OPERATIONAL MANAGEMENT

ASSIGNMENT
HOUSE OF QUALITY FOR TOYOTA VITZ

Toyota-Cho, Toyota City, Aichi Prefecture 471-8571, Japan

Submitted to:

Mr. Salman Iqbal

Submitted by:

Ifzal Ahmed
CIIT/FA05-BBA-009/LHR

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY, JINNAH CAMPUS

DEFENCE ROAD OFF RAIWIND ROAD, LAHORE
 In the name of ALLAH

The creator of every creation

The Piety
The Beneficent
The Merciful
The Wise

The Lord of the world

The first and last
The sender of the Holy Prophet
Muhammad may peace be upon him
Where of there is no doubt

The owner of the Day of Judgment

To whom every one will be brought back.
 “Executive Summary”

In 5th semester we were offered a course Operations Management for the

purpose of giving knowledge about how to manage the transformation process of
a manufacturing firm. And to have practical knowledge about the concepts we
were given a short project to develop HOUSE OF QUALITY of two seater car. I
select Toyota’s two seater car model “Toyota Vitz”. There are five steps in
developing house of quality. First I collect customers’ feedback through different
channels. Than converted those of voice of customers’ into voice of engineer i.e.
what type of material and process will be required to improve the quality of the
product. After finding the relation between voice of customer and voice of
engineer and also among different segments of voice of engineer i.e. roof of the
HOQ we were able to draw a planning matrix for the house of quality. This project
helped us to have practical knowledge of making house of quality.
 TABLE of CONTENTS
Chapter 1 About Meezan Bank Limited
Vision, Mission 02
Key Corporate values 03
Riba Free Banking Objectives 04
Quaid’s Concept of Islamic Banking 05
Meezan Teem 07
History of Riba –free Banking in Pakistan 09
Share Holder Structure 10
Comprehensive Business solution 12
Quality Service 14
Chairman’s review 2006 16
Chapter 2 Personal Banking
Deposits “Liability” 18
Easy Home Islamic House Financing 31
Car Ijarah 39
Home Remittance
ATM/Debt Card
Internet Banking 48
24/7 Call Center
Ladies Banking
Chapter 3 Corporate Commercial Banking
Murabaha 54
Musharakah 61
Istisnà Financing 65
Salam, Ijarah 67
 List of Figures

Chapter 1 About Meezan Bank Limited

Vision, Mission 02
Key Corporate values 03
Riba Free Banking Objectives 04
Quaid’s Concept of Islamic Banking 05
Meezan Teem 07
History of Riba –free Banking in Pakistan 09
Share Holder Structure 10
Comprehensive Business solution 12
Quality Service 14
Chairman’s review 2006 16
Chapter 2 Personal Banking
Deposits “Liability” 18
Easy Home Islamic House Financing 31
Car Ijarah 39
Home Remittance
ATM/Debt Card
Internet Banking 48
24/7 Call Center
Ladies Banking
Chapter 3 Corporate Commercial Banking
Murabaha 54
Musharakah 61
Istisnà Financing 65
Salam, Ijarah 67
Introduction of Toyota

1. History
Kiichiro Toyoda, founder of the Toyoda Motor corporation, was
born in 1894.his father sakichi Toyoda became famous as the inventor of the
automatic loom. Inheriting the spirit of research and creation from his father,
kiichiro devoted his entire life to the manufacturing of cars, which was an
unknown frontier at that time. After years of hard work, he finally succeeded in
completing the A1 prototype vehicle in 1935. That was the beginning of the
history of the Toyoda Motor Corporation.

