MASTER OF BUSINESS ADMINISTRATION (MBA)

MAY / 2020

BMIT5103

INFORMATION TECHNOLOGY FOR MANAGERS

TABLE OF CONTENT
Overview Toyota Motor Corporation 3

Information systems for inbound logistics 5

Local Inbound Logistics 5
Network Logistics 5
Pipeline Management 6
Overseas Inbound Logistics 6
Mutual Benefits from a Partnership 7

Information systems for operation 8

Toyota factory control system 8
Control system for the body assembly process 9
Control system for the painting process 10
Toyota's new ALC system 10

Information systems for outbound logistics 12

North Americould vehicle distribution 12
Marshaling Yard Operations 13
Tracking Progress 13
Distribution Flow in Europe 14

Information systems for sales and marketing 15

Monthly Production System (Sales) 15
Daily Production System (Sales) 15
Toyota email alert or notification (Marketing) 16
J.D. Power (Marketing) 17

Information systems for service 18

Technical Information System (TIS) in North America 18
Toyota Collision Repair & Refinish Training 19
The damage diagnosis document 19
Damage diagnosis document for each Toyota model 19
Logging into TIS 20
Toyota Mechanical Parts Program (TMPP) and OPS Technology Suite 20

Information systems for administration (supporting activities) 21

mySAP Financials 21
Information systems for firm infrastructure 22
Toyota connects navigation systems to the cloud 22
Information systems for human resources 23
SAP R/3 Human Resources 23
Information system for R&D and technology development 24
The Research & Development Center Toyota 24
Information system for procurement 25
Parts Procurement Networks: JNX 26

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INTRODUCTIONS
1. Overview Toyota Motor Corporation
Competitive and evolving consumer demand has observed for a long time in the car
industry (Lim. L., Alpan. G., Penz. B. 2014). According to Wikipedia, the automotive
sector comprises the manufacture, development, production, sale and sale of motor
vehicles by various companies and organizations. It is one of the world's largest revenue
economies. It is one of the world's largest revenue-based economies. Automotive industry
such as Toyota is a global source of jobs and primarily powered by domestic and foreign
economic links and a dynamic value chain. Most new vehicles come from moving
assembly lines in sophisticated, highly structured processes (John, etc. 2020).

According to Wikipedia, the automotive industry in Japan, especially Toyota Motor

Corporation that was influencing demand for production vehicle around the world.
Toyota is a Japanese firm founded on 28 August 1937, engaged mainly in Japan, North
America, Europe and Asia, designing, producing, mounting and selling passenger cars,
minivans, commercial vehicles or parts and accessories (Nkomo. T, 2012). (Toyota Motor
Corporation) The Japanese multinational car maker Toyota Motor Corporation was based
in Tokyo, Aichi, Japan.

Figure 1.0: Toyota Head Office (Honsha)

Source: https://global.toyota/en/company/profile/overview/

Toyota became the first car maker in the world to produce more than 10 million
vehicles a year since 2012 and has also announced its 200 millionth vehicle production

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 (Wikipedia). By July 2014, Toyota became the most prominent listed firm in Japan with
more than twice the size of its market capitalization and sales. In December 2019, it was
by sales the tenth largest corporation in the world. Toyota is Japan's biggest automaker
and the second largest worldwide behind Volkswagen, based on 2018 sales. Toyota,
Lexus, Ranz, TRD, Gazoo Racing, Daihatsu and Hino are brands.

Figure 1.0: World Motor Vehicle Production 2018

Source: International Organization of Motor Vehicle Manufacturers (2018)

Figure 1.0 showed 70 million cars and 25.1 million commercial vehicles rolling off
assembly lines worldwide in 2018. China makes one-third of the world's passenger cars and
more than twice as many of its total combined cars as the United States. Japan's automobile
industry is one of the greatest success stories in the history of global manufacturing, with
brands such as Honda, Toyota, and Nissan being the first-ever manufacturers to pose
Americould car supremacy with real challenges. For a total of 9.7 million (10.2%) worldwide
production vehicles in 2018, Japan produced 8.4 million (11.9%) and 1.4 million (5.5%)
commercial vehicles.

