FY2027 Hoshin Kanri
Quality Function Plan
"High Quality" Customer Real Satisfaction
Toyota ASSB Malaysia · Bukit Raja Plant
From Importance of Quality → Template A Action Plan
April 2026 — March 2027 · STRICTLY COMPANY CONFIDENTIAL
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Table of Contents
The journey from importance of quality → to the FY2027 action plan.
1
Why Quality Matters for a Company
2
ASSB Context & Strategic Landscape
3
FY2026 Reflections & Achievements
4
The Gap — Why We Need a New Plan
5
Vision: "High Quality" Customer Real Satisfaction
7
FY2027 KPI Dashboard (12 KPIs)
8
FY2027 Action Categories
9
Quarterly Schedule & Milestones
10
Template A: The Action Plan
11
Cross-References & Closing
2
Why Quality Matters for a Company
Quality is not a department. It is the company's promise to every customer, every regulator, every shareholder.
Three business cases for quality investment:
1. Customer Trust
Reputation
Toyota's 70+ year brand equity is built on quality. A single recall can wipe billions in market cap. ASSB protects Toyota's reputation in Malaysia.
2. Cost of Poor Quality
COPQ
Industry research: quality failures cost 15-40% of revenue. Defect prevention is 100x cheaper than rework. Warranty claims can erase profit margins.
3. Compliance
Regulatory
IATF 16949:2016 mandatory for automotive OEMs. Non-compliance = lost contracts. ISO 9001 is the floor, not the ceiling.
Toyota's Quality Philosophy (TPS):
- Genchi Genbutsu — Go and see for yourself (no secondhand data)
- Jidoka — Stop the line when defect detected (built-in quality)
- Poka-Yoke — Mistake-proofing at the design stage
- Kaizen — Continuous improvement by everyone, every day
3
The Stakes: Quality Failures Are Expensive
67%
Warranty claims originate at Tier-1 suppliers
30d
Supplier PPM data latency today
3.2h
Manual logging waste per shift
42%
Motomachi warranty claims reduction in 18 months (Toyota global benchmark)
Reference: Toyota Global Quality Intelligence (Jun 2026)
- Toyota Motomachi plant cut supplier-related warranty claims 42% in 18 months by mandating real-time Cpk sharing across 200+ suppliers
- Denso & Bosch now use AI risk-scoring to predict supplier failures 2 weeks before customer impact
- 4-week lag between customer-end defect and supplier-source containment (today's norm)
The question for ASSB: What is our 18-month roadmap to catch up with the Motomachi benchmark?
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ASSB Context: Where We Operate
About Toyota ASSB
- Full name: Assembly Services Sdn. Bhd. (Toyota Group Malaysia)
- Plant: Bukit Raja, Klang, Selangor
- Function: Vehicle final assembly + quality gate
- Production: Yaris, Vios, Hilux, Innova, other Toyota models
- Workforce: ~2,500+ production + 200+ QC
Quality Governance
- HOD Quality — Senior Manager level (sir's role)
- Reports to: General Manager (Plant Director track)
- Stakeholders: TMC Motomachi QCD, TMA VQ (Thailand), DMC VQPE
Our Strategic Reality
Where we want to be
Zero Non-Conformance. World-class supplier integration. AI-augmented inspection.
Where we are
Manual processes. Reactive containment. 30-day supplier data lag.
The Mandate
Build a quality system that prevents defects rather than catches them. Move from reactive to predictive.
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Where the Industry Is Going (Toyota Global)
Industry 4.0 + Quality 4.0 — the global shift
🚫 BEFORE
- Hourly clipboard logs
- Monthly Excel reports
- 1-in-20 visual checks
- Human torque judgment
- Reactive warranty containment
- One supplier audit per year
✅ AFTER (Toyota's target state)
- 1-second IoT streaming
- Real-time Telegram alerts
- 100% AI vision inspection
- Sensor-locked Poka-Yoke
- Predictive alert 7-14 days early
- Continuous risk-based monitoring
Industry direction: From sampling-and-luck → to sensing-and-stopping. DMAIC + Industry 4.0 = closed-loop quality where data, not calendars, drives every stop-the-line call.
