Total quality management (TQM) is a management approach that was introduced in 1950s and has become one of the most popular techniques that are currently being used by firms to gain competitive advantage in the market. It is a management approach where both the management and employees become part of the continuous improvement in the production of commodities ( Rokke & Prakash Yadav, 2012) . It is an approach that focuses on enhancing both quality and performance of an organization in order to meet or exceed customer expectations. Besides, it involves the integration of all quality related operations and process in the company. Therefore TQM and continuous improvement go hand in hand. TQM and continuous improvement has been applied by both small and established companies across the globe. Toyota Motor Corporation (Toyota) is one of the companies that have successfully used TQM and continuous improvement to succeed in the market.
Toyota is one of the leading automobile manufacturers across the globe. The company was found in 1919 and it made its first motorcar in 1936. The company has experience tremendous growth since it was found. Currently, Toyota has 12 manufacturing plants in Japan and 52 others in 26 different countries across the globe. Its market capitation is about $5 billion, making it the largest automobile company in the world. Some of the scholars argue that TQM would have not been where it is today were it not for Toyota ( Bernard, 2013) . It is one of the only companies in the Fortune Global 500 companies that directly address TQM and continuous improvement. Toyota’s use of TQM can be traced back in 1961when it first introduced total quality control (TQC). Since then, the company has received a number of prestigious awards for quality management that include Deming Application Prize in 1965 as well as Japan Quality Control Award in 1970. In addition, the company has been awards ISO 9001 and ISO 14,001 for quality and environmental excellent respectively.
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The company’s TQM and continuous improvement objective is to improve the quality of work and to support its employees. In order to achieve this objective, the company is applying three main quality principles that include putting the customer first, continuous improvement (Kaizen), and 100% participation. Customer satisfaction is the most important thing for the company and it is fully oriented to achieving it ( Bernard, 2013) . To maximize customer satisfaction, Toyota ensures that it provides excellent services to its clients while at the same time it ensures that they can get any information they need through it Customer Relations departments across the globe.
Toyota’s continuous improvement strategy has been adopted by various companies in different industries. It has decades-old continuous improvement manufacturing system that has enabled it to gain competitive advantage in the automotive industry worldwide ( Hendricks & Singhal, 2000) . The company’s continuous improvement is designed in such a way that it rapidly and efficiently products that satisfy specific needs of its customers. It is using continuous circulation of procedures to solve any problem that emerges. At the same time, it is using pull system to prevent the overproduction of its products. Besides, it has standardized all its duties to ensure constant improvement of its operations and products. Also, the company is using dependable modern technologies to reduce wastage of its resources. Toyota is using the continuous improvement to become a role model in the industry and to gain competitive advantage in the market.
In addition, 100% participation has helped the company to have one of the most creative workforces. Every employee in the company is not only encouraged to participate but also to directly contribute to assist in the development of the firm. Employees in the company have the opportunity to dictate how to perform their work to achieve the set objectives. Besides, both the management and staff collaborate to address all the challenges facing the company. As a result, Toyota has managed to offer products and services that meet customer needs ( Hendricks & Singhal, 2000) .
Therefore, Toyota has managed to use TQM and continuous improvement to maintain its position as the largest automobile company in the world. The company has been selling more than 10 million units of cars annually since 2015. The excellent performance in the global market us associated with the company’s ability to produce products that satisfy customer needs. At the same time, it is using continuous improvement to adapt to the changes in the market, especially with regard to customer taste and preference. Besides, its 100% participation has made it to have the most motivated and creative employees who also offer quality customer services to clients in different parts of the world ( Hendricks & Singhal, 2000) .
In conclusion, Toyota mainly relies on customer satisfaction as the main aspect of TQM. All its quality management strategies are aimed at ensuring that it meets specific needs of its customers in various parts of the world. Consequently, Toyota has maintained its dominance in the automotive industry since it started using TQM and continuous improvement. It is one of the companies that have successfully use TQM.
References
Rokke, C., & Prakash Yadav, O. M. (2012). Challenges and Barriers to Total Quality Management: An Overview. International Journal of Performability Engineering , 8 (6).
Hendricks, K. B., & Singhal, V. R. (2000). The impact of Total Quality Management (TQM) on financial performance: Evidence from quality award winners. Quality Progress , 33 (4).
Bernard, D. (2013). Toyota Motors: The King of Total Quality Management. Retrieved from http://blog.bid-org.com/toyota-motors-the-king-of-total-quality-management/
