Toyota individual essay

Topics: Toyota, Quality assurance, Quality management Pages: 7 (1378 words) Published: April 18, 2015

SUBJECT NUMBER
21511

SUBJECT NAME
Global Operations and Supply Chain Management
UTS STUDENT ID NUMBER
11497245
SHANGHAI STUDENT ID NUMBER
10124827
NAME OF STUDENT (PINYIN) Zhu, Wang

STUDENT’S EMAIL ADDRESS
Morgan_zhuwang@126.com

Note: Legitimate cooperation between students on assignment is encouraged, since it can be a real aid to understanding. It is legitimate for students to discuss assignment questions at a general level, provided everybody involved makes some contribution. However, students must produce their own individual written solutions. Copying someone else’s work is plagiarism, and is unacceptable. If you sign the declaration below and it is found that the work submitted is not your own work, the University may impose penalties.

Declaration: I declare that this assignment is my individual work, I have not copied from any other student’s work or from any other source except where due acknowledgement is made explicitly in the text, nor has any part been written for me by another person.

If this assignment is submitted after the due date, I understand that it will incur a penalty for lateness unless I have previously had an extension of time approved and have attached the written confirmation of this extension.

Signature of Student

Zhu,wang

Date

2013/1/9
DUE DATE

RECEIVED DATE

Individual essay
Introduction:
The global automobile industry had reached 1,640 billion dollars in 2010, and the market value is forecasted to increase 49.3% since 2010 to 2,449.2 billion dollars in 2015 (Marketline, 2011). Toyota, which takes up 6.8% of global industry’s value, has just experienced its recall crisis from September 29th 2009 to January 27th 2010. More than 9 million cars and trucks around the world in the whole world were recalled by Toyota (Chris, P., Roger, W., G., 2010). Toyota was immersed in trough because of these faults and bad luck, and the public image is also seriously damaged.

At present, Toyota is been returning on track gradually, and according to the report from Toyota Motor Sales, USA, Inc., its sales increased 17.2% to 161,695 units in November 2012 because Toyota only sold 137,960 units in November of 2011 (Marketline 2012). These bad luck and breakdowns are very serious to any company which would encounter, so Toyota expressed its professional skills and abilities to handle these crises which are advanced in the automobile industry. New CEO of Toyota, Akio Toyoda, brought some improvements to company’s operations and supply chain strategy. This critique will focus on three aspects of these changes, namely quality management, new product development and cost reduction, respectively, and in addition, some academic theories will be applied to explain these strategies

Discussion:
Quality management:
The core competitive advantage of Toyota in the past was the high quality, and the main cause of the recall crisis was also quality problem. Nearly all firms pay much effort to quality improvement to achieve goals like cost reduction, higher customer satisfaction, more loyalty from customer, and better performance from financial and market aspects (Verma, R., Boyer, K.K., 2010). In general, costs of company are from internal failure costs, external failure costs, assurance costs and prevention costs. Quality control system reduces some costs such as internal costs but the accompanying results are higher assurance costs and prevention costs. In the wrong cost reduction program taken by Toyota, the less spend in assurance costs and prevention cost made Toyota move quality from the first principle replaced by outputs, said by Akio Toyoda. Total quality management (TQM), six sigma and many other quality improvement approaches are depended on customer feedback (Pande, p. s., Cavangh, R. R., & Neuman, R. P., 2000), and the...
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