6
FY2026 Reflections — What We Accomplished
Period: Jan 2025 — May 2026 · 17 months of solid execution
Audit Results — A Clean Record
0
External Recertification NC (Apr 2026)
0
Internal Audit NC (Sep 2025)
0
R101 Performance Test issues
Annual Audit Volumes
| Period | BRP Units | SAP Units | Total |
|---|
| Jan-Dec 2025 | 16 | 24 | 40 |
| Jan-June 2026 | 12 | 12 | 24 |
| FY2026 total (May'26 YTD) | 28 | 36 | 64 |
Honest verdict: FY2026 was a year of operational stability but limited transformation. We held the line. We didn't push the frontier.
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The Gap — Where We Need to Push Harder
What "0 NC" means — and where we fall short
What FY2026 tells us
- 0 NC in audits ✓ (but sample-based, 1-in-20 visual checks)
- R101 performance: 0 issue ✓ (but only 16-24 unit samples)
- Internal audit: 6 OFI (opportunities for improvement)
- Document control: gaps noted in distribute/training
What's missing
- No AI-augmented inspection yet (100% coverage gap)
- No real-time SPC dashboard for paint film thickness
- Limited QR/QS competency (Asia QRQS not fully aligned)
- No Poka-Yoke stations for top 3 incoming defects
🔴 RISK
Competitive Gap
While we held 0 NC, Toyota Motomachi + TMMIN + Denso are moving to AI vision + IoT + predictive. We're falling behind the Toyota Group standard.
🟡 OPPORTUNITY
AI Firm 2027
Sir's planned 2027 AI consulting launch can use ASSB's gap as proof point: "We helped Toyota ASSB go from manual to AI-augmented quality."
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Closing the Gap — Why Now?
Three forces converge in FY2027
① Toyota Global Push
Top-Down Mandate
TMC Motomachi + Tahara QCD pushing Asia affiliates to digitalize. TMA (Thailand) leading with COP audit enhancement program.
② Customer Expectations
Market Demands
Buyers expect AI-traceable quality. EV competitors (BYD, Tesla) showcasing AI inspection publicly. Toyota needs to match.
③ Internal Capacity
We Have the People
Sir's MDP 2026 (Plant Director track) + Razmair's A3 v2 (centralised DB) + new digital skills. The team is ready.
Why FY2027 matters: IATF 16949 Surveillance Audit (Nov 2026) is our credibility moment. The FY2027 plan must show the IATF auditor that we're not just maintaining — we're advancing.
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"High Quality"
Customer Real Satisfaction
Our FY2027 Vision
A manufacturing line where defects are predicted and prevented before they happen — not detected after.
— ASSB Quality Function, FY2027 Hoshin
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The 3 Pillars (Template A)
The strategic framework that organises our FY2027 actions.
①
Protect Customer
Zero NC at customer end.
Target: Warranty claims < 1 per 1,000 units.
②
In House Quality
Zero NC at any process step.
Target: FTR = Zero (A/B Class).
③
Value Creation
Quality as competitive edge.
Target: AI Firm 2027 case study.
Quality is measured three ways:
Shipping Quality Audit
Final vehicle audit before dispatch.
Quality Gate
Real-time SPC checks at critical CTQ points.
Field Technical Report
Customer warranty + dealer feedback loop.
