvement in TQM at Toyota
16 Challenges in the Implementation of TQM at Toyota
17 Conclusion
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TQM (Total Quality Management)
Definition:
Total Quality Management (TQM) is a structured approach aimed at managing all aspects of
an organization to enhance the quality of its outputs, including goods, services, and internal
processes. TQM views improvement as an ongoing journey rather than a one-time event,
emphasizing continual refinement of processes to achieve excellence. Standards serve as vital
benchmarks within the TQM framework, aligning with organizational objectives and industry
regulations to ensure compliance and drive improvement. Adhering to industry standards
demonstrates a commitment to excellence and continuous enhancement. Organizations employ
various tools such as acceptance sampling to assess product quality and compliance with
standards, facilitating progress monitoring and identification of areas for improvement. TQM
promotes a holistic organizational management approach, integrating quality into culture,
processes, and practices to meet customer expectations and sustain competitiveness in the
market.
Total Quality Management (TQM) positively impacts both employee and organizational
development. By engaging all staff in quality management and continual improvement efforts,
companies foster cultural values that contribute to sustained success for customers and the
organization. TQM's emphasis on quality enables organizations to pinpoint areas of skill gaps
among employees, prompting targeted training, education, or mentoring to address these needs
effectively.
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History & Evolution of TQM:
1920s:
The emergence of quality management principles paralleled the rise of scientific management
in U.S. industries, delineating planning from execution. This shift sparked labor union
resistance, highlighting diminished worker influence. The Hawthorne experiments of the late
1920s illuminated how worker productivity correlated with involvement in decision-making
processes, shaping management practices.
1930s:
Walter Shewhart introduced statistical methods for analyzing and controlling quality.
1950s:
W. Edwards Deming introduced statistical analysis to Japanese engineers, birthing Total
Quality Management (TQM). Joseph M. Juran stressed quality control and managerial
breakthroughs. Armand V. Feigenbaum's "Total Quality Control" shaped modern TQM. Philip
B. Crosby's zero defects advocacy spurred quality improvement initiatives.
1968:
Japanese organizations coined the term "companywide quality control" to describe their
comprehensive approach to quality management. This period also saw the emergence of the
term "quality management systems."
Today:
TQM embodies a holistic approach to organizational quality, aligned with ISO 9000 standards
and prestigious awards like the Deming Prize and Malcolm Baldrige National Quality Award.
While "TQM" wanes, its principles endure within established quality management systems.
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Total Quality Management in Different Era:
5
Primary Elements/ Key Principles of TQM:
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g) Evidence-Based Decision Making: Data on performance measures are essential for
informed decision making in TQM. Organizations must continually collect and analyze
data to enhance decision-making accuracy, achieve consensus, and make predictions
based on historical data.
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Benefits of TQM:
b) Increased Productivity: Detailed strategic plans under TQM help team leaders guide
their teams efficiently, enhancing productivity by clarifying tasks.
h) Improved Customer Satisfaction: Regular customer feedback checks under TQM aid in
creating better products/services, enhancing customer satisfaction.
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Disadvantages of TQM:
c) Cost Considerations: TQM implementation may entail additional costs such as training,
infrastructure upgrades, and team development, necessitating careful budgeting and
resource allocation.
d) Time Investment: Realizing the desired outcomes of TQM may span several years,
requiring patience and perseverance from the organization.
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How Does an Organization Implement TQM in Their Operations:
1. The organization evaluates its existing culture and quality management systems,
pinpointing core values.
2. Management opts to fully embrace TQM and crafts a comprehensive master plan for its
implementation.
10
TOYOTA Motors
Toyota Motors, a global automotive giant, stands as a paragon of innovation, quality, and
sustainability in the automotive industry. Founded in 1937 by Kiichiro Toyoda, the company
has evolved from a modest beginning into one of the world's largest automakers, renowned for
its commitment to excellence and continuous improvement.
Notably, Toyota's diverse lineup of vehicles, spanning from compact cars to hybrid electric
vehicles and SUVs, reflects its commitment to innovation and sustainability. Spearheaded by
iconic models like the Toyota Corolla and Prius, the company continues to push boundaries in
automotive technology, safety, and environmental responsibility.
With a global presence across numerous markets, Toyota remains a trailblazer in shaping the
future of mobility through initiatives like autonomous driving and electrification. Embracing
its philosophy of "kaizen" or continuous improvement, Toyota Motors continues to lead the
way in driving progress and shaping the automotive landscape for generations to come.
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History of Toyota Motors:
• Textile Roots: The story begins in 1867 with Sakichi Toyoda, who invented an
automatic loom that revolutionized Japan's textile industry. This focus on innovation
and quality laid the foundation for Toyota's future success.
• From Looms to Engines: In 1930, seeing the potential of automobiles, Kiichiro
Toyoda, Sakichi's son, established an automobile division within Toyoda Automatic
Loom Works. They started by researching and developing gasoline engines.
