INTRODUCTION
William Edward Deming was the one who first invented the idea of total quality management. He developed this idea to raise the calibre of numerous goods and services. Total Quality Management (TQM) aims to enhance an organization's overall performance and daily operations. Applying quality management principles to every aspect of the organization is known as total quality management. Total Quality Management is applicable to all organizational levels and branches. Instead of the employees, an organization's top management is in charge of ensuring quality, and it is up to them to show commitment, support, and leadership to the technical and human resources.
In order for the Total Quality Management project to be successful, management must encourage employee involvement in quality improvement and establish a quality culture through changing attitudes and perceptions of quality. It is the duty of the person who discovered the problem to address it before the problem affects the rest of the manufacturing process. Customer, supplier, and staff satisfaction are all discussed in terms of total quality management. Continuous improvement is necessary for whole quality management. This report evaluates the Total Quality Management approach, the Total Quality Management method, and the positive and negative effects of Total Quality Management on the organization.
COUNTRY OF ORIGIN
Walter Andrew Shewhart created a statistical diagram for the management of product variables in 1924. This graph is regarded as the inaugural example of statistical quality control. As a replacement, Harold French Dodge and Harry Romig created the field of acceptability sampling in 1929. The American Society for Quality Control was established in 1946. The American Society for Quality was given the old name. William Edwards Deming studied statistical quality control in 1950. He then delivered a number of seminars on statistical techniques to Japanese engineers and on the importance of quality to the CEOs of the country's biggest companies. Joseph Moses Juran underlined management's duty to pursue excellence in 1954. The first quality control rings were established in 1960 with the intention of raising quality. A quality renaissance started to take place in American goods and services by the end of 1970. The principles of Total Quality Management were becoming widely known by the middle of 1980. The automotive sector prioritized statistical process control in the late 1980s. It was decided to use the Malcolm Baldrige National Quality Award as a benchmark for total quality management. Genechi Taguchi revived design of experiments (DOE) as a useful approach for quality improvement by introducing parameter and tolerance design.
METHOD HAVE BEEN USED
It was found that the automobile segment of the company experiences a problem which is defined through the product defects through wear in the machines. Internally, there are four fields of quality management in the automotive industry which are sales that are directly proportional to marketing and stores a database of customers. Secondly, service that is offered by the company. Thirdly, spares means the quality of spare parts available. Lastly, customers which mean support and service.
Amasaka (2015) said Toyota's Total Quality Management is focused on increasing product quality and decreasing variability; the company applies Total Management Quality to all of its activities. Product planning, profile design, engineering design, research and development, evaluation, production preparation, product engineering, manufacturing, inspection, sales, service, market research, and product management are examples of these. Toyota also conducts regular customer satisfaction surveys and engages customers in quality improvement efforts by allowing them to submit ideas and suggestions and by providing after-purchase maintenance services.
Toyota's Total Management Quality methods include the Toyota Production System, Kaizen, A3 Problem Solving, and the Toyota Way Model. Toyota Production System is based on the philosophy of eliminating all waste in pursuit of the most efficient methods, with two concepts: just-in-time production that produces only what is required. The other concept is Jidoka, which means that the equipment immediately stops producing defective products. Second, Kaizen refers to continuous improvement and employs the 5S framework, which includes seiri (sort), seiton (order), seiso (cleanliness), seiketsu (standardisation), and shitsuje (sustain). Third, A3 problem solving is a brainstorming method for problem solving that follows the Plan-Do-Check-Act cycle. Finally, the Toyota Way Model is a set of 14 managerial principles and behaviours divided into four segments: long-term philosophy, the right process will produce the right results, adding value to the organisation developed by people, and continuously solving root problems.
POSITIVE AND NEGATIVE IMPACT TO THE ORGANIZATION
Total Management Quality has a positive impact on the organisation, resulting in better products manufactured at a lower cost. Toyota prioritises the use of high-quality information to improve processes, reduce waste, and save time, resulting in lower expenses that can be passed on to customers in the form of lower prices. Pankaj Kapoor (2018) said Toyota believes that by changing product design and production design to produce lower-cost, more efficient products, they will be able to increase their profitability. Toyota implemented Total Management Quality successfully to reduce variability and provide the consistency that customers value. This builds customer loyalty and ensures repeat business.
Total Management Quality has a negative impact on the organisation, resulting in a lack of company-wide commitment to quality improvement as well as difficulty in achieving commitment. Any insufficient effort or resources will jeopardise the success of a TQM programme, causing negative ripple effects throughout the organisation. Toyota's challenges to successful TQM implementation include a lack of leadership commitment, poor and ineffective leadership, a lack of funding and resources, a lack of an integrated Total Quality Management model, a lack of proper staff training, poor teacher status and morale, and a variety of other factors. The TQM philosophy states that the more Toyota improves processes in all departments, the easier it will be to provide higher quality products and services to customers.
NEW ERA MANAGEMENT APPROACH
Toyota has conducted Total Quality Management based on the unchanging principles of ‘customer first’. The basic concepts of Total Quality Management and problem solving as well as kaizen through creative innovation spread throughout the company and took root, contributing to higher product quality and work quality at all levels and ranks and improving the vitality of individuals and organizations. Lack of the implementation resources such as monetary and human resources, the implementation of Total Quality Management cannot be successful.
Toyota employs transformational leadership to mitigate corporate credit risk. Toyota makes certain that corporate loans live up to or exceed their estimated useful life. Toyota demonstrates strong credit operation by making appropriate adjustments to the percentage of availability and reducing operation projects. Toyota transformational leadership is distinct from compromising leadership in that it is not imprinted on the cognitive mind. Clarifying a light and engaging vision, explaining how to achieve vision, act confidently, express partisan confidence, and use dramatic action are the rules for enforcing model transformation direction. To compensate for organisational complexity and enable successful management innovation, large organizations must recruit transformational leaders.
CONCLUSION
Total Quality Management is a concept used in the automobile industry, including by Toyota. It focuses on continuous improvement at all levels and branches of an organisation. As part of Toyota, the concept defines how the company can create value for its customers and other stakeholders. Toyota Corporation has been able to create value through TQM, which eventually leads to operational efficiencies
Total Quality Management is a significant breakthrough in the manufacturing industry. Toyota ensures that quality extends beyond simply producing one of the best car brands on the market. Toyota has established communication networks to accept customer questions, comments, and suggestions. The importance of Total Quality Management in financial management must be emphasised. The mere focus of Total Quality Management on quality demonstrates the commitment to limiting customer defects and returns.
REFERENCE
Evelyn Cardenas Valle. (2020, July 16). Toyota Quality System case study. ResearchGate;
https://www.researchgate.net/publication/342988606_Toyota_Quality_System_case_study
Gayathri Jesudoss, Reba. (2022, March). Implementation of TQM in Automotive Industry Case Study: Toyota Motor Corporation. Research Gate
Kapoor, P. (2018, March 9). Lesson from Toyota - target costing, especially importance of cost planning at design phase for automobile industry. LinkedIn. Retrieved January 15, 2023, from
https://www.linkedin.com/pulse/lesson-from-toyota-target-costing-especially-cost-planning-kapoor
Kakuro Amasaka. (2015). New JIT, new management technology principle. Crc Press, Taylor
& Francis Group.
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