Toyota Motor Corporation is the world's eighth-largest car producer. Toyota Motor
Corporation announced annual sales of 635,4 billion Yen on 31 March 2019 and has a
workforce of 370,870 workers worldwide. Toyota has 608 combined subsidiaries and 63
affiliates, as stated in its consolidated financial statements, reflecting equity methods.
According to Valacich & Schneider (2017), many business processes depend on the activities
carried out within an organization in various functional areas.

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2. Information systems (IS) for inbound logistics
The business activities related to receiving and storage of raw materials, parts and
products included in the inbound logistics (Valacich & Schneider 2017). Toyota Inbound
logistics includes two different operations. The first is the transportation of the portions from
local suppliers to local plants, and the second is a separate operation, global incoming
logistical, for the transport to North Americould and European plants of portions from Japan.

2.1. Local Inbound Logistics

Toyota's logistics operation best describes it as a logistics network. Many suppliers
are locally-based clusters. All incoming orders and deliveries have synchronized with the
production rate. Doing so ensures the parts are just what has needed and just-in-time, only
in time. Parts are unloaded and delivered as is necessary to line workstations. Trailers
have not discharged until production progress triggers the need to empty the trailer.

2.1.1. Network Logistics

The logistics system of the Toyota network makes inbound operation very
efficient and efficient. Figure 2.0. exemplifies a logistics network. Network entities
are suppliers, cross-docks, Toyota plants. The substances are connected by a
continuous flow of trucks that move inbound parts containers or move empty
containers back to suppliers. Plants include not only assembly plants, but also plants
producing engines and transmissions. Toyota's strategy is "small lots, frequent
deliveries." The ideal situation is that each supplier ships parts to each plant daily.
Networking plays a vital role here to keep the accurate information system.

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 Figure 2.0: Network logistics
Source: Iyer. A., Seshadri. S., Vasher. Roy. (2009)
The advantages of the network logistics structure are that it allows Toyota to pick
up daily from most suppliers while minimizing transportation costs. However, the
network is extremely complex to operate and manage. By partnering with third-party
logistics providers (3PL), the size of Toyota enables the logistics network to
controlled. Logistics partners provide Toyota's logistics network with a dedicated
truck and driver fleet. Besides, Toyota network entities are working closely on
designing and planning routes. Shared transportation allows suppliers to receive small
orders at no cost to transport.

2.1.2. Pipeline Management

"Parts pipeline" means all parts ordered from suppliers. Toyota uses several
methods to track pipeline-wide parts. They were starting with ordering parts sent via
Electronic Data Interchange (EDI). The supplier sends an EDI Advanced Shipping
Notice once shipped as an information system. The truck driver scoulds and identifies
the loaded truck on the barcode label. The status of components is updated when the
truck enters the plant door.

Towards the unloading on the dock, the trailers stay in the yard. Each container
has scanned to confirm the arrival of the plant because parts had unloaded. Toyota
could see pipeline data for parts. In the inbound logistics, process visibility plays an
important role. Some logistics monitoring measures include the percentage of used
cubic capacity, blowouts, pick-up and delivery on time, and actual kilometres
compared with the plan.

2.2. Overseas Inbound Logistics

Parts coming from Japan are shipped to a port via ship and then brought by rail to the
assembly facility. Trailers have stationed in a large set in a numbered space. In Japan, the
Vanning Centre, the part received from Japanese providers, is a consolidation centre.
Components are packed and grouped into shipping modules into plastic bowls. The
modules will then be loaded to the overseas port by a container ship. Figure 2.1. shows
the vanning packing process.

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 Figure 2.1. Vanning packing process
Source: Iyer. A., Seshadri. S., Vasher. R. (2009)

It takes about four weeks for containers to reach the plant when containers are loaded
and shipped. A shortage of parts may require the unloading of a part before the schedule
has planned. When parts are lacking a container must be "tapped" by a plant parts
handling group. Tapping is a word used to describe the location and sequence of the
container. Excessive workload has a negative effect because it takes time to find, move
and unload parts of the container.

