Toyota Industries Corporation Business Report

The purpose of technical evaluation is to compare Toyota against its competitors based on the operating requirements to fulfil customer needs. In this house of quality, the technical evaluation is assessed by a five-point scale, which uses 1,2,3,4 and 5 to represent excellent, very good, good, fair and poor performance respectively. For instance, in terms of recycling, Honda is found to be excellent compared to Toyota, Ford and GM which are doing good, fair and poor respectively. In terms of Assembly, it appeared that Toyota is excellent as it scored 5 among its competitors.

  • Competitive Evaluation

The purpose of competitive evaluation is to measure the relationship between customer preferences and both Toyota’s performance and competitors’ performance. A rating scale of 1-5 has been used to measure the performance of Toyota and its competitors. For instance, Toyota appeared to be the best in term of providing good customer services while GM is the worst among other competitors. Moreover, Toyota is found to be the worst with respect to vehicle safety as it scored 1, while GM is found to be the best as it scored 5. After GM comes Ford and Honda who scored 4 and 3 respectively

  • The Roof

On the roof of the HoQ, a correlation matrix has been constructed to identify the correlations or conflicts in operating requirements and highlights chances for improvements. The correlation is portrayed using four different symbols which represent strong positive, positive, negative, and strong negative correlation. For instance, there is a strong positive correlation between training process and sales process. This can be explained by the positive impact that training can have on salespeople. Training can improve the technical sales skills of sales people such as interacting, emailing and effectively communicating with customers either by phone or face-to face. This can accordingly benefit the company and boost its sales. Regarding the possible conflicts between operating requirements, there appear to be a negative correlation between the new styling process and targeting cost process. Toyota usually makes slight changes in the design of its models in the market. Doing so may require the designers to come up with unique and complex designs which require more parts and work. However, this improvement can negatively affect the cost targeting process as the price of improvement will probably add to the total cost of the car. As the aim of targeting cost process is to deduct the cost of manufacturing, keeping making improvement on the design will probably make targeting cost process more difficult to be achieve.


Throughout this paper, Toyota Company has been taken as a case study to understand its goals, processes, customer requirements and accordingly build a house of quality.

This entry was posted in Business Essay and tagged , , , . Bookmark the permalink.