MBA 6022 Toyota Data Collection and Evaluation Tools

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Toyota Data Collection and Evaluation Tools

Abstract

Data Collection and Evaluation Tools are significant to Toyota Motor Corporation. Toyota is a huge organization that has encountered some issues with malfunctioning accelerators known as the “Toyota Crisis”. The paper will identify the data collection and evaluation tools. The measurement strategy will be described. The issues with quality standards on Toyotas vehicles will be discussed and the implications and problems will be defined. Lastly the paper will discuss the desired outcome and recommendations for the organization and the benefits derived.

Toyota Process Cause and Effect Problem Statement

Introduction

Toyota Corporation has strived for “better cars for more people”. This value means producing cars that have diverse customer preferences with flawless quality. This is the philosophy of the Toyota Corporation. Toyota was the global leader in the automotive industry when tragedy hit the organization like a ton of bricks. Toyota has lost market share as well as a strong loyal customer based on the malfunctioning accelerators crisis.

Data Collection Tools and Techniques

Data Collection Tools and Techniques: Data collection plays an essential role in any process improvement plan. It is primary to collect key information to better understand the big picture and to also review and analyze specific points. While researching how Toyota will improve their public relations or external communications with the public tied to quality issues then it is important to know how to measure quality in a qualitative way. Quality could be subjective but you need a measurable way to track performance as it relates to quality and quality improvement over a given period of time. IQS is a quality measurement tool that is used in the automotive industry so this should be a good tool for Toyota Motor Company to support quality results and trends. Regarding quality and how Toyota should use IQS as one of the ways they can measure quality and their quality results. This is one of the tools to be used to continuously monitor measurable data to track consumer perceptions of Toyota Motor Company quality compared to their own previous results and also track how they are doing compared to their competitors. The following demonstrates a by brand.

Data enhance, support, or change a flowchart

When an organization is utilizing data for a process flowchart, the data could change and then of course your flowchart will change. The key is to obtain baseline data before making any changes and ensure quality control test measures have been taken. Since Toyota is looking to selecting processes to improve they need to collect baseline data before making changes in the organization. With IQS study the information obtained can give leadership or decision makers the feedback to improve quality and safety concerns for consumers. The chart below shows Toyota improved 117 problems per 100 vehicles to 101 problems per vehicle in 2011. The information shows improvement in quality and there are fewer problems. This information will enhance the flowchart by showing the new process is working. The number of problems is down.

This cause-and-effect diagram or fishbone shows the possible causes related to the quality and safety issues in the areas of communication, systems, procedures, policies, philosophies, machinery, and people. This diagram showed poor external communication to the public and bad public relations that contributed to a bad reputation for Toyota in this crisis situation. The baseline data changes and effects flowcharts for a desired outcome. Decisions are made to improve processes and change any issues or problems.

Initial Quality Study (IQS)

This IQS chart above shows when car and driver compared vehicles from 2010 to 2011, Toyota improved 117 problems per 100 vehicles to 101 problems per vehicle in 2011.

Initial Quality Study: Car Ratings

Category Best in Category Other Top Picks
Best Subcompact Toyota Yaris Honda FitMazda Mazda2
Best Compact Toyota Corolla Toyota PriusHonda Civic
Best Compact Sport Mazda MX-5 Miata Volkswagen EosScion tC
Best Luxury Compact Sport Volvo C70 Mercedes-Benz E-Class Cabriolet/Coupe
Best Midsize Sport Ford Mustang Dodge Challenger
Best Entry Luxury Lexus ES 350 Acura TLLincoln MKZ
Best Midsize Luxury Infiniti M Series Lincoln MKSMercedes-Benz E-Class (sedan/wagon)
Best Full-Size Luxury Lexus LS Mercedes-Benz S-ClassPorsche Panamera

In 2012 J.D. Powers and Associates released its 2012 Initial Quality study. The chart above displays the results. It shows the best subcompact Toyota Yaris, best compact Toyota Corolla, and Best Luxury Lexus LS and Lexus ES 350.