2.2.1. Mutual Benefits from a Partnership

If Toyota is a partner with a provider or a logistics provider, Toyota's advantages
are not alone. Transport Corporation India (TCI) provides an example of how the
partner could benefit. It formed a joint venture with Toyota to deliver Toyota parts,
both imported and from local suppliers. TCI redesigned delivery trucks to increase
vehicles from 50 to 58 (Iyer, Seshadri & Vasher, 2009).

As an information system, TCI already introduced the Global Positioning System

(GPS), which enables manufacturers to track outstanding shipments and plan their
operations accordingly. In a country with poor roads choked with traffic and
bureaucracy at state borders, deliveries may get stuck unpredictably. TCI now
becomes a complex supply chain manager. The company made innovations such as
linking truck temperature to the GPS unit. In one year from 2004 to 2005, the

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 company's value rose from about $160 million to nearly $ 200 million (Iyer, Seshadri
& Vasher, 2009).
3. Information systems for operation
It is where products are produced or assembled. Individual activities could include
organizing parts for the production of new cars and the final tuning for the engine of a new
car. Toyota engines were also known for their efficient operation reliability. Toyota's
computer-integrated (CIM) version is described as the multi-faceted, decentralized the
factory control system at Toyota assembling plants. Each factory includes several
autonomous. Figure 3.0 shows the multi-faceted system of control used by Kanto Auto
Works, Toyota Group member (Monden, 2004).

3.1. Toyota factory control system

Figure 3.0: Computer Control Functions in a Multilayered System

Source: Monden (2004)

The headquarters has a mainframe computer for the treatment of clerical data. A mini
computer connects each plant to digital communication channels with high speeds (optical
fibre). The minicomputers are connected to separate process control stations. The process-
specific workstation is also referred to as "line computers," since the production lines have
controlled. The assembly line control (ALC) room does not rely on the minicomputer
anymore. Their only connection is to send progress report information to ALC in real-time.
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 3.1.1. Control system for the body assembly process
Figure 3.1 describes the Toyota line computer functions further. In the body assembly
process, the workstation (line computer) issues instructions on body assembly in every
vehicle. This workstation includes a printer that prints cards to show the number of the body
ID. Each card is attached and is read by card-reader devices to a vehicle body. In the body
assembly process, the workstations (line computers) issue body assembly instructions for
each vehicle.

Figure 3.1: Process-specific Line Computer Functions

Source: Monden, Y. (2004)

Included is a printer which sends card printers to indicate the identification number of
the vehicle body (ID). Each card is attached to the body of a car it identifies and reads
through card readers. At the beginning of the shell body line, the car ID card shows the model

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number of the car. It is not a Kanban that magnetic card. It has a magnet strip on the ground,
similar to the magnetic train tickets. For a display update, card readers send data from the
magnetic card to the ALC room.
3.1.2. Control system for the painting process
The painting process also uses card readers connected to the process-specific line
computer, as shown in Figure 3.2. The ID card is heat-resistant and is not damaged when it
and its vehicle get damaged. Each vehicle's ID number matches its body number. The card is
used in painting to read each line worker's work instructions.

Figure 3.2: Magnetic Card

Source: Monden, Y. (2004)

The painting line operates under two sequence control types. Toyota employs an
expert system using artificial intelligence technology, and it takes two and a half hours to
reach the engine installation stage. The painting line sequence is susceptible to disruption due
to the sorting and Repainting of car bodies with defective paint jobs. For two-tone cars,
Repainting is always necessary, making sequential control complicated. The Fuji Seat
Company's factory is 30 minutes from the assembly plant.

3.2. Toyota's new ALC system

As headquarter, Toyota uses an IBM mainframe. Toyota introduced the assembly line
control (ALC) system in 1966, and a new production system established in 1989. This new
system has based on the design concepts of the Toyota production facility. To ensure a good
flow of information, Toyota places a strong emphasis on implementing the 'pull system. To

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manage production information's, the IBM mainframe has equipped with databases functions
(Monden, 2004).

The system enables the head office to respond promptly to all information requests
from factories. Toyota establishes production sequence schedules to smooth out parts supply
operations. The company uses an IBM mainframe as the head office's host computer.
Fujitsu's FACOM-A-50 is a communication gateway for the factory (Monden, 2004).

