In: Operations Management
Toyota vehicle recalls At the end of 2009, Toyota Motor Corporation faced three separate related recalls of automobiles. The first recall, on November 2, 2009, was to correct a possible incursion of an incorrect or out-of-place front driver's side floor mat into the foot pedal well. which can cause pedal entrapment. The second recall, on January 21, 2010, begun after some crashes were shown not to have heen caused by floor mat incursion. This latter defect was identified as a possible mechanical sticking of the accelerator pedal causing unintended acceleration, referred to as Sticking Accelerator Pedal by Toyota. As uf January 28, 2010, Toyota had announced recalls of approximately 5.2 million vehieles for the pedal entrapment/ floor mat problem, and an additional 23 million vehicles for the accelerator pedal problem. Approximately 1.7 million vehicles were subject to both. Thus, investigations on such issues started immediately. On February 8, 2011, findings into the investigation were released After a 10-month search, scientists found no clectronic defect in Toyota vehicles. Driver error or pedal misapplication was found responsible for most of the incidents. The report ended stating. "Our conclusion is Tayota's problems were mechanical, not electrical." This included sticking accelerator pedals. and pedals cought under floor mats. In fact, in 2005. Toyota launched the "Customer First" program, to bring the voice of customers in an attempt to improve the quality of its vehicles. But it was quietly discontinued in early 20X19. A Toyota manager justified its elimination by announcing "We had come to believe that quality was maintained mainly in processes and not in products, and no quality at source was applied," Moreover, when implemented coerectly, any impeovement in quality processes can reduce waste and thus lead to reduced cost and improved profitubility. Therefore, Toystu wanted to know that if paying more in increasing the quality of their vehicles, would pay them the benefits they are aiming for, or it would be just another lost investment. but On October 24, 2013, a jury ruled against Toyotu and found that unintended acceleration could have been caused due to deficiencies in the drive-by-wire throttle system or Electronic Throttle Control System (ETCS). 1) What two functional perspective on quality did Toyotan upply? Justify. 2) According to Juran's trilogy quality theory, in which step of the three was the problem? Justify. 3) Which sphere of the three spheres of quality was Toyota facing problem in? Justify? 4) Which point of 14 points of Deming's quality thenry was presented in the above case? Justify.
Answer 1:
The two functional perspective of quality that the Toyota has applied are:
1. Quality can be maintained in the process and not in the product. And no quality at source was applied.
2. Any improvement in the quality process, when implemented correctly, can reduce waste and reduce the cost and improves profitability.
Toyota has called back its product in huge numbers after the product has been sold off by the company and the customer has used the product and identified the defects of the accelerator pedal and the floor mat. Defects if found in one or two or few vehicles can be considered as the ‘defect’ in the product. However, if the defect is associated with almost all the products, then it becomes the issue of faulty measures in the implementation of the quality.
Applying quality measures in the final product is next to impossible as the refurbished product cannot regain its originality as that of the product whose quality is completely maintained. Thus, quality is applied in the processes of production where each and every dimension of the assembly is checked for the quality so as to obtain the quality product. Once the final product is made, it is either a quality product came out as a result of maintaining quality in the process of its assembly or a defective product since some of the processes have not been implemented as per the quality standards.
Applying quality in the processes helps in the reduction of the waste of time, resources and the cost of analysing, finding and fixing the defect in the final product.
Answer 2:
Juran’s trilogy quality theory is a way of thinking about the quality and includes the three processes viz.
1. Quality planning where the target market is defined and the need of the customers is defined.
2. Quality control where it is checked that whether the process is working appropriately and performance goals are set.
3. Quality improvement where the task of repairing the defects in the final product, refining the process that has shown no or least defects , renovation in the processes by introducing the improvements through innovations and reinvention of the new process is carried out.
As per the above stated Juran’s trilogy theory of quality, Toyota was in the third phase where quality improvement is needed to be carried out in its product. The first two phases of the quality of Juran’s trilogy quality theory deals with the processes that are carried out before the final product that has been finally and completely manufactured. The third phase is for dealing with the defects in the final product where repairing, refining, renovation and reinvention is carried out. Toyota has already manufactured its product and has also launched them in the market and the defects were found during the use of the product. Thus, quality improvement in the final product was required to be carried out in Toyota’s product.
Answer 3:
The three spheres of quality are:
1. Quality control: it is a scientific step where the analysis, relation and generalisation of the various quality standards in the various operational processes is carried out. This step is carried out during the assembly processes of the product before it is finally made.
2. Quality assurance: in this step, the guarantee for the quality of the product or services is made. This step includes the activities such as the failure mode and effects analysis, process improvement and reliability testing of the quality of the product.
3. Quality management: this step is a combination of quality control and quality assurance where planning for quality improvement and creating the culture for quality adherence is taken into consideration.
Toyota was facing problem in the quality control sphere as Toyota has failed to maintain quality in the process. It has produced the products which have shown defects in large number of products. If the defects are associated with the limited number of products then we can say that the quality assurance and quality management was not proper. However, Toyota has not even implemented the quality standards while performing the process which suggests that the problem is in the quality control sphere.
Answer 4:
The fourteen points of Deming's quality theory are:
1. Create purpose for improvement.
2. Adopt the new philosophy and take on leadership
3. Eliminate inspection. Build in quality.
4. Minimise total cost by improving quality.
5. Consistently improve quality and productivity to decrease cost.
6. On the job training
7. Leadership
8. Drive out fear
9. Break down silos
10. Eliminate slogans
11. No quotas or numerical goals
12. Encourage pride of workmanship
13. Encourage education and self improvement
14. Involve all workers in transformation.
In the Toyota’s case, third, fourth and fifth points of Deming’s quality theory are presented. Toyota has called all of its already sold product for inspecting the quality; the trend which is required to be eliminated and the quality is required to be incorporated in the processes of making the product. Moreover, the cost of rectifying the quality in the final product increases the cost of maintaining the quality and this cost can be minimised by improving the quality and hence the consistency in the improvement in the quality and productivity can decrease the cost of inspection of the faulty quality products.