Quality Systems In Toyota General Electronics And Intel Accounting Essay

Analysis of ISO 9000, TQM and Six Sigma constructs associating to better service quality and productiveness in Toyota, General Electric and Intel corporations.Table of Contentss


In this assignment, the effort has been made to analyze the three major quality constructs such as ISO 9000, TQM and Six Sigma. The three companies General Electric, Toyota and Intel were identified for this assignment those have implemented these rules.ISO 9000 is the set of quality criterions for organisations maintained by International organisation for criterions. The chief intent of these criterions is to put up quality processs, certification, work direction and keeping the quality in merchandise and service.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

This is sort of enfranchisement for organisation which shows that company has adhere to quality criterions ( Heizer & A ; Render, 2008, p.198 ) .TQM construct is utilized around the universe by organisation to accomplish the competitory advantage and to acquire improved fiscal consequences. ( Edge adult male, 2006 ) Edward Deming provides 14points on how to implement TQM in the organisation. In literature it is besides used Nipponese term Kaizen for the uninterrupted betterment to accomplish ends and betterment in concern procedure. ( Heizer & A ; Render, 2008, p.

198-200 )The assorted constructs of TQM are explained in the undermentioned paragraphs. The first construct of TQM is Six Sigma and it is focused on scheme to convey client satisfaction. It describes the procedure, design, merchandise in high capablenesss and in more statistical sense.

Sigma and its symbol means standard divergence and this peculiar constituent is used to minimise the production defect.

Six Sigma Procedure: Beginning Dilioa.2009

Six Sigma has five measure execution procedure abbreviated as DMAIC. It means define, step, analyse, improves and command the quality procedure. The diagram shown below illustrates the procedure of Six Sigma

Six Sigma Management Kit

The following constituent is Benchmarking and it defines as the standardisation of procedure, service, cost and patterns.

The benchmarking development procedure involved find what needs to benchmark, organize a squad and place benchmarking spouses, roll uping information and analyse if the procedure is right define in footings of benchmarking and in conclusion, fit the procedure to the degree of benchmarking ( Heizer & A ; Render, 2008, p.201 ) .Taguchi construct believes in the fact that quality issues arise because of hapless design of merchandise or procedure. The construct besides aimed to better the quality by using quality hardiness, quality loss map and mark oriented quality. Robustness means consistence in the production procedure to run into the consumer demand. Quality loss map is a mathematical relationship illustrated by equationL = D2CWhere L = Loss to societyD2 = Square of distance from targeted value or qualityC = Cost of divergence at the specification boundIn other words, this map identifies all cost related with hapless quality and demo how the cost addition as the merchandise quality align with client demands. The diagram shown below illustrates the distribution of specification of merchandises produced. Target orientated quality is mechanism to convey the merchandise to aim quality through uninterrupted betterment in procedure.

( Heizer & A ; Render, 2008, p.203 )

The Taguchi Loss Function

The last constituent of TQM is to hold proper cognition and preparation of utilizing TQM tools. There are seven TQM tools which are used to pull off and command the quality of service like different charting techniques to graphically represent and analyse the job ( Heizer & A ; Render, 2008, p.204 )

Quality systems in Toyota, General Electronics and Intel


Toyota has a long history of success and it is normally termed as the most profitable car manufacturer and provides best car public presentation in the industry. In 2007, Toyota sold 9.4 million vehicles globally merely about 3,000 fewer than General motors ( GM )To analyze the jobs with Toyota, allow ‘s contrast the Toyota TQM plan named Toyota manner with these 14 rules to find the grounds for the quality issues. Toyota manner is steering rules prepared by the president of Toyota Group Fuji Cho ( 2003 ) . The rule states that these rules are tools for people and the rules are more centric for people suggestion that really convey the betterment and quality in production and service.

( Fuji Cho, 2003 )14 rules of Toyota WayMake determination based on long term scheme even in instance of short term lossRight procedure will bring forth the right consequenceUse pull production to bring forth merely what is needed fundamentally thin production schemeDegree out work and extinguish wasteToyota laid the foundation of constructing first clip right quality so that it does non necessitate any future holeStandardized undertaking for uninterrupted betterment and employee authorizationUse ocular control so that no jobs left unobservedUse dependable and tried engineering to function people and procedureDevelop leading quality in employees and add value to organisationPeoples should follow your company doctrineRespect and aid webs of spouses and providers to betterSolving the jobs from rootMake determination easy but implement it fastLearning organisation with uninterrupted bettermentFirst constituent of uninterrupted betterment is already taken attention by Toyota Company. Toyota rule besides focuses on extinguishing the waste and utilizing thin production system. Toyota doctrine is to bring forth in sum which is needed.

