Operations Improvement Plan Implementation

Fishbone Diagram

The below cause and effect diagram shows the major categories and possible causes to Toyota’s poor handling of customer complaints.

The fishbone diagram is a display that hones on a primary goal output to delivering the end result as desired. In the case example, the selection to focusing on customer service metrics for improving the overall company's objective is for business continuity to encouraging returning customers. Therefore, the main focus on a fishbone diagram is customer service as an objective for aiming in meeting accomplishments within the timeframe set forth, for instance, the improving of customer service metrics (feedback, surveys, and customer preferences) to delivering a customer satisfaction.

Fish head = Customer Service {Toyota Corporation objective is improving their customer service} Try and identify the one concept focus to improving the business organization, which, in the case example the customer service processes requires a change method in processing to reaching satisfactory metrics.

Left (or top) side of Fishbone = Employees and management team {Toyota internal human capital should reflect an investment in training and communication methods that empower and share information} Try and list the core areas of needed focus that outline both positives and negatives in regards to employees, such as, training seminars can positively improve customer service standards, while, the lack of training restricts knowledge in problem solving for customers. The management criteria should reflect the same element on both sides of the bone link; i.e. management lack of communication skills results in lower productivity that impact customer's experience.

Right (or bottom) side of Fishbone = Product quality {Toyota manufacturing of the product fails to meeting corporate and industry standards for long-term efficiency for customers} Try and think of the product quality as layers that will promote the end main goal of good customer service due to implementing strategies. Businesses impose strategies on a basis that reinforces the beneficial aspects in the product lines that will promote good customer service upon delivery to the targeted consumer demographic. Keep in mind, the product quality elements can entail work processes and knowledge base to adhering to company's procedures on using technology (i.e. product manufacturing line).2

Thus, the objective in outlining processes and operations protocols (management communication model to work teams) provides the content for the both sides of the fishbone leading to customer service goals metric. In doing so, the fishbone diagram will detail the main correlation to required phases, processes, and decisions implemented for successfully obtaining the customer service satisfactory levels.

Graphical flowchart

Below is a graphical flowchart created from the information provided in the exhibits from the Accelerator Crisis article and from the Toyota Motor Manufacturing article.

By using the Fishbone diagram as a blueprint to the causes of the issues of customer services, the objective is met as well by seeing the opposite needs to be done in order to fix the customer service problem at the corporation, i.e. Management decisions on spending not enough of resources yes or no – if no, then the lack of training employees occur to a level that impact quality output, and so forth on the corresponding issues identified to the problem statement.

Problem Statement

In order for Toyota to have continuous improvement and excellent customer satisfaction achieved, the first step in any significant change effort is to bring together a knowledgeable group of people to address the basic implementation issues and establish a guiding direction. The PI steering team should be cross-functional, with members that understand the organization well, have a strong desire to participate, and see the team as critical to organizational success. Once the guiding process improvement plan is developed, the steering team must present it to the senior management team. Without top management’s understanding and approval, no plan will have the support it needs to succeed. Once approved, the role of the steering team is literally to steer implementation and generate course correction.

Contributing Cause and Process Improvement

One of the main causes of Toyota’s slow handling of customer complaints is Lack of employee interaction, due to their standardized handling in dealing with any problems or issues. Information went directly to Japan without ever being relayed back to the U.S. organization, and that all key engineering decisions came from Japan. The scope of the improvement process focuses on shortening the overall time to meet corrective action. By implementing this process improvement, the company would realize a number of benefits in terms of communication management among company’s dealers and headquarters. Toyota understands that in a typical business system, meeting and exceeding the customer’s requirements is the task of everyone within an organization. And they comprehended the definition of customer to include both internal and external customers. Each person or step in a production line or business process was to be treated as a customer and to be supplied with exactly what was needed, at the exact time needed.

References:

Greto, M., Schotter, A., & Teagarden, M. (2010). Toyota: The accelerator crisis. Thunderbird School of Global Management.

Mishina, K. & Takeda, K. (1995). Toyota motor manufacturing, U.S.A., Inc. Harvard Business Review.