Toyota Motor Corporation is one of the biggest automobile manufacturers globally, ranging from automobile parts to commercial and industrial vehicles. It manufactures various models such as Land cruisers, Camry, Corolla, Sienna, Premium Lexus Line, 4Runner and cars such as buses, SUVs, Compact trucks and vans (Chiarini et al., 2018). Additionally, the company is the world leader in producing technological cars which are friendly to the environment (Toma and Naruo, 2017). Total quality management can be defined as a strategy that helps a firm generate and transfer efficient services to its customers by achieving good cooperation among staff (Christian, 2019). Many organizations have been forced to implement essential strategies that can allow them to have a competitive advantage against their rivals, resulting from changes in the business environment and the enhancement of product quality. Therefore, firms must improve their product quality and services to survive in the global market.
Toyota company implemented various total quality management to help it enhance its performance and ensure that customers are satisfied with its products. It is based on the collaboration among the company’s staff to produce excellent quality of their products and services that can meet the demands of buyers. The firm implemented the strategy of controlling all the manufacturing operations, which is essential in minimizing various operational errors (Devi, 2019). Total quality management is made of multiple quality tools, methods, and organizational values and beliefs shared among the company’s employees. The relationship between comprehensive quality management and organizational performance is that both the corporate and staff’s performance will be enhanced when the company effectively applies this strategy. This means that the firm’s level of productivity will rise while its operational costs will go below. Various research was conducted to show the impact of TQM on the operating performance of Toyota company. This report, therefore, discusses different Total Quality Management practices and their effect on the company’s overall performance. It briefly explains the elements of TQM and the PDCA cycle, which act as a principle of the TQM technique. Finally, the report also discusses how TQM can be applied and the challenges faced during its implementation.
The main aim of this research is to critically analyze the impact of total quality management on the operational performance of Toyota Motor Corporation.
The concept of quality management was discovered in Japan in 1930. Therefore, many manufacturing organizations have focused on this strategy to enhance the quality of their products and tools that can control the quality (Toma and Naruo, 2017). TQM involves everyone within the company in the decision making process and problem-solving techniques that would enhance quality. The philosophy of the TQM technique is to acquire a comprehensive integration that would provide quality goods and services that can satisfy customers’ wants (Alghamdi, 2018). The research shows a strong relationship between staff commitment and customer satisfaction. TQM must begin at the initial stages of the project and should end when quality standards are acquired. Every employee is responsible for the company’s performance. Some TQM practices, e.g., operating strategically, have little impact on customer wants satisfaction (Christian, 2019).
The TQM system involves continual employee improvements in its operations to provide quality products and services to its customers (Aquilani et al., 2017). The technique uses strategies, effective information and communication to provide quality discipline to the organizational cultures and operations. There are eight principles of quality management strategies available in the modern TQM systems.
Consumer focus; the main focus of TQM is to successfully provide customers with a great experience while interacting with various company departments. Customers are the main priority for every business; hence all their requirements should be met. They are also the ones who determine the quality level of both goods and services.
Total employees’ involvement; every employee must involve themselves to ensure quality control throughout every level of operations (Toma and Naruo, 2017). The main goal of TQM is to provide customers with good experiences from organizational departments, and all workers are therefore encouraged to work towards a common goal.
Process approach; the main focus of TQM is to make and implement operations that would allow the company to be continuously successful. The steps followed for quantifying success are very important for the successful execution of TQM.
Integrated systems; integration, and interconnection of various functional units help the company achieve high quality. All minor operations should be combined into one bigger process using integrated systems (Jayamaha et al., 2017).
Communication: All employees must be transparent while communicating with each other for TQM practice to be successful. Effective communication is important in motivating the workers and maintaining their morale at work.
A strategic and systematic approach helps the company achieve its goals, mission, and vision.
Continual improvement; this element guides a company to be creative when looking for new ways that will enable it to be more competitive and efficient in its operations (Nallusamy, 2016). Even if it is impossible for every firm to be perfect in its operations, TQM can help its processes to be almost perfect.
Factual approach to decision making; the company must continuously gather and analyze information since it is a TQM requirement. This will help the firm make accurate decisions and predictions depending on the history. Any guessed data will mislead the company’s decision-making personnel hence lowering the operational performance (Wagner et al., 2017).
The principle of quality measurement is essential when dealing with TQM instruments and procedures. Organizational performance can be measured in five ways: user-based, product-based, value-based, manufacturing-based, and transcendental (Christian, 2019). On the other hand, product quality can be evaluated depending on customer satisfaction, attributes, cost-effectiveness, and quality standards. These techniques help the firm easily attain the high-quality level that it requires.