2. Toyota Today
In 2006, Toyota was engaged in a variety
Of projects designed to solidify its foundations while continuing to grow. On the
product front, Lexus launched its new flagship model, the LS, and the new global
Camry went on sale. In Japan, a new Corolla range was introduced, emphasizing
the importance of this best-selling car. In manufacturing, several new projects
were started around the world. In May, manufacture of the Camry began in
Guangzhou, China, while in the United States, the Kentucky plant, which in
October celebrated 20 years of production, started manufacturing the first Toyota
hybrid
vehicle to be made in North America, the Camry Hybrid. In November, the Texas
plant began producing the new Tundra truck, a key vehicle in Toyota’s North
American lineup. In Japan, Toyota Motor Kyushu, Inc. began full-scale operations
at its engine factory, while Toyota Motor Tohoku Co., Ltd. increased its
manufacturing capacity.
In human resources development, following the establishment of the Asia Pacific
Global Production Center in Thailand in August 2005.
Toyota established the North American Production Center In the U.S. in
February, and the European Global Production Center in the United Kingdom in
March. Established as branches of the Global Production Center in Japan, these
were created to spread Toyota’s manufacturing knowledge and skills throughout
the world in pace with the rapid growth of Toyota’s overseas manufacturing. The
centers educate trainers for local manufacturing plants in all regions, with
trainees passing on what they learn to team members on their return to their
plants.
In R&D, Toyota focused its efforts on three key areas: environment, safety and
energy. It made a special effort in the area of the environment by expanding its
lineup of hybrid vehicles, and has worked on R&D relating to plug-in hybrid. In
addition, as part of Toyota’s efforts to respond to the diversification of energy, in
2007 Toyota plans to introduce a flex fuel vehicle* in the Brazilian market that will
run on 100% bio-ethanol fuel. From this point on, based on the philosophy of
providing “the right car, in the right place, at the right time,” and in accordance
with the infrastructure and customer needs of each region, Toyota will continue to
promote efforts to develop environmentally friendly technology and vehicles.
Corporate Data
Company Name Toyota Motor Corporation

Head Office 1 Toyota-Cho, Toyota City, Aichi Prefecture 471-8571, Japan

Phone: (0565)28-2121

Tokyo Head Office 1-4-18 Koraku, Bunkyo-ku, Tokyo 112-8701, Japan

Phone: (03)3817-7111

Nagoya Office 4-7-1 Meieki, Nakamura-ku, Nagoya City, Aichi Prefecture 450-8711, Japan
Phone: (052)552-2111

Establishment August 28, 1937

3. Overview of Toyota Vitz

 The popular first-generation Vitz was
launched in 1999 and triggered an expansion of the compact car market. Offering
both an interior space that comfortably seats four adults in an easy-to-handle
package and excellent basic performance, the first-generation Vitz created a
standard for compact cars.
Based on a “Proud of My Compact” development concept, the second-generation
Vitz is designed to provide a performance level that is one above that of ordinary
compact cars. The new Vitz offers comprehensive improvements in basic
performance features such as driving and safety, as well as in riding comfort,
functionality and quality. Based on the Toyota design theme, "Vibrant Clarity", the
exterior design evokes a sense of solid strength and vigor, while the advanced
interior offers simple elegance, immediately visible upon opening the door.
Generous cabin space and large luggage capacity have been simultaneously
achieved inside compact exterior dimensions through a superior package made
possible by a newly developed platform. Versatile seat arrangements and ample
storage space deliver a high level of utility.

Competitors of Toyota Vitz

1. Daimler Chrysler’s SMART car:
DaimlerChrysler AG will
begin selling its funky, two-seat Smart car in the U.S. during the first quarter of
2008, the automaker's CEO said Wednesday. The car will be distributed by auto
retailer UnitedAuto Group Inc., which will be responsible for awarding potential
dealers and developing and maintaining a Smart vehicle dealership network
throughout the United States and Puerto Rico. Company officials at the German-
American automaker conceded that with gas prices in the United States hovering
above $3 a gallon in many places, the Smart fortwo could appeal to buyers
looking to save money.
According to DaimlerChrysler specs, the fortwo can get up to 46 miles per gallon
in city driving and as much as 69 mpg on the highway, but its speed is not like its
Mercedes counterpart. The two-seater is powered only by a three-cylinder
gasoline engine. A diesel variant is available in Europe.
Other automakers also have begun selling small, sporty small cars, including
Toyota Motor Corp., which has the Yaris, and Honda Motor Co., which sells the
Fit. Smart launched the fortwo in Canada in 2004. Last year it sold about 4,000
models, or twice what it had initially forecast. Last year worldwide, Smart sold
143,000 cars, a small increase from the 139,000 it sold in 2004. It produced
124,300 cars in the same period, down from 152,100 the previous year.
In March, DaimlerChrysler said it would spend nearly 1 billion euros on
restructuring Smart, cut 300 of the 750 jobs at the unit's Boeblingen, Germany,
headquarters and end production of its larger, four-seater forfour model.

