Ims552 Project Group

UNIVERSITI UNIVERSITI TEKNOLOGI MARA

Faculty of Information Management

B.Sc. Information Studies (Hons)

Information system Management

–

IMS552 (INFORMATION SYSTEMS MANAGEMENT)

FINAL PROJECT

TOYOTA PRODUCTION SYSTEM (TPS)

Lecturer:

PUAN HASNAH BINTI HASHIM Prepared By:

MOHD HUDZRUL NIZAM BIN ABDUL RAZAK MOHD AMIN SYAHIR BIN AZAARI

Group NIMBSF4A Submission date: 13 Jun 2015

Table of Content Introduction

1-5

Organization Background

6-11

Corporate Vision, Mission, Objective and Goal

12-16

Functional Description of Departments/Divisions/Units

17

Role and Function of Departments/Divisions/Units

18-19

Data Used In The Organization

20

List of Information Systems

21

Types of IS

22

Details of Selected IS

23-25

Functional Description of IS

26

IS Components

27-28

IS Activities

29

Hardware and Software Configuration

30

Information System Problem

31

How The Information Systems Are Helping The Company

32

Strength and Weaknesses of IS

33-34

Recommendation and Action Plan

35-36

Conclusion

37

References

38

Appendix

39-43

Table of Content Introduction

1-5

Organization Background

6-11

Corporate Vision, Mission, Objective and Goal

12-16

Functional Description of Departments/Divisions/Units

17

Role and Function of Departments/Divisions/Units

18-19

Data Used In The Organization

20

List of Information Systems

21

Types of IS

22

Details of Selected IS

23-25

Functional Description of IS

26

IS Components

27-28

IS Activities

29

Hardware and Software Configuration

30

Information System Problem

31

How The Information Systems Are Helping The Company

32

Strength and Weaknesses of IS

33-34

Recommendation and Action Plan

35-36

Conclusion

37

References

38

Appendix

39-43

Preamble Firstly after a month efforts and struggle struggl e in preparing this assignment finally it is completed properly. Alhamdulillah, we are thankful and grateful to Allah S.W.T. for giving us the chance to live every each day with a healthy mind to contribute in pouring ideas on completing this task. Great deals appreciated go to the contribution of my faculty - Faculty of Information Management (IM221). I am also would like to thankful to our lecturer of IMS 552 –Puan Hasnah binti Hashim for his valuable guidance and advice of assignment. Without his help, it is hard to done it properly. My grateful thanks also go to our groups Mohd Amin bin Syahir. A big contribution and hard worked from you guys during the two week is very great indeed. Finally, deepest thanks and appreciation to our classmate group (NIMBSF4A) for their cooperation, encouragement, constructive suggestion and full of support for the report completion, from the beginning till the end.

Thank you.

IMS552 INFORMATION SYSTEMS MANAGEMEN MANAGEMENT/2015 T/2015 INTRODUCTION OF PROJECT

Until recently, most people had expected the words 'Information System' as synonym to your computer (information technology or IT) made using the same. However, in contemporary context we need to understand the broader topic of. Our concern extends to computer technology, but ask the question what are the consequences of what technology that. Even in terms of technology, we are concerned with more than only computers - and includes network and communication technology between our domestic - that is common in academia to use abbreviation ICT (information and communication), and of IT. Thus, coming from different directions, there appears to be convergence co nvergence in the strategic strat egic approach of these leading software users. The cases confirm what some other analysts have hypothesized; a coherent business strategy is a necessary condition for a successful IT strategy (Wold and Shriver 1993).These strategic links for Toyota and Japan’s automobile auto mobile industry are presented in the

following following study. Business strategies are important in understanding IT strategies. This case along with the other case studies illustrate that the implementation and design of each co mpany’s

software and software strategy is unique to its competitive situation, industry, industry, and strategic objectives. This discussion shows that open and review the information system requires two little by itself, but related objectives: 



Understand the technology lies at the heart of computer-based and information handling characteristics and abilities Information about how to handle the construction, and organization Used for a variety of tasks and how the information is used by the system I can be with them, and as you do.

