Management Of Information Systems 1ha6

MANAGEMENT OF INFORMATION SYSTEMS GROUP ASSIGNMENT

TOYOTA MOTOR CORPORATION

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INDEX INTRODUCTION………………………………………………………………………………..3 1. Main components of the Information Systems of TOYOTA…………………………4 1

2. Explanation of how TOYOTA is using its information system focusing on its Enterprise Applications……………………………………………………………………....7 3. Rich picture, Interaction of TOYOTA with its environment………………………….8 4. Use Case Diagram (UCD) describing the interactions of TOYOTA with its customers and suppliers……………………………………………………………………..9 5. Event Process Chain (EPC) Diagram showing how TOYOTA’s ERP are helping to manage the different business Processes………………..…….........................….10 6. Data Flow Diagram (DFD) explaining the flow of data in TOYOTA………...……..13 7. Entity Relationship Diagram (ERD).........................................................................14 BIBLIOGRAPHY……………………………………………………………………………....15

INTRODUCTION The implementation, design and innovation of information systems is a very important component of business nowadays and investing in them is key to success and to survive in a competitive global environment.

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Information systems help a company manage its interactions with suppliers, customers and different departments within the same organization, allowing for a better communication and allocation of resources which also translate in efficiency and savings. As a multinational company, Toyota Motors has a very detailed and structured set of models that illustrate their different processes used in all areas of the organization which helps identify their competitive advantages as well as areas of improvement. The following diagrams aim to give a general overview of Toyota’s business activities and the role of information systems in the company.

1. Main components of the Information Systems of TOYOTA. Toyota , is a Japanese car manufacturer founded in 1933 by Kiichiro Toyoda. The company headquarters are located in Toyota , Aichi Japan. With factories and offices around the world Toyota is one of the biggest japanese automakers, it was the largest automaker in 2012 ahead of Volkswagen Group and General Motors. Toyota is the world's fifth largest company with sales of 9.98 million vehicles in 2013. The toyota need to control their processes and to know the needs of their customers is simplified, despite its size, by the use of information systems.

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Information systems are a set of components that interact to achieve a particular purpose, which is to satisfy the information needs of the organization. These components can be people , data, activities or material resources in general. An information system is an organism that collects, processes, stores and distributes information to simplify the process of decision making. This information systems help TOYOTA to maintain its position in the market by improving the efficiency, and the quality of the data and information. The principal information systems of TOYOTA are: ● Toyota comprehensive warehouse management system (WMS): TOYOTA has developed a lot of information systems which helps its production system, as you probably know TOYOTA uses the lean manufacturing and the just in time method, the TOYOTA comprehensive warehouse management system is an important part that make this methods possible. This infomation system is in charge of the management of the company warehouses, since the moment the products are received, to stocking and location management, and to deliver. Through this system people goods and information are managed and the waste is eliminated. (Toyota Comprehensive Warehouse Management System, 2010) This system also generates warehouse reports and selects the important information so the the decision makers can use it in a efficient way, otherwise, without this system this big amount of information would be considered trash. The TOYOTA WMS also helps to the identify patterns and trends to improve inventory level accuracy, reduced labor costs, and improved customer service by reducing orderto-delivery cycle times. (Antiessays, 2015)

● JIDOKA This system means “automation with a human touch” This infromation system detects if a problem in one of the machines is affecting the production or not functioning well enough, the system stops the machine so the person in charge can identify the problem and after solving it start again the production. This way the information system, the machine and the employee work together to make improvements in the production and in the efficiency (Toyota Global Site JIDOKA, 2010) ● Hybrid synergy drive (HSD) The information systems of TOYOTA are not only present in the production or in the company but in their products as well. The Toyota Prius, Toyota Auris HSD, 4

Highlander Hybrid, Camry Hybrid, Lexus RX 400h, Lexus GS 450h and Lexus LS 600h/LS 600hL uses an hybrid synergy drive (HSD) This computerized systems allows the engine to measure the energy of the car and make the power utilization as efficient as it can be. (Ukessays, 2015) As we know the car industry has a very strong competition between the companies This system gives toyota a differentiation with its competitors. ● Andons This is another information system of TOYOTA; it helps the company with its production efficiency. This system is used to alert problems in the production process, it gives the operator a signal that something is wrong and the system stops production and then continuous when the problem is solved. Some problems that this system can identify are the lack of materials, a defect in the products, a defect in the machine or security issues. The complexity of the systems may vary. The most simple way is a set of signals with lights, one light color is okay and the production continues normally but when the other light turns on production stops. This systems allows the company to improve efficiency on the production process and to eliminate the problems the moment they occur. (Wikipedia, 2014)

● PokaYoke Pokayoke in japanese means “foolproof” is a dispositive to avoid errors. This systems guarantees the security of the s who are working with a machine, or process and does not allow them to fail in the production. (Gestionpolis, 2013) In other words this system make impossible to fail for the person who is involved with a process. For example:

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This is a POKA YOKE example, as you can see the plug can be connected just in one way.

2. Explanation of how TOYOTA is using its information system focusing on its Enterprise Applications. Toyota uses Management of Information Systems across all its departments. The operations of Toyota have improved because of the continuous development of technology. Actually, these improvements have allowed that cars and parts manufactured by Toyota are transported ahead time, preventing warehousing and saving money for the enterprise. The Toyota Comprehensive Warehouse Management System (WMS) “provides comprehensive management for warehouses and logistics centers of the entire process from the time goods are received, to stocking and location

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management. People, goods, and information are managed, muri,mura, and muda (waste, unevenness, overburden) are eliminated, and daily improvements are ed” (Toyota, 2016). This system offers remedies for the problems concerning process structuring and planning for the flow of operations. Productivity and efficiency is accomplished by Toyota through since it has excellent planning aspects in his Management of Information Systems. Furthermore, Toyota has a Model-Mix structure that allows it to improve its operational procedures. Moreover, this excellent planning tool makes its assembly processes and make-to-order deals very effective. The Mix-model’s objective is “to smooth demand on upstream workcenter or suppliers and thereby reduce inventory, eliminate changeovers, improve kanban operation and eliminate difficult assembly line changeovers” (Lee, 2006). So these MIS helps the processes in the supply chain, and it also enhances activities with customers of Toyota, improving its relationship with its clients.