2. Mazda’s Ibuki:
Mazda Motor Corporation started manufacturing tools
in 1929 and soon branched out into production of trucks for commercial use. In
the early 1960s, Mazda launched its first passenger car models and began
developing rotary engines. Still headquartered in Hiroshima in western Japan,
Mazda today ranks as one of Japan's leading automakers, and exports cars to
the United States and Europe for over 30 years. Overseas sales account for
more than half of total turnover. Mazda has two main production sites in Japan
and 19 overseas facilities. Overseas sites include joint ventures based in the
United States, and in Thailand with Ford Motor Company, Mazda's largest
shareholder. Mazda Motor Corporation zooms into the 2003 Tokyo Motor Show
with the strongest line of production and concept cars in company history,
including the world premier of the two-seat Ibuki concept, an open-top,
lightweight sports car that hints at a possible design direction of a future Mazda
Roadster. Joining the Ibuki concept on the stand are key environmental
technologies being developed by Mazda such as the unique RENESIS hydrogen
rotary engine (also a world premier) and the company's latest production models,
including the all-new Mazda Axela.
QFD/House of Quality of Vitz

Design Objective
This project will help us to find the following
information about Toyota Vitz.
 What are the strengths and weaknesses of Toyota Vitz?
 What is customer’s perception about Toyota Vitz?
 How can we make changes in order to improve the quality of Toyota Vitz?

Project Schedule
This assignment was given to us on the 12th of
September 2007. This assignment comprised of different stages of devolving
house of quality. So I divide the work in different steps. Although it was not so
much difficult to gather data on Automobile industry so it was not really a
problem. The list below summarizes different activities that I performed during the
course of developing house of quality for Toyota Vitz.
Activity Duration Staring Date of Activity
1. Collecting information 24hrs September 19, 2007
about Company &Toyota VITZ
2. Collecting Voice of customer 60hrs September 21, 2007
3. Changing Voice of Customer 24hrs September 24, 2007
Into Voice of engineer
4. Developing relation b/w 20hrs September 25, 2007
VOC and VOE.
5. Developing the Roof of HOQ 23hrs September 26, 2007
6. Creating Planning Matrix 80hrs September 27, 2007
7. Preparing the first draft 22hrs September 30, 2007
of my Report.
8. Proofreading 16hrs October 01, 2007
9. Preparing the final draft 15hrs October 03, 2007

Steps in developing House of quality

1. Voice of Customer:
The first generation of Toyota Vitz was
launched in 1999.After that improvements have been made continuously to make
the product more attractive to the customer. We are making continuous
improvements to design the product according to the needs and wants of
customer. Customer feedback is the one way to know customer preferences.
For that purpose different channels have been created to know customers
responses. Some of the ways to collect responses are following:

1. Questionnaire survey:
A questionnaire was developed and was circulated in different Areas in order to
collect customer’s feedback.
2. Pole on Toyota’s website:
A pole was given on Toyota’s website to find customer’s suggestions and
complaints.
3. Repair Department:
Repair department will contain the data that how many customers report their
complaints and what are the natures of their problem.
4. Sales Department:
We also contact Sales department about to sales of the model either its
increasing or decreasing and if decreasing than why? Is their something
advanced needed are innovation is needed.

After using the above methods we manage to gather the following data on
customer’s responses although their were a lot of responses but in raw form so
we manage to short list the responses into a meaningful form.

Voice of Customer
 Primary Secondary Importance
1. Speed 6
2. Safe 10
Performance
3. Reminder about destiny 5
4. Low pollution 8
5. low car damage on collision 9
1. information on LCD 7
Usability 2. light weight 3

1. Slim 1
Appearance 2. Movable roof 4
3. color choice 2

Figure (A)
Importance: Range 1--10
Performance
Speed: Most of the young age customers suggested to improve the speed of
the car there are certain factors that can improve the speed of the car. First by
creating the shape of the car aerodynamically so their will be low air resistance
And to reshape some of the factors will improve the speed of the car.
Safe: Safety is another factor that customers mostly emphasized on. Most of the
Customers placed safety first in priority than speed.
Reminder about destiny: Customers also want their should be an alarm
system about the distance form your destiny. This system will tell you how much
away you are from your destiny.
Low pollution: it should not damage the external environment (pollution)

Usability

Information on LCD: Customers suggest their should be an LCD on which

information about different parts will be displayed.
Light weight: Car should not have so much weight.