Others, Information systems of some size and complexity can be found in a great variety of environments:      

Government Education Health care Military organizations Entertainment Most parts of industry including manufacturing, distribution, retailing, and services, etc.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 Transaction processing systems

Transaction processing systems are the systems do the standards, regular and high-volume information-handling activities together. The sample activities including: • Payroll • invoice • Order processing • sales ledger • credit card processing.

Transaction processing systems, through the databases they maintain, are also, usually, the main source of data about an organization’s operations – data is recorded when things happen. Many organizations started using the computer for these purposes, and they still preoccupy many information systems managers.

Information Management System

A management information system designed for managers to provide them with information on the policy can in order to be better, more informed decisions and to exercise supervision and control of organization is responsible. Management information systems usually draw primarily on the data source of the transaction system, by accessing the database. For example, in a Multinational bank, the phone checks and processing payments made by credit card transaction system which stores Processing basic data about customer accounts (per transaction fee). Various branches Managers have access to the data through Bank management information systems, and they can question this data in a variety of ways - for example, to see if the number of checks transactions fall - the year after - for use as a credit card. Management information systems can be divided into those that are support operational control - make sure the holder is done – and that provide support to the tactical planning and management. Often, in practice, data were also required in each case.

Decision support system

Decision support system (DSS) can be seen as a further development information management system. Even if the management information the system provides access to data, provide improved decision support system ability to manipulate the data subject - and in this way to allow users (decision makers) to explore alternative scenarios. For example, the manager of the various branches of the bank multinational often has to decide whether to approve commercial loans for their customers. To do this, they could contact information held on the client, but often there is a lot of information, and can do not tell a clear story.

2

IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 Executive information systems

Another general classification that has crept into the language in the past decade is the executive information system (EIS). In Laudon (2006), this is described as an executive support system (ESS). The general idea behind an EIS or ESS is to provide information to senior managers and executives who need a broad mix of information from within the organization and beyond it. The emphasis of EIS is on timely presentation of a wide range of information that crosses organizational functions and hierarchies and supports decision-making at a senior executive level.

Office information systems and knowledge work systems

Laudon earlier version of this book also includes these classes, systems and we believe it is useful to keep the different types of systems (but see also the discussion in chapter 12 Laudon (2006), which is associated with management of knowledge work). It's not just senior executives or who have access to computers, but potentially anyone else in the workplace. More the company now has more than 1:1 ratio of computers to the public, and computer can be found on the factory floor, in a taxi cab or in the pocket of a policeman. Office Information Systems is the name given to the use of computers to provide general support for the people who work in offices. Such systems can be very sophisticated, which provide general services to support the work activities (eg, word processor, database, desktop publishing, and spreadsheets), communication media (eg, e-mail, video conferencing, discussion forums online, instant messaging) and provides access to information (databases and intranets), as well as the applications made use of for people to use in their day to day work (one entry for each system or customer service system).

Computers in industrial processes

We must remember that computers extend beyond the office and administration functions of an organization. Information systems today are used extensively in various areas of production management, and students should be aware of their use in areas such as computer-aided design (CAD), computer-aided manufacturing (CAM) and computer integrated manufacturing (CIM).

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 Integrating business processes

It is important that you have an understanding of discrete classification of information systems, as mentioned above, but also must understand that, for business organizations that real, mutual system is very important. In general, organizations need information systems that perform more than one task in isolation, but communicate with each other, thus allowing integrating the activities of organization. (Note that this is essentially a system of concepts; separate related parts together to pursue a broader scope.) Another way of looking at information systems as systems developed and used in support of business processes that are identified as: • Production • Distribution • financial • Marketing • Human resource management.

In general, the system was introduced in the organization described in terms of support for specific business functions rather than as Generic "types" system as discussed above. Thus, in addition to ERP system can read about CRM (Customer Relationship Management) HRM (Human Resource Management), SCM (Supply Chain Management) KMS (Knowledge Management System) or MRP II (Manufacturing Resource Planning).

