Toyota Just in Time

Contents Particulars Page no. 1. 0) Introduction 2. 1) Company History 2. 2) Aim 2. 3) Objectives 2. 4) Organizational chart 2. 0) Problem Identification 3. ) Quantitative 2. 1. 1) Quality and design problem 2. 1. 2) Design problem 2. 1. 3) Welding problem 2. 1. 4) stalling problem 2. 2) Quantitative problem 2. 2. ) production problem 2. 2. 2) Recession problem 2. 2. 3) Accelerated problem 3. 0) operational concepts 3. 1) Quality 3. 2) ISO 9000/ISO 14000 3. 3) Just in time 3. ) Lean production 4. 0) Investigation 5. 0) analytical report 6. 0) conclusion 7. 0) references Summary: In the course of Operational management and Organization module, this assignment is about the Toyota Company, this one of the biggest automobile manufacture company.Here the author is discussing about the organization chart, aim of this assignment is that, quality of operational management that is useful in any business, and objectives are to investigate the problem identification and other operation al concepts like quality of the products from Toyota, its Just in time, Lean production policies and the ISO 9000/ISO14000 Certification, investigating the problems via drawing the Fishbone diagram, Questionnaires and analyzing the result with drawing the Pie charts. 1. 0 Introduction:In this assignment author is discussing about the quality within the organization area within a case study method. Here author considered as a case study. Toyota Company was founded by sakichi Toyoda with the name Toyoda spinning and weaving limited in 1918. In mid 1950’s it was introduced in the international market. Toyota is the largest automobile manufacturers in the world. Toyota sold 9 million models in 2006; this achievement is obtained by the companies aim toward the customer satisfaction. 1. 1 Company History: In 1937 Toyota motor company was established as a spin-off from Toyoda automatic room works.In 1947 Toyota launched its first small car after 3 years at the time of 1950’s it faced enormous financial crisis and also it experienced strike from the employees. In 1959 the Company launched first manufactured division in Brazil outside the Japan. (web1: http://www. breakeryard. com/cars/history/TOYOTA. aspx) Toyota shifted their head quarters to Hollywood in the year 1957, after a decade of time Toyota became the new established company in the United States. In the 1965 Toyota won â€Å"Deming Application prize for quality control†. ( web2: http://www. toyoland. com/history. tml ) In 1982 Toyota Motor Co. Ltd and Toyota Sales Co. Ltd are merged as Toyota Motor Corporation. 1989 Toyota started their manufacturing operations in Europe as well as in United Kingdom. Today Toyota is ranked world’s third place in the manufacturing of automotives in the sense of unit and net sales. ( web3: http://www2. toyota. co. jp/en/history/) 1. 2 Aim: In any company success in the operational management and organizations quality of products plays a major role. The main aim of this assignment in the quality of operational management that is useful in any business.Here author considered Toyota Company as an assignment. 1. 3 Objectives: The one of the main objective of the assignment to investigate the operational and organizational problems involved in the strategies that are appropriate to solve these problems and finally that evaluate the outcome of these strategies. In this assignment author discussing about the history of the company, organization chart, problems identification through the quantitative objectives that is machinery problems, qualitative subjective which are involves in the management processes.Next stage of the assignment is that, the way in which quality is applying in the organization, operational areas for the organizations like quality of the products from the Toyoto company, ISO 9000/ISO14000, detailed theory about the just in time and lean productions etc. 2. 0 Problem Identification: As the automobile industry Toy ota facing many problems to be discussed meanwhile these are the minute problems. These problems are crucial role customer satisfaction; on the other hand Toyota Company rectified these problems in time. 2. 1 Quantitative: 2. 1. Quality and design problems: Oil sludge problem: The engine excessive heat makes oil susceptible to sludge. Toyota Sienna XLE 2000 model car engine affected by the sludge problem. 2. 1. 2 Design Problem: The size of the cooling passages to cylinder heads in the Sienna XLE 2000 model to increase combination temperatures for more of a complete burn to reduce exhaust emissions. Excessive heat makes oil more susceptible to sludge the measurement cylinder head temperatures as high as 260 degrees in sienna XLE 2000 model this is 30 degrees higher than the earlier models. . 1. 3 Welding problem: Toyota introduced the redesigned Avalen in 2005, in this vehicle in U-Joint welding problem aroused due to the fault fitting of catalytic converters. The oil surrey leakage in aroused, for this problem Toyota correlate with an bags and the steering column on same Avalens. 2. 1. 4 Stalling problems: There is a stalling problems are involving in the Toyota corolla and Matrix models. The national highway traffic safety administration is investigated on 397,000 vehicles. There are some complaints about the mice of the new electronic control module. web: http://wheels. blogs. nytimes. com/2009/12/07/stalling-problems-on-toyota-corolla-and-matrixes-leads-to-investigation/) 2. 