The Measurement Strategy

The Measurement strategy was based on utilizing IQS because it gives the best method for measuring data. The method is timely in a measurable way. It allows the organization to track quality performance and consumer perception. Perception is reality and significant in terms of quality standards. Organizations’ need to know how their customers perceive each specific model they produce for quality is trending. Toyota management can also use this IQS to compare Toyota quality versus their competitors in the automotive industry. Toyota management can look at industry average and see if they are trending above or below this industry average. They can compare to their own year over year results. This is a substantial improvement when compared to their competitors or the industry at large. This demonstrates that Toyota Motor Company management placed more of a focus and priority on improving quality and quality perceptions from their customers and this yielded improved results. Looking back the quality results from 2010 to 2011 when Toyota was in the pedal crisis they can compare their results up today. Through the measurement strategy the graphs and data shows Toyota continuous improvement philosophy so they actually did improve their quality since 2010, 2011 then improved again in 2014 with this most recent Initial Quality Study done by J.D. Power. The other measuring strategy used is bases on car ratings. Cars.com rated the Toyota Yaris the best subcompact in 2012 and the Toyota Corolla the best compact car in 2012. These two cars were rated the best in their respective classes.

Problem Statement

Leadership decided to save money by cutting costs; which in turn affected the vehicles they produced. These massive money saving cuts (in employees, bonuses and quality parts), created a recipe for disaster. Toyotas’ Leadership was in crisis mode and made extremely bad decision to save money by, with holding bonuses, reducing thousands of temporary workers’, turning down thermostats, and curbing production. These decisions were made in the crisis mode and based on emotional reactions instead of the organization thinking about quality and their customers. The problems were not going away with the accelerator. Toyota did not take immediate action when their customers were complaining about issues with vehicles. According to Greto, “Had Toyota sacrificed quality at the expense of extreme cost reductions?”.

Toyota needs to improve the quality of their customer service in regards to producing a quality product that is safe for consumers. Toyota customers rely on the manufactures of vehicles to be quick to respond to problems and have proper countermeasures to prevent future problems. The delayed reaction does nothing but hurt the reputation of Toyota and hurt their bottom line and lose market share.

The quality and safety graphic flow chart shows the how we will implement the new process. It shows areas related to quality and safety issues. The process will develop Total Quality Management and empower everyone in the organization to be involved in the process of quality standards. The TQM process is divided into four categories; plan, do, check, and act. This diagram will improve tough quality measures across the organization.

The before implementation flow chart shows the how Toyota operates and conducted business prior to the quality process improvement. The biggest emphasis is Shareholder who only worries about cutting cost and the bottom line of producing profits. Quality was a small part of this robust system at a functional meeting. It shows areas related to quality and safety issues.

Conclusion

The Toyota accelerator crisis could have been handled better and in a timely manner. The process needing improvement is dimensions of quality. This value means producing cars that have diverse customer preferences with flawless quality. This is the philosophy and desire that will be produced with the implementation of Totally Quality Management and Suggestive innovation quality improvement process. The Measurement strategy was based on utilizing IQS because it gives the best method for measuring data. The method is timely in a measurable way. It allows the organization to track quality performance and consumer perception. Perception is reality and significant in terms of quality standards. Organizations’ need to know how their customers perceive each specific model they produce for quality is trending. Toyota management can also use this IQS to compare Toyota quality versus their competitors in the automotive industry. Toyota utilizing these data collection and evaluation tools will continue to shape and improve quality standards of Toyotas’ vehicles.

References

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Gray, A. &. (2009). Process Fundamentals. Harvard Business School Publishing.

Greto, M. S. (2010). Toyota: The accelerator crisis . Thunderbird School of Global Management.

http://knowledge.wharton.upenn.edu/article/quality-on-the-line-the-fallout-from-toyotas-recall/. (2015). http://knowledge.wharton.upenn.edu/article/quality-on-the-line-the-fallout-from-toyotas-recall/. Retrieved from http://knowledge.wharton.upenn.edu/article/quality-on-the-line-the-fallout-from-toyotas-recall/: http://knowledge.wharton.upenn.edu/article/quality-on-the-line-the-fallout-from-toyotas-recall/

http://www.cars.com/go/advice/Story.jsp?section=top&subject=iqs&story=iqsCar. (n.d.). http://www.cars.com/go/advice/Story.jsp?section=top&subject=iqs&story=iqsCar. Retrieved from http://www.cars.com/go/advice/Story.jsp?section=top&subject=iqs&story=iqsCar: http://www.cars.com/go/advice/Story.jsp?section=top&subject=iqs&story=iqsCar

Powers, J. D. (2014). www.jfpower.com/press-releases/2014-us-initial-quality-study-iqs. Retrieved from www.jfpower.com/press-releases/2014-us-initial-quality-study-iqs: www.jfpower.com/press-releases/2014-us-initial-quality-study-iqs




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