Tuesday, February 23, 2010

Lessons from Toyota: Importance of Quality Control

While the investigation into what caused the safety-related problems with Toyota vehicles continues, the situation reminds us all of the importance that quality control plays in almost every industry.

The term quality control became common in the 1950s. W. Edward Deming proposed the process known as “statistical quality control” to counter the process in place for inspecting manufactured products after the war. Even though these statistical controls could be expensive, he argued that implementing these measures ultimately saved companies money. (
Small Business Encyclopedia)

According to the
Wall Street Journal, “Toyota Motor Corp. is considering ways to bolster procedures for checking the quality and reliability of cars” and “is aiming to announce changes to its quality and disclosure practices”.

Not learning from this very public mistake would be a shame, as Toyota will need to spend a lot of time and money not only on fixing the problem, but also on rebuilding its brand and confidence among consumers.

One important lesson to be learned from this is that although there is a cost associated with implementing proper quality procedures, purchasing quality control devices, and refining manufacturing processes, simply not ending up in a situation where your entire brand is on the line can be priceless.

Learn more about FARO’s quality control devices.

6 comments:

  1. Looks more like they didn't do an adequate FMEA during design and testing.

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  2. Quality costs, poor quality costs alot.
    Quality not just in measurement but total quality. Toyota is discovering that quality issues run deep to the bottom tier suppliers. As many companies are finding poor quality from their low cost third world suppliers. Guess who? Go to http://www.paulmidler.com/toyotas-massive-recall-made-in-china/. Toyota has forgot the past when they had mom and pops produce one of a kind parts for autos made in japan, good quality part maybe, but when assembled...

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  3. I think It distasteful to focus on the recent issue with Toyota. Maybe many have forgotten when it was commonplace to have recalls with the big 3 in the 80s. I don't remember them ever issuing an order to stop selling product till the root cause and corrective action was determined. All Manufactures have problems thats what contioious improvement is about.

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  4. Thanks Anonymous#3. I 100% agree. The reason people want to bash Toyota is because they don't understand the True Picture! Let's take for instance G.M.'s 'big collapse'. Wasn't it in or right around 1977, GM lost 3% of their market share. No Problem, as the CEO's still got their bonuses. Next year the same, so and so forth. Well, 30 years later, someone started noticing that they just weren't making as much money as they used to, so they started looking into it. Analysis indicated the company had lost 3% for 30 years or more (must be the big shots couldn't afford to buy the G.I. Joe with the kung-fu grip for their nieces and nephews), and now without any forward thinking, all of a sudden have to react to a 90% loss in the market share, which clearly has to be Toyota's, Honda's, Misubishi's,etc etc etc, fault, because the Good-'ole USA just couldn't be so ignorant as to keep allowing the secret winks, handshakes, nudges and nods used in past practices to be at fault!

    So for those of you delighting in Toyota's quality faux paux, just remember this.....when you're stranded on the side of the road in your "American Made Vehicle" I'll kindly wave as I am driving my 1993 Camry with 267,000 miles on the original engine, and all body panels in tact, and in good shape, on by you thinking to myself, ..."Poor saps haven't realized that good products last longer!"

    Having worked for Japanese companies, it is clear to me, especially being the one who designed, completed and adjusted PFMEA's, and FMEA's that at least when the Japanese companies see a deficiency in their products, they respond, quickly, and willingly. They're not like one of the big three to see who they can blame first, and then redirect everyones attention that way - they own up to it.

    So whoever you are, thinking we are all stupid for buying "Japanese Junk", remember this: the Japanese culture is into anticipating problems and addressing them before production, by applying fiscally responsible alternatives, as opposed to throwing multi-million dollar boat anchors that don't accomplish the task, but sure do have a nice big fancy technobabble name, at the problems - bottom line, if it makes sense, and corrects defects, they do it. If not they re-analyze using the 5m process, and fishbone diagrams, and try again.
    But none of the big 3 would understand this, because they have never experienced a post-production defect resulting in a recall.
    Have a nice day!

    JH - Michigan Automotive Engineer
    Ford Light truck exhaust
    Honda HVAC
    Toyota HVAC

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  5. Well said JH. I mean, people should just stop bashing Toyota 'cause I doubt other car companies would be quick about the presentation of a recall order - cause unlike Toyota, some would probably think about how much money can they save for whatever reason. I notice that in all Japanese production companies, they are concentrated on providing products in the market, rather than just gaining profit; meaning they are after providing, maintaining and improving what they have, instead of just selling products as cheap as possible. No matter what everyone keeps on saying, I still think Japanese's quality control is far stricter than any other country. After all, Toyota invented the Lean manufacturing system, with the kanban way of thinking in mind. It's constant improvement! They'll be back in the game soon.

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