2 Qualitative Problems: Toyota Company solved their problem, creates future planning helps people with doing their works with A3 report. It describes the current situation of the problem, it identifies the desired outcome, and in this process problem solving is very transparent. (web: http://www. rallydev. com/agileblog/2009/07/learning-from-toyotas-secret-the-a3-report/) 2. 2. 1 Production problems:In recent years Toyota company introduced Prius Hybrid vehicle. The rapid growth and th e success of this car in market for this reason Toyota unable to produce the deliveries to the customers in the mean time sales of the other companies have been fall down. 2. 2. 2Recession problem: As many of the giant automobile industries Toyota faced the world recession with the huge fall in the sales as well as company growth. 2. 2. 3 Management failed to detect the acceleration problem: The sudden acceleration is likely due to the malfunctioning of the gas pedals.The sudden acceleration rose up to five times than the previous years. The Toyota failed to detect this problem in time, on the other hand they didn’t took the precautions and service to the customers. 3. 0 Operational concepts: 3. 1) Quality: According to Kodak ‘quality is those products and services that are received to meet or exceed the need and expectations of the customer at a cost that represents outstanding value’. (Harold Kerzner, P823, 2006). Kodak Five Quality Principle: Leadership and cu stomer FocusContinuous Improvement Analytical Approach Team work Founder of Toyota Corporation, Kichiro Toyoda said that â€Å"From now on I want everybody to their efforts together and write in finding a way to make superior vehicles†. To achieve the total quality, continuous improvement is the best principle. Toyota is following these types of strategies to maintain quality from this type of commitments real benefits can be obtained with the help of† independent customer surveys† we can conclude that Toyota is following the quality .Euro NCAP awarded five stars in the safety tests. For Toyota quality is not just a promise, it is a way of life. (web: http://www. toyotaegypt. com. eg/quality/index. asp ) In production of products, Toyota considering economically and standard quality a key fact which are exceeds the customer needs for customer satisfaction to Toyota allowing â€Å" Company wide quality control†, there employees must do two things they are th eir own job and quality assurance. (web: http://www. toyotauk. om/main/download/pdf/Our%20approach%20to%20quality. pdf) In Toyota, quality can be applying based upon the two principles; they are building quality at every stage and continually improving quality standards. Toyota is giving trying to the employees in visual control and indication of current status and identifying the problems, here Toyota employees are very much aware about the passing of un-quality products to the next stage. (web: http://www. toyotauk. com/main/how-we-manufacture/)Toyota maintaining quality by some strategies, they are, it encourages employees to participation of active roles in quality maintenance; it is utilizing the ideas of the employees in production processes and participating KAIZEN motivating for measurement. (web: http://www. toyotageorgetown. com/qualdex. asp) 3. 2 ISO 9000 and ISO 14000: This section provides the information of ISO’s, generally known as management system standards. ISO 9000 is the process of quality management this can be awarded to the organization if they fulfill the certain requirements. . Companies must achieve customers’ quality requirements. 2. They have to follow the regulatory requirements. 3. Companies have to fulfill the customer satisfaction. 4. Organizations have to be continuously improving their quality of products. ISO 14000 is known as â€Å"Environmental management† introduces to get the ISO 14000 certification, Companies must achieve the following activities. 1. They should minimize the environmental pollution by their activities. 2. To achieve continual improvement of its environmental performance. (web: http://www. iso. rg/iso/iso_catalogue/management_standards/iso_9000_iso_14000. htm) In 1991, Toyota (GB) achieved compliance with the quality standard BS 5750, which is later became ISO 9001. This is awarded for the fulfilling requirements for quality management System, this company achieved the regularity need s, it fulfills the customer satisfaction and Toyota Company is continuously improving their product performance. In 1999, because of their responsibility towards the environment, Toyota company awarded ISO 14001 certification for fulfilling the requirements for are manufactured ites. In 1999, new health and safety certificate OHSAS 18001 was also launched and Toyota achieved the requirements and it awarded OHSAS 18001. Entropy international is a kind of software solution that improves environmental, social and economic performance, there by contributing to global sustainability. Manager of the corporate compliance, Toyota plc, Richard burgers, said that† It was clear that rowing the entropy system was a significant contributory factor in our achieving triple certifications to ISO 9001, ISO 14001 and OHSAS 18001†. web: http://www. entropy-international. com/about/customers/by-corporate/documents/Toyota-Case-Study. pdf) 3. 