Thesis Presentation - Jeeva Velusaami - Final

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Improvement of procedures related to the management (creation, revision, disuse) of Quality Standards and rules for Toyota European operations

Improvement of procedures related to the management (creation, revision, disuse) of Quality standards and rules for Toyota European operations

Master Thesis

Jeeva Velusaami (s202994)Master of Science Automotive Engineering


Company Introduction

Toyota Motor EuropeBegan selling cars in 1963 9 manufacturing plants in 7 countries Over 8 billion invested since 1990More than 4 billion spent with European-based suppliers per year874,000 vehicles sold in CY2015Over 1,000,000 hybrid vehicles sold in Europe to date [Jan 2016]4.6% market share in CY 2015Employees (approx.): 20,000 (direct / including TPCA, 50/50 joint venture Toyota/PSA Peugeot Citron)

Team Introduction

Quality Function - PlanningMain Role and Responsibilities:Coordination of business planning items and Quality meetingsLead, support and Kaizen for Quality related systems (Rules, Manuals, etc.,)Quality training coordinationKey Tasks:Hoshin and KPI setting coordinationPromotion of Customer-first mindset through events like Quality and Re-start dayTraining management and coordination for Pan-EU quality staffPromotion of Quality standards establishment and follow-up across European operation

Nov.25, 2009 Floor mat safety campaign notificationJan.21, 2010 Accelerator pedal recall notificationFeb.9, 2010 Prius brake recall notification

Series of Recall IssuesMar. 30, 2010 The 1st Global Quality Special Committee Feb. 24, 2010 President Toyoda attended public hearing

Quality Crisis - Series of Recall Issues

5Toyota suffered bashing from the world as trigger accident in San Diego, US.Then, Toyota took field actions about floor mat, accelerator pedal, and Prius brake.

The situation was not saved yet.Finally, President Toyoda attended public hearing on Feb. 24, 2010.

From this reflection, established Global Quality Special Committeeto strengthen Quality Assurance system.The 1st Global Quality Special Committee was held on Mar. 30, 2010 .

Quality Crisis - Impact

Impacts:Decrease in quality ratings Direct reflection of quality crisisRatings lower immediate competitor with resulted in less salesLess confidence among customers for brand ToyotaProblems per 100 vehicles

6This is 6 Actions promised to the general public. I will skip explanation for each item. Now we are taking action in entire Toyota.

In sixth item, independence of quality assurance activity in respective region in world, Reconstruction of Quality Assurance System is took up.

Please be aware Fa05 is one of 6 action.

(1) Establishment of Global Quality Special Committee(2) Strengthening capability to gather customers voice and quality information(3) Fostering quality human resources by CF training center(4) Confirmation and evaluation by outside experts (to ensure transparency)(5) Improvement in communication with authorities in respective regions(6) Independence of quality assurance activity in regions worldwide Review of Quality Assurance Rule(=Reconstruction of Quality Assurance System)

Implementation of 6 Actions Toyotas declaration to the general public to promise reinforcement of quality control

Quality crisis - 6 Actions

7This is 6 Actions promised to the general public. I will skip explanation for each item. Now we are taking action in entire Toyota.

In sixth item, independence of quality assurance activity in respective region in world, Reconstruction of Quality Assurance System is took up.

Please be aware Fa05 is one of 6 action.


Quality Rules/Standards QR/QSEach regionNorth America, Europe, Japan, Asia, China, South America, South AfricaOrganised by Fa05, QR/QS have to be established in each region

Deployment of Quality Rules and Standards (QR/QS)Operationprocedures

Why we need to do this? In the past, All QR/QS were in Japanese and this caused difficulties for non-Japanese members to understand and follow the procedures

Organized by Fa05, Quality Control Standard so called QR/QS have to be established in each region.Because QR/QS are key rules of Toyota quality assurance.

However, existing QR/QS are currently not fully applicable for the following reasons:First, it is unclear rule for application of overseas.Second, content of current QR/QS is not appropriate for each region.

Quality Rules/Standards Deployment Establishment Framework

G-QCS SecretariatG-Special CommitteesEU-QCS CommitteeQuality Function teamsToyota Motor Corporation - JapanToyota Motor Europe - BrusselsEuropean Manufacturing CompaniesTMUK-BTMMFTMMTTMMPTMIPTMUK-DTMR-SP

Quality Assurance Rule (Fa05)

Related regulations(Engineering Standard, Manufacturing Standard, Quality Control Standard)

Operation procedures(Divisional rules, Work instructions, manuals, etc.)

