Company Profile
Toyoda Automatic Loom Works was the company that laid the groundwork for what is today known as Toyota Motor Corporation, which was established in 1937. The organization is one of the most dynamic and intense organizations on a worldwide scale, and it has relished a record-setting achievement for the past few years. Additionally, Toyota has been one of the pioneers in the business sector when it comes to creating innovative and inventive inventions.
The company’s consistent aim has been to design and manufacture safe, dependable automobiles to contribute to society. Toyota is a fast-moving corporation, which means that it adapts to the changing demands of its consumers by focusing on both expansion and market share. Customers need good quality and low costs, and the company envisions a sustainable development strategy that each employee drives. The Toyota Production System’s quality control efforts are based on creating and manufacturing better automobiles via continuous improvement. By reacting to consumer demands, the firm has expanded quickly. For this reason, the firm is reinforcing the need to align consumer expectations with quality control systems to guarantee that expansion does not come at the price of safety.
While most of the business’s immediate competitors, like Ford, were manufacturing more cost-effective and efficient vehicles, modifications were made to the corporation. In addition, the company’s innovative production strategy, emphasis on continuous development and learning, and matrix structure all contribute to the company’s industry leadership (Akcay Kasapoglu 304). The “Just-in-time” philosophy underpins Toyota’s Production System (TPS). This strategy has a smaller window of opportunity for slack resources and instead concentrates on the benefits of efficiency for employees and eliminating waste. In addition, Toyota employs its human resources methods, culture, and organizational structure to implement its manufacturing system. This emphasis on learning and humility distinguishes Toyota from its competitors when evaluating its prior successes. Henceforth, this paper will discuss the implementation of TQM, lean production, and the concept of waste management for Toyota company.
Implementation of TQM by Toyota
Total Quality Management (TQM) is a method to improve a company’s ability to meet the expectations of its customers and other stakeholders. TQM uses people’s skills and competencies to improve organizational performance (Pambreni et al., 1401). TQM is a management strategy that tries to ensure that a company’s performance and profitability continue to improve over time. Toyota’s senior management, rather than its employees, oversees all procedures and ensures quality. Because of this, Toyota’s senior management has been implanting quality concepts into every element of their firm so that all employees can acquire attitudes and perceptions that are entwined with quality to execute TQM.
On top of the immediate products and services provided, Toyota is responsible for administering an expansive scope of operations. Toyota has been emphasizing its consumers and how its goods are utilized, therefore allowing for long-term improvements in its products’ quality. In addition, Toyota implements a method known as Kaizen, which allows the firm to inculcate quality in its operations in an observable, quantifiable, and repeatable way.
A fundamental aspect of the application of TQM is Toyota’s focus on customer demands, which has contributed to the company’s success. A firm needs to have a loyal and trusting consumer base to succeed. Toyota claims that they place a high value on the well-being of its customers, staff, and the communities in which they operate. Toyota has said that its goals are reflected throughout its whole production process. Toyota has adopted TQM as a three-step process. Initially, their firm emphasizes production and planning quality. Furthermore, TQM has been implemented successfully due to a change in industrial culture. A quality control system incorporated into Toyota’s production process defines quality policies, examines statistical data, and compiles a quality manual to ensure the highest quality possible. Toyota employs quality assurance throughout the entirety of its production process.
Toyota has established the vision and purpose of its organization so that TQM-related organizational goals and objectives are at its core. TQM concepts were adopted by Toyota’s business leaders, which resulted in a greater focus on quality. Toyota workers of all ranks are devoted to the company’s aims and aspirations. On top of that, TQM is made possible by the active involvement of every employee in the company. Toyota’s report shows that TQM has been successfully applied throughout the company’s whole hierarchical structure. As part of its Toyota Management System, which is utilized throughout the company, Toyota has incorporated TQM into its core. TMS employs strategies like value supervision and just-in-time assembly to ensure quality is never compromised in operational management.