3 Just in time: The meaning of just in time is to do the work different things to different people, it is the operational management approach for minimizing waste in operations, and this can be useful for the improvement of efficiency and product quality, practically just in time is the more than operational, tactical or strategic approach to running an operation. John R. Olson, 1999) The efficiency of Toyota, and other Japanese companies are follows Just in time procedure in addition they associates Toyota Quality Control(TQC) practice, in 1948 Toyota implemented JIT by Ono Taiichi. After fifteen years it spread all over the shops and plants and on words all Japanese implemented this procedure. ( Jane Marceau, 1992)Just in time production is a process, in which Toyota implement to having parts ready just as they are needed, instead of maintaining inventories across an assembly plants and in ware houses, this process is useful in cost savings by less capital from this company gains an inventory with this system, there is an one mor e advantage with this method, that is, from this company can increase their functionality or in other words, they can reduce cost, due to this they can complete their engineering works very quickly, since there is no need to clear the storage parts and troubles with the individual components can be investigate more quickly because they are using at the time of they made. (http://www. toyoland. com/toyota/production-system. html) 3. 4 Lean production: Toyota invented â€Å"Lean production† it is also known as the â€Å"Toyota Production System† or TPS).According to lean Enterprise Institute, lean production can be defined as â€Å"A business for organizing and managing product development, operations, suppliers, and customer relations that requires less human effort, less space, less capital and less time to make products with fever defects to practice customer desires, compared with the previous system†. Toyota lean production aim is to products, with the lowest cost, in the short period of time with eliminating the waste. Toyota mainly focuses on the duties and jobs of their workers, who are ready, add value to the cars, TPS is associated with other three foundations, just in time, built in quality and respect towards the employees. According to James Womack and Dan Jones there are five steps to achieve the lean thinking, they are 1) Specify value from the stand point of the end customer. 2) Identification of the value creating steps towards the customer. ) To create the value creating steps towards the customer. 4) Companies have to pull their customers from the next upstream activity. 5) At last following the above procedures companies can achieve the excellence. ( Robert Charlie,2005) 4. 0 Investigation: The Questionnaire prepared based on studying the management strategies of the Toyota organization. The quantitative and qualitative problems in the Toyota company are discussed with JIT, ISO, Lean production. Based these problems the a uthor prepared the questionnaire related to these topics. The questionnaire as follows 4. 1 Questionnaire: 1) Are you satisfied with the management strategies in the Toyota Company? Yes or No. ) In your opinion is Toyota reaching the customer expectations? a) Completely b) Satisfactory c) Partially d) No 3) Qualities of the manufacturing products are reaching the standards of ISO? Yes or NO. 4) Just in time method is very useful in the process of manufacturing. True or False. 5) In Toyota â€Å"Lean production† system is giving more advantages to the company. Yes or NO. 6) Toyota Company taking more cares about the customer health and safety precautions. Yes or NO. 7) Is recession effecting on the sales of the company products? Yes or No. 8) What are the customer service responses when giving complaints about the products? a) Excellent b) Good ) Satisfactory d) Poor 9) Service provided by the local Toyota store is good. Yes or No 10) In sum Toyota company products are reliabl e and trusted? Yes OR NO. 5. 0 Analysis of results: The Author prepared 10 questions for this survey he passed this questionnaire to 15 members in that 8 persons responded. By those results authos analysed their responces and he explained in the form of Pie charts. Question No: 1. Are you satisfied with the management strategies in the Toyota Company? Yes or No. This question addresses the management strategies towords the Toyota company development in the form of production quality marketing customer needs.By passing the questionnaires to 8 respondents for the survey in that 6 persons that is 75% said that they are satisfied with the company strategies, 25% of the participents said that they are unsatisfied with the management. Question 2: In your opinion is Toyota reaching the customer expectations? e) Completely f) Satisfactory g) Partially h) No This question addresses the Toyota company total customer satisfaction o the Toyota company. The total respondents for this survey is 8 members in that 6 members that is 75% of the respondents said that they are satisfied with Toyota product. 12. 