• The First Cars: In 1936, the company produced its first passenger car, the Model AA,
followed by the Model AB truck in 1937.
• Becoming Toyota: To evoke a sense of luck and a smoother pronunciation, the
company name was changed from Toyoda Automatic Loom Works to Toyota Motor
Corporation in 1937.
• World War II Disruptions: World War II forced Toyota to shift production to military
trucks. However, the wartime experience in efficient manufacturing would prove
valuable in the postwar years.
• Rebuilding and Innovation: After the war, Toyota focused on rebuilding and
improving its car designs. The iconic Land Cruiser SUV, known for its off-road
capability, debuted in 1951.
• Entering the US Market: In 1957, Toyota began exporting vehicles to the United
States, starting with the Crown sedan. Initially facing skepticism about quality, Toyota
gradually earned a reputation for reliability and value.
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• The Oil Crisis and Rise of Fuel Efficiency: The 1970s oil crisis highlighted the
importance of fuel efficiency. Toyota's focus on smaller, more economical cars, like
the Corolla launched in 1966, positioned them well in this new market reality.
• Facing Challenges: The 21st century brought challenges like the global financial crisis
and safety recalls. However, Toyota continued to invest in research and development.
• Electric Vehicle Push: Recognizing the shift towards electric vehicles, Toyota is
developing and introducing new electric car models alongside their hybrids and
traditional gasoline-powered vehicles.
• Focus on Mobility Solutions: Toyota is looking beyond just car manufacturing,
exploring future mobility solutions like autonomous vehicles and car-sharing services.
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Toyota Production System:
Emerging post-World War II, Toyota Motor Corporation conceived the Toyota Production
System (TPS) to revolutionize manufacturing. With a vision of superior quality, reduced costs,
and streamlined lead times, TPS focused on waste elimination. Taiichi Ohno spearheaded its
development, emphasizing two fundamental pillars: just-in-time (JIT) and Jidoka.
JIT aimed to synchronize production with demand, eschewing excess inventory and fostering
collaboration with suppliers. Jidoka, stemming from Sakichi Toyoda's innovation, introduced
automation with human intelligence, halting processes upon detecting defects, thereby
enhancing quality and efficiency.
Ohno's leadership during the 1950s and 1960s cultivated TPS within Toyota, extending its
principles to suppliers in subsequent decades. Notably, the Toyota-General Motors joint
venture in 1984 catalyzed TPS's international dissemination.
The roots of JIT and Jidoka trace back to the prewar period. Sakichi Toyoda's Jidoka concept,
utilizing automatic looms, set the precedent for quality assurance. Kiichiro Toyoda's JIT
concept in the 1930s emphasized minimal inventory and collaborative production scheduling.
TPS gained widespread acclaim with the publication of "The Machine That Changed the
World" in 1990, revealing its superiority over traditional mass production. Coined as "lean
production" by MIT researchers, TPS represented a paradigm shift in manufacturing
methodologies, transcending conventional practices worldwide.
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Principle of TQM at Toyota:
1.Customer Focus: Toyota believes that the customer is the final judge of quality. Therefore,
understanding customer needs and requirements is critical. The company strives to meet and
exceed customer expectations by continuously improving products and services.
4.Integrated System: TQM is not isolated to a single department but is integrated throughout
the entire organization. It is aligned with the company’s mission, vision, and objectives.
7.Fact-Based Decision Making: Decisions at Toyota are made based on data and statistical
analysis. This approach ensures that actions are aligned with actual performance rather than
assumptions.
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9.The Toyota Production System (TPS): TPS is the foundation of Toyota’s approach to TQM.
It includes principles such as Jidoka (automation with a human touch), Just-in-Time (JIT)
production, and the use of Kanban systems to control the logistical chain.
12.Quality Circles: Small groups of employees regularly come together to discuss and solve
problems related to their work, fostering a collaborative environment for quality improvement.
13.Root Cause Analysis: When problems occur, Toyota uses techniques like the “5 Whys” to
drill down to the root cause, ensuring that the same issue does not happen again.
These principles and practices are interrelated and all contribute to the overarching goal of
TQM at Toyota, which is to create high-quality products efficiently and effectively while
continuously seeking ways to improve.
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The Toyota Way:
The Toyota Way is a set of principles defining the organizational culture of Toyota Motor
Corporation. The company formalized the Toyota Way in 2001, after decades of academic
research into the Toyota Production System and its implications for lean manufacturing as a
methodology that other organizations could adopt.
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Just-in-Time at Toyota:
Intro to JIT:
JIT production, integral to TQM and lean manufacturing, optimizes efficiency by producing
precisely what's needed when needed, and in the right quantity. Aligned with TQM's quality
focus, JIT fosters continuous improvement through Kaizen, refining processes and eliminating
waste. It ensures seamless flow manufacturing to minimize delays and enhance productivity.
