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Baseer Project TQM 123

The document discusses problems faced by Toyota and solutions through Total Quality Management. It identifies key issues like bureaucracy, overconfidence, weak management and their impacts. Toyota faced a loss of consumer confidence due to safety issues from faulty accelerators. The crisis occurred due to failures in Toyota's management systems and processes rather than isolated mistakes. Frequent performance evaluations are needed to prevent such avoidable billion-dollar errors.

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Amir sohail
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53 views20 pages

Baseer Project TQM 123

The document discusses problems faced by Toyota and solutions through Total Quality Management. It identifies key issues like bureaucracy, overconfidence, weak management and their impacts. Toyota faced a loss of consumer confidence due to safety issues from faulty accelerators. The crisis occurred due to failures in Toyota's management systems and processes rather than isolated mistakes. Frequent performance evaluations are needed to prevent such avoidable billion-dollar errors.

Uploaded by

Amir sohail
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1

Project
The project about Toyota company problem /
issue solution with Total Quality
Management

Prepared By
Tariq ahmad
Roll Number:9677
Student at S.B.B.U.Dir Upper
Department management
Sciences
Semester 6th
Submitted To Dr.Fazli Haleem.Sb
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Acknowledgement
First of all, I am thankful to almighty Allah
who made me able to write a project
successful
I am also thankful to my respect Teacher
Dr.Fazli Haleem who help me in getting this
opportunity to write a project like the that
groom my self for the future professional
responsible
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Introduction
How can a company that has been
calling the shots in the automobile
market succumb to problems and
criticism brought about by mistakes that
could otherwise have been avoided?
Why would a company release faulty
automobiles into the market?
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( Problem and solution)

1 Bureaucracy
It is noteworthy that problems involving
bureaucracy have taken a center stage
in Toyota Motors Corporation. Thus, the
Japanese carmaker has been dealing
with emerging problems instead of
concentrating on the smooth running of
the company. There are numerous
avoidable bureaucracy problems that
have engulfed Toyota Motor
Corporation; as a result, it has led to
company criticism and reduction of
sales. One of these problems involved
its expansion into the United States
market.
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It is evident the two operating stations in


the United States reported to the
headquarters in Japan as different
entities. Thus, in the implementation of
the United States expansion program,
the bureaucracy arrangement was not
well structured.
Holstein further affirms that James
Press, Toyota’s highest-ranking U.S
executive managed to establish Toyota
Motor North America with its de facto
headquarters in New York.
Also, he ascended in the company’s
management portfolio as he was
appointed a member of the board of
directors in Japan. This branded him the
only non-Japanese in Toyota’s board of
directors. In an apparent turn of events,
Press quit Toyota in 2007 and went
ahead to join Chrysler.
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2 Overconfidence

The other problem in Toyota is


overconfidence. It is noteworthy that Toyota
is a secretive organization. This is because
what goes on inside this organization is not
easily discussed outside the company.
Also, the employees are forbidden to talk
about the company procedures and strategy
to any other person. The company believes
it is the best and thus does not need to
share information with any other
organization.
An American employee once confided that
working for the company with the level of
secrecy involved equals working for the
central intelligence agency. This is because
the information is shared on a need to know
basis and not any other time.
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Also, it was always difficult to get


information about the company from the
management or employees.
3 Weak management
Stahl & Grigsby depict that the problem of
weak management in an organization has
always been considered a recipe for
disaster. Thus, it is essential to
strengthening management whenever this is
detected.
In recent times, Toyota has experienced
numerous problems linked to weak
management strategy. It is evident that
Toyota for many years has been managed
by a series of professionals.
Hence, it managed to attain its success and
assumed the number one spot as the
world’s biggest automobile manufacturer.
Last summer grandson of the founder, Akio
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Toyoda, took over as the company’s chief


executive.
This prompted a mixed reaction from
analysts and observers both in Japan and
the United States of America. Many
analysts and observers stated that Akio
Toyoda was not ready to manage such a
world-class company.
4 The fallout
Cusumano divulges that Toyota problem-
solving mechanism seems to have broken
down this is about the recent set of crisis
that has engulfed the Japanese car
manufacturer.
During the recent safety flap crisis, the
company announced that the floor mats
were faulty then after some time it said it
was the gas pedal. The gas pedals were
supplied from an Indiana company. Thus
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Toyota claimed that the only U.S made


vehicles were faulty.
However, this version of Toyota did not hold
up as a Lexus manufactured in Japan
bearing the same mechanical fault was
involved in an accident, in California. As a
result, Toyota described it as a software
problem.
At the moment, the company has stated that
the problem is related to faulty software
used in breaking and acceleration vehicle
operations.
Also, it is not clear how long Toyota will take
to formulate the problem, as they already
suggested that it will not be quick. Safety
measures have thus been established to
control this problem but not to eliminate it.

5 Conclusion
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The problems Toyota is facing currently are


not as a result of an individual’s isolated
mistake, but a collective company mistakes
linked to one another. A number of the
company’s corporate functions were
involved. Thus, the crisis in Toyota was as a
result of a failure in its system of
management.
Most importantly, the lesson the other
market players should learn is that a good
management and production process
requires frequent evaluation of
performance. This helps in the prevention of
crisis caused by avoidable billion-dollar
errors.
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My opinion
the Japanese owned Toyota Motor
Corporation has recently succumbed to
severe operational malfunctions. As a
result, the company has incurred a loss of
consumer confidence in their products and
poor sales.
This happened despite Toyota being ranked
the world’s largest car manufacturer after
out-pacing American owned general motors.
It is noteworthy that most of the problems
the company is currently undergoing could
have been foreseen and avoided as they
are considered human errors.
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