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TQM in Toyota Presented to: Dr. Shymaa’ Al Sawaby Presented by: Omnia Mohamed Hassan Salma Hisham Ibrahim
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Page 1: TQM in Toyota

TQM in Toyota

Presented to: Dr. Shymaa’ Al Sawaby Presented by: Omnia Mohamed Hassan Salma Hisham Ibrahim

Page 2: TQM in Toyota

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

Page 3: TQM in Toyota

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.

Page 4: TQM in Toyota

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.

Page 5: TQM in Toyota

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.

Page 6: TQM in Toyota

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

Page 7: TQM in Toyota

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.

Page 8: TQM in Toyota

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.

Page 9: TQM in Toyota

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.

Page 10: TQM in Toyota

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.

Page 11: TQM in Toyota

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).

Page 12: TQM in Toyota

“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)

Page 13: TQM in Toyota

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

Page 14: TQM in Toyota

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

Page 15: TQM in Toyota

Toyota 5S System•Benefits of 5S

▫Reduce waste hidden in the plant

▫Improve quality and safety

▫Reduce lead time and cost

▫Increase profit

Page 16: TQM in Toyota

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?

Page 17: TQM in Toyota

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

Page 18: TQM in Toyota

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

Page 19: TQM in Toyota

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

Page 20: TQM in Toyota

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 

Page 21: TQM in Toyota

Quality is A journey NOT

A destination

Page 22: TQM in Toyota