Finally, our group decides to choose Toyota Information System for this project. Here you will find some information about the following topics as: • Company background • Information system used • How information systems are helping Toyota • Advantages & Disadvantages of the information systems • Other interesting issues

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 ORGANIZATION BACKGROUND

History of Toyota

Chronology Toyota is the one of the largest automobile manufactures in the industry world, it first founded by Kiichiro Toyoda in 1937, Japan. In this report will contain overview of the company, information system used, how information systems are helping the company, advantages & disadvantages of Toyota systems, plans of having additional information system and other miscellaneous issues. Ever since it’s founding, Toyota has sought to contribute to a more prosperous society through the manufacture of automobiles, operating its business with a focus on vehicle production and sales. To celebrate its 75th anniversary, the company has compiled 75 Years of Toyota. Have a look at the company's progress over the last three-quarter century.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015

Overview Company Name

:

Toyota Motor Corporation

President and Representative Director Company Address Head Office Phone

:

Akio Toyoda

: :1 Toyota-Cho, Toyota City, Aichi Prefecture 471-8571, Japan. : (0565) 28-2121

Tokyo Head Office Phone

:1-4-18 Koraku, Bunkyo-ku, Tokyo 112-8701, Japan : (03) 3817-7111

Nagoya Office

:4-7-1 Meieki, Nakamura-ku, Nagoya City, Aichi Prefecture 450-8711, Japan

Phone

: (052) 552-2111

Date founded

:

August 28, 1937

Capital

:

397.05 billion yen (as of March 31, 2012)

Shareholders

:

Shareholder Composition

Fiscal Year

:

From April 1 to March 31 of the following year

Main Business Activities

:

Business Sites

Information on Business Sites

Number of employees

:

Motor Vehicle Production and Sales

:

325,905 (as of March 31, 2012)

:

69,148 (as of March 31, 2012)

(consolidated) Number of employees (non-consolidated)

6

IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 Note: Information current as of June 2012.

History of Technological Development Toyota is striving to develop automobiles that meet the needs of our customers while at the same time achieving an optimal balance between consideration for the environment, safety, drivability, comfort and reliability. Find out more 1867

Birth of Sakichi Toyoda.

1924

Sakichi Toyoda invents Toyoda Model G Automatic Loom.

1929

Automatic-loom patent is sold to a British company.

1930

Kiichiro Toyoda begins research on small gasoline-powered engine.

1933

Automobile Department is established at Toyoda Automatic Loom Works, Ltd.

1935

The Toyoda precepts are compiled.

1936

The AA Sedan is completed.

1937

Toyota Motor Co., Ltd. is established.

1938

Honsha Plant begins production

1950

Company faces a financial crisis; Toyota Motor Sales Co., Ltd. is established.

1951

Suggestion System begins.

1955

The Toyopet Crown, Toyopet Master and Crown Deluxe are launched.

1957 The first prototypes of the Crown are exported to the United States; Toyota Motor Sales U.S.A., Inc. is established. 1959

Motomachi Plant begins production.

1962

Joint Declaration of Labor and Management is signed.

1965

Toyota wins the Deming Application Prize for quality control.

1966

The Corolla is launched; business partnership with Hino Motors Ltd. begins.

1967

Business partnership with Daihatsu Motor Co., Ltd. begins.

1974

Toyota Foundation is established.

7


1975

The prefabricated housing business begins.

1982 Toyota Motor Co., Ltd. and Toyota Motor Sales Co., Ltd. are merged into Toyota Motor Corporation. 1984 Joint venture with General Motors (New United Motor Manufacturing, Inc.) begins production in the USA. 1988

Toyota Motor Manufacturing, USA, Inc. (present TMMK) begins production.

1989

The Lexus brand is launched in the USA.

1992

Toyota Motor Manufacturing (United Kingdom) Ltd. begins production.

1997

The Prius is launched as the world's first mass-produced hybrid car.

1999

Cumulative domestic production reaches 100 million vehicles.

2000

Sichuan Toyota Motor Co., Ltd. begins production in China.

2001

Toyota Motor Manufacturing France S.A.S. begins production in France.