The factory file server transfers production information to the mainframe

headquarters. Toyota made cross-referencing between these systems so easy that virtually
everyone is connected. Figures 3.3 describe Toyota's new ALC system to issue instructions
for manufacturing vehicles. Fujitsu's FACOM-A/50 and FACOM / A/60 are the main
computers at each Toyota plant (Monden, 2004).

Figure 3.3: Overall View of the New ALC System; Source: Monden, Y. (2004)

Process-specific line computers perform different functions. The latest ALC system
functions as a tractor. Only the information it needs to be received, used and received by each
line and process in every plant request. When the cars cross the line, the identification tag

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antennas touched and interpreted the ID tags. The information has supplied to the robotic
controller for production work instructions (Monden, 2004).

4. Information systems (IS) for outbound logistics

Outbound logistics is also known as product distribution, as outbound logistics has the
function of distributing finished products from OEM plants to retailers. In North America,
Toyota uses different distribution flows than in Europe. Toyota still reflects outbound
logistics providers as its partners, but not dedicated to Toyota. 3PL provider number could
control all end-to-end transportation from plant to the dealer. Toyota uses common carriers,
railroads and "car hauliers" to carry vehicles from assembly plants to dealers.

4.1. North Americould vehicle distribution

For example, in North Americould vehicle distribution, they are shuttled into a
marshalling yard after vehicles have produced. There are two options for carriage to dealers.
The first option is rail shipping, where vehicles are loaded onto railcars, shipped to a railhead,
then loaded onto a truck. Figure 4.0. shows how vehicles move from the assembly plants
through this distribution network in North America.

Figure 4.0: North Americould vehicle distribution flow

Source: Iyer. A., Seshadri. S., Vasher. Roy. (2009)

The second option is direct truck away: vehicles are loaded onto trucks and delivered
to dealers directly. Toyota's contracts with trucking partners include an on-time delivery
objective. An annual meeting has held to recognize top performers of all logistics suppliers.
Furthermore, by tracking damage measurements for all road transport and rail partners,
Toyota emphasizes quality. Railroads have no similar delivery standard because there are
many variables on rail yards, for instance, railcar switching time.

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 4.1.1. Marshalling Yard Operations
Figure 4.1 shows how vehicles flow through the yard. The operation of the
marshalling yard is essential as it ensures the efficient and timely delivery. Vehicles requiring
accessory installation go-to accessory staging; all other vehicles are shuttled directly to rail or
truck staging areas. Incidental installation usually takes 1-3 days.

Figure 4.1: Marshaling yard flow

Source: Iyer, Seshadri & Vasher (2009)

Toyota gives trucking partner weekly vehicle forecast by the dealer. Trucking
company plans an operation to ensure adequate truck and driver supply. Heijunka is a Lean
method for reducing the unevenness in a production process and minimizing the chance of
overburden. Heijunka allows Toyota to smooth production by destination to avoid delivery
spikes. The trucking company is responsible for loading vehicles onto the truck and
delivering them.

With bi-level railcars, shipping could be as much as 50% higher. Vehicles have
loaded into the railcars and scanned. So that the tracking system will know which vehicles
have loaded into each railcar, the dispatcher could only load vehicles for destinations if the
lane is full. For example, the next best option is to combine vehicles on the same route, such

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as an eastbound train picking vehicle shipped to New York and Boston (Iyer, Seshadri &
Vasher, 2009).

4.1.2. Tracking Progress

Tracking vehicle shipments from the plant to the dealer is crucial. Toyota has created
a tracking system that receives real-time input from rail companies reporting each railcar's
progress. It also gets input from trucking companies when delivering vehicles to dealers.
Toyota uses this information internally to monitor distribution progress across the network. It
also gives dealers an estimated arrival time (ETA). ETA calculation is based on final quality
assurance (FQA) date and time. The FQA is where a vehicle is ready for shipment in the
marshalling yard process. Calculation follows: “ETA = FQA + estimated delivery elapse
time.” (Iyer, Seshadri & Vasher, 2009).

