Total Quality Management (TQM)

Changes and Innovations

(include the Creative Idea Suggestion System)
Based on the corporate philosophy of 'customer first' and 'quality first' since its founding, Toyota
Motor Co., Ltd. won the Deming Application Prize in 1965 and the Japan Quality Control Award
in 1970, following the introduction of statistical quality control (SQC) in 1949, and has
conducted Total Quality Management (TQM) based on the unchanging principles of 'customer
first', kaizen (continuous improvement), and 'total participation'.
In addition, since the launch of the Creative Idea Suggestion System in 1951, the number of
suggestions made has steadily increased, and the system has supported flexible responses to
changes that involve monozukuri (conscientious manufacturing), making substantial
contributions to the company's development.
As a result, the basic concepts of TQM and problem solving as well as kaizen (continuous
improvement) through creative innovation spread throughout the company and took root,
contributing to higher product quality and work quality at all levels and ranks and improving the
vitality of individuals and organizations.
Main Initiatives
Year Month
1949
1951

Month

Creative Idea
Suggestion
System

Introduction of SQC
May

Creative Idea
Suggestion
System
Committee
launched
(chaired by
Managing
Officer Shoichi
Saito);
- The Creative
Idea Suggestion
System was
established by
Managing
Officer Eiji
Toyoda (now

1952

1953

1955

1956

Honorary
Advisor) and
Managing
Officer Shoichi
Saito (formerly
Chairman)
based on the
suggestion
system at Ford
First Creative
Idea
June
Suggestions
implemented
Individual
Annual Awards
to honor
December
excellent
suggestions
system launched
Ideas for
corporate slogan
solicited; 'Good
February Thinking, Good
Products'
selected in
March
First special
solicitation of a
unified theme
June
conducted
('About
Ashtrays'
selected)
First Exhibition
on Best
Practices
conducted
- Ideas of 1,000
July
yen or more
reviewed from
December 1954
to May 1955
exhibited
April
'Creative Idea'
name in
Japanese

1958

July

November1st Quality Month Event conducted

April

1960

October

changed
1st All-Toyota
Creative Idea
Panel
Discussion held
(renamed the
All-Toyota
Suggestion
System
Research
Committee in
June 1964)
1st Science and
Technology
Agency
DirectorGeneral's Award
(awarded to
three employees
who made
workplace
creative idea
suggestions)
1st Quality
Month Special
Solicitation
conducted
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1961 June

1962 November
1963 January

TQC introduced

QC Meetings (predecessor of the QC Circles)

launched
Corporate policy announced

June

Event marking
10 years since
the
establishment of
the Creative
Idea Suggestion
System
conducted
(poster
campaign to
facilitate
creative idea
suggestions
held)

NovemberSQC workshop conducted

1964 September

Function-based structures focusing on quality

assurance and cost management established

June

The Deming Application Prize for Major Advances in

1965 November Quality Improvement for major advances in quality
improvement won
All-Toyota Quality Assurance adopted as group-wide
January
slogan
TQC introduced at and expanded among suppliers
February (QC Committee established by eight group
1966
companies)

Creative Idea
Suggestion
System
handbook
distributed to all
employees
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1st All-Toyota Quality Management Competition

November
held

Proposals for
Creative Idea
logo collected
and logo
adopted
1967

May

1968 NovemberZero Defect Campaign launched

1969 SeptemberToyota Quality Management Award created
1970 November1st Japan Quality Medal won

1971

1972

January

Event marking
20 years since
the
establishment of
the Creative
Idea Suggestion
System
conducted
Workplace
Annual Awards
established (one
prize for
division with the
highest number

of suggestions
per person and
one for division
with the highest
amount won per
person)
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Individual
Annual Award
system modified
November
(gold, silver,
and bronze
medals created)
Total number of
suggestions
May
surpasses one
million
Toyota Good
Idea Club
established as an
June
annual award
recipient social
group created

1974

1975 October Self-run QC Circle activities encouraged

1977 December QC Circle advisor commendations implemented
1979
Management skills program implemented
Executive Vice President Shoichiro Toyoda (now
November Honorary Chairman) wins Deming Prize for
Individuals
1980

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QC Circle Toyota Awards established

TQC introduced and spread at dealers

1981

Drastic increases in operational efficient

implemented

June

Total number of
suggestions
surpasses 5
million;
Commemorative
events held in
conjunction
with 30th
anniversary
events

Targets for total

number of
December suggestions
company-wide
eliminated

1982
February TQC Promotion Department established
April
Toyota Dealer QC Promotion Award created

1983
June

QC training for officers conducted

1984 February 1st Toyota Dealer QC National Conference held

1985

1986

Improvement circle activities conducted

Toyota Group
Creative Idea
Suggestion
System
Secretariats
networking
events restored
(formerly AllJune
Toyota Creative
Idea Panel
Discussion and
the All-Toyota
Suggestion
System
Research
Committee)
Total number of
suggestions
April
surpasses 10
million
Creative Idea
screening
standards
reviewed
(screening
scoring
standards
January
unified, family
commendation
standards
reviewed, and
evaluation
measures
clarified)
NovemberCreative idea
suggestion
processing
computerized
with the

introduction of
OCR
1987 October
January
July
August

1st Overseas Production Company QC Circle

networking event held
SQC Renaissance Activities commenced
First 'Minna no QC Circle' (Everyone's QC Circle)
issued
First edition of the 'TQC News' for issued

