Introduction
Toyota Motor Company is one of the leading automotive Companies headquartered in Japan. It is a large multinational Corporation that employs an average of 316,000 people. The Company manufactured its first Engine in 1934 and a Toyota AA passenger car in 1936 ( Toyota Motor Corporation Global Website, 2018). Toyota owns and operates Scion and Lexus brands with a large percentage of shares in Hino and Daihatsu Motors. Apart from the manufacture of Automobiles, Toyota Company also provides financial services and builds robots. In the year 2009, it reported a net loss of up to US$4.4 billion ( Toyota Motor Corporation Global Website, 2018). It became the first automobile Company to be affected by 2007-2009 economic crises. Toyota is the headquarters for Japan’s BEA Information System utilized in Toyota Australia. The top management of this Corporation realized the need of integrating different systems through its value chain to allow them to attain a considerable improvement of the production processes and cost savings, as well as the customer satisfaction. Toyota Australia deployed the BEA WebLogic as a medium for underpinning the e-Business Conversion Program. The global sales of the Lexus and Toyota brands have significantly risen in the past few decades. Besides its 11 manufacturing subsidiaries and 12 plants, Toyota Japan is endowed with a large group of suppliers ( Morgan & Liker, 2006).
Another source of strength in the Toyota Company is the ability to incorporate effective information management systems. It is a system that not only enables the Company to collect sufficient business information but also saves time for the Company's employees. Unlike the past situation when the analysis and documentation of the Company's business data were done manually, it is now efficiently done by keying in the data into the processing unit. It enables the management to make quick decisions and immediate reflexes. On the other hand, Toyota Company attains effective Management Information Systems (MIS) through a cognitive planning procedure that takes into account the prerequisites of MIS at the strategic levels ( Morgan & Liker, 2006). For example, at the strategic level, the MIS reports and systems of Toyota enhances the Company’s annual budgetary procedures and operating scheme. Failure to establish an efficient MIS will make it challenging for Toyota Company to check and evaluate the efficacy of new activities.
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Company’s Organization and Management of Information Systems
Types of Information Systems used by Toyota Company
Toyota Company can maintain its competitive levels by incorporating appropriate Information Technology systems. The most significant information systems used by Toyota Company includes the WMS (Warehouse Management System), Jidoka, HSD (Hybrid Synergy Drive), Andons, and PokaYoke ( Amasaka, 2002). First and for most, the Warehouse Management System ensure effective warehouse management ranging from the period of obtaining the Company's products, the location and storage control, as well as the shipment process. WMS also offers an excellent platform for generating comprehensive reports from a wide range of warehouse data and information. Analysis of such outputs enables the Company's warehouse management unit to determine essential trends and patterns.
The second type of information system known as Jidoka also plays a very critical role. It is an error identification system used to delineate any underlying problem across the entire production process. The system notifies and allows the line managers to put necessary measures to combat the problem. On the other hand, the Hybrid Synergy Drive (HSD) refers to an innovative tool that enhances electromechanical transmission in Toyota’s automotive. The system enables the drivers to vary the speed depending on underlying conditions automatically. The HSD vehicle is deemed to be very efficient especially when infused with effective brake systems, excellent vehicle designs, effective engine design, and electrical energy storage ( Amasaka, 2002). The effect of high oil and fuel expenses prompts Toyota Company to establish a computerized engine system that utilizes the power and tracks engine efficiency.
Moreover, Toyota Company uses Andons as the technological mediums for enhancing visual controls. For instance, in the production arena, the management information systems are used to inform the employees whether there are proper operations in the workstation. Finally, Toyota Company considers PokaYoke as a medium for enhancing highly dependable and affordable management system ( Monden, 2011). As much as the company's computers cannot generate business plans without any aid, they assist the management unit to understand the probable effects of the projected plans and subsequently aid the decision-making process.