The estimated delivery time has based on each route's recent history. If a vehicle has
not manufactured, the ETA has calculated; the FQA date must also have estimated. Because
many variables could affect actual transport time, Toyota provides the dealers with an
estimated 3- to 5-day arrival window instead of an exact date. This arrival window has
updated as vehicles approach delivery. The dealer uses ETA information to provide its
customers with expected delivery time.

4.1.3. Distribution Flow in Europe

Toyota's distribution flow in Europe differs from North America's flow. Dealers in
Europe have insufficient space to maintain a large vehicle inventory. Many dealers operate in
an urban area with room for a few showroom vehicles. The vehicles, as in the North
Americould flow, are released from the assembly plant and shuttled to the marshalling yard.
The following paragraphs illustrate how other OEMs value logistics as a vital component of
the supply chain.

Figure 4.2: Europe vehicle distribution flow

Source: Source: Iyer, Seshadri & Vasher (2009)

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 The hubs are where accessories have installed, and the price label applied. Most transport
in Europe is by truck, not rail. Long-distance rail use is somewhat limited. Another difference
is the ETA calculation method. The ETA has based on the FQA date and time from the hub,
not the factory marshalling yard. Toyota's distribution processes in North America and
Europe are just one example of how Toyota could adapt.

5. Information systems for sales and marketing

Sales and marketing information systems assist the company in marketing business
processes (identifying customers for the products or services of the company, developing
products and services to meet their needs, promoting products and services) and sales
processes (selling products and services, placing orders, contacting customers and providing
customer support).

5.1. Monthly Production System (Sales)

The internal sales department receives demand information for three months each month.
Foreign sales also collect estimated demand data from overseas dealers. That is the master
production schedule. Toyota managers consider the total number of cars per model line by
the total number of working days in a month.

Car model specifications have determined by combining different body types, body sizes,
types of transmission, model grades, etc. The main model line is divided by car lines.
Material Requirement Plan (MRP) has prepared using a materials bill based on the master
production schedule. Required MRP-calculated materials and parts have sent to each Toyota
plant and manufacturer of subcontract parts. It is the requirement parts forecast (Monden, Y.,
1994).

5.2. Daily Production System (Sales)

Toyota's daily production schedule has based on the product delivery schedule and
sequence schedule. A 10-day order has sent from dealers to Toyota's sales division. The
manufacturing division of Toyota sends the daily request to sales. Daily production schedules
are created and sent to plants and suppliers.

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 Figure 5.0: 10-day order from the dealer
Source: Monden, Y. (1994)

Each dealer sends customer-ordered 10-day order specifications to Toyota's sales

division for each model. Production could not exceed the monthly production schedule. The
daily production quantity for each line is planned, based on the order. Toyota could expect
10-day order changes in the plus or minus 10% range, as shown in Figure 5.0. When ordering
a white car, Toyota must change production and delivery schedules. It is called daily
alteration.

5.3. Toyota email alert or notification (Marketing)

Toyota could start a regular e-newsletter that captures customer attention with
compelling content. Email alert programs have explicitly written to check and report new
mail on the server. Brick and mortar companies could easily send coupons or store visitors'
updates. Not every email notification program supports every email type. Some only support
specific webmail clients, some just check Post Office Protocol (POP3) servers. Some allow
users to read the message through the notification program, and others simply alert the
message to be there.

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 Figure 5.0: Mail alert registration
Source: https://global.toyota/mailalert_service/dc/en/member-regist

The customers have to register and provide the email on the Toyota website. After
registering, customers will receive the latest Toyota-related news and information such as
price, model, and design, through email. It would benefit Toyota to keep in touch with new or
existing customers to provide the latest information and news. It is an important feedback
tool, and surveys enable the company to determine how engaged and motivated customers
are, and what they think about the brand and promotion.
5.4. JD Power (Marketing)
According to Wikipedia, JD Power is an Americould-based data analytics and
consumer intelligence company founded in 1968 by James David Power III. The company,
which self-describes as "A global market research company," conducts surveys of customer
satisfaction, product quality, and buyer behaviour for the automotive, banking & payments,
wealth & lending, telecommunications, insurance, health, travel, and utility sectors.