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How the Pillars Map to KPIs
Each pillar has measurable targets across 12 FY2027 KPIs.
| Pillar | KPI | FY2027 Target |
|---|
| ① Protect Customer | 3.1 ISO 9001 Audit | Pass (0 NC) |
| 3.3 FTR Result (A/B Class) | Zero |
| 3.4 Yard Out Flow | Zero Case |
| ② In House Quality | 3.6 Hanedashi (Off-line) | < 5 Case/Day |
| 3.7 In-line Repair | < 1 Case/Day |
| 3.8 QG Occurrence | < 5 Case/Day |
| External NC | 0 |
| ③ Value Creation | 3.5 NCI (Supplier Quality) | Zero Case |
| 3.2 SQA Outflow (B) | < 0.05 DPV |
| Internal NC | 0 |
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FY2027 KPI Dashboard — All 12 Targets
Critical-path KPIs (🔴)
- IATF 16949 Surveillance Audit — scheduled Nov 2026 (must pass)
- External Recertification — Apr 2027
- Supplier Real-Time Cpk Sharing — pilot with 2 suppliers first
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Risk Heatmap — Where We Need the Most Effort
| KPI | Risk Level | Why | Mitigation |
|---|
| External NC | 🔴 HIGH | External pressure, IATF audit in Nov | Supplier Cpk sharing + Poka-Yoke |
| FTR (A/B) | 🔴 HIGH | Re-run process missing | Develop Internal Rule (S3) |
| In-line Repair | 🔴 HIGH | Critical-to-customer metric | Tightening QL Wrench + QAN |
| Yard Out | 🟡 MEDIUM | Existing controls working | Maintain current SOPs |
| NCI (Supplier) | 🔴 HIGH | 67% warranty claims origin here | Supplier dashboard pilot |
| Hanedashi | 🟡 MEDIUM | Off-line repair already exists | Daily tracking + alerts |
| QG Occurrence | 🟡 MEDIUM | Quality gate catching some | Move to MIFC matrix |
| ISO 9001 Audit | 🟢 LOW | Track record strong | Digitalize procedures |
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FY2027 Action Categories — How We'll Get There
① Education / OJT
TMA/TMC training for evaluation. COP audit skill level-up via OJT/Genba observation.
Owner: TMA + Razmair
② QR/QS
Asia QRQS align with ASSB Internal Rule. Competency enhancement. Expand to Goguchi model.
Owner: QC + TPS Office
③ Digitalization
QMS procedure review + revision digitalization. Electronic Data Storage.
Owner: QC + IT
④ Internal Audit
Document Review and Conduct Internal Audit. Lengthen throughout the year. All processes.
Owner: QC + Internal Audit Team
⑤ MIFC
QG to MIFC matrix. Identify Gap, Root cause. Expand to Goguchi model.
Owner: QC + Production
⑥ Cross-cutting
AI Inspection Project (centralised DB) + Quality Intelligence newsletter (external benchmarks).
Owner: sir (HOD) + BotBot
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Key Action Items — Top 6 for FY2027
| # | Action Item | Owner | Target | Quarter |
|---|
| 1 | COP Control Plan skill enhancement via TMA collaboration | Razmair + TMA | Skill level-up | Q3 FY27 |
| 2 | Develop Internal Rule for Functional issues re-run process at VP Line | QC + Production | SOP + training | Q3 FY27 |
| 3 | Brake Piping Leak Matrix for Leak Assurance | QC + Maintenance | Matrix + implementation | Q2 FY28 |
| 4 | Re-confirm pipe Assy workability vs bending control at supplier | SQA | Supplier Cpk data | Q3-Q4 FY27 |
| 5 | QMS Awareness Training + Auditor Skill Level Up | Internal Audit Team | All staff trained | Q3-Q4 FY27 |
| 6 | IATF 16949 Surveillance Audit (KEY MILESTONE) | Sir (HOD) + Hisham | Pass (0 NC) | Q4 FY27 (Nov 2026) |
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FY2027 Quarterly Schedule — What's When
Q2 FY27 · Apr-Jun 2026 (DONE)
External Recertification Audit (Apr 2026) · Internal Audit Q2 · COP audit cycle
Q3 FY27 · Jul-Sep 2026
COP Audit Enhancement · FTR Re-run process · ISO9001 Digitalization · MIFC Expansion · QMS Training
Q4 FY27 · Oct-Dec 2026 ⭐
IATF 16949 Surveillance Audit (Nov 2026) · Goguchi Model rollout · Henkaten QR/QS · Supplier Cpk pilot
Q1 FY28 · Jan-Mar 2027
Internal Audit year-round · Continued digitalization · Poka-Yoke Stations deployed
Q2 FY28 · Apr-Jun 2027
QG to MIFC matrix · Electronic Data Storage · Brake Piping Leak Matrix implementation
FY28-Q3+ · beyond
Long-term digitalization · Internal Audit expansion · AI vision integration roadmap
Critical milestone: IATF Surveillance (Nov 2026) — sir's plan must show measurable progress by then. The auditor will look for evidence of digitalization + competency enhancement.
