Khawajh Fareed University Of Engineering

& Information Of Technology

Name: Noman ali Roll: msci212101003 BBA-5A

Introduction
The business setting is characterized by intense competition. As a result, organizations
have to provide clients with effective and dependable service. If they fail to do so, clients
will transfer to more client efficient organizations. In addition, as organizations increase
in size, it becomes more difficult to monitor the increasing level of client data. If an
organization does a terrible job of managing and maintaining client accounts and
information, it can lead to issues for both the organization and the client. This essay will
concentrate on Toyota, and the way the company enhanced its customer service and
minimized expenses by enhancing its management information system (MIS).
References used involved business articles and websites with facts and discussion on
Toyota.

Defining of Concept: Management Information System (MIS)

A management information system (MIS) pertains to a subcategory of the total inner
controls of an organization encompassing the application of individuals, information,
technologies, and processes by accountants to resolve business issues like putting a
value on a commodity, service or a business plan. Management information systems
are different from ordinary information systems in that they are utilized to study other
information systems used in functional tasks in the company. Academically, MIS is
normally utilized to pertain to the cluster of information management processes
connected to the automation or assistance of individual decision making (Clarke, 2007).

At the beginning, in companies and other firms, internal documentation was done
manually and only quarterly, as an output of the accounting system and with some extra
figures, and provided limited and disrupted the data on management performance. In
the past, information had to be isolated individually by the people as per the need and
policy of the company. Eventually, data and information was differentiated and rather
than the gathering of mass of information, significant and accurate information that
was needed by the company was the only one saved (Laudon, 2007).

In their early years of existence, company computers were utilized for the logical
business of calculating the payroll and monitoring the accounts payable and receivable.
As programs were created that offered leaders with data regarding sales, stocks, and
other information that would aid in controlling the company, the word “MIS” emerged to
pertain to these types of companies (Cleland, 2006). At present, MIS is utilized widely in
various subjects and involves: decision support systems, workforce control programs,
project management and database storage programs.

The establishment and maintenance of information technology tools helps leaders and
the employees in undertaking any activities connected to the analysis of data. MIS and
business systems are particularly helpful in the gathering of business information and
the generation of reports to be utilized as tools for making choices.

SECTION 1

1.1. Company Overview: Toyota Motor Corporation

The Toyota Motor Company is one of the biggest car manufacturers in the globe. Toyota
has established a reputation as both an engine producer and the manufacturer of luxury
vehicles. While the organization’s headquarters are still situated in Japan, it has several
manufacturing facilities all over the globe and sales departments in various nations
where the vehicles are transported (Toyota Motor Corporation Global Site, 2010).

Toyota has a distinct business structure and the manner it pursues the vehicle
manufacturing with its effective quality standards which developed the industry.
Toyota’s just-in-time supply-chain idea has turned into a standard for car companies all
over the globe. The Toyota Production System (TPS) calls for the finished vehicle to be
pulled through the production system (Toyota Production System Global Site: TPS,
2010).

By concentrating on smaller manufacturing lots and generating only what clients need
when they demand it, Toyota has established a versatility and responsiveness that
keeps on becoming the guideline for the industry. Due to its concentration to consistent
development, Toyota has obtained die-changeover and machine-set periods that are
way ahead of its rivals. Therefore its capability for responding immediately to new
market developments makes TPS an effective system in the present days quickly
developing world business setting. Toyota understands that it is necessary in
guaranteeing quality management and the provision of dependable products to clients
(Liker, 2005).

The primary advantage of Toyota’s management information systems is their capability

to merge their corporate objectives all over the world by utilizing their systems properly.
For instance, Toyota connects to its clients in various sectors by utilizing various
Internet based web systems for various global regions (Hino, 2005). Even though there
are numerous Internet sites and networks for each of the global continents, the
management information systems all connect back to a global Internet site.

1.2. MIS of Toyota

Toyota Comprehensive Warehouse Management System

(Toyota WMS)
These management information systems offer effective management for warehouses
of the whole procedure from the period products are obtained, to storage and location
control, to shipment. Individuals, products, and data are addressed, wastes are removed,
and everyday enhancements are advocated. The Toyota WMS are tasked to offer an
important function in generating comprehensive reports out of huge volumes of
warehouse information that would otherwise be primarily considered as junk to decision
makers. By analyzing these outputs warehouse management officers of Toyota can
determine patterns and trends that would have stayed invisible if the raw information
were consulted in manual terms (Toyota Comprehensive Warehouse Management
System, 2010).

