Management

Information

System

in

Toyota

Group 11

MBA 6th Batch

TOYOTA

Toyota Motor Corporation (TMC) commonly known simply as Toyota

multinational corporation headquartered in Japan

In 2009, Toyota Motor Corporation employed 71,116 people worldwide (total Toyota 320,808)

TMC is the world's largest automobile maker by sales and production

The company was founded by Kiichiro Toyoda in 1937

as a spin off from his father's company Toyota Industries to create automobiles

Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA

Founder of TMC

Toyota AA

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 e-

message 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

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

Thank You