The PDCA cycle is a technique that regulates and manages the implementation of any new operation in a company (Chojnacka-Komorowska and Kochaniec, 2019). It is a crucial strategy that controls the overall quality management by ensuring that the company acquires and maintains a high-quality level. This kaizen can only be achieved by implementing the PDCA cycle. The firm provides that quality results are obtained in all four stages. Below are the phases of the PDCA cycle;
An important instrument in the TQM is the quality cycle, which helps identify the root cause of failures. This cycle consists of various people who have essential data that they can use to look for solutions to any arising issue (Kiran, 2016). Quality circles help the organization by allowing employees to look for answers and remedies that can solve any problem. Workers are therefore allowed to involve themselves in decision-making processes, resulting in excellent overall organizational performance. Evidence-based tools also help improve the company’s performance since it helps generate ideas that can be used to improve operational processes. The TQM technique uses the available resources to solve the firm’s operational problems that might lower the quality of its products. All the tools mentioned above break down any process into steps, therefore, detecting the part of the process that has a problem and fixing it (Masudin and Kamara, 2018).
Toyota applies this technique to enhance its product quality and variability in all its operations. Some of the functions that the company uses this method are product design, engineering design, product rescheduling, product marketing, manufacturing testing, etc. (Al-Dhaafri et al., 2016). quality control should be done for a good final result at every operational stage. Inspection during the design of a product is essential in finding any difficulty that might arise during the development stage. Objective measurement regulates the total quality of steps and products during the entire manufacturing period. Toyota provides after-sale services apart from offering quality products to satisfy customers since their happiness is its top priority. Quality management is also very important in sales and marketing research. The company’s management system depends on the consumer’s requirements; therefore, it tries to fix them (Santos and Tontini, 2018).
TQM techniques can only be successful when they are applied well. A company’s strategies and culture are essential when TQM is concerned. Firms that train their employees and use codification in their operations will benefit more from TQM than those that don’t apply these techniques (Collins et al., 2015). A company that has had good strategies and relates well with its customers will be successful in the TQM technique. This method might fail in an organization whose workers are not fully involved in decision making and problem-solving processes, lack enough knowledge by staff and low operational improvement.
TQM system has a positive impact on the cost-cutting strategies of any organization. The overall performance will be high when more of its workers are trained through TQM (Valmohammadi and Roshanzamir, 2015). Mangers can raise the financial performance of an organization by controlling and improving the quality of products and services. TQM technique, therefore, increases the profitability of a firm whose general performance is high, and it also boosts the company’s culture. Toyota company set up procedures and equipment that provide awareness to managers on the errors which might occur during operations so that they can be corrected (Sweis et al., 2019). This is important since there are some issues in the process that the employees cannot inspect.
The quality manager experiences some challenges while implementing TQM systems in the company. One of them is the unavailability of implementation resources, e.g., financial and human resources, which are the main pillars for successful TQM implementation (Puram et al., 2021). A firm must ensure that human and monetary resources are available before implementing this technique. TQM approach impels the competition in the market by enabling companies to have a high level of productivity hence achieving huge profits.
Although Toyota has followed the TQM philosophy, its executive and quality managers faced some challenges during its implementation. They find it difficult to follow the flaw of innovative product development due to difficulty in breaking it because of reliability issues. Conclusion: there is a barrier to communication among managers due to a dysfunctional company structure. Poor leadership in the company might also make it hard for TQM implementation (Siva et al., 2016). As shown below, senior managers should be responsible when designing the company’s structures and systems.
Various organizations worldwide have implemented TQM practices to improve their operational performance and successfully satisfy their customers’ requirements. When these practices are effectively used, they will create good organizational culture and surroundings that motivates workers to continue working hard towards the company’s objectives (Diana et al., 2017). Below are nine practices that are in the TQM system;
Toyota applies strong and developed quality control and assurance procedures in its operations. The company has quality control systems that identify quality policies, generate quality manual information and review statistics. All the methods, such as Failure Mode and Effects Analysis (FMEA) and Free Trade Agreement (FTA), that the company implemented were successful (Devi, 2019). The firm consistently applies quality control instruments as its overall strategy, enabling it to satisfy its customers’ expectations successfully. Toyota also allows employees to get involved in the quality control process and provides them with training to create quality products and services. Finally, the company’s approach to TQM is systematic and involves all the departments within the firm. Therefore, they can successfully achieve positive results from the system since they can now discover and remove errors that may hinder them from using this TQM technique.
Toyota Production System is a technique whose goal is to reduce waste and attain the best possible efficiency. The primary principle of this system is quality during the process of manufacturing. Just in time or lean manufacturing systems have been continuously used by Toyota to make vehicles quickly and effectively delivered to its customers. TPS was developed through two concepts (Chen, 2015). The first one is that whenever there is a problem during the operation, the equipment ceases to operate immediately, preventing the production of defective products. The second concept is that every process produces only what is required in the preceding operation in a continuous flow. These concepts enable the firm to manufacture quality vehicles that satisfy its customer’s wants efficiently.
Toyota Motor Corporation has successfully competed in the market because of TPS and its approach. It is among those companies that aim to make Japan a kingpin in the production of cars (Chiarini et al., 2018). Organizations that have adopted TPS in their operations have achieved efficient production. Many companies worldwide are using the TPS systems to produce their products. TPS has therefore helped Toyota to implement TQM techniques.