2002 Toyota enters Formula One World Championship; Tianjin Toyota Motor Co., Ltd. begins production in China. 2004

The Toyota Partner Robot is publicly unveiled.

2005

The Lexus brand is introduced in Japan.

2008

Worldwide Prius sales top 1 million mark.

2010 Worldwide Prius sales top 2 million mark; Toyota and Tesla Motors agree on joint EV development. 2011 Worldwide Hybrid Vehicle sales top 3 Million mark; Toyota Motor Manufacturing, Mississippi, Inc. begins production in the USA. 2012

Worldwide sales of TMC hybrids top 4 million units

8


9


10


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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 CORPORATE VISION, MISSION, OBJECTIVE AND GOAL

Toyota Global Vision

Toyota will lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people.

Through our commitment to quality, constant innovation and respect for the planet, we aim to exceed expectation and be rewarded with a smile. We will meet our challenging goals by engaging the talent and passion of people, who believe there is always a better way.

12


13


14

IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 ORGANIZATION STRUCTURE CHART

15


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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 FUNCTIONAL DESCRIPTION OF DEPARTMENTS/DIVISIONS/UNITS

At the time of the liberalization of the communications business in the 1980s, Toyota Motor Corporation (Toyota) entered the communications business with an investment in Teleway Japan Corporation (TWJ), International Digital Communications Planning Inc. (IDC) and IDO Corporation. This growth field attracted considerable attention, however, and as a result of business mergers and consolidation, Toyota came to support KDDI Corporation. In 2001, Toyota established the IT & ITS Sales Division (now the Vehicle-Connected Product Business Division) to develop the information technology (IT) business with a focus on mobile phone sales. Intelligent Transport Systems (ITS) use IT such as state-of-the-art electronic technologies and telecommunications technologies that link people, vehicles, and traffic environments and infrastructure to create new social systems that can achieve environmentally-friendly, safe, efficient, and convenient traffic and social environments. These initiatives are intended to build vehicle transport systems that will help Toyota maintain a leading edge in the automobile industry in the future. In recent years, research and development is being conducted through collaboration by industry, government, and academia under national projects in various countries. As a central leader in this field, Toyota has driven these efforts globally. Toyota is conducting research and development with the aim of establishing commercial applications of ITS, primarily through the ITS Planning Division (now the IT & ITS Planning Division), which was established in 1996.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 ROLE AND FUNCTION OF DEPARTMENTS/DIVISIONS/UNITS Research and Development (R&D)

In keeping with its founding spirit of “Be ahead of the times through endless creativity,

inquisitiveness, and pursuit of improvement”, Toyota Industries actively carries out research and development activities. Our R&D activities can be broadly classified into two areas, (1) product development and improvements performed independently within each business division, and (2) R&D undertaken mainly by the “Research & Development Center” separate from the activities of

our business divisions and with a view toward company-wide management strategy.

1. R&D Activities Carried Out by the Business Divisions

In each of our internal divisions various initiatives, centered on the technical departments, are being taken to promote the advanced development of future products that will lead the world in functionality, quality, and low cost. The results of these R&D activities are unveiled at an internal technology exhibition in each division and also at a company-wide technology exhibition held every year where the engineers from all divisions gather. In this way we strive to give our engineers access to a wide range of exchange opportunities.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 2. Research & Development Center Activities

The “Research & Development Center”, which is located in Kyowa, Obu City, Aichi Pref.,

undertakes the advanced development of fundamental technologies which will be the keys to the future products of each division, and advanced research for the development of new products for new businesses as well as development of materials and other technologies that will come to serve as the common foundation for all divisions. For example, there are a multitude of research and development results and prototypes such as a wide variety of functional parts for use in fuel cells, non-contact power supply technologies for use in clean logistics, super smooth coatings for inside car air-conditioning compressors, and three dimensional fabrics reinforced composite technologies. From this point forward research and development will continue into new technology themes for every field including automobiles, materials handling equipment, and electronics.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 DATA USED IN THE ORGANIZATION