Jidoka
If any issue emerges at any point of the manufacturing process, Toyota’s error
identification system, or Jidoka, determines the problem and allows line workers to
make the important measures to resolve it immediately even if that implies stopping the
manufacturing process (Toyota Motor Corporation Global Site: Jidoka, 2010). By
determining the equipment where the problem initially happened, this management
information system makes it more comfortable to determine the cause of the issue and
stops defects from developing to the succeeding phases of production.

1.2.3. Hybrid Synergy Drive (HSD)

The Toyota HSD is an innovation to a traditional geared transmission with an
electromechanical transmission. Since a car engine provides power effectively only over
a limited range of speeds, the crankshaft of the engine is normally connected to a
geared transmission by a clutch that enables the person driving to vary the speed that
can be produced by the engine to the speed necessary to make the car move (Miller,
2004).

The mixture of excellent vehicle design, effective brake systems, electrical energy
storage and effective engine design provide the HSD enabled vehicle with critical
efficiency benefits. The intense rivalry in the automobile industry with huge penetration
and exit expenses has resulted to Toyota in searching for a competitive advantage in
their management information systems (Fujimoto, 2001). As the car industry has been
affected by huge fuel and crude oil expenses, Toyota has come up with a computerized
engine system that tracks engine efficiency and makes power utilization in the car as
productive as it can be.

1.2.4. Andons
Toyota utilizes management information systems that employ visual controls to
immediately convey the status of production. On the production area, for instance,
management information systems help inform a worker with a single glance whether
the station is operating properly, whether there is something wrong being checked or
whether the production has been halted. Management information systems also give
critical data like which machine did not operate, the operator and the real time
situations when it malfunctioned (Magee, 2007).

1.2.5. PokaYoke
Toyota utilizes a variety of these affordable, highly dependable management
information systems throughout its production process to stop defects. While
computers of Toyota cannot establish business plans by themselves, they surely have
helped the management in knowing the impacts of their plans, and aid in the process of
effective decision-making (Morgan, 2006). The PokaYoke are tasked to convert
information into data helpful for decision making.

SECTION 2

Application of MIS in Toyota

2.1. MIS across Departments

2.1.1. Operations
The operations of Toyota have been impacted by tremendous developments in
technology. Because of this, manufacturing operations within the company have
significantly improved. For instance, vehicles and car parts are transported ahead of
time, and this prevents large amounts of money from being utilized for storing activities
(Fujimoto, 2001).

The Toyota Comprehensive Warehouse Management System offers remedies for the
organization concerning car and process structuring and planning for the smooth flow
of operations. The Toyota Comprehensive Warehouse Management System aids the
organization with regard to the enhancement of the operational procedures (Toyota
Comprehensive Warehouse Management System, 2010).

The smooth flow of operations is accomplished within Toyota through the Toyota
Comprehensive Warehouse Management System, where the structuring of each car
model and warehousing processes from the prototyping level to the production phase is
attained in one structure (Shingo, 1989). This limits unnecessary repetition of processes
and the need for interfaces as data is secured in a centralized system. Excellent
coordination with suppliers offers great opportunities for more efficient product
development with suppliers via the Internet.

Productivity and efficiency in the operations within Toyota is accomplished through the
Model-mix structuring and the excellent planning aspects of this MIS. Model-mix
structuring allows Toyota to enhance the operational procedures that are important for
the organization (Ineak, 2009). The excellent planning options enable effective
processing of assembly and parts of make-to-order deals.

SAP gathers specialized production orders from Toyota’s planning system. The orders
include the car parts essential to assemble each car; some Toyota cars, for example,
have plenty of components detailed in the list. SAP generates the shipment schedules
for each part to match Toyota’s assembly-line procedures (SAP, 2007).

Toyota delivers these detailed information and precise shipment schedules to its
suppliers. The significant suppliers obtain the information through electronic data
interchange. Other providers log on to the Toyota online portal, where the company
details the provisions to provide the updates on its shipment activities (Hino, 2005). By
going to the website of Toyota, suppliers can monitor this information in real time,
including release schedules, receipts, and other important information.

