But early 2010, everywhere in the world, the headline of the news was Toyota cars having

become unreliable and Toyota having lost its way. The impact was huge for Toyota in terms of
sales loss. But more importantly, its reputation was hit in terms of safety issue, what was the
most important for customers.

Most interesting news was, In 2014, Toyota brand value was recovered from its pre-crisis level.
It achieved more than 42 billion dollars up 62% or 16 billions US$ as its brand value
within 4 year. It also achieved first position among automotive brands.

Now, the question is about what made toyota come back in the race?

Hello audience, I am Md. Anamul Hasan.

And, here, I would like to bring the backstage about how the company recovered and the
relation between tqm and Toyota’s crisis recovery process.

Audio

At first I have to mention the major 3 phases of the recovery.

(1) Go back to basic and communicate with customers and dealers

(2) Empower the regions

(3) Improve the brand

Go back to basic and communicate with customers and dealers:

We know that continuously communication with the customers and suppliers is one of most
important principle of tqm.

So, The first thing toyota did was to communicate a lot with its customers and dealers. It had to
explain that some things had gone wrong in the company and it had not disappeared any thing.
After the peak of the crisis, it communicated using its top level management to show that Toyota
was dedicated to quality.

Akio Toyoda, CEO of the company, went in front of the congress and said I would like to point
out here that Toyota’s first priority is Safety, Second; Quality, and Third; Volume. I am deeply
sorry for any accidents. I will do everything to ensure that such things never happens again.
The customers and dealers fully supported the company during that period because of toyotas
clear voice. Customers appreciated that toyota made the effort to contact each of them
individually.

Empower the region

2nd phase of the recovery is empower the region.

Toyota established a new organization to improve quality. The base of this organization was to
empower the regions and make sure that once detected, any defect could be solved in the region
and get the support of headquarters if necessary.

According to quality gurus deming chain reaction: as the quality improves, cost will decrease
and productivity will increase, resulting in more jobs, greater market share and long term
survivals.
Akio Toyoda decided to stop the increase of manufacturing capacity. He decided to dedicate a
big part of engineers to quality issues. By doing so, he clearly showed where the priority of the
company was.

Improve the brand:

3rd phase was improve the brand.

Akio Toyoda considered clarification of the company vision was a key milestone of the
company recovery. They needed to go to basic and define a guidepost so that everyone at Toyota
could make decisions according to the company vision.
So He brought a customer driven spice of emotion in the company policy. In 2011, they started
establishing a brand architecture with the region.

Tqm always focus on participative management and coordination among the all departments
employees.
So, Akio toyoda , collectively with the head of regional marketing functions, defined thiers
brand promise, which common methods and rituals were to be established, which actions they
wanted to collaborate on and what their ideal situation should be. They defined the frame
collectively and the role of the leader was only to listen, understand, analyze, suggest and inspire
rather than to decide.

Video

So, I would like to summarize in three key points:

 All organizations should have a purpose that is beyond profit and growth but contribute
to improve the world
 Company need to have a clear strategy and this strategy is defined not only centrally but
also with the help of each and every Stages employees.
 Management should be left to operations in the frame of the strategy. Transparency is
more important than control