However, MIS used by Toyota are not only implemented in the operations or supply chain. The Finance and Marketing departments use them as well. In 2003, the Finance department implemented the SAT software system that provides all the information regarding to finance of all the company and its employees in order to analyze previous and current financial figures and anticipate future financial outputs. SAP software also enables the pricing and sales of cars by monitoring the available parts.

“The SAP helps the marketing operations of the organization with regard to product development, pricing activities, marketing, and sales forecasts. Just like other important company operations, Toyota relies on external sources of data. These sources entail the opinion or of customers” (Toyota, n.d.)

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Rich picture, Interaction of TOYOTA with its environment. 4. Use Case Diagram (UCD) describing the interactions of TOYOTA with its customers and suppliers.

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The previous Use Case Diagram represents the interactions that a Toyota customer has to engage in when placing an order at of the Toyota dealerships. It is important to understand the different levels of engagement that occur because the simple action of buying a car involves a whole set of activities in order to fulfill the demand, these activities involve the agency (and all of its employees) the manufacturer (Toyota), the customer and also the financial institutions needed to process the payment (banks) The diagram starts when the customer is decided to buy a car from the dealer but the dealer has to place an order to get it customized as the client wants it, then the manufacturer starts working on the production which then extends to quality control tests before it is delivered to the agency who in the meantime will be processing, with the help of the banks, the two payments needed for the production order. When the car is ready to be delivered to the customer, the agency will him and they both will work on the documents and payments needed to claim ownership and release the car. The diagram ends when the agency delivers the car to the customer. 5. Event Process Chain (EPC) showing how TOYOTA’s ERP are helping to manage the different business Processes. In the next diagram we can see the flow of the sale process in the company “Toyota”. We have all the process that they develop, since the arrival of their customer to the agency, until they deliver the car to their customer. This type of diagram is very special because it let us see the process divided between the functions and the events that are developed during the whole procedure. Each Organizational Element has its specific function in the different stages of the process, in this case we have as Elements the Customer, the Agency, the Manufacturer, and the Banks. The Data Elements are also clearly pointed when used in the process, and this help us to understand better from where the information comes or where it goes. Also, these diagrams helps the companies to see easier through the flaws of their processes and to identify when and where there’s a problem in their procedures.

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6. Data Flow Diagram (DFD) explaining the flow of data in TOYOTA. A data flow diagram (DFD) is a visual representation of the "flow" of data through an information system, modelling its process aspects. A DFD is usually used as a preliminary step to create an overview of the system, which can later be elaborated. DFDs can also be used for the visualization of data processing (structured design). A DFD shows what kind of information will be input to and output from the system, where the data will come from and go to, and where the data will be stored. It does not show information about the timing of process or information about whether processes will operate in sequence or in parallel.

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7. Draw its Entity Relationship Diagram.

An entity relationship diagram is a data modelling technique that graphically illustrates and information system’s entities and the relationships between those entities. The diagram is composed by entities, relationships and attributes. ❖ One customer can buy one or as many cars as she/he wants. ❖ One car is supply by one supplier. ❖ One sales man/woman serve 0 or too many customers, but one customer only has one sales person.

Entity Relationship Diagram

BIBLIOGRAPHY:

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1. Anonymous. (23-03-2015). Management Information System In Toyota Management Essay. 22-03-2016, de UKessays Sitio web: Management Information System In Toyota Management Essay 2. TOYOTA. (2010). Jidoka — Manufacturing high-quality products. 22-032016, de TOYOTA Sitio web: http://www.toyotaglobal.com/company/vision_philosophy/toyota_production_system/jidoka.html 3. Cotilla Ivonne. (2008, abril 9). Poka Yoke. Técnica de calidad para la mejora continua. Recuperado de http://www.gestiopolis.com/poka-yoke-tecnica-decalidad-para-la-mejora-continua/ 4. Wikipedia. (23 sep 2013). Hybrid Synergy Drive. 22 mar 2016, de WIKIPEDIA Sitio web: https://es.wikipedia.org/wiki/Hybrid_Synergy_Drive 5. Wikipedia. (8 JUL 2014). Andon. 23 MAR 2016, de WIKIPEDIA Sitio web: https://es.wikipedia.org/wiki/Andon_(sistema_de_control) 6. Anonymous. (23 mar 2015). Factors influencing the business environment of toyota. 22 mar 2016, de UKessays Sitio web: https://www.ukessays.com/essays/marketing/factors-influencing-the-businessenvironment-of-toyota-marketing-essay.php 7. Techopedia. (2016). Entity-Relationship Diagram (ERD). March 21th, 2016, from Techopedia Web site: https://www.techopedia.com/definition/1200/entityrelationship-diagram-erd 8. Toyota Brand.(2016). Information Systems. Retrieved on March 22nd from http://www.toyota-industries.com/product/indv/lf/buturyu04.html 9. Lee Q. (2006). Mix Model Production. Retrieved on March 22nd from http://www.strategosinc.com/s/mixed_model-dl1.pdf 10. Toyota. (n.d.). Toyota Material Handling. Retrieved on March 22nd from http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/30e64e88-ee392b10-839c-a08f03c7c409?QuickLink=index&overridelayout=true&30296699373615

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