Lean Production in Toyota Motor Corporation
Toyota is widely recognized as one of the most profitable corporations operating in the automobile sector. At least the corporation has established a presence in many other countries thanks to their vehicles’ dependability and competitive pricing. Since it began using the lean manufacturing process many years ago, Toyota has had sustained financial success, making it one of the most profitable companies globally over a highly extended period. Toyota’s primary goal in adopting lean manufacturing practices was to bring its operations to higher operational effectiveness. The corporation can improve both the productivity of its personnel and the productivity of its equipment by employing lean manufacturing techniques. At Toyota, one of the primary objectives of implementing the Lean way of manufacturing was to cut down on the quantity of wasted human labor and machinery used as inputs for labor supply inside the firm.
The just-in-time and Jikoda ideas serve as the foundation for Toyota’s implementation of lean manufacturing, founded on continuous improvement principles. The just-in-time notion was altered so that, regardless of where the stage of production a product was in, its result was always precisely what would be needed in the stage that followed it in the production process (Lu, David, and Norman Bodek 39). This is done to guarantee that nothing is thrown out since it is either in excess or is not what is necessary for the subsequent stage of manufacturing. Jikoda is a Japanese word that refers to robots with a human-like quality about them. In this instance, Toyota takes advantage of automation while simultaneously ensuring human supervision of the equipment. This is important to guarantee that this equipment will continue to provide the desired results. Without a shadow of a doubt, both were utilized by Toyota as a strategy for cutting down on waste. These tools have been practical and have accomplished what they set out to do.
Waste Management
The Toyota Motor Corporation significantly emphasizes carbon as one of its primary environmental sustainability priority areas. The firm has devised a plan to lower the amount of carbon dioxide (CO2) emitted by their cars and activities and assist their suppliers and dealers in doing away with their CO2 output. Within the company, helping reduce the negative impacts that Toyota’s products and actions have on the surrounding environment has been a top goal.
The firm’s awareness has been focused on the green age for several decades. To date, Toyota Motor Corporation claims that the Prius, the world’s first mass-produced hybrid car, has reduced CO2 emissions by more than 100 million metric tons since its debut in 1997. The Toyota Company estimated that the total emissions from all logistics sources, including vehicle and production control, amounted to 663,000 metric tons during the fiscal year that ended on December 31, 2021 (Nibe and Nobuhiko 52). This represented a reduction of 9 percent compared to the previous year’s total emissions.
According to Toyota Motor Company, the company had an estimated one million metric tons of CO2 emission using electricity, natural gas, and other fuels. This represents a reduction of 22 percent from 2016 and 8 percent from the year before. The goal of Toyota is to make all its manufacturing activities carbon neutral by the year 2035 and eradicate the generation of carbon dioxide (CO2) from their facilities’ usage of energy by the year 2050. Waste, machine lubricants and coolants, paints, scrap metals, plastic, and hazardous cleaning chemicals produced by the Toyota Motor company can negatively impact the surrounding environment. This is another factor that Toyota needs to take into consideration. Even though Toyota has been unsuccessful in specific waste management measures, the company has issued yearly reports on the impacts and efforts that have been taken toward a clean environment since 1998. These reports demonstrate the company’s devotion to reducing pollution.
Works Cited
Akcay Kasapoglu, Ozlem. “Leadership and Organization for the Companies in the Process of Industry 4.0 Transformation.” International Journal of Organizational Leadership 7.1 (2018): 300-308.
Pambreni, Yuni, et al. “The influence of total quality management toward organization performance.” Management Science Letters 9.9 (2019): 1397-1406.
Lu, David J., and Norman Bodek. Kanban Just-in Time at Toyota: Management Begins at the Workplace 1.2 (2018): 31-44.
Nibe, Nobuhiko. “Loosening Social Ties and Toyotism: Intersection of Corporate Society and Regional Society in Toyota City.” Toyota City in Transition 1 (2022): 45-70.