Appearance

Slim: The shape of the car should be made such that look overweighed.
Movable Roof: The roof of the car should move up and down in accordance
with customer’s wish and the weather conditions too.
Color choice: Their should be a range of choices in colors for the customer.
Note: Importance has been given on the basis of customer’s preferences

2. Voice of Engineer:
 After feedback on suggestions and complaints
from customer now it’s the duty of organization to convert that voice of customer
into voice of organization or voice of engineers.
In this step we will decide which type of changes to be made and kind of material
to be used. Change in manufacturing process will be made (if needed).Although
fulfillment of every need was not possible we tried to do our level best to fulfill
most of it. Our competent engineers tried hard to find out the necessary material
and processes needed to make the model according to the wants of customer.
Here is list of some of the materials and operations to be performed.

Materials

Iron: Iron is one of the choices that from which stuff the body of the car will be
made. Iron although will not cost so much but will be not so powerful like
platinum.
Platinum: The second choice of deciding the stuff of the body is platinum. It is
more powerful than iron but will cost more than iron.
Rears on Bonnet: Rears on bonnet will decrease air resistance which will
enhance the speed of the car and ultimately performance
Airbags: For the purpose of safety to the car driver in case of any unfortunate
accident.
LCD Screen: An LCD of 12” will be placed on main switchboard which will
display all the information about every part of the car and will display information
about any problem that occurs in the car.
GPS system: A GPS system will be installed in it so that it could provide the
basic information about the tracks, roads and distance remaining to your destiny.
Broadly our GPS system will have the following description:
Features
Voice guide, route plan 6.5'' TFT LCD screen 400x234Touch
panel control, IR remote control Video player: DVD, VCD, SVCD, CD
Radio: AM / FMMP3 / MP4 player, photo browser, note book Real time clock,
calendar Digital TV is optional (DVB-T) Built-in games Supports 10-disc DVD
Sanyo disc charger Easy installation Interface One back camera video input
(CVBS), one video input (CVBS), one video output (CVBS),
USB 2.045W x 4 power amplification and 4.1 channels GPS antenna input, SD
card expansion slot Specifications:
Modal: A2270CMSize: 295mm x 145mm x 180mm (W x H x D)
Radio: AM / FM digital tuneFM: 87.5MHz-108MHzp; AM: 522kHz-1,620kHzVideo:
PAL / NTSC Discs supported: DVD, VCD, SVCD, CD, CD-R/ RW Display: 7"
wide 16: 9 TFT LCD with touch panel Resolution: 1440 x 234Brightness: 400cd/
m²View angle: 60° (left, right) , 40° (top) , 60° (bottom) Amplifier: max. Output
45W x 4, 4Ω x 4Working temperature: -200C - +600CStorage temperature: -300C -
+850CPacking: Box for single: 330 x 270 x 180mmN.W.: 2.7kgG.W. 3.5kg

Figure B (1)

Shock absorbers: The name "shock absorber" is self-explanatory: Car shocks

and truck shocks absorb the up-and-down shock created by the springs when
you hit a bump. Shock absorbers don't just smooth the ride; they also keep the
car or truck controllable after a bump, and that's always a good thing. Bad shocks
aren't just uncomfortable, they're also dangerous.
Replacement Shock Absorber -Toyota Vitz
SHOCK ABSORBER -- Front Shock Absorber Driver Side or Passenger Side. GT
Model, Gas Type, Ground Shipping Only

Location: Driver Side or Passenger Side Front

Figure B (2)
Fuel
Diesel: Car will either be run by diesel or patrol. Diesel will cost low to the
customer. It will be beneficial for those who can not afford diesel.
Patrol: Patrol will cost much to customers but will enhance performance of the
car. It will not damage the environment much and will enhance the speed.

Power

Engine: The performance of the car also depends on the type of engine used.
We will use the type of engine which is powerful so that speed and performance
of the car will be enhanced.
ENGINE
Engine model 2NZ-FE
Max. power (Net), kw(PS)/rpm 88 ps (64.72 kw) / 6000 rpm
Max. torque (Net), N*m(kg*m)/rpm 12.5 kg*m (122.58 N*m) / 4400 rpm
Power density 10.34
Engine type Serial 4 cylinder DOHC
Engine information VVT-i
Fuel system EFI (electronic fuel injection)
Turbocharger No
Fuel type Unleaded regular gasoline
LEV system (Low emission vehicle) Yes
Compression ratio 10.5
Final gear ratio
Fuel consumption at 10-15 modes, l/100km 5.5

Mechanical Operations

Springs: In case of any accident or collision these springs will lower the effect of
the collision. High quality springs will be used in our Vitz.

Figure B (3) Spring for Toyota Vitz

Following table summarize all type of voice of engineer.

