TOYOTA

The Toyota Motor Company is one of the biggest car manufacturers in the globe.
Toyota has established a reputation as both an engine producer and the manufacturer
of luxury vehicles. While the organization's headquarters are still situated in Japan, it
has several manufacturing facilities all over the globe and sales departments in
various nations where the vehicles are transported (Toyota Motor Corporation Global
Site, 2010).

Toyota has a distinct business structure and the manner it pursues the vehicle
manufacturing with its effective quality standards, which developed the industry.
Toyota's just-in-time supply-chain idea has turned into a standard for car companies
all over the globe. The Toyota Production System (TPS) calls for the finished vehicle to
be pulled through the production system (Toyota Production System Global Site: TPS,
2010).

By concentrating on smaller manufacturing lots and generating only what clients need
when they demand it, Toyota has established a versatility and responsiveness that
keeps on becoming the guideline for the industry. Due to its concentration to
consistent development, Toyota has obtained die-changeover and machine-set periods
that are way ahead of its rivals. Therefore, its capability for responding immediately to
new market developments makes TPS an effective system in the present day\s quickly
developing world business setting. Toyota understands that it is necessary in
guaranteeing quality management and the provision of dependable products to clients.

The primary advantage of Toyota's management information systems is their capability

to merge their corporate objectives all over the world by utilizing their systems
properly. For instance, Toyota connects to its clients in various sectors by utilizing
various Internet based web systems for various global regions. Even though there are
numerous Internet sites and networks for each of the global continents, the
management information systems all connect back to a global Internet site.
 MIS in TOYOTA

 Toyota established new areas for development through innovations by using

MIS.

 Toyota is functioning all over the world with clients and global leaders to
enhance the process of shipment.

 Toyota looked to analyze present shipment systems utilizing their clients as well
as data from other organizations.

 MIS of Toyota enables the gathering of huge amounts of business information,

and offers a significant time saving advantage to the employees.

 MIS enables quick decision making and more immediate reflexes for the
company.

 To attain effective MIS, Toyota’s planning procedure involves taking into

account the MIS needs at the strategic levels.

 At strategic stage MIS systems and reports of Toyota helps the yearly operating
scheme and budgetary procedures.

 MIS systems are utilized in support of strategic MIS and business preparation
activities.

 Without the establishment of an efficient MIS, it will be difficult for Toyota to

evaluate and check the effectiveness of new activities and development of
current programs.

 Organizations have to provide clients with effective and dependable service. If

they fail clients will transfer to more efficient organizations.

 As organizations become large in size, it becomes more difficult to monitor the

increasing level of client data.

 An organization does a terrible job of managing and maintaining client accounts

and information, It can lead to issues for both the organization and the client.

 Toyota enhanced its customer service and minimized expenses by enhancing its
management information systems (MIS).

 Management information systems are different from ordinary information

systems.
 they are utilized to study other information systems used in functional tasks in
the company.

 In the past, information had to be isolated individually by the people as per the
need and policy of the company.

 Eventually, data and information was differentiated and rather than the
gathering of mass of information, significant and accurate information that was
needed by the company was the only one saved.

 In their early years of existence, company computers were utilized for the logical
business of calculating the payroll and monitoring the accounts payable and
receivable.

 At present, MIS is utilized widely in various subjects and involves: decision

support systems, workforce control programs, project management and
database storage programs.

 Jidoka If any issue emerges at any point of the manufacturing process, Toyota's
error identification system, or Jidoka, determines the problem.

 And allows line workers to make the important measures to resolve it

immediately even if that implies stopping the manufacturing process.

 By determining the equipment where the problem initially happened, this

management information system (MIS) makes it more comfortable to determine
the cause of the issue.

 and stops defects from developing to the succeeding phases of production.

 Andons Toyota utilizes management information systems that employ visual

controls to immediately convey the status of production.

 On the production area, for instance, management information systems help

inform a worker with a single glance whether the station is operating properly.

 Management information systems also give critical data like which machine did
not operate, the operator and the real time situations when it malfunctioned.

 PokaYoke Toyota utilizes a variety of these affordable, highly dependable

management information systems throughout its production process to stop
defects.

 SAP (SAP stands for Systems Applications and Products in Data Processing.)
generates the shipment schedules for each part to match Toyota's assembly-line
procedures.
 Toyota delivers these detailed information and precise shipment schedules to its
suppliers.

 providers log on to the Toyota online portal, where the company details the
provisions to provide the updates on its shipment activities.

 By going to the website of Toyota, suppliers can monitor this information in real
time, including release schedules, receipts, and other important information.

