Company Profile Toyota

– Quality Function

Submitted To:

Dr. Hima Gupta

Submitted By

Ankush Sharma 9609077

Atul Sharma 9609078

Pavel Naiya 9609079

Ankur Sreen 9609082

Pooja Bagga 9609085

Karan Verma 9609086

Ankit Khanna 9609088

Ankita Goel 9609089

Ekta Jain 9609091

Sonali Garg 9609094

COMPANY PROFILE

Toyota Motors

Toyota Motor Corporation is one of the world‘s leading automakers, offering a full range of models, from mini vehicles to large trucks. Besides its own 12 plants and 11 manufacturing subsidiaries and affiliates in Japan, Toyota has 45 manufacturing companies in 26 countries/locations, which produce Lexus- and Toyota-brand vehicles and components. Toyota is one of the biggest vehicle manufacturers, and one of the most widely known companies, in the world.

Toyota has grown to a large multinational corporation from where it started and expanded to different worldwide markets and countries. It displaced GM and became the world's largest automobile maker for the year 2008. It held the title of the most profitable automobile maker (US$11 billion in 2006) along with increasing sales in, among other countries, the United States

As of 2009, Toyota officially lists approximately 70 different models sold under its namesake brand, including sedans, coupes, vans, trucks, hybrids, and crossovers.

Toyota in India

As a joint venture between Kirloskar Group and Toyota Motor Corporation, Toyota Kirloskar Motor Private Limited (TKM) aims to play a major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries.

While managing growth, TKM has maintained its commitment to provide quality products at a reasonable price and has made every effort to meet changes in customer needs. TKM firmly believes that the success of this venture depends on providing high quality products and services to all valued customers through the efforts of its team members.

TKM, along with its dedicated dealers and suppliers, has adopted the "Growing Together" philosophy of its parent company TMC to create long-term business growth. In this way, TKM further contribute to progress in the Indian automotive industry, realize greater employment opportunities for local citizens improve the quality of life of the team members and promote robust economic activity in India. All Toyota employees are expected to embody these values in their daily work, including environmental protection activities.

| Quality Function 2

The vision of Toyota Kirloskar Motor is to:

1. Delight our customers through innovative products, by utilizing advanced technologies and services.

2. Ensure growth to become a major player in the Indian auto industry and contribute to the Indian economy by involving all stakeholders.

3. Become the most admired and respected company in India by following the Toyota Way.

4. Be a core company in global Toyota operations.

The mission of Toyota Kirloskar Motor is to:

1. Practice ethics and transparency in all our business operations.

2. Touch the heart of our customers by providing products and services of superior quality at a competitive price.

3. Cultivate a lean and flexible business model throughout the value chain by continuous improvement.

4. Lead the Toyota global operations for the emerging mass market.

5. Create a challenging workplace which promotes sense of pride, ownership, mutual trust and teamwork.

6. Create an eco-friendly company in harmony with nature and society.

THROUGH THESE ACTIVITIES ESTABLISH SUPERIOR BRAND IMAGE IN INDIA


QUALITY FUNCTION

Quality Function Deployment (QFD) has been known in the western world for the last twenty years, and, over that time, it has developed a checkered reputation. Issues that QFD takes care of after the new development process .The following are the issues.

Issue 1: Current and future customer needs are not adequately understood. Innovation-based companies may focus on pushing a technology into the marketplace without truly understanding customer needs. Companies with existing products, assume they understand their customer needs. Or needs may rapidly evolve, but the company doesn't recognize this situation. Marketing may understand the needs, but this knowledge is not passed on to the development team.

QFD Solution: Voice of the customer (VOC) - the effort to investigate and analyze customer needs is a prerequisite for a QFD effort. With QFD, VOC data is reduced into a set of critical customer needs using techniques such as affinity diagrams, function analysis, etc., defined and documented in customer needs data dictionary, and prioritized. This VOC effort is also the opportunity to recognized unfulfilled needs that can provide, at a minimum, competitive advantage, and, potentially, a break-through product or true value innovation. A basic principle of QFD and any other system is "garbage in, garbage out". If adequate effort is not spent in understanding customer needs, the result of QFD, as well as the entire development effort, will be a less than optimum product.

Issue 2: The competitive situation is not understood nor adequately considered. Marketing may understand the competition, but this knowledge is not transferred to the team. No formal data collection or analysis is performed. This can lead to non-competitive or me-too products or products that rapidly lose their competitive advantage.

QFD Solution: Once customer needs are defined, the second major step with QFD is to perform competitive analysis. This includes not only analyzing current competitive strengths and weaknesses, but also considering future directions of competitors. It also involves mapping competitor's positions against market and demographic characteristics and against key product characteristics to recognize threats and opportunities. This analysis is a key part of planning the new product.