How the Information Systems enhance the Company’s Business Processes
Toyota’s MIS systems provide essential tools for obtaining excellent knowledge and understanding of the Company’s production process and the market niche. Effective incorporation of the management information systems in this Company enhances the implementation of appropriate system ownership framework ( Monden, 2011). In this case, the owner is deemed as a system user with a great understanding of the clients and their needs. Establishment of a good ownership program guarantees responsibility and builds confidence with regards to the formulation and management of corporate procedures. Although Toyota's MIS does not assure complete minimization of costs, establishing essential systems and effective utilization of these systems reduces the chances of making erratic choices because of unreliable data ( Amasaka, 2002). Furthermore, Toyota’s MIS not only enhances the act of waste removal or environmental sustainability but also implies that customers receive dependable, innovative, and high-quality cars. The main essence of doing so is to enhance the aspect of customer loyalty.
How Toyota Company has used Information System (s) to achieve its Competitive Advantage
Regardless of the stiff competition from other automotive Companies, the use of effective MIS frameworks enables Toyota Company to thrive well in Global Market ( Monden, 2011). The Company provides various advantages to its underlying business units. It continually strives hard to discover new techniques of utilizing their MIS to achieve their corporate goals. As much as Toyota's management information system assists in the production of statistical information analysis and documents, it is also used as a communication and decision-making medium between the top management and the employees. The system enhances the aspect of goal development using the SMART standard. It means that goals should be Specific, Measurable, Attainable, Realistic and Time-Specific ( He & Liu, 2009). These goals enable the Company to consider a significant set of performance standards that can allow the Company to compare the worker- or the program output. It enhances consistent monitoring and observation of development records.
Ethical and Social Issues in the Company's use of Information Systems to Manage its Business
Regardless of the benefits accrued from the use of Management Information Systems, there are various underlying ethical and social issues. For instance, the use of MIS is sometimes detrimental to the privacy and confidentiality of its employees. The cyber attackers can hack into the Company's system with the aim of exposing or intruding private and confidential information. On the other hand, hackers may find an excellent opportunity to intrude the Company's financial system. Most organizations have reported the loss of huge sums of money to the cyber attackers. Finally, incorporation of MIS has led to retrenchment of several employees. The technological advancement enables a single individual to play the role of many people efficiently. This perspective is deemed as a social issue since it infringes the livelihoods and welfare of many workers.
Company’s Information technology Environment
How the Company may upgrade its IT Infrastructure from time to time
Based on the benefits of MIS, Toyota Company should be in a position of incorporating constant system upgrades. The primary reason is that there are several technological advancements that a Company should consider on a regular basis for it to remain relevant in the Industry ( Morgan & Liker, 2006). Toyota Company can achieve this objective by investing heavily in the Research and Development department. It is also necessary to employ competent IT professionals who will boost the establishment and adoption of essential innovative measures.
The ability of the Company to effectively secure and protect the Customer Information and Privacy
So far so good, there are minimal cases of cyber-attacks on Toyota Company. The primary reason is that the Company operates from a strict code of ethics that deters infringement into the customer information and privacy. The employees found guilty of these heinous acts are subjected to severe punishments ( He & Liu, 2009). Moreover, the Company has established technological measures such as the use of sophisticated passwords and antiviruses to deter any individual from interfering or intruding the customers’ privacy. The main aim of all these measures is to maintain significant ethical conduct and customer loyalty.
Application of Information Systems to Managing the Company’s Business
Description of the Company’s Supply Chain
Toyota Company is endowed with a comprehensive supply chain courtesy of the current management information systems. This process enhances the Company's manufacturing operations. For example, the transportation of car parts and vehicles is done on time, hence preventing the overutilization of funds for storage services. The Company uses its WMS (Warehouse Management System) to provide appropriate remedies to improve the process and car structuring, as well as the planning framework for the smooth operational flow ( Laudon & Laudon, 2011). The Toyota's WMS limits repetition of the manufacturing processes and the necessity of data interfaces since the Company's data is secured centrally. This platform enables excellent coordination with the Company's suppliers. It gives an excellent opportunity for efficient and timely product development with the suppliers through the Internet.