Specify implementation contents for quality assurance of each division by each stepsProduct planningProduction planningDesignPurchasingProduction preparationProductionInspectionLogisticsSalesServiceAudit & improvement

Summary of Quality Assurance Rule (Fa05)A TMC Corporate Policy which determines when, who, based on what and which rule should be performed for customers quality assuranceEstablished on 1965 when TMC received Deming Award

Process of operationManual of above processes

TOYOTAs Quality Assurance System

10This pyramid shows Toyota quality assurance system.

Fa05 is located in top as constitution, Related regulation that prescribes the method of operating and processing in middle.In bottom, operation procedure that determines instruction or manual.

Fa05 prescribes each divisions procedure for quality assurance in each step from product planning to service.

Fa05 is very important matter as basis for Toyotas quality assurance.


Example Kaizen

ConfidentialConfidentialBenefits:Better communication and coordination100% participation of stakeholders

Example PDCA

Benefits:Proper planning and timely follow-up ensuredDelay items could be easily tracked and handled

AKARi An Introduction

What is AKARi?

Toyota Motor Europes SharePoint platform for knowledge management and collaboration.

AKARi Tracking List - FormatTitleProcedure numberType of procedureOwnerDepartmentStatusUploaded to QIS?Signed copy received?Is this procedure linked to Fa05?

TitleCreator of ProcedureConcerned TeamComplete or On-going or DisusedProcedure availability in QISSigned copy with Quality Planning (QP)Step reference number in Fa05Unique number for procedureEU-QR/QS or Pan-European (PE) or Local (F1, F2, F3)

Benefits:Timely and easy maintenance of proceduresOne stop place for accessing all quality proceduresUp-to-date information available in procedures which ensures 100% quality adherenceStandardization of process and quality across Europe

AKARi Tracking List - Screenshot

Results Toyota Internal Quality Improvements

Results J.D Power Survey

What did I learn in Toyota?

Toyota Quality Assurance RuleToyota Quality Standards EstablishmentToyota Way Working cultureToyota Production SystemKaizen, PDCA and Genchi-GenbutsuTime Management skillsCommunication SkillsCoordination and Teamwork

Maintenance of standard and improve work qualityCirculate Kaizen cycle (S-D-C-A) everyday and create system to improve work qualityOriginal purpose of Review of Quality Assurance RuleReconstruct Quality Assurance system (Basic of Work)




DoCheckActionImproveQA system

Improve work quality

Request to Utilize Quality Assurance Rule (Fa05)B

Adjust rule standard, take action surely, then improve.

Circulate Kaizen cycle (S-D-C-A) in daily job, then improve work quality.

This is the proper purpose of Review of Quality Assurance Rule.


TMCStepAssurance matterRole & ResponsibilityMain Responsible personMain related regulations(1) Product planning(2) Production planning(3) Design(4) Purchasing(5) Production preparation(6) Production(7) InspectionConformation of acceptance quality, quality in-process, inspection method/ quality standard of shipment qualityMaintenance/ management of inspection work standardPlantQuality Control DivisionRules for Inspection(QRE001)(8) Logistics(9) Sales(10) Service(11) Audit & improvement


WhatWhenQuality Assurance Process Table (example)

Summary of Quality Assurance Rule (Fa05)

Which ruleRelationship with each region and complete vehicle manufacturers.Responsibility relationship with TMC, responsible person in region and ruleB

22This table shows image of quality assurance activity, each division shall do quality assurance.

In each step from production planning to audit and improvement, assurance matter is determined, role and responsibility is defined as detail work. As who is responsible in each procedure, prescribes main responsible person in division level.

In addition, related rule is described in order to clarify in which rule the procedure is conducted.

So, this table is clarified when, what, who, which rule.

In pocket edition, area inside thick line is described.

Establish global standards, reviewed by all regions, guideline to all regions G-QR/QS consolidates Minimal requirement (policy) Mandatory matters Establish G-QR/QS as a superordinate of regulationsG-QR/QSPolicy for Quality Rules/Standards(QR/QS) globalizationJ-QR/QSNA-QR/QSEU