The systems would collect data from various locations at various points. These will ensure that the data will be of required types. All the systems at Toyota will handle the alphanumeric data as well as the integer data. The real numbers also will have to be handled when it comes to the prices and other aspects with decimals in place. The data is collected from the source documents and some of them are captured by the electronic form. For instance, many import data is captured from the documents and entered into the system while there are other data points available in the electronic form. For instance, the stores management system will capture vehicle data through a barcode system and this does not involve of any manual data entering process. Thus the systems are capable of capturing and handing various data types. The systems will process the data and provide information to the parties who need such. This will allow them to make decisions and take suitable action. Thus the information is the ultimate result of these systems. Many of the reports generated by the finance system are used for these purposes clearly. Thus the data captured via transaction processing systems are transformed into information by the system. By analyzing the reports generated by the system, the company management will be able to gain knowledge. The information will be used by the management with the practical scenarios and this is the knowledge they create from the information given by the system. Management combining information with the past and the environmental aspects become creation of knowledge (Leibert, 2011).

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 LIST OF INFORMATION SYSTEMS

Any of the companies will have to have different information system modules in place running the businesses over the long term (Istook, 2002). In the case of Toyota, the company has a number of different systems in place and this would ensure that the company will have their operations suitably in place. The following are the main systems the company has in place.

1. The import system – This is the system which handle all the import related activities of the company. The import price, shipping related costs and the duties will be entered into the system and the system will provide the total cost of importing each vehicle and allow company to decide the price of these vehicles. 2. The stores management – This is the stores management system. Due to having a solid store management system, the stores can issue a vehicle within two hours after a requisition was raised for such release. Limited processing taking place also is managed by the stores management system. 3.

The job costing system – This is related to the vehicle serving activities of the company.

Thus the job costing system also plays a very important role in establishing the costs for each jobs and the price that they would charge from the customers. 4.

Sales system – this will make sure that all the sales activities are recorded. The pricing for

the products and the services are entered based on the costs provided by the other systems and the management deciding on the markup they would keep on the service. 5.

Finance system – this is the core of the information system and work with all the other

modules. The system will produce a number of management reports at the end of each of the month.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 TYPES OF IS

The above mentioned information systems have different nature when it comes to the orientation of the businesses. The following table indicates the main categories of the systems in consideration.

The system

Type

The import system

Transaction processing system and a decision support system

The stores management

Transaction processing information system

The job costing system

Decision support system

Sales system

Transaction processing system

Finance system

Management information system

22

and

Management

IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 DETAILS OF SELECTED IS

1) Warehouse Management System

The issue on Management Information Systems (MIS) for organizations is the system that helps in the provision of information that is needed in the management of the effective organizations. This is regarded to be a kind of subset for the internal controls for the organizations, especially the procedures on how the business is run. This may cover documents, the application done by or for the people, the procedures that are used by the accountants in solving their business problems, the technologies that are encompassed and lastly the services or the business wide strategies put in place. In early times, the internal reporting used to be done manually and only periodically, but since the invention of computers, it has become paramount that business procedures and the strategies

be

done

and

reviewed

regularly

in

the

organization.

The best way to describe the Information Systems for the Toyota Motor company is by looking at its SWOT analysis, that is, the Strengths, the Weaknesses and the Opportunities. Its strength is seen in the way they are capable of integrating the company goals globally by just using their systems in a most effective manner. They get to serve their customers in a most efficient manner such that even in today’s competition in the motor industries, the company is listed as

commanding a large share of the customers. It therefore stands tall, and its management of the MIS is high. The company is developing and manufacturing, as well as utilizing much of these systems. An example is the Warehouse Management System (WMS) and stocking management system for automatic warehouses.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 Warehouse Management System (Toyota WMS) T-WINS LS

The “T-WINS LS” provides comprehensive management for warehouses and logistics centers of

the entire process from the time goods are received, to stocking and location management, to delivery. People, goods, and information are managed, muri,mura, and muda (waste, unevenness, overburden) are eliminated, and daily improvements are supported.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 2) Toyota Production System (TPS)

The Toyota Production System (TPS) seems to be interconnected with the company’s culture

because it is so integrated into everything the production division does. Jidoka enables line workers to stop production in order to immediately correct mistakes or defects. Monitoring software provides real-time alerts of malfunctions in equipment or robots. These types of built-in processes create an atmosphere of empowerment and send a strong message to workers that the corporation’s basic principles are indeed par t of its culture.