Independent customer surveys such as the "JD Power survey" measure customer
satisfaction in various categories. The two prime types are initial vehicle quality and
customer satisfaction regarding the selling process. Customers that score the selling process
low also tend to give lower scores on the initial quality survey. A high JD Power score could
be a valuable marketing tool for an automobile manufacturer (Iyer, Seshadri & Vasher,
2009).

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 Figure 5.0: JD Power Awards 2019
Sources: https://www.jdpower.com/Cars/Ratings/Performance

Therefore, it is critical not only that the vehicle quality itself be high but also that the
customer buying experience be positive—or at least not damaging (Iyer, Seshadri & Vasher,
2009). The Toyota Yaris Sedan has always been high in the JD for two reasons. Power survey
shows that the vehicles has assembled with the highest care and that the dealer also treats the
customer. Toyota Yaris Sedan cars always score high in the survey, as shown in Figure 5.0.
Survey results help manufacturers design and sell products that consumers want and feel.

6. Information system for service

It includes all areas of service, such as final checking, after-sales service, complaints
handling, training, and others. Toyota dealers are committed to fostering excellent
relationships with Independent Repair Facilities (IRFs). The common aim, after all, is to
ensure that every owner of Toyota is safe, confident, and satisfied. The provision of solutions
and support to enhance business success and customer satisfaction is an essential part of this
commitment. When customers do business with a participating Toyota dealer, they could
benefit from these premier services.

6.1. Technical Information System (TIS) in North America

Toyota Technical Information System (TIS) is a Web-based information database that
includes service newsletters, technology tips, repair manuals, quick workout guides, crash
repair manuals, and new car features. The (TIS) is an operational, technical, and documentary

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support service. Factories support all Toyota, Lexus, and Scion vehicles manufactured in
North America, as illustrated in figure 6.0, is the Toyota Technical Information System (TIS).

Figure 6.0: Technical Information System (TIS)

Source: Toyota Motor Sales USA Inc (2016)
Including service newsletters, repair manuals, electrical diagrams, owner's manuals,
collision repair manuals, emergency response guides, fitness procedures and the factory
training information TIS offers access to the latest information on service, including
information provided to dealer technicians (Collision Pros Magazine, 2019)

According to Toyota Motorsales USA Inc., 2016, subscriptions have offered on a

daily, month or year basis, three levels of subscription: Standard (technical information
library), Professional Diagnostics (technical information library and scan the software for
Techstream scans) and Security Professional. It shows how Toyota was getting the
information from the customer to continue the service and always updated them.

6.2. Toyota Collision Repair & Refinish Training;

6.2.1. The damage diagnosis document

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 The information found in TIS is essential for the proper repair of any Toyota, Lexus,
or Scion vehicle. Over the next few issues, they will explore different TIS documents that are
beneficial to collision repairers. The first document they will cover is the Damage Diagnosis
document found in the Collision Repair Manual section (Collision Pros Magazine, 2019).

6.2.2. Damage diagnosis document for each Toyota model

Found under the Collision Repair Manual tab for each specific model, the Damage
Diagnosis document shows how the forces of a collision have transferred throughout the
vehicle. The Damage Diagnosis document provides estimators with information on where to
look for potential damage. The Damage Diagnosis document also details a variety of collision
scenarios, for example, a head-on collision, rear-end collision, or side impact. Each diagram
outlines how the forces have diverted in an accident (Collision Pros Magazine, 2019).

During an inspection, the bulkhead has easily overlooked when it also needs repair.
Seeing where the crush zones lie and how the components have designed to be replaced or
repaired facilitates the determination of which parts. Reference the Collision Repair
document to plan repair after the customer identifies any additional damage correctly.

6.2.3. Logging into TIS

According to Wang, J. (2019), To access TIS, customers could directly go to
techinfo.toyota.com. Then, create an account, click Subscribe and choose the option that's
best for them. For additional help on using TIS, customers just click the Using TIS Tutorial
web module under the TIS Featured Information section in the upper right-hand corner of the
TIS homepage. Alternatively, TIS users could contact them to ask questions on the use and
operation of TIS.

