Monday, April 5, 2010

4 Dimensions of Quality

Quality of Design
Historically, Toyota has invested much time and money in research and development when designing the quality of its products. However, recent years have shown that Toyota’s quality of design has been falling. “In Sept 2006, Jim Press, then the company's President of North American Operations, at a Toyota Japan headquarters presentation, reported that the number of Toyota vehicles recalled had increased sharply from 2003 to 2005. Parenthetically, I note that complaints lodged against Toyota with NHTSA, increased in almost linear fashion from about 1,100 in the year 2000 to almost 5,000 in 2009”(Cole 1). Akio Toyoda recently blamed the lack of human resources for the company’s product quality failure. He believes that the company could not train its employees fast enough to keep up with Toyota’s growth rate. However, many industry analysts believe that the top priority of Toyota’s quality of design has switched from product safety and quality to high sales volumes and low costs.
Quality of Conformance
Because of Toyota’s recent lack of quality in design, production has suffered as a result. Recently, the company has experienced a large number of recalls including a sticking accelerator pedal and a floor mat recall of many Toyota Camrys produced from 2007 to 2010. Recent years have shown that many of Toyota’s products have not met the quality and safety specifications of its customers.
Abilities
As with any automobile, Toyota’s customers are looking to buy a car that is reliable and maintainable. Since the 1970s, Toyota has had a history of producing cheap cars with high MTBF. This reliability is what has made Toyota the best car manufacturing company in the world. However, this MTBF has dropped significantly in recent years, made evident of the recent recalls. Toyota has a long road ahead of them to restore its product’s reputation as reliable and maintainable.
Field Service
Toyota has always offered a number of different warranties for different cars. In reference to repairing all vehicles affected by the recall, Toyota has posted the following on their new website dedicated to the recall.
“Toyota will begin contacting customers to let them know when to bring in their vehicles for the fix, and some of them will be notified as early as this week (Week beginning, Monday, February 1). Because of the number of vehicles involved, it will take time to process and mail the instructions to all involved vehicle owners, and Toyota appreciates its owners’ patience during this time. Owners will only receive a letter if their vehicle is involved in the recall. Upon receipt of an owner notification letter that their vehicle is involved, owners will be asked to please contact a local Toyota dealership to schedule an appointment to have their vehicle fixed (Toyota).
The company has taken full responsibility for the recall situation, and will pay the all the costs of repairs.
Recommendations
Since quality starts with the design of the product, Toyota should invest more time and money into research and development. This will put a greater emphasis on creating a product that meets and surpasses customer’s expectations. In addition, the company should invest more on training its employees, as well as focusing more on inspecting each product before it is delivered to the customer. This will help limit the number of recalls Toyota experiences. Overall, the company must return to its original philosophy that emphasizes quality and safety.

Robert E. Cole is Professor Emeritus, Haas School of Business and Dept. Sociology, UC Berkeley, Executive Director, and Visiting Researcher, ITEC, Doshisha University, Kyoto, Japan
http://pressroom.toyota.com/pr/tms/customer-faqs-regarding-the-sticking-153495.aspx#link 1

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