 When they deliver car parts, the suppliers send Toyota shipment details to give
them with the latest information in this matter.

 Car parts going inside the Toyota storage facilities are then obtained and
delivered quickly to the line.

 Toyota uses its Jidoka to monitor the assembly process in real time.

 Jidoka tracks the production verification and consumption information

consistently.

 Parts utilized in the production are removed from the stock list, and costs are
presented to detail the value of work in process.

 MIS help the organization to reduce order-to shipment period, enhances its
supply chain activities.
 MIS in Finance

Toyota started to implement SAP software system which also provides financial
information to the finance department of the company and its concerned personnel.

The people of the finance department of Toyota analyzes previous and current
financial figures, anticipates future financial outputs.

MIS in Marketing

Marketing the SAP helps the marketing operations of the organization with regard to
product development, pricing activities, marketing, and sales forecasts.

MIS maintains Quality

Kaizen: This is a system for continuous improvement. Toyota constantly looks to

improve its business processes by finding ways to take Muda (waste) out of the
system.

Just-in-time: Toyota employs one of the most sophisticated supply chain systems in
manufacturing, working closely with suppliers to ensure that parts arrive just when
needed (leather, seats)

A car from paint shop > the system sends emessage to Johnson Controls seats
required > Johnson Controls has four hours to ship those seats in sequence.

The instructions are provided by Toyota’s Assembly Line Control System (ALCS)
software
Decision Making at the Three Tiers of Management

1. Operational Level Systems

To transform the operational level decision making within Toyota very fundamental
and productive, the MIS of Toyota aids in providing and sending reliable information to
all executors. The Toyota Comprehensive Warehouse Management System is
established to enhance the reporting of information that will be important in the
proper decision making within the operational level of Toyota. Furthermore, the SAP is
able to effectively collect and process data, process results, and able to adjust, cope
and address inaccuracies right away. (SAP, 2007)

2. Management Level Systems

The Toyota Comprehensive Warehouse Management System has effective internal

controls that aid in the management level decision making tasks in Toyota.
Information is collected through efficient processing and inner control tracking. An
effective internal and outer audit process is utilized within Toyota through the MIS
(Magee, 2007).

3. Strategic Level Systems

To have a productive and efficient strategic level decision making, important data
within Toyota is processed and handled properly through its Material Handling
System. Differences in the way information is collected and documented can change
information and trend studies. Also, because data collection and documentation
activities will eventually change through time, Toyota management has established
flexible methods to allow systems developments through the MIS. These procedures
are always well structured, properly informed to employees and has a tracking system
that helps in the strategic level decision making of Toyota (Toyota Material Handling
USA, 2010).

4. Managing Business Processes

The integration of various MIS within Toyota is the effect of the integration of system
management. The employees and leaders of the company are the users of the MIS who
know the present customer demands and also have the capacity to plan the funds for
new initiatives. In order to control its business procedures properly, Toyota has
persevered in managing ownership that promotes effectiveness in its business
processes and helps ensure being responsible. Even though the MIS does not reduce
expense altogether, the integration of this essential system, and its properly utilization
reduces the periods that wrong decisions in company procedures are accomplished
because of inaccurate information (Morgan, 2006). Terrible company decisions simply
misuse precious assets. This may result in a negative effect on revenues and/or
budget.

DATA FLOW of Toyota

INPUT PROCESSING OUTPUT

SAP : Shipment Scheduling Product Specification

TQM:
Quali
ty
Mana
JIDOKA geme
nt

Error
Identify
Just In Time : Track
process & look
production should
meet Demand

KAIZEN : Look ways to take waste

out of system
The flow of Data includes various processes and programmes that work
efficiently with the help of Information system Management.

- Machime and techonologies are the key components that are stored in
ware houses and supplied to plant as per the demand
- JIT trackes the process and deals with production performance to meet
the demands
- Jidoka ensures emergency situations or defects at the point of
Manufacture and work effectively to solve it.
- Andons Toyota utilise MIS to verify the status of production
- SAP generate shipment scheduling to match Toyotas assemble line
procedure
- Total Quality Management ensures best quality output
- Product specifications ensures all deliveries within time and should meet
product specification
- Kaizen programme look at the ways to take waste out of the system

Conclusion
 The MIS of Toyota has been proven to provide a great deal of advantages to its
various business units.

 Toyota strives hard to keep discovering new methods to utilize their MIS to
accomplish their business goals.

 The MIS systems of Toyota offer the tools essential to obtain a better knowledge
of the market as well as an improved knowledge of the company itself.