5% respondents said that they are patially satisfied. Question 3: Qualities of the manufacturing products are reaching the standards of ISO? Yes or NO. This question addresses the quality standards of the Toyota company and it’s ISO certification.Out of the 8 respondents 6 members said that Toyota reched the ISO 9000 quality and 25% of the respondents said no for the ISO standars. Question 4: Just in time method is very useful in the process of manufacturing. True or False. Toyota Company introduced this JIT method all the members in the survey responded positively so the results will be 100% True. Question 5: In Toyota â€Å"Lean production† system is giving more advantages to the company. Yes or NO. Based on the survey the respondents out of 8 members 7 persons that is 87. 5% are said that lean production giving more advantages to the Toyota company and 12. 5% of respondents are gave their opinion they don’t.Question 6: Toyota Company taking more cares about the customer health and safety precautions. Yes or NO. The Toyota Company taking much care about their product in the sense of health and safety this question is also about this topic itself. Out of 8 respondents 5 persons that is 62. 5% persons said that they are fully satisfied with the policies of the Toyota company. 37. 5% of the respondents said that they have some complaints about the Toyota products in the sense of health and safety. Question 7: Is recession effecting on the sales of the company products? Yes or No. Recession is effecting in every field since last 2 years in that manufacturing industry is also one of them.By passing the questionnaire to 8 people in that half of them said that Toyota company suffering from recession. Question 8:What are the customer service responses when giving complaints about the products? e) Excellent f) Good g) Satisfactory h) Po or For any company success customer care plays a major role here author tried to investigate the responces given by the participants towards the customer service in Toyota company. In that 62. 5 % said that customer service centre is working excellent and 37. 5% of the respondents feel good, satisfactory and poor as equally. Question 9: Service provided by the local Toyota store is good. Yes or NoLocal store service plays a crucial role in the product marketing and they are the key role in the company bricks. Here author tried to know the local store service and their working ability with customers and vehicles. Out of the 8 members 62. 5% people feel that local store service is good and 37. 5% said no. Question No 10: sum Toyoto company products are reliable and trusted? Yes OR NO. Toyota is the most trusted company all over the world on the other hand minute problems with the products in the company are negative factors for the management. Here75% the people responded towards the Toyota they feel good. 6. 0 Conclusions: To conclude that Toyota organization is not developed in a day or a year.Years of smart and hard work of the many people in the organization with the variety of strategies they are now on the heights. Through this work I have learned the organizations building structure, problems faced by the organization, and importance of the quality in an organization. The organizational strategies importance and the problem solving through the techniques and strategies like JIT( Just In Time) Lean production, the importance of the ISO certification in a organizations in the quality concern. To improve the product quality, efficiency and high content of the product with less time and low cost to get these things with JIT process.By preparing the questionnaire I have learned more things like how the problems occurred in the organizations, the identification of the problems, the problems varieties like quantitative and qualitative and problem solving. The ma in thing I have learned from this work the problems solving in an organization with the strategies. Recommendations: As an organization Toyota thinking one step ahead than the other companies on the other hand the defects and some draw backs in the engines as well as designing to be improved. The crucial part of the organization is the customer satisfaction. The minute complaints should be considered and taking care of that particular problem. References: ) Schniederjans,. John R. Olson(1999) Advanced topics in Just in time. 2) Robert C (2005) Improving health care using Toyota lean production method. 3) Jane Marcean (1992) Reworking the world: oganisations, technologies and cultures in competitive perspectives. 4) Harold Kerzer (2006) Project management: A system to planning, scheduling and controlling 5) Available at http://www. toyotauk. com/main/download/pdf/Our%20approach%20to%20quality. pdf accessed on 09-01-10 6) Available at http://www. entropy-international. com/about/custo mers/by-corporate/documents/Toyota-Case-Study. pdf accessed on 07-01-10 7) Available at http://www2. toyota. co. p/en/history/ accessed on 06-01-10 8) Available at http://www. iso. org/iso/iso_catalogue/management_standards/iso_9000_iso_14000. htm 9) Available at http://www. toyoland. com/history. html accessed on 07-01-10 10) Available at http://www. breakeryard. com/cars/history/TOYOTA. aspx accessed on 10-01-10 11) Available at http://www. toyotageorgetown. com/qualdex. asp accessed on 10-01-10 12) Available at http://www. toyotaegypt. com. eg/quality/index. asp accessed on 07-01-10 13) Available at http://www. strategosinc. com/just_in_time. htm accessed on 08-01-10 14) Available at http://www. toyoland. com/toyota/production-system. html accessed