Quality Management:

Driving the Automotive Industry

 Introduction
Quality Practices
Leadership
Employee Involvement
Supplier Relationships
Manufacturing
Processes
Economic Outlook
Conclusion
 Quality Systems
The Toyota Way 
 The 14 Principles of the Toyota Way in their production system
 -“lean thinking” products and manufacturing processes
 -think long term, and add value to the organization through its people and
knowledge.
Six Sigma 
 Ford first automotive manufacturer to deploy a Six Sigma system
 Data driven set of statistical techniques
 Works to eliminate defects and variability
New Honda Circle 
 Work motivation commitment
 Continuous improvement in performance
 TQM
ISO 9001/14001 
 Customer focus
 Leadership
 Involvement of people
 Continual improvement
 Leadership Practices
Honda
 Commitment from management
Ford
Strong Management Directive
Saab
Lack of leadership
Employee Relationship/Involvement
Honda
 New Honda Circle
 Improvement Suggestion System
 Educations Training
BMW
 In 2003 saved 12 million
 “Us versus Them”
Ford
 Built through Six Sigma
Toyota
 Toyota Way – Principle 10
Saab
 Operational, and production line decisions
 Supplier Relationships
Clover Leaf
 four main areas: Purchasing, Development,
Logistics, and Quality Management. 
Just in Time
 Close relationship required to stay on top
 Benefit from lower costs
 Sharing technology 
Six Sigma
 New design process improved accuracy 80%
 $140 million of material moved a day
 Reduced time of delivery for export documents
 Toyota
 Tier structured approach
 Ford
 Poor relationships = 2.2 billion losses
 Manufacturing Processes
Lean Manufacturing
 JIT
 Waste prevention
Automated Assembly Lines
 Flexible equipment
 SMED – Single Minute
Exchange of Dies
Components Manufactured
In-House
DMAIC Cycle
 Economic Outlook
Innovation Key
Maintain Long-term
Relationships
Environment Issues
Technological
Improvements
Customer Focus
Fiscal Responsibility
 Conclusion
Honda
Continued Customer
Loyalty
BMW
Sport/Luxury Leader
Ford
Break Away from the Pack
Toyota
Staying in Power
Saab
End of the Road???
Thank You!
Questions?