International Journal of Scientific and Research Publications, Volume 7, Issue 1, January 2017 299 ISSN 2250-3153 www.ijsrp.org The Art of Designing and Producing Product for Facing Global Challenges: A Study on Toyota Production System Muhammed Zakir Hossain, Mayesha Tasnim, Fabiha Enam Department of Business Studies State University of Bangladesh Abstract: The purpose of this paper is to analyze the quality efforts made by Toyota and suggests appropriate strategic options to face global challenges and improve its problems. In order to do this a description of the quality theories used by automobile industry, such as the Toyota Production System (TPS), Kaizen, Just-in-Time (JIT), etc. has been discussed. The business world today is a very vast one and the management of many companies is looking out for ways in which it can make business more consumer oriented, secure a steady market outlet and steady supply of raw materials, increase consumer confidence, improve financial results, improve the working environment and emerge as superiors by designing and producing products and services over their competitors. Consumers today do not only want the right amount of a product or service but also look out for the right quality. Mindful of the above and a lot more, in this paper recommended some strategy to improve the quality problem of the Toyota keep in mind the quality tools and efforts has been used previously. Key Words: Customer Satisfaction, Lean Production, Quality, Quality Management, Toyota Production System (TPS), 1. Introduction In recent decades, although many companies have adopted management techniques to enhance their competitiveness, some of them realized the essential value of applying total quality management, a manufacturing management technique, to obtain and sustain competitive advantage, as well as support long-term success from customer needs to customer satisfaction. As a result, there is an accelerating interest in quality and quality improvements as a business strategy among the industries in the world. For instance, Toyota is always paying significant attention on operational excellence as a strategic weapon. 1.1. Purpose and Execution The purpose of this report is to analyze the quality efforts made by Toyota and suggest appropriate strategic options to improve their problems. In order to do these firstly, introduce the history and growth of Toyota; Secondly, make a description of the quality theories used by the automobile industry, such as the Toyota Production System (TPS), Kaizen, as well as, Just-in-Time (JIT). The following step of the analysis will be to find out what and how quality tools have been adopted by Toyota on the basis of customer perspective, thirdly, explain the reasons why Toyota decided to use those quality tools, and the outcomes should also be taken into account. Finally, recommend some appropriate suggestions to improve the quality problem of the company. 1.2. Problem Definition The Toyota Production System (TPS) has become a well-known philosophy, technology, and management tool, which were learned by many companies to achieve continuous improvement on production. According to Toyota, the heart of this system is human development, and it supports the elements of Total Quality Management from the following perspectives: people‘s needs (no t only the customers‘, but also the employees‘) under the premise of quality efforts; and involving the quality into the production proc esses. In addition, it has a significant effect on the quality tools, such as Kaizen and Just-in-Time (JIT). 1.3. Company Background Toyota, regarded as one of the world‘s largest auto manufacturers and widely recognized for its quality of products and produ ction systems, can be traced back to 1867, while the inventor and a tinkerer, Sakichi Toyoda was born in a small village in present Kosai, Shizuoka, Japan. In 1926, he started Toyoda Automatic Loom Works, the parent firm of the Toyota Group. Nevertheless, Toyoda's car operations were placed in the hands of his son, Kiichiro Toyoda. It was the year of 1937 that Toyota Motor Co. was established as an independent and separate company. Since the first Toyota Crown models imported in the USA in 1957, Toyota started its international business. In the early 1960s, Toyota was sold in Europe. In addition, the company increased its business rapidly in the 60‘s and 70‘s, and during the years between 1962 and 1972 it produced vehicles domestically from 1 million to 10million (Toyota Motor Corporation, 2009).