TQM in Toyota Presented to: Dr. Shymaa’ Al Sawaby Presented by: Omnia Mohamed Hassan Salma Hisham Ibrahim
Sep 05, 2014
TQM in Toyota
Presented to: Dr. Shymaa’ Al Sawaby Presented by: Omnia Mohamed Hassan Salma Hisham Ibrahim
Agenda:•History of Toyota•Toyota Production System (TPS)•14 Principles of TPS•“4P” Model of The Toyota Way•Toyota’s Leader View•Toyota 5S System
History of Toyota• The Toyota Group is one of the largest and most
respected corporations in the world. From a local spinning and weaving company, Toyota gradually developed into a world player comprised of 13 business units.
• In 1918, founding father Sakichi Toyoda formed the Toyoda Spinning and Weaving Company.
His automatic power loom revolutionized the Japanese textile industry.
• A few years later, His son Kiichiro Toyoda invested in the automotive sector and founded the Toyota Motor Corporation.
History of Toyota• Many other major technical and business
achievements followed over the succeeding decades forming the Group now encompassing 13 business areas.
•The Group employs over 500,000 people worldwide. Every individual contributes to safeguard the enormous legacy of experience and character that make up the diverse activities of the modern Toyota Group.
Toyota – The Key Dates• 1924Sakichi Toyoda invents Toyoda Model G Automatic Loom.• 1930Kiichiro Toyoda begins research on small gasoline-powered engine.• 1933Automobile Department is established at Toyoda Automatic Loom
Works, Ltd.• 1935The Toyoda precepts are compiled.• 1936The AA Sedan is completed.• 1937Toyota Motor Co., Ltd. is established.• 1950Company faces a financial crisis; Toyota Motor Sales Co., Ltd. is
established.• 1957Toyota Motor Sales U.S.A., Inc. is established.• 1962Joint Declaration of Labor and Management is signed.• 1965Toyota wins the Deming Application Prize for quality control.• 1966The Corolla is launched ;business partnership with Hino Motors
Ltd. begins.• 1967Business partnership with Daihatsu Motor Co., Ltd. begins.• 1974Toyota Foundation is established.
Toyota – The Key Dates• 1982 Toyota Motor Co., Ltd. and Toyota Motor Sales Co., Ltd. are merged into
Toyota Motor Corporation.• 1984 Joint venture with General Motors (New United Motor Manufacturing,
Inc.) begins production in the USA.• 1989 The Lexus brand is launched in the USA.• 1992 Toyota Motor Manufacturing (United Kingdom) Ltd. begins production.• 1997 The Prius is launched as the world's first mass-produced hybrid car.• 1999 Cumulative domestic production reaches 100 million vehicles.• 2000 Sichuan Toyota Motor Co., Ltd. begins production in China.• 2001 Toyota Motor Manufacturing France S.A.S. begins production in France.• 2002 Toyota enters Formula One World Championship; Tianjin Toyota Motor
Co., Ltd. begins production in China.• 2004 The Toyota Partner Robot is publicly unveiled.• 2005 The Lexus brand is introduced in Japan.• 2008 Worldwide Prius sales top 1 million mark.• 2010 Worldwide Prius sales top 2 million mark; Toyota and Tesla Motors
agree on joint EV development
History of Toyota•In 1980s Toyota takes over the market of
Ford which lead to loss of about 3 billion dollars to Ford + also vanished the 3 billion dollar market of Ford who was owned by Henry Ford who was famous for line manufacturing.
•This forced the world to think about TQM.
Toyota Production System•What TPS is?
▫A consistent way of thinking.▫A total management philosophy.▫Focus on total customer satisfaction.▫An environment of team work and
improvement.▫A never-ending search for a better way.▫Quality built in process.▫Organized disciplined work place.▫Evolutionary.