Operating on a pull system, JIT responds to customer demand, avoiding overproduction and
reducing inventory costs. Small lot sizes enable quick responses to demand changes while close
supplier partnerships ensure timely delivery of high-quality materials. Empowering employees
to identify issues and suggest improvements, JIT cultivates a culture of continuous
enhancement, driving operational excellence.
Toyota is often cited as a prime example of successful implementation of JIT production within
the framework of Total Quality Management (TQM). The company's production system, often
referred to as the Toyota Production System (TPS), is renowned for its efficiency, quality, and
continuous improvement. Here's how JIT production operates within Toyota's TQM
framework:
a) Quality Focus: Toyota prioritizes quality, integrating TQM principles into its culture.
Workers have the authority to halt production lines to address quality issues promptly.
e) Small Lot Sizes: Toyota uses smaller production batches to minimize overproduction and
increase flexibility.
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Employee Involvement in TQM at Toyota:
Employee involvement is a fundamental pillar of Toyota's approach to Total Quality
Management (TQM). Toyota integrates employee participation into its TQM system:
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• Increased Productivity: Employee suggestions and participation can lead to
streamlined processes and improved efficiency.
• Higher Morale and Engagement: Empowered and valued employees tend to be
more engaged and motivated, contributing to a positive work environment.
By fostering a culture of employee involvement within their TQM framework, Toyota has
achieved remarkable success in terms of quality, efficiency, and innovation in the automotive
industry.
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Challenges in the Implementation of TQM at Toyota:
Implementing Total Quality Management (TQM) effectively within Toyota's plants presents a
multifaceted challenge rooted in both operational design and employee treatment dynamics. At
its core, the successful implementation of TQM hinges on achieving a seamless alignment
between management directives and operational practices to ensure optimal product and
service delivery. However, several varied issues emerge, complicating this endeavor.
Operational design intricacies within Toyota's plants may introduce hurdles to the seamless
integration of TQM principles. These challenges can stem from complex production processes,
supply chain intricacies, and the need for stringent quality control measures at every stage of
manufacturing. Additionally, adapting existing operational structures to accommodate TQM
methodologies requires meticulous planning and resource allocation, which may encounter
resistance or reluctance from entrenched systems or stakeholders.
Employee treatment and engagement represent another critical aspect influencing the
effectiveness of TQM implementation. Ensuring that employees are not only receptive to but
actively involved in TQM initiatives is paramount. This necessitates fostering a culture of
continuous improvement, where employees are empowered to identify and address quality
issues proactively.
The key focus of TQM implementation in Toyota's plants revolves around achieving alignment
between management objectives and operational practices. This alignment is essential to
streamline processes, eliminate waste, and optimize resource utilization, ultimately enhancing
product and service quality. Effective communication channels between management and
employees are vital for disseminating TQM goals, fostering collaboration, and garnering
support for initiatives aimed at driving organizational excellence.
At the core of the challenges lies the difficulty of integrating TQM principles across the entirety
of manufacturing processes. This entails not only implementing quality control measures but
also instilling a mindset of continuous improvement at every level of the organization.
Achieving this requires overcoming resistance to change, addressing cultural barriers, and
establishing robust feedback mechanisms to monitor and adjust TQM implementation
strategies as needed.
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Conclusion:
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ACKNOWLEDGEMENT
We would like to express our sincere gratitude to Dr. Jasdeep Chadha, for providing our group
with the opportunity to work on the Total Quality Management (TQM) project during our time
at IILM University, Gurugram. His guidance and support throughout the project were
invaluable, and we are truly appreciative of the knowledge and expertise he shared with us.
Working on the TQM project under his supervision provided us with a deep insight into the
practical application of TQM principles in real industry settings. His mentorship enabled us to
gain a comprehensive understanding of the intricacies involved in implementing TQM
strategies and the significant impact they have on organizational performance and quality
enhancement.
Once again, thanking him for entrusting us with this project and for your unwavering support
throughout. We look forward to applying the knowledge and skills we have gained under his
guidance in our future endeavors.
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References:
https://www.investopedia.com/terms/t/total-quality-management-tqm.asp
https://asq.org/quality-resources/total-quality-management/tqm-history
https://asq.org/quality-resources/history-of-quality
https://asq.org/quality-resources/total-quality-
management#:~:text=A%20core%20definition%20of%20total,Primary%20elements%20of%
20TQM
https://ca.indeed.com/career-advice/career-development/total-quality-management
https://www.techtarget.com/searchcio/definition/Total-Quality-
Management#:~:text=The%20general%20process%20of%20implementing,identifies%20and
%20prioritizes%20customer%20demands.
https://www.forbes.com/companies/toyota-motor/?sh=2fdba03152bd
https://www.toyotabharat.com/toyota-in-india/history/
https://www.toyota-europe.com/about-us/toyota-vision-and-philosophy/toyota-production-
system
https://leansixsigmabelgium.com/blog/toyota-six-sigma-14-solid-principles/
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