Issue 3: Inadequate attention is paid to developing a product strategy and value proposition. There may be an implicit strategy understood by management, Marketing, or some team members, but not all team members understand this strategy, leading to suboptimal decisions. In the absence of competitive analysis and strategy, the team may want to exceed competitive product's performance parameters in all areas, leading to a more costly product or a risky development project. The product may be aimed at the wrong market niche or miss the opportunity that exists.


QFD Solution: A third step in the QFD process is to develop the product strategy and value proposition. The objective is to get the "most bang for the buck" out of the development effort. This strategy needs to be explicitly defined, understood and agreed to by all participants. The strategy should reflect where the team will focus its development effort to achieve the customer value proposition (e.g. improvement goals, etc.). Use of related tools such as conjoint analysis can also help to validate the value of certain capabilities to the customer.

Issue 4: Product requirements and specifications are not carefully balanced against needs and implications. Marketing wants it all when they create a marketing requirements document. Specification target values can be arbitrarily established to exceed the competition without regard to cost or the value proposition. Inadequate consideration may be given to trade-offs among product parameters leading to additional cost and development effort. A requirement may be established because the developer thinks it would be a good idea.

QFD Solution: Requirements (technical characteristics) are only established in response to customer needs (stated or unstated but recognized). Technical benchmarking is performed to help understand the competitive position and establish appropriate specifications (target values). Trade-offs and cost drivers are analyzed in the interaction matrix. Risk and difficulty is considered in establishing specifications (target values). In short, there is a rigorous consideration of a variety of factors in objectively developing requirements and specifications.

Issue 5: Insufficient attention is given to developing collaboration and teamwork. Team members are assigned and thrown together in an Investigation or Feasibility stage, but frequently little explicit effort is given to develop collaboration and teamwork.

QFD Solution: QFD is a planning and decision-making methodology that is performed by the product team. It forces early communication, planning and decision-making among team members. It requires open sharing of information, overcoming the hidden knowledge that can otherwise plague a team. It bridges the gap between Marketing, Engineering, Manufacturing and Quality. Team member's knowledge is "leveled" through this process. The initial product planning with QFD leads to rapidly developing collaboration, teamwork, and commitment to the product strategy and plan.

Issue 6: In the rush to develop a new product, inadequate attention is given to developing and evaluating concept alternatives. Traditional architectures, technologies, and concepts are assumed as the basis for the new product because time is short.

QFD Solution: QFD is oriented toward defining requirements (technical characteristics in a global manner - independent of a particular technical solution so that multiple concept alternatives can be considered and the best one selected. After


the product planning matrix is completed, the QFD process includes a concept development and evaluation step with an emphasis on developing alternatives. The intent is to identify a more optimal, and perhaps even a break-through solution rather than continuing with the traditional concept used for past products. QFD provides a concept selection matrix using the requirements as a basis for decision criteria. QFD places an emphasis on innovation and providing innovative and exciting capabilities to customers.

Issue 7: Critical characteristics, process requirements and quality controls are not effectively linked. Frequently, designs are tossed over the wall to Manufacturing and Quality. They interpret drawings and define manufacturing processes and quality requirements without necessarily understanding the critical product and part parameters or critical processes. The result is that process and quality controls may not focus on the most important issues.

QFD Solution: QFD is a flowdown process with the deployment matrix, process planning matrix and process/quality control matrix. These subsequent QFD phases insure on-going communication, planning and decision-making among team members and between the Engineering, Manufacturing and Quality functions and with suppliers. Critical characteristics, process requirements and quality requirements are explicitly identified, planned and communicated. This assures alignment and commitment throughout the process and avoids some of the last minute quality problems that occur during launch.


BASIC QUALITY POLICY IN TOYOTA“Customer First, Quality First” is Toyota’s basic quality policy. The key to ensuring this is the control of quality functions. Divisions ranging from product planning, development, production engineering and manufacturing to purchasing and sales and marketing are responsible for maintaining high levels of quality in their respective fields, and division managers draft annual policies regarding quality functions.

Toyota’s efforts in this area take the following three principle directions.

1. All Toyota products and services must meet customer expectations and comply with the laws of the particular country where business is conducted, and preventative action must be taken to ensure that quality issues do not arise.

2. Should such issues arise, the causes must be swiftly clarified and countermeasures initiated. This is accomplished by Toyota’s European Customer Quality & Engineering (E-CQE) department, which takes appropriate action with respect to products that have already been sold, so that issues are both detected and resolved promptly (see below, Quality Procedures and Systems in Place).

3. Audits must be performed to confirm whether each division is taking appropriate action to maintain high quality levels;areas requiring improvement must be identified and improved.


OBJECTIVETo examine the present quality function of Toyota.

To study the fundamental factors affecting the quality function for Toyota.

To present the future constraints of quality function of Toyota.

METHODOLOGYThe methodology is to study and analyze the different data collected from the secondary sources such as the internet, journals ,research papers and books and study the various quality functions and their implications on the company Toyota.


Company Profile Toyota

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