14 Principles of TPS• The right process will produce the right results.• Create continuous process flow to bring
problems to the surface.• Use “Pull” system to avoid over production.• Level out he work load (Heijunka).• Build a culture of stopping to fix problems, to
get quality right the first time.• Standardized tasks are the foundation for
continuous improvement and employee empowerment.
• Use visual control so no problems are hidden.
14 Principles of TPS• Use only reliable thoroughly tested technology that
serves your people and process.• Add value to the organization by developing your
people and partners.• Grow leaders who thoroughly understand the work, live
the philosophy and teach it to others.• Develop exceptional people and teams who follow your
company’s philosophy.• Respect your extended network of partners and
suppliers by challenging them and helping them improve.
• Continuously solving root problems drives organizational learning.
14 Principles of TPS•Go and see for yourself to thoroughly
understand the situation.•Make decisions slowly by consensus,
thoroughly considering all options, implement decisions rapidly.
•Become a learning organization through relentless reflection (Hansei) and continuous improvement (Kaizen).
“4P” Model of The Toyota Way1. Problem
solving
(continuous improvement &
learning)
2. People and partners (respect, challenge,
and grow them)
3. Process (eliminate waste)
4. Philosophy (long-term thinking)
Toyota’s Leader View
tech
nica
l managem
ent
philosophical
people
Long-term asset=learned skillsMachinery depreciates=loses vale
People appreciates=continue to crow
Technical:•Stability•JIT•Jidoke •Kaizen•Heijunka
Management:•True north•Tools to focus management attention•Go and see•Problem-solving•Presentation skills•Project management•Supportive culture
Philosophy/basic thinking:•Customer first•People are most important asset •Kaizen•Go and see=>focus on floor• Give feed back to team members and earn respect
•Efficiency thinking•True (vs. apparent) condition•Total (vs. individual) team involvement
Toyota 5S System•The 5S
▫Seiri – sort (housekeeping)▫Seiton – set in order (workplace
organization)▫Seiso – shine (Cleanup)▫Seiketsu – standardize (Cleanliness)▫Shinseki – sustain (Discipline)
Visual workplace
Toyota 5S System•Benefits of 5S
▫Reduce waste hidden in the plant
▫Improve quality and safety
▫Reduce lead time and cost
▫Increase profit
Toyota 5S System•Seiri – sort
▫Ensuring each item in a workplace is in its proper place or identified as unnecessary and removed.
▫Sort items by frequency of use▫Get rid of unnecessary stuff
Bare essentials for the job Red Tag system Can tasks be simplified? Do we label items, and dispose of waste
frequently?
Toyota 5S System•Seiton – set in order
▫Time spent looking for things, putting away
▫Arrange materials and equipment so that they are easy to find and use Prepare and label storage areas Use paint, outlines, color-coded Consider ergonomics of reaching items Frequent, infrequent users
Toyota 5S System•Seiso – shine
▫Repair, clean & shine work area (“Everyone is a janitor”)
▫Important for safety▫Maintenance problems such as oil leaks can
identified before they cause problems.▫Schedule for cleaning, sweeping, wiping off▫Cleaning inspection checklists▫Workspace always ready to work▫See workspace through customers’ eyes
Toyota 5S System•Seiketsu – standardize
▫Formalize procedures and practices to create consistency and ensure all steps are performed correctly.
▫Prevention steps for clutter▫Otherwise improvements from first 3 lost ▫Everyone knows what they are
responsible for doing, when and how▫Visual 5S – see status at a glance▫Safe apparel, no wasted resources
Toyota 5S System• Shitsuke – sustain
▫ Keep the processes going through training, communication, and organization structures
▫ Allocate time for maintaining▫ Create awareness of improvements▫ Management support for maintaining▫ Training, rewardsVisual Controls – Andon
Indicators for tools, parts, and production activities Placed in plain sight of all workers so everyone can
understand status of system at a glance If a machine goes down, or a part is defective or
delayed, immediate action can be taken
Quality is A journey NOT
A destination