Section 1. Construction of Motomachi Plant and Introduction of TQC
Item 6. Clarifying Company Policy
To solve the problems identified during the company-wide audit, Toyota resolved to further strengthen the full-participation TQC promotion system and to ensure employee awareness and compliance by collating and clarifying the company management policies in writing. The Toyota Corporate Policy was subsequently released in January 1963 and included a basic policy, a long-term policy, and an annual policy. The basic policy expressed the company's fundamental view toward management, and was comprised of the following three items:
- 1.To develop Toyota into a world leader by gathering resources from within and outside the company.
- 2.To develop Toyota's reputation as a quality leader through an uncompromising focus on "Good Thinking, Good Products".
- 3.To contribute to the development of Japan's economy by achieving a mass production system and low prices.
The company's long term policy outlined the targets for establishing Toyota as a world leader and the key measures to be taken to achieve these goals, while the annual policy described goals and the key measures to be taken during the fiscal year in question.
Meanwhile, in conjunction with these policies the company created a five-year long-term management plan in December that year. Spanning the five-year period from 1964 to 1968, this plan put a greater focus on profitability aspects compared to the conventional format that was based around plans for production and facilities.
In response to the lack of cooperation between departments cited as a problem during the first company-wide audit in 1962, the duties performed by each department were reviewed from a "functional" perspective, and a new function-based management system was established. This was a key topic during the second stage of TQC. In January 1963, the duties of the entire company were classified into 12 functions, and the second company-wide audit included an audit of each function in addition to an audit of each department. In addition, during the same year "smooth remodeling of the Corona" was set as a key task in company policy, and a function-based management system was established to tackle this issue.
In September 1964 Toyota Motor Co., Ltd. established the QC Promotion Headquarters, headed by Executive Vice President Eiji Toyoda. The new department consolidated all TQC promotion initiatives throughout the work flow, from the planning of new products, through to design, production, and sales.
The company also established a function-based organizational chart of management, and studied the flow of work between and within functions and the related rules and regulations. Furthermore, at the department and section level the items to be managed and the points to be checked by each manager were clarified by referencing the division of duties of affiliated departments according to the work flow specified on the organizational chart, and management check sheets were prepared.
In conjunction with these measures, in August 1963, to strengthen collaboration between Toyota Motor Co., Ltd. and Toyota Motor Sales Co., Ltd., the two companies set up meetings to discuss and coordinate the relevant functions at each company. These comprised nine meetings, one each on planning, production and sales, export, new products, advertising, human resources, finance, purchasing, and quality assurance. The meetings served as a secondary organization to the Chief Policy Committee set up between Toyota Motor Co., Ltd. and Toyota Motor Sales Co., Ltd. the previous year.