When they deliver car parts, the suppliers send Toyota shipment details to give them
with the latest information in this matter. Car parts going inside the Toyota storage
facilities are then obtained and delivered quickly to the line. There, Toyota uses its
Jidoka to monitor the assembly process in real time. Jidoka tracks the production
verification and consumption information consistently. Parts utilized in the production
are removed from the stock list, and costs are presented to detail the value of work in
process (Toyota Motor Corporation Global Site, Jidoka, 2010).

Customer desires for various Toyota cars warranted a solution that would properly
improve and help organize production. These MIS help the organization to reduce
order-to shipment period, enhances its supply chain activities with regard to demand
analysis and tracking of deliveries, and improves inventory activities all over its
establishments— enabling Toyota to significantly reduce time to customer for its
excellent vehicles.

2.1.2. Finance
In 2003, Toyota started to implement SAP software system which also provides
financial information to the finance department of the company and its concerned
personnel. The people of the finance department of Toyota analyzes previous and
current financial figures, anticipates future financial outputs, and checks and handles
the utilization of capital over time by making use of the information generated by SAP
(SAP, 2005).

The SAP provides options that enable sales and pricing of cars through configuration
and monitoring of available parts. Vehicle customization and pricing via the Internet
enhanced car sales of Toyota by offering customers with the choice of designing their
vehicles. Once the vehicle is designed, the SAP will determine the worth of the vehicles
based on the design. Vehicle search enables Toyota to locate vehicles that address the
specific designs, accomplishing faster delivery to customers (Hoseus, 2008).

2.1.3. Marketing
The SAP helps the marketing operations of the organization with regard to product
development, pricing activities, marketing, and sales forecasts. Just like other important
company operations, Toyota relies on external sources of data. These sources entail the
opinion or feedback of customers. (SAP, 2007)
2.2. Decision Making at the Three Tiers of Management

2.2.1. Operational Level Systems

To transform the operational level decision making within Toyota very fundamental and
productive, the MIS of Toyota aids in providing and sending reliable information to all
executors. The Toyota Comprehensive Warehouse Management System is established
to enhance the reporting of information that will be important in the proper decision
making within the operational level of Toyota. Furthermore, the SAP is able to effectively
collect and process data, process results, and able to adjust, cope and address
inaccuracies right away. (SAP, 2007)

2.2.2. Management Level Systems

The Toyota Comprehensive Warehouse Management System has effective internal
controls that aid in the management level decision making tasks in Toyota. Information
is collected through efficient processing and inner control tracking. An effective internal
and outer audit process is utilized within Toyota through the MIS (Magee, 2007).

2.2.3. Strategic Level Systems

To have a productive and efficient strategic level decision making, important data within
Toyota is processed and handled properly through its Material Handling System.
Differences in the way information is collected and documented can change
information and trend studies. Also, because data collection and documentation
activities will eventually change through time, Toyota management has established
flexible methods to allow systems developments through the MIS. These procedures
are always well structured, properly informed to employees and has a tracking system
that helps in the strategic level decision making of Toyota (Toyota Material Handling
USA, 2010).

2.3. Managing Business Processes

The integration of various MIS within Toyota is the effect of the integration of system
management. The employees and leaders of the company are the users of the MIS who
know the present customer demands and also have the capacity to plan the funds for
new initiatives. In order to control its business procedures properly, Toyota has
persevered in managing ownership that promotes effectiveness in its business
processes and helps ensure being responsible. Even though the MIS does not reduce
expense altogether, the integration of this essential system, and its properly utilization
reduces the periods that wrong decisions in company procedures are accomplished
because of inaccurate information (Morgan, 2006). Terrible company decisions simply
misuse precious assets. This may result in a negative effect on revenues and/or budget.

Conclusion
The MIS of Toyota has been proven to provide a great deal of advantages to its various
business units. Toyota strives hard to keep discovering new methods to utilize their MIS
to accomplish their business goals.

While the management information systems of Toyota are totally helpful in producing
statistical documents and information analysis they are also utilized as a tool where the
leaders and employees of the company agree upon a set of goals for the employees to
try to accomplish within a specific time frame. Goals are established utilizing the
SMART standard: that is, goals have to be Specific, Measurable, Attainable, Realistic and
Time-Specific. The target of these goals is to offer a set of performance standards by
which Toyota can compare the output of a worker or program. The effectiveness of any
goal in Toyota relies upon the consistent monitoring of developments. In monitoring this
performance it is tremendously helpful for Toyota to make use of its management
information systems. Because all goals must be quantifiable they can be monitored
through the establishