Investigation into the quality issues in the automotive industry in Thailand

In order to investigate the quality issue in automotive industry, the main focus of this research is the ex-factory defects issue occurring at Company A. Company A is one of the suppliers that supplies parts to Toyota Motor Thailand (TMT). Thus, this research is one of representative case that reveals the current quality issue for the SMEs of automotive industry in Thailand. The main research is to identify the root causes for ex-factory defects and to make recommendations so as to improve the performance of the company. In order to understand the existed theories and frameworks, the literature review is made based on quality management and supply chain relationship. These two areas of study will facilitate the understanding of the ideal models, frameworks, and theories practiced by majority. Then, the methodology used to collect data is done through case study and semi-structured interviews with the key fact holders from two organisations, Company A and TMT, in order to explore the “cause” and “effect” of the issues. Thus, the key findings can be derived from the analysis that is structured using Toyota Business Practice (TBP). As a result, the root causes that create the ex-factory defects issue are mainly from the inspectors not following the standardise work, lack of maintenance in tools and equipments, unskilled workers, inadequate training and support from top management, and language barrier. Furthermore, the recommendations are made in order to overcome these issues. The focus areas of recommendations include improvements in management support and system, key points check, operation standard, tools and equipments, working environment, and overcoming language barrier. Significantly, the improvements must derive from supports from top management and employee involvement