From a 2/9 Reuters article summary- a little pun there in the first line:
SHAKY GROUND
Lately, though, Watanabe has been busy fixing the cracks in Toyota's vaunted reputation for quality.
In J.D. Power's closely watched survey on new-car quality last year, Toyota's luxury Lexus brand ceded its long-held top spot to Porsche, and Honda Motor Co topped Toyota among mass-market brands. Toyota vehicle recalls have exceeded a million cars in the past few years.
To reverse the tide, Watanabe in 2006 assigned two executive vice presidents to oversee quality improvements, one specifically to work closely with suppliers to catch design defects early.
Toyota also set up a "customer first" committee that made quality checks more visible at the four stages of design, manufacturing, procurement and sales.
Watanabe, who chairs the committee, says the measures are bearing fruit and recall numbers are falling.
Toyota teaches staff at every step of their job, even down to the correct way to grasp a bolt, to try to ensure consistent quality. Foreign managers attend a Toyota Institute in Japan to be schooled in the "Toyota Way."
Watanabe also introduced a mentor system to encourage staff to be more inquisitive and suggest improvements, harking back to Toyota's tradition of getting to the root of problems through "kaizen," or continuous improvement.
"We need to go back to the basics, even if it takes more time and people, and even if labor costs go up," he said.