Voice of Engineer
Materials Power
Mech Fuel
Op
iron Plat Rears Airbags 12” GPS Shock Engine Spring Dies Pat
LCD Abs

Figure B (4)
3. Relationship Matrix:
This is the third step in the development of
house of quality for Toyota Vitz. In this step we try to make relation between the
voice of customer and voice of engineer. The extent of relation will be also
discussed. Their could be a strong, medium, weak, or no relation between the
two voices i.e. VOC and VOE. In this step we will find the relationship between
the VOC i.e. performance, usability, and appearance and VOE i.e. materials,
power, mechanical operations, and fuel.

Relationship Matrix
Importance

VOE
Pri

VOC
Hardwares Softwares Supply
Power Supply
Cash Supply

Sec
Network Components
Processor

Touch Screen

MGS

VGS

OS
VRS

Pri Sec
 Fast 6
processing
Performance 10
Secure
transactions
5
24*7
transactions
Multi-language 3
Menu
Usability

Voice
Directions in
Major
Languages

Touch system

Guidelines
option in Menu

1. Bill 2
Utility

payment
2. Cash
Deposit
E-shopping

Cash Transfer
Choice of
Selection of
Denominations
Figure (C)
Legends:

= Strong Relation

= Medium Relation

= Weak Relation

Blank = No Relation

The box shows that there is a strong relation between voice of customer and
voice of engineer. The circle shows a weaker relation between voice of customer
and voice of engineer. Similarly the triangle shows a medium relation between
voice of customer and voice of engineer. For example there is strong relation
between engine (voice of engineer) and Speed (voice of customer) because
when engine is powerful it can achieve more speed. The above table
summarizes similar type of relation between voice of customer and voice of
engineer.

4. Roof of the House of Quality:

Now in fourth step we will build a
roof for our house of quality. The purpose of the roof is to find relations between
different segments of voice of engineer. It will tell us whether or not there are any
contradictions between different segments of voice of engineer. Their could be a
strong relation between two segments e.g. two materials let suppose iron is used
in making the body of the car and electricity is used as the source of the power
than iron has a negative or weak relation with power i.e. electricity.
The following figure depicts the situation:

Figure (D)
The table on previous page summarizes the relations between different
segments of voice of engineer. For example GPS system has positive strong
relation with LCD because result of GPS will be displayed on LCD.

5. Planning Matrix:
 This is the fifth step of House of quality; in this
step we plan value for our product. An overall weightage will be found by using
some mathematical techniques. A questionnaire has been developed which will
give us response from the customer that what is the perceived value of our
product in customer’s mind comparing with competitors product. Similarly we will
assign planned value to voice of customer. And also sales point values will be
assigned.
As this is more technical than the other steps a careful review of the values will
be required in order to ensure that they are based on reality. And also
improvement factor will be find so that we can determine how can we improve
the quality of our product. The formula for determining improvement is given
below:
Imp Factor = (Planned Value – Our Prod Value) x Incremental Fact + 1

Here we take Incremental Factor equal to ONE.

After that we will find the overall weightage of the planning matrix. Formula for
finding the overall weightage is as:

Overall weightage = Sales point x Improvement factor x Importance

Here the range for sales point is From 1 --- 1.5. Now using these techniques we
will develop the planning matrix. Look at the figure on next page.

Planning Matrix
 Figure (E)
The values of our product, DC’s Smart, and Mazda’s Ibuki Came from the results

Overall weight
Mazda Ibuki

Improv factor

Sales Point
Importance

Our Prod

Planned
DC Smart
Voice of Customer

Primary Secondary
Speed 6 3 4 2 4 2 1.0 12.0
Performance Safe 10 4 3 2 5 2 1.3 26.0
Reminder about destiny 5 0 2 0 3 4 1.4 28.0
Low pollution 8 3 2 1 4 2 1.1 17.6
Low car damage on 9 3 2 3 5 3 1.0 27.0
collision
Info on LCD 7 0 3 1 4 5 0.9 31.5
Usability Light weight 3 4 2 1 4 1 1.0 3.0
Slim 1 3 2 0 4 2 0.8 1.6
Appearance Movable roof 4 2 2 1 3 2 1.1 8.8
Color choice 2 4 3 1 5 2 1.0 4.0
of those questionnaires. These values ranges from 1 --- 5.
And the values of Improvement factor, and overall weightage were determined
using the formula on previous page.