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Requirement
Quality Management Case Study Assignment -Toyota/Healthcare.gov
Solution
TOYOTA QUALITY MANAGEMENT
Quality management within production lines have been a major concern for organizations all around the world as it directly impacts the value creation for the customers. There are various methods that are applied by the companies to ensure that the product quality matches the taste and preferences of the customers. Toyota is a one such company that applied Toyota Production System (TPS), based on Japanese (developed by Deming) Quality Mechanism, to ensure the quality of its car production. TPS focuses on six sigma quality for the production (Liker, 2004).
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In 2009, the company had to call number of Toyota vehicles from United States. The reason behind the call was pointed to the improper floor mats which was unnecessarily pressing the accelerators. The company called of different models with this issue which was surprisingly around 3.8 million. The sudden recalling was prompted by the car crash that killed the driver. The car was Lexus whose accelerator stuck due to the mat beneath the driver’s seat. There was other such incidents that took place in Toyota models and after the demand by NHTSA, the company recalled the vehicles.
The actual issue came up later when the company conducted the investigation with the pedal mechanism of the cars. The company found that the gas pedal mechanism was the problem and whether someone used floor mat or not, stickiness would not go. The length of the gas pedal was longer than usual and the space was also less between the pedal and floor. The company recalled above 8.5 million vehicles after the continuous complaints of vehicles getting out of control when pushed beyond 65 mph.
The company is huge and the brand value of the company is larger than its size. Therefore, it was mandatory that it must save its reputation else it might impact the brand value and future vehicle sale.
The recall of the Toyota cars grabbed huge media and people attention (Haq, 2010). The company had to suspend sale of eight models and recalls were made from China and Europe. The initial negative impact on the reputation of the company was handled effectively by the already existing brand value. However, the subsequent challenges started to strain the reputation of the company in the eyes of the public, customers, and the government. This incident saw the drop in company’s sale by 16% in the first month of 2010 and 11.6% in the second year. The industry average downfall for that period was 0.23% (Quelch et al, 2010). The identified solution was the installation of precision cut bars to reduce the friction that was eventually making the pedal stick (Griffin, 2011). The company tried to regain the same reputation through various advertisements focused towards safety and robust model designs withstanding all impacts.
The lessons that can be learned from the case are that quality assessment should always be a mandatory aspect of the organizations and the company must follow what has been placed in the system. The failure seems to be the result of improper focus on the quality measures assigned for the production (Jones, 2010). The reason for failed focus can be too much confidence in quality. Effective root cause analysis procedure should be there to find out any issues in advance. The data sharing mechanisms that can trace the quality challenges should have been there.
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Griffin, K. (2010). Final Plans for Toyota Recall Announced, retrieved on September 26, 2016, from about.com http://usedcars.about.com/od/avoidingproblems/a/ToyotaRecallAnswers.htm
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Haq, k. (2010). "Toyota recall update: dealers face full lots, anxious customers". The Christian Science Monitor. Retrieved on September 26, 2016. http://www.csmonitor.com/USA/2010/0129/Toyota-recall-update-dealers-face-full-lots-anxious-customers
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Jones, Jeffrey M. (2010). Americans, Toyota Owners Still Confident in Toyota Vehicles. USA
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Today/Gallup poll. Retrieved from http://www.gallup.com/poll/126236/americanstoyota-owners-confident-toyota-vehicles.aspx. Accessed April 27, 2010.
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Liker, Jeffrey. (2004). The Toyota Way: 14 Management Principles from the World's Greatest
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Manufacturer. New York: McGraw-Hill
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