1988

1989

July

1991

June

1993 January
1994 March

New QC Circle activities with each individual

playing a role implemented
Toyota Group Executive TQM Training Course
conducted for new executives

Total number of
suggestions
surpasses 20
million;
- Events to
commemorate
20 million
suggestions held
(telephone card
drawing,
Creative Idea
promoter
commendations,
Creative Idea
flag created)
1st Creative
Idea instructor
training
conducted
Events to
commemorate
40 years since
the
establishment of
the Creative
Idea Suggestion
System
conducted
(Creative Idea
Handbook
distributed,
slogans and
posters solicited,
video produced)

November

Introduction of TQM announced in All-Toyota Total

Quality Management Convention

1995 April

Science SQC activities started

1996 March

Management skill enhancement program conducted

company-wide for division and section managers

1998

August

Yokoten
Activities
conducted
Anticipatory
Septemberimprovements
introduced
June

1999 September
March
April

Workplace Management Support Series of booklets

published for workplace management
Global expansion and entrenchment of QC Circles
promoted (South Africa and India used as models)
Management-quality Advancement System (MAST)
introduced to raise workplace management quality

2000
October

Activities for renewed understanding of appropriate

use of control charts conducted internally and for
October
suppliers

2001

2002

Total number of
suggestions
surpasses 30
million

June

Share workplace mission deployed in each division

through utilization of MAST

Environmental
improvement
scoring
standards
adopted
Events to
commemorate
50 years since
the
establishment of
the Creative
Idea Suggestion
System
conducted;
Commemorative
conference and
events
conducted; 50th
anniversary
publication
issued; Video
entitled
'Creation is
Limitless'
produced

TQM Committee, conducted with 12 Toyota group

companies, renamed the Toyota Group TQM
February Committee with the addition of Toyota Tsusho
Corporation and Toyota Central Research &
2003
Development Laboratories, Inc.

April

Commendation
system revised
(outstanding
performance
award, emerald
award, and
rookie award
created)

July

Three-year
program
promoting an
award from the
Minister of
Education,
Culture, Sports,
Science and
Technology
started

Basic quality knowledge training program established

internally and for suppliers
Method for QC Circle Level Assessment developed
and deployed throughout the Toyota Group
February G-QC Circle activities conducted
2004
MAST conducted as a means of establishing
April
compliance activities
December

2005

All-Toyota TQM Convention renamed Global Toyota

November TQM Convention and invitations extended to senior
executives of overseas affiliates
BR Jikotei Kanketsu (defect-free process completion)
January
Department established
2007
2015 Vision announced at 20th Global QC Circle
November
Convention commemorative event
2008

August

G-QC Circle Guidelines adopted

Outstanding
Clerical
May
Suggestion
Award created
Creative Idea
June
Guidelines
adopted
Creative Idea
Suggestion
Performance
November
Statistics
System put into
operation
December Screening

standards
reviewed;
- Scope of
external
improvement
and suggestion
assessment
expanded
according to
TMC
investment ratio
Overseas implementation of Jikotei Kanketsu started
Collaborative industrial activities with Japanese
Society for Quality Control promoted, with 'Ensuring
Quality' as the theme
Toyota Group SQC Research Seminar booklet
entitled 'SQC for Raising Problem Solving Skills'
receives Union of Japanese Scientists and Engineers
(JUSE) Quality Management Award

January

2009 April

TQM Promotion Division reorganized;

- BR Jikotei kanketsu Department and Production
Engineering Planning Division Creative Idea Group
January
integrated and reorganized therein

Implementation of TQM activities centered on Jikotei

Kanketsu reinforced; Process completion training
April
conducted

July

2010 October

Jikotei Kanketsu efforts win Union of Japanese

Scientists and Engineers' Recognition of Quality

Creative Idea
Administrative
Offices shifted
from Production
Engineering
Planning
Division to
TQM Promotion
Division
First Minister of
Education,
Culture, Sports,
Science and
Technology
Award for most
awards won
Annual
commendation
system
reviewed;
- Best Effort
Award, Income
Contribution
Award, and
others created

System Innovation Award

Training and promotion activities reinforced with the
aim of developing human resources with high
reliability and safety skills in technical fields

April
2011

August

Events to
commemorate
60 years since
the
establishment of
the Creative
Idea Suggestion
System
conducted;
- Workshops
and exhibitions
on best practices
and other events
Total number of
suggestions
surpasses 40
million