Qimpro Champions League

Challenge 5:

Best Practices/Problem Solving (Toyota)

Submitted by Arif Shaikh

Ankita Deshmukh

What is Benchmarking?

• Definition - A measurement of the quality of an organization's policies, products, programs, strategies, etc., and their comparison with standard measurements, or similar measurements of its peers.• Benchmarking allows you to compare your data with

aggregated industry data from other companies who share their data.• Benchmarking provides valuable context, helping you to

set meaningful targets, gain insight into trends occurring across your industry, and find out how you are doing compared to your competition.• Benchmarking is measured on parameters like

Quality,Time and Cost.

Objective of Benchmarking

• To determine what and where improvements are needed• To analyze how other organizations achieve their high

performance levels • Use information to improve organization performance.• Benchmarking is sometimes used to improve training

methods.• organizations might be near the top in performance or

operational efficiency. Hence, they may execute benchmarking tactics to gain the upper hand on the top competitor

Best Practices by Toyota

Know Your Suppliers

• Toyota brand had become synonymous with quality.• One of the key components is a program entitled ‘Total

Quality Control” (TQC). In this program Toyota works together with its suppliers to improve methodologies for its component products• The TQC model embedded quality into Toyota’s

production system up and down the Supply Chain• Through the program, Toyota was able to understand the

critical link between quality and profit through high customer satisfaction• This TQC program has been embraced by numerous US

companies, including Toyota’s US auto manufacturing rivals

The Compliance Oversight Committee• Toyota’s overall quality program was a high-level

oversight committee which had been set up to deal with quality issues in 2005• Oversight Committee was made up of persons across

functions within the company and had the power to deal with issues outside of typical bureaucratic silos• Oversight Committee is a key component of any best

practices compliance program• Oversight committee was used for reviewing and

managing traditional high risk areas such as third party business representatives; a company can create such committees for other high risk issues particular to a company

Don’t Let Growth Overwhelm You• Toyota almost doubled its overall global market share in

a little over 10 years and this caused sales to grow “faster than the company could manage”• This changed the traditional order of priorities within

the company: growth now became paramount over quality• This growth was pursued while not fully assessing or

even appreciating the risks involved• There were many new vendors in the Supply Chain that

did not receive the rigorous due diligence and training into the Toyota philosophy regarding quality• The company also hired huge numbers of new contract

employees who did not receive the same training as previously hired employees

Lessons for the Compliance Practitioner• The growth experienced by Toyota was the clear lesson

for the compliance practitioner• Compliance must be rigorously implemented and

continued for a company to succeed in its overall anti-corruption and anti-bribery policies• The Toyota TQC model served it well until the rigor

surrounding it was reduced• This model inculcated quality throughout vendors in the

Supply Chain• A company must continue to push compliance

throughout its Supply Chain

Best Practices Adapted in College from Toyota• Implementing and improving assessment methods• Improving classroom instructional strategies to include

problem-based learning and inquiry• Improving data-driven decision making for classroom teachers

and distributed leadership• Cleanliness maintained in toilets• Query solving sessions immediately after lectures• Test after every chapter for better understanding of student

study process

Classroom Learning

Lesson Learned• To be up front about an issue, and to communicate, so that

others believe that we are doing more than covering up or fluffing off the matter

• Problems should be effectively solved by “one off” situations• Act quickly on the unknown• Gather facts, assess the many dimensions of the challenge to

be addressed, and act with clarity and precision• Understand from know where to go to seek situational advice

when these challenges arise• Have a team of advisors who specialize and have deep

experience in “special matters” ready to step in

• When a crisis hits, “shopping” for support will take valuable time. In sum, there is an economic value in establishing a “quick to action” resolution process with the best advisors

• Be prepared to make adjustments as you resolve the problem at hand

• More times than not, as a problem unfolds, it will morph and new issues will arise

• Flexibility, while holding steady on how these “jack in the box” pop ups are addressed, will help you win back lost trust.

• Put your credibility and integrity are at stake• You must prove that you are serious and working diligently to

restore reach to your goal

• Never bury your corporate head in the sand with the hope that the storm will pass with minimal effort

• Rebuilding corporate trust is extraordinarily important and exceedingly difficult without an extraordinary effort, expense, and strategic distractions

Thank you !!!