Toyota Total Quality Management Essay

2506 Words Oct 21st, 2008 11 Pages

Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the production of goods and services.
This management approached originated in the 1950's and become more popular since the early 1980's is a description of the culture and attitude inside the organization that let provide customers with products and services that satisfy their needs. It needs quality in all aspects of the company's operations, with processes being done right the first time and defects and waste eradicated from operations. The aim of the combination of quality and management is increasing business and reducing losses due to wasteful practices to low cost.

This method has been
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Chain of customers - dealers
Toyota is selling cars through dealers and supporting them is an important part of the work of Toyota’s financing arm. Selling through dealers is fundamental to Toyota as they do not have sell directly so for dealers is important to know that they have the support of the whole organization as they become part of the final quality service provide to the customers.Toyota concludes a Toyota Dealer Agreement with each of its dealers which specifies the mutual rights, obligations and responsibilities of both Toyota and the dealer. The basic contract is renewed once every three years following adequate consultation between Toyota and the dealers, taking into account changes in the business climate.

• Builds the relationship between the distributor/dealer and the customer provides a ‘window’ for further customer communication.
• Provides the opportunity to market the ‘Voice of the Customer’ (VOC) and utilize it as a process of change and improvement reinforces staff awareness on the value of customer satisfaction.

2- Satisfy the supplier

External suppliers
Toyota purchases components from as many as two hundred suppliers and takes the long view for dealing with them:
• It spends 3-5 years evaluating a new supplier before awarding an initial contract.
• It understands its suppliers' costs structures in detail and agrees to prices that allow

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