The Company also accomplishes its operatio0nal efficiency and productivity through excellent planning frameworks and Model-mix structuring of MIS. In this case, Model-mix structuring enables the Company to boost its essential operational procedures ( Morgan & Liker, 2006). On the other hand, excellent planning options allow for effective processing parts and of the assembly of make-to-order pacts. The company also uses SAP to collect special manufacturing orders from the planning system. These orders encompass essential car parts used to assemble every car. For instance, Toyota is endowed with several components put in detail. The SAP is therefore responsible for generating the shipment schedules for elements that match the assembly-line procedures for Toyota Company ( He & Liu, 2009). This detailed info and clear shipment schedules are delivered to the suppliers on time. The information is provided to the selected suppliers via electronic data interchange. Suppliers can also log into the Company's online portal whereby there is detailed information on the necessary materials and appropriate procedures for making the supplies. Suppliers are prompted to use the Toyota website to monitor such substantial details in real time. These include the release receipts, schedules, and other significant info.
After successful delivery of the car parts, the shipment details are sent by suppliers to the Company to update them on the progress. The car parts delivered to the Company's storage facilities are quickly obtained and distributed to the line managers. At this point, Toyota monitors real-time assembly process using Jidoka. It is an error identification system used to delineate any underlying problem across the entire production process. The system notifies and allows the line managers to put necessary measures to combat the problem ( Laudon & Laudon, 2011). Generally, Toyota Company uses MIS to minimize order-to shipment time-frame, to enhance its supply chain process about tracking deliveries and demand analysis, as well as the improvement of inventory activities.
Description of the Company’s E-Commerce Activities
As highlighted above, Toyota Company is capable of managing and controlling its operations through the incorporation of significant e-commerce programs. The integration of MIS system in Toyota Company is the main reason for its high-performance levels. The Company's leaders and employees are deemed as the MIS users conversant with the current customer demands and endowed with the capacity of planning and regulating the funding of new initiatives ( Laudon & Laudon, 2011). On the other hand, the Company can accurately control its business frameworks by preserving essential ownership management unit that promotes effective business processes and assists in ensuring greater heights of responsibilities. Although the management information system does minimize the overall expenses, its integration and proper utilization enhance the Company's decision-making process with regards to the underlying procedures. The exemplary decision-making process is attained due to the ability of the MIS system to boost the act of sourcing out sufficient data and information. The process poses positive impacts on budgetary allocation and net revenue. It saves the Company a lot from unnecessary and expenses.
Conclusion
The future stability and performance of most Multinational Corporations are determined by their ability to incorporate effective Management Information Systems. The current technological advancements offer an excellent platform for enhancing efficiency and effectiveness in operations of most Companies. Failure to take advantage of significant innovative and technical frameworks can render any given Company irrelevant and vulnerable to the stiff competition from other Companies. The MIS system enables the top management to make firm decisions due to the ability to collect and analyze the Company's data and information with ease. The case study of Toyota Company is clear proof that MIS is essential for boosting the Company's performance levels. Regardless of the underlying challenges and stiff competitive levels, the Company can stand out as one of the leading global automotive Corporation.
References
Amasaka, K. (2002). “New JIT”: A new management technology principle at Toyota. International Journal of Production Economics , 80 (2), 135-144.
He, M. W., & Liu, Y. X. (2009). Modeling of e-Manufacturing Information Integration Platform. In Applied Mechanics and Materials (Vol. 16, pp. 639-643). Trans Tech Publications.
Laudon, K. C., & Laudon, J. P. (2011). Essentials of management information systems . Upper Saddle River, NJ: Pearson.
Monden, Y. (2011). Toyota production system: an integrated approach to just-in-time . New York, NY: Productivity Press.
Morgan, J. M., & Liker, J. K. (2006). The Toyota product development system (Vol. 13533). New York, NY: Productivity Press.
Toyota Motor Corporation Global Website (2018). Retrieved from https://www.toyota-global.com/