Merely in clip system finally helps to cut the costs of quality, improves quality and in conclusion, better quality ends up with less stock list and better control over system. Toyota did implement the standardisation of procedure but, the internal benchmarking should be more consistent and inclined to take any barrier in instance of different geographical bomber division like Toyota has around the universe. Toyota has utilized this constituent of employee authorization. Toyota has a scheme to affect the employees in every measure of transmutation. The chief focal point is given on the procedure betterment and supplying more duties to employees and authorization so that they perform better.


The company has broad scope of electric merchandise scope in huge sector of contraptions, air power, health care, lighting, media and amusement, electrical distribution, energy, finance, oil & A ; gas, rail, package service and H2O ( General Electric, 2010A ) .

The general electric doctrine lies in supplying defect free merchandise to its client. For adhering to this sort of quality criterions, General Electric is using Six Sigma rules as their nucleus values as shown in the diagram below. ( General Electric, 2010B )

The Quality Standards Six Sigma in GE


Intel is a market leader in presenting latest Si french friess & A ; other technological merchandises that are at the bosom of laptops, desktops, nomadic phone, and many other types of machinery doing people ‘s lives better twenty-four hours by twenty-four hours. The Intel quality system audits have an ISO 9001 based quality system as a benchmark for the full Intel ‘s worldwide mill & A ; outsourcing web. Every fabrication site has a lead hearer who is responsible for the execution of the Internal Quality System Audit harmonizing to the ISO 9001 criterion.

TQM at Intel:

The undermentioned diagram shows how the company has focused on bettering the provider ‘s quality plans. Intel quality concerns chiefly depend on cut downing the figure of mistakes and the methodological analysis is more inclined towards the Six Sigma execution. Intel used SPC which is a TQM tool to inspect, manage and control quality criterions while production procedure.The graph shown above depicts the standard divergence and mistake log in production.

Comparison of Quality Principles applied in the illustration companies


General Electric


TQM Deeming Principle: Toyota has implemented TQM Philosophy the entire quality direction of the organisation from provider to clientSix Sigma: GE has utilized series of tool set and scheme to accomplish consistence and consumer satisfaction through its concern procedureTQM, Six Sigma & A ; ISO 9001: Intel believes in uninterrupted betterment of merchandises & A ; services before, during and after the fabrication of high quality semiconducting materialsThe company has to concentrate more on the Six Sigma construct for zero merchandise defects.

But with series of success and market repute, in recent old ages, Toyota has confronting serious issues with quality, defects in autos and monolithic callback of different theoretical accounts around the universe. All these issues have put a serious concern for the dependability on Toyota theoretical account.The company has although implemented tightly, Six Sigma by cut downing the figure of defects. The company has managed efficaciously to cut down cost, salvage clip and better client satisfaction.

Intel has established really high criterions in quality criterions, design quality procedure and entire quality direction to fulfill client to supplier. Among these three companies IBM has achieved highest quality direction by implementing all three TQM, Six Sigma and ISO 9000 quality enfranchisement.


In order to better the service quality and productiveness, the effectual execution of the quality constructs and rules explained in this study are really important, particularly for the fabrication companies. Among all the illustration companies in this study, Intel has established the highest quality criterions with the use of all mechanism of TQM, Six Sigma and ISO 9000. While, Toyota is the 1 among these three, which is confronting major quality issues massive callbacks and quality issues have become the serious concern for the company entire quality direction rule “ Toyota Way ” . Besides, there is no communicating scheme within the assorted sub division of the organisation. There is no plan to take the barrier and to supply openness in the work environment.

There is no instruction and preparation plan for the employees. The gross revenues have dropped and Company is confronting series of jurisprudence suits and challenges with more callbacks. Toyota consumers are non really happy with quality issues in Toyota merchandise. ( Kageyama, 2010 )


Among all these three companies Toyota needs to revised their choice criterion plan to accomplish higher client satisfaction and decide the issue of monolithic re-call.

The Toyota Company has already taken important stairss to manage this job by put to deathing these three major stairss. First, Toyota has unleashed the plan “ Toyota manner ” which consists of its core-value and regard for people rules. Toyota has besides announced to supply monolithic preparation plan around the universe in assorted production installations. In the last attempt Toyota has emphasized on the facilitation of cognition transportation and acquisition across its all sub division.To sum up, for the above mentioned three stairss, Toyota company needs to hold better control and supervising of this betterment procedure. Toyota should aline its strategic concern aims with the Total quality direction rule and it would profit Toyota to recover the assurance of client and better quality criterions in its production.

The company leaders should underscore on developing a better work civilization and TQM doctrine within the administration. Toyota has renowned name in car industry and this research study supports the Toyota actions to rectify the quality issues.


I'm Ruth!

Would you like to get a custom essay? How about receiving a customized one?

Check it out