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Template A
The Action Plan to Address
"High Quality" Customer Real Satisfaction
①
Protect Customer
3 KPIs · Zero NC
②
In House Quality
4 KPIs · Daily targets
③
Value Creation
3 KPIs · Strategic
Connected to Template B (35-page detailed plan)
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Template A → Action Map
How each of the 3 pillars maps to the 5 action categories:
| Pillar | ① Education/OJT | ② QR/QS | ③ Digitalization | ④ Internal Audit | ⑤ MIFC |
|---|
| Protect Customer | ✓ | ✓ | ✓ | ✓ | ✓ |
| In House Quality | ✓ | ✓ | ✓ | ✓ | ✓ |
| Value Creation | | ✓ | ✓ | | ✓ |
Critical dependencies
- Poka-Yoke requires Education/OJT first → can't install sensors without trained operators
- AI Inspection Project (centralised DB) is the Digitalization foundation
- IATF Audit (Nov 2026) depends on Internal Audit being year-round + documented
- Supplier integration (NCI = 0) depends on MIFC matrix being deployed
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Cross-References — How This Plan Connects
Internal Projects
🤖 AI Inspection Project
Centralised DB enables real-time KPI tracking for all 12 FY2027 KPIs. Currently manual. Replaces clipboards + Excel.
📋 Quality Intelligence Newsletter
Bi-weekly external benchmarks (SQM, Poka-Yoke, AI risk scoring). Motomachi 42% reduction is the headline benchmark.
🎯 TBP Daily Dashboard
Problem-solving framework feeds NC reduction. Sir's MDP 2026 project integrates with this Hoshin.
External Standards
- IATF 16949:2016 — mandatory surveillance Nov 2026
- 7.5.3.2 Document control
- 8.4.1 External provision control (suppliers)
- 8.5.2 Identification & traceability
- 8.7.1.2 Nonconforming outputs
- 10.2.1 Corrective action
- ISO 9001:2015 — recertification passed Apr 2026
- Asia QRQS — alignment target
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Our Commitment
FY2027 is the year ASSB goes from maintaining quality to advancing it
• Hold the line on NC = 0 (External, Internal, FTR, Yard Out, NCI)
• Build the digital foundation (QMS + Electronic Data + Internal Audit)
• Train the team (QR/QS + COP audit + QMS awareness)
• Pass IATF Surveillance in Nov 2026 with measurable progress to show
• Set up FY2028 for AI vision integration
Signed: Nizmax (HOD Quality) · Razmair (Assistant Manager QC) · Hisham (Mgr QC) · Richie Lim (GM)
STRICTLY COMPANY CONFIDENTIAL · ASSB Strategic Planning Unit · Template A & B · April 2026
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Acknowledgments & References
Source Material
- Template A — 1-slide executive summary (PPTX, 1.1 MB) — Theme: "High Quality" Customer Real Satisfaction + 3 Pillars
- Template B — 35-page detailed plan (PDF, 1.2 MB) — FY2027 KPIs + reflections + actions + schedule
- Global South QC Shop Jiku #1 (1 Apr 2026) — TMA-hosted quarterly meeting that triggered this Hoshin update
Cross-References
- AI Inspection Project — A3 v2 (CENTRALISE_QUALITY_A3_v2.html) — supports KPI tracking
- Quality Intelligence Newsletter (30 Jun 2026) — Supplier Quality Management theme
- Toyota Motomachi / TMMIN / Denso benchmarks — global standard for FY2027 target
- IATF 16949:2016 + ISO 9001:2015 — external standards
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