TPS and the company’s culture seem to be interdependent. If TPS wasn’t available, the workers wouldn’t have the capability and processes available that give them the tools they need to meet cultural expectations. It’s doubtful either could operate without the other. Processes must be in

place to provide mechanism and avenues for workers to be able to stop production in order to correct errors or fix mistakes. TPS wouldn’t work if the culture didn’t support it.

The Toyota Production System (TPS) was established based on two concepts: The first is called "jidoka" (which can be loosely translated as "automation with a human touch") which means that when a problem occurs, the equipment stops immediately, preventing defective products from being produced; The second is the concept of "Just-in-Time," in which each process produces only what is needed by the next process in a continuous flow. Based on the basic philosophies of jidoka and Just-in-Time, the TPS can efficiently and quickly produce vehicles of sound quality, one at a time, that fully satisfy customer requirements.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 FUNCTIONAL DESCRIPTION OF IS

Warehouse Management System (WMS)

•

•

•

Control the movement and storage of materials within a warehouse. Process the associated transactions, including shipping, receiving, put away and picking . Direct and optimize stock put away based on real-time information about the status of bin utilization .

When Toyota Warehouse Management System (WMS) combined with the logistics equipment of TOYOTA Material Handling Company, they are able to provide customers with optimized logistics solutions at their worksite.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 IS COMPONENTS

Toyota Production System (TPS)

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 IS ACTIVITIES

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 HARDWARE AND SOFTWARE CONFIGURATION

Fujitsu Software Technologies (formerly Fujitsu Prime Software Technologies [PST]), following the burst of the IT bubble in 2000, introduced the Unified Modeling Language (UML) and intensified its project management to improve the productivity of software development. These efforts improved productivity, but not enough to overcome IT deflation. To break through this situation, the Toyota Production System (TPS) which has already proven its effectiveness in hardware manufacturing, was introduced experimentally to the software development processes. This means that the concepts of TPS such as the elimination of muda (waste), heijunka (leveled production), jidoka (automatic detection of abnormal conditions), and visual management are practiced in the software development processes. To implement these concepts, the agile development process (hereafter called agile development) and the store management method, which employ TPS, have both been introduced.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 INFORMATION SYSTEM PROBLEM

PST’s software maintenance support business is not suited to agile development. However, PST

improved the operation of this business by introducing the store management method. The problems affecting the traditional operation of this business and the advantages of the store management method are described below. The problems were as follows: 1. The workload tended to be concentrated at the end of the week and in the late afternoon. Therefore, workers frequently had to work overtime and on holidays. 2. Because of the workers’ differing abilities, some workers had an especially high workload. Implementing the store management method had the following effects. 1. Visual management of the workload status enabled the team members to always understand the distribution status of the workload and to level the workload independently. Since the store management method was introduced, none of the current team of workers has had to work during a holiday. 2. The difference in overtime hours was reduced to about 30% by leveling the workload between workers. 3. The teamwork capability was enhanced by about 20%. Before the store management method was introduced, there were no methods to measure the quantity of work in the software maintenance support operation; therefore, it was not possible to understand the work capability quantitatively. However, after the introduction of the store management method, all of the work has been recorded on work cards so the work capability can be understood and evaluated by analyzing and aggregating these work cards. This is another big advantage of the store management method.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 HOW THE INFORMATION SYSTEMS ARE HELPING THE COMPANY

Warehouse Management System (WMS)



Reduce inventory and labor costs



WMS likely increases the accuracy, reduce the labor costs. Provided the labor required to maintain the system is less than the labor saved on t he warehouse floor.



Increase storage capacity.



Increase customer service.



A greater ability to service the customer by reducing cycle times.



Increase inventory accuracy.



Increased the accuracy and efficiencies in the receiving process may reduce the level of safety stock required.


Toyota was able to: 

Greatly reduce lead time and cost using the TPS.



