Assignment 01

Management Information Systems of Toyota

P G U C Ranasinghe
17197
MIS
INTRODUCTION
In 1937 Kichiro Toyoda established Toyota Motor Company (TMC) as a industrial vehicle
manufacturing company. TMC is one of the world’s biggest automobile and ancillary companies by
sales and production. Today, it has augments to be a vast Toyota group including 13 companies
dealing in automobile sector. It has positioned a repute not only as an engine manufacturer but also
as he maker of luxury vehicles. Toyota has a reputable concern construction and its quality
measurements which thrived the industry. The Just-In-Time supply chain thought of Toyota has
converted into a criterion for automobile companies all over the world.
Toyota has grown its information system successfully by conjoining information processing
technologies while with standing various changes in the automobile market such as changes in the
Japanese and global economy, car electronic technologies, rapid globalization of development,
maintaining global environmental standards and sales operations[1]. The Information system was
introduced to the company in 1974 by establishing a Technical Computer Center equipped with
Information System Building.

INFORMATION SYSTEMS OF TOYOTA

1. Warehouse Management System

WMS is closely related to be a decision support system or executive information system as
the knowledge provided through is in the decision making process. This information system
provides effectual directions of the whole process including the period merchandises are
obtained, storage and location control and shipment. WMS addresses persons, merchandise
and information while removing wastes since it aims to,
a. Control the movement and storage of materials within a warehouse.
b. Process the associated transactions, including shipping, receiving, put away and
picking.
c. Direct and optimize stock put away based on real-time information about the status of
bin utilization.
 Input Data:- locations of the warehouses (Random Locations, Fixed
Locations)
 2. Toyota Production System (or Quality Control System )
TPS is an integrated Socio-Technical system which is developed by Toyota. The
establishment of the system based on continuous improvement through the objective of
“making the vehicles ordered by customers in the quickest and the most efficient way, in
order to deliver the vehicles as quickly as possible”. Moreover, there are two major concepts
which are based on the establishment of TPS.
a. Automation with a human touch: Machines stops as soon as a problem happens, to
prevent deficiencies.
b. “Just-In-Time”: Produce only the products what is essential for the next process in
continuous flow.
 The wastes that are addressed by the TPS
i. Waste of over production
ii. Waste of time on hand
iii. Waste of transportation
iv. Waste of processing itself
v. Waste of stock at hand
vi. Waste of movement
vii. Waste of making defective product

3. Knowledge Management System

This KMS provides knowledge transfer solutions that allow enterprises to rapidly channel
knowledge about revenue-generating products and services throughout sales, customer
support channels and marketing.

4. Customer Relationship Management Information System

This CRM Information System mainly focuses on automating and synchronizing processes
like sales, services and technical support [6] through maintaining customer relationships.

STRATEGIC BUSINESS OBJECTIVES ACHIEVING THROUGH MIS

 Contribute to the economic growth of the country in which it is located ( external stake
holders)
 Contribute to the stability and well being of team members (internal stake holders)
 Contribute to the overall growth of Toyota.
NEW INFORMATION SYSTEMS SUITABLE FOR TOYOTA

01. Vehicle Monitor System

This Information System provides accurate information about the status of the vehicle as a whole or
as an individual. It tracks different functions of the vehicle and measure certain indicators during the
driving process. [1]
02. Safety and Collision Avoidance (SCA)
To cope with rear end collisions, the most common type of accident, the Breaking Assistant Standard
(BAS) was developed. When there is a sudden emergency situation the system is interpreting the
breaking behavior of the driver and initiate breaking.
03. H2i Technologies WhapticsTouch less Touch (Gesture Recognition System)
Gesture Recognition is the ability of a device to identify a series of human body movements. This
technology is functioning with identifying and scanning the movements in a 2D or 3D profile with
the aid of cameras and IC devices. They can respond in real time to movements of the body.
Therefore, hand movements by a driver can give command to activate functions inside the vehicle.

04. IMS iLane 7100 (Voice Recognition System)

When the driver got into the car the vehicle recognition system automatically syncs up with the
Android phone (iPhone compatibility is on the way) [2]. Once the sync is done, the system can
receive commands via a Bluetooth dongle which allows the driver to answer e-mails, texts and calls
without lifting a finger.
An information system of an organization is an amalgamation of organizational, management and
information technological elements. A manager should have a sound knowledge on the broader
organizational, management and technological dimensions of the existing Information Systems to
provide business solutions to challenge and identify problems in the business environment. (A Sneak
Peek at the Future of In-Car Information Systems - Automotive Technology)

The organizational dimension of Toyota

Since Toyota recalled due to the safety issues in 2009, it has a divisional organizational which
underwent significant changes in 2013. Toyota’s new organizational structure now has the following
characteristics.
 Global hierarchy
 Geographic division
 Product-base division
 Global hierarchy: This hierarchy has increased the decision making power not only
of regional heads but also of business units. Then its decision making process became
less centralized.
 Geographic division: The new organizational structure has 8 regional divisions
(Japan, North America, Europe, East Asia and Oceania, China, Asia and Middle East,
Africa, and Latin America and Caribbean) and those regional heads have to report to
the headquarters. This structure helps Toyota to improve products and services
according to each regional market.
 Product-base division: This division is structured as based on products and it helps
development of brands and product lines. There are four major divisions under this
product-base division.
1. Lexus International
2. Toyota No. 1 for operations in North America, Europe and Japan
3. Toyota No. 2 for operations in all other regions
4. Unit Center, which is responsible for engine
Management& Technological Dimension of Toyota

Supply Chain Management: Toyota uses lean manufacturing for supply chain management. In this
strategic decision area of operations management, the company uses automation systems for real-
time adjustments in supply chain activity. In this way, Toyota minimizes the bullwhip effect in its
supply chain.
Inventory Management: Through this area of operations management, Toyota minimizes inventory
levels through just-in-time inventory management. The aim is to minimize inventory size and its
corresponding cost. This inventory management approach is covered in the Toyota Production
System.
Scheduling: Toyota follows lean manufacturing principles in its scheduling. The company’s goal for
this strategic decision area of operations management is to minimize operating costs. Cost-
minimization is maintained through HR and resource scheduling that change according to market
conditions.
Job Design and Human Resources: The Company applies The Toyota Way and TPS for this
strategic decision area of operations management. The firm emphasizes respect for all people in The
Toyota Way, and this is integrated in HR programs and policies. Also, Toyota has training programs
based on TPS to ensure lean manufacturing practice.
Maintenance: For decades, Toyota developed a network of strategically located facilities to support
its global business. The company also has a global HR network that supports flexibility and business
resilience. Thus, in this strategic decision area of operations management, Toyota uses its global
business reach to ensure optimal and stable productivity.
Process and Capacity Design. For this strategic decision area of operations management, Toyota
uses lean manufacturing, which is also embodied in TPS. The company emphasizes waste
minimization to maximize process efficiency and capacity utilization. Thus, Toyota supports
business efficiency and cost-effectiveness in its process and capacity design.
References
[1]. Brandt, T. (2013). Information Systems in Automobiles – Past, Present, and Future Uses.
Information Systems in Automobiles, Chicago, Illinois, August 15-17, 2013.
[2]. Del-Colle, A. (2011, June 16). The A Sneak Peek at the Future of In-Car Information
Systems. Popular Mechanics. Retrieved from https://www.popularmechanics.com