The TQM technique affects quality performance (Anil and Satish, 2016). This system influences the quality of work employees do in an organization, and it should be implemented efficiently. This also leads to the development the company’s culture and structure hence encouraging innovation. Research shows that if a firm uses the TQM technique effectively in its operation, its level of performance will be highly enhanced in various aspects such as financial performance and consumers satisfaction. Leadership commitment is an essential factor when implementing TQM systems is concerned (Yadav et al., 2017). Company leaders are responsible for influencing employees to follow and work towards the firm’s goals and objectives.
Performance measurements such as quality and cost are essential in acquiring an effective company’s management operations (Valmohammadi and Roshanzamir, 2015). These two-performance measurements influence the TQM practices such as training, customer management, process management, etc., affecting the staff’s performance, thereby impacting the overall company’s performance. A company’s performance is measured based on its ability to obtain its financial and strategic objectives (Collins et al., 2015). It can also be done through economic and market measurements such as profit sales, return-on-investment measures (ROI) and market share progress. However, operational performance can be controlled by enhancing flexibility, productivity, delivery performance, and minimizing costs and errors. Various companies have implemented TQM practices to reduce their production costs and provide quality products. This technique mainly focuses on the customers whose requirements are its main concern (Yusr et al., 2017).
Research can be conducted through various techniques such as surveys, observations, experiments, interviews, questionnaires, etc. Therefore, it is important to define the research strategy used to justify it. A literature review was done to determine the main practices that can successfully implement TQM systems in a company and explore the relationship between this technique and organizational performance. Both qualitative and quantitative research is important when collecting data. Quantitative analysis enables us to acquire statistical information that can easily be passed on to other people (Yin et al., 2018).
On the other hand, qualitative research gives us a deeper understanding of the phenomena, experience, and social context. It helps us ask questions that are not quantitative to understand the individual experience. Information from the research was obtained from the internet, academic journals from the library and business information sources.
Statistical data was used for the success of the research. A literature review was done concerning the case study of Toyota Motors Corporation. The aim of the research was successfully achieved by critically analyzing the impact of TQM on performance management and gathering more historical data concerning the topic. A literature review was done through the use of textbooks and articles which provided information about the research. An extensive search concerning the case was done, and finally, the literature review was analyzed. Secondary research is a technique that is normally used when investigating by relying on the information that was already collected. Secondary data concerning Toyota Motors Corporation was obtained from textbooks, encyclopedias and articles. Although the research was successful, some of the information, such as the challenges faced by Toyota while implementing TQM, were difficult to find because most of the articles had less knowledge about it. Other information concerning the Toyota Production system and how it implements TQM in its operations was easy to find since most pieces had this data.
The research successfully achieved its understanding of how companies apply TQM practices in their operations concerning Toyota Motors Corporation. It discussed how TQM techniques could be implemented in various business functions. It also briefly explained all the TQM practices and their impacts on firms that practice them. The elements of TQM were also highlighted. The literature analysis showed that everyone in all the organizational departments is responsible for the quality of the company’s products and services. It has also been seen that cost and quality, which are the elements of performance measurements, are very important for the business’s success. The research suggests that the flexibility of the TQM technique allows companies to choose efficient methods and tools that can help them achieve their vision, goals and objectives successfully. Finally, it shows that the TQM technique should be used in each operational step to correct any error detected during the company’s operations.
Toyota Motors Corporation has used the TQM system to improve the quality of its products and satisfy its customers’ wants and expectations (Christian, 2019). The firm has continuously been committed to the TQM technique; therefore, many benefits from it. Through the examination of Toyota’s TQM implementation, the research shows that it is important for every company to apply this strategy in its operation to improve the quality of its products to attract more buyers hence having a large customer base. Toyota has adopted TQM methods and used them as a global strategy, making it the world’s best automobile company. Discussion forums such as quality circles are essential for the success of every business since they promote the company’s innovation, training and development. Toyota’s committee, which acts as its quality circle, helps it in problem-solving processes by seeking solutions that can help the corporation solve its issue. The company’s objectives have been achieved through TPS (Chen, 2015).
A company should effectively select the correct tools to adapt to its operations in alignment with its goals and objectives. The research shows that it is essential for every company to focus on its customers’ happiness as its main primary objective. Another strategy that a firm should consider is the involvement of employees in decision making and problem-solving processes, as this will motivate and commit them to their job. It will result in high overall company performance (Yusr et al., 2017). Managers who want to improve their product quality, increase productivity, and cost-efficiency should implement the TQM technique in their operations.
Conclusion
Total Quality Management is a technique used globally in the automobile industry to improve overall organisational performance continuously. Toyota uses this concept to make values for both the company’s customers and stakeholders. TQM has enabled Toyota Corporation to make good values that have helped it have efficient operations. This has been successful due to the continuous correction of any process error. Good information management has successfully implemented the TQM initiatives through training and a culture of teamwork.TQM has been proved to bring a quality conscious culture to all layers of an organization (Alzoubi and Ahmed, 2019). Workers should be continuously motivated and inspired to work towards the company’s total quality management daily. There are several reasons why many firms have been forced to implement TQM systems in their operation. They include; difficulty in penetrating the market, high competition, the pressure resulting from low profit, and customers who demand better quality products and services from these organizations.
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