Improving quality. This enabled it to become one of the ten largest companies in the world.



It based on the basic philosophies of Just-in-Time, the TPS can efficiently and quickly produce vehicles of sound quality, one at a time, that fully satisfy customer requirements.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 STRENGTH AND WEAKNESSES OF IS

STRENGTH Warehouse Management System (WMS)



Increase the available space in the warehouse.



Items properly organized in a certain way.



Increasing efficiency and productivity.



The ability to deliver at the same day.



More accurate and reliable information.



The ability for everyone to stay connected due to (RF).


•

Reducing the waste as much as possible.

•

Less movement of the producing labor leads to less time in producing (just in time).

•

•

Every step of the production can be checked, go smoothly and without any mistakes due to (jidoka). Good quality

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 WEAKNESSES Warehouse Management System (WMS) •

Costly

•

To implement full features of the system it costs between

•

Complex to use

•

Takes months to be fully implement and ready to use

$750,000 and $2,500,000


•

•

Difficult, high cost to implement. To implement this system they need to dismantle previous systems, train employees how to use it.

•

Complex to use.

•

Supply problems.

•

In lean manufacturing they keep small amount of inventory in hand, so they need a supplier that they fully trust not to interrupt or delay the supplies and always stay on schedule

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 RECOMMENDATION AND ACTION PLAN

•

In order to solve the weakness, we need to keep improving these systems, by reducing its complexity at the lowest possible cost.

•

Reduce complexity of using a system, by applying well defined, easier interface.

•

Reduce implementation cost, by removing unwanted or unneeded features of the system.

OTHER INTERESTING ISSUES

1) Idea of the system: •

A platform depend on the cloud computing of Windows Azure that focus on the services over the internet as it will be integrated with Toyota telematics services that depends on the telecommunication plus information systems with connection to the mobility feature of the smart phones such as iPhones.

2) New system:

New system will be able to serve the customer in new innovative ways:

1- Ability to monitor and control the car any time with safety code as it's connect to the cloud software: •

•

Customer will be able to turn AC as the car is plugged on the grid Customer can monitor the miles to the next charging station directly through the GPS systems of the vehicles

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2-

Using mobility features: •

•

3-

Customer can check the battery power level by the remote technology that smart phones can offer Giving the command to the car to charge when the power demanded as it connect to the smart grid by using the voice recognition of the customer

Environmental advantage: Less use of fuel as it is using the electricity. The result is less carbon.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 CONCLUSION

This report explain many points: Overview of the company, information system used how information systems are helping the company, advantages and disadvantages of Toyota systems, plans of having additional information system. To sum up, we find that Toyota Company has important information systems. According to our study we come up with these points. Getting a lot of information about Toyota Company Systems, knowing: •

How the data are converted to information and information is converted to knowledge in the real system.

•

Type of different information system

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How Toyota Company Systems benefits the organization by improving process and customer satisfaction.

When implementing the TPS concept using agile development and the store management method, we found it is useful to return to the fundamental principle of “manufacturing” in the software field and to improve our software development process. The concept of TPS was introduced to some of the divisions experimentally in 2003, and by the end of 2004, it had been introduced to every PST division. PST’s profits stopped declining in September 2004, and the company has been on a gradual recovery since then.

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 References

1. Kakuro Amasaka, Hirohisa Sakai. (2011) Evolution Of Tps Fundamentals Utilizing New Jit Strategy: Proposal And Validity Of Advanced Tps At Toyota. Journal of Advanced Manufacturing Systems 09:02, 85-99. 2. Yasuhiro Monden, 2nd Edition.(1993) Toyota Production System: Monden Is A Professor Of Production Management p. 179. 3. T. Ohno: Toyota Production System: Beyond Large scale Production. (in Japanese), Diamond,1978. 4. A. Sakata: Agile Practice. Is agile management the Toyota Production System?-Attempt of Software Multi-Skill Development. (in Japanese), Developers Summit 2005 (presentation material), 2005

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IMS552 INFORMATION SYSTEMS MANAGEMENT/2015 Appendix

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Ims552 Project Group

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