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 Figure 6.2: Logging into TIS
Source: Technical Information System Website

6.3. Toyota Mechanical Parts Program (TMPP) and OPS Technology Suite
Trax is an online collision parts ordering system. ValueTrax offers Toyota-sponsored
discounts on Toyota Genuine Parts. Through TraxPod, the Toyota dealer could send customer
order status tracking and deal/discount notifications. TMPP incorporates Toyota-sponsored
competitive discounts with the industry's most widely used OEM mechanical parts fulfilment
solution. Through TMPP, customers could place mechanical parts orders online at any time
(Toyotapartsandservice.com).

7. Information System for Administration (supporting activities)

Systems Applications and Products in Data Processing (SAP) is the world's leading
business software provider. Through mySAP Business Suite, business people around the
globe improve relationships with customers and partners, streamline operations, and achieve
significouldt efficiencies across Toyota supply chains.

7.1. mySAP Financials

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 In 2003, Toyota Motorsport GmbH (TMG) started to implement the SAP software
system, which also provides financial information to the finance department of the company
and its concerned personnel (Victoria, 2018). The people of the finance department of Toyota
analyze previous and current financial figures, anticipate future financial outputs, and checks
and handles the utilization of capital over time by making use of the information generated by
SAP, as shown in Figure 7.0.

Figure 7.0: Financial Management function

Source: Cong, X. (2012)

According to Supplychainmarket.com (2003), Toyota's German-based motorsport

subsidiary implements SAP solutions for Automotive portfolio to streamline production,
supply chain, and resource planning (ERP) processes. SAP's fully integrated automotive-
specific solutions replace legacy systems.

Using SAP for Automotive's tailored functionality, TMG plans to phase out old
business and production systems and processes (Supplychainmarket.com, 2003). Product
Lifecycle Management (mySAP PLM) and Supply Chain Management will help TMG
improve product information accuracy. Furthermore, the company replaces its legacy ERP
system with mySAP Financials and mySAP HR to better manage its over 600 employees and
integrate its financial operations with the overall SAP solution.

8. Information System for Firm Infrastructure

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 A new traffic information system for Toyota drivers blends a variety of parameters,
including vehicle location data, current speed, road conditions, and even disasters. The
concurrent utilization of these data helps optimizing routes and travel times (ERTICO
Newsroom., 2013). "Big Data Traffic Information Service" collects traffic data from several
telematics services. These swarm data are collected, stored, and enriched by data from
specific business user groups, such as emergency services or forward agencies. A live traffic
flow map is generated from all these data and made accessible to users.

8.1. Toyota connects navigation systems to the cloud

The systems aim to improve overall traffic flow and enable trade-specific navigation
services. The service also designed to allow for faster emergency services for catastrophic
events such as earthquakes. Besides Toyota drivers, Toyota's G-BOOK smartphone
telematics service subscribers could access and use these data to optimize their travel routes.

Figure 8.0: Big Data Traffic Information Service (Cloud-Based)

Source: Toyota Motor Corporation Global Website (2013)

This cloud-based service allows Toyota to use traffic information and provides
information on routes and traffic density on specific trajectories, as shown in Figure 8.0. All
data is fed into in-car navigation systems but could access via computers, tablets, or
smartphones. The service displays a variety of additional authorities' information; it also
shows the location of emergency services and vehicles. Users could add their data.

The map shows that the information about facilities owned or operated by local
governments and businesses. Users could submit information and images via smartphones.
Rescue staff could submit damage information and request relief via smartphone. T-Probe

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traffic information allows, for example, map-based route planning to guide multiple
destinations effectively. Traffic and logistics systems could also use the service (Toyota
Motor Corporation Global Website, 2013).

9. Information System for Human Resource

The human resource data system constitutes an integral part of this organization. It is
the method of collecting, classifying, processing, recording, and distributing the information
needed for effective management. Toyota's SAP system runs on a Linux operating system
with Oracle9i RAC. Conventional active/passive high availability concept has used to secure
the SAP system on Linux -including the Oracle database server with data archiving hardware.
The SAP system for automotive will be the best choice for Toyota.

9.1. SAP R/3 Human Resources

SAP has a client-server: service-oriented architecture. The new architecture is
compatible with many operating systems such as UNIX and Microsoft Windows. The client-
server version of SAP is called SAP R/3, where R stands for "Real-time data processing " and
3 for three tiers. It has developed by SAP and developed in the 1990s (SAP history, n.d.).
SAP is a software-as-a-service solution for the Toyota cloud-based SAP software.

Employees could view the past paycheck and print it. It included on-the-job
development, process improvement, and coaching as well. It is the resulted of a mutually
beneficial partnership between manufacturing and HR. Every call was treated as a defect,
assuming there was a problem with some system, or training (Liker & Hoseus 2010).

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 Figure 9.0: SAP Easy Access Human Recourses
Sources: SAP Software Solutions

Each component includes standard reports that could be accessed through the SAP
Easy Access menu in the Human Resources Management components, as shown in Figure
9.0. These reports are listed in a report tree and include all significant reports that an HR
Manager would like to execute, e.g., within a specific area. In the Toyota HR management
system, Headcount has subdivided into sex, departmental position and cost centre, salary
types listings, absence reports for time management, etc. All these standard reports are
available for viewing, filtering, and sorting, as required.

10. Information System for R&D and technology development

Toyota Industries' R&D could have broadly separated into two groups: product
growth and independent improvements. It has done from a company-wide management
approach point of view, and Toyota Motors works across a wide variety of industries. It has
its distinctive technical strengths, core technologies, and business characteristics. That
division's specialized development divisions play a leading role in product enhancement,
technological development, and applied research.

10.1. The Research & Development Center Toyota

The Research & Development Center is also working to improve further and enhance
our company-wide R&D structure's performance. The centre deploys each division has

25
accumulated technology and know-how in a continuous quest and development of new
products and services that will form the foundations of our future success. It supports
collaborative work with Toyota Central Research and Development Laboratories, Inc (Toyota
Industries Corporation Annual Report, 2007).

Figure 10.1: Toyota "e-Lab" IT research laboratory within the Information System
Development Department undertakes IT-related R&D.
Source: Toyota Industries Corporation Annual Report (2007)

This laboratory is leading in digital simulation technology work to shorten product

development times and reduce lead times from conception to production and shipping.
Besides, "e-Lab" develops infrastructure and systems to allow each business division to
pursue joint development with overseas bases, as shown in Figure 10.1.

The subdivision Machinery and Tools develops and manufactures specialized

manufacturing equipment. Production this equipment internally offers several benefits,
including fast growth and production, it states. The division aims further to strengthen Toyota
Industries Group's manufacturing management capabilities. It makes equipment to start
operations at overseas production bases quickly.

11. Information system for procurement

Toyota uses different accounting management techniques to bring total quality control
to its operations (Reena Singal, n.d.). The most popular networks are the Americould
Network eXchange (ANX), and the Japanese Network Exchange (JNX), which provide a

26
very secure way to exchange information across an automotive community. GXS provides
interconnectivity between various private networks (The automotive industry, n.d.).

11.1. Parts Procurement Networks: JNX

The Americould automotive industry standardized its electronic commercial
transactions in October 1998, while standardizing its network infrastructure, creating the
system known as ANX to make it easy for parts manufacturers to deal with multiple
carmakers. Before, each carmaker needed a separate network, but joining ANX meant that
parts manufacturers could now deal with many carmakers through a single network.

Figure 11.0: Japanese automotive network eXchange (JNX)

Source: https://niandc-edi-series.com/industries

The US "Big Three" carmakers formed an operating company on the Web,

independent from ANX, for a global parts procurement market. The aim was to cut costs by
internationally maximizing procurement in Toyota. The Big Three have called on Japanese
carmakers to join Covisint. Since Japanese parts manufacturers also served multiple
carmakers, a Toyota Japanese version of has decided.

Japan Automobile Manufacturers Association (JAMA) and Japan Auto Parts

Industries Association (JAPIA) led this development, and the program began operating in
October 1998. Many companies have pursued to administer and run shared networks, and
Toyota Digital Cruise, Inc. (TDC) took on one of them, which has later integrated into the D-
Cruise Net. ANX and JNX were convenient for parts manufacturers, while a commercial
electronic market connecting car manufacturers with large numbers of unspecified parts
manufacturers has also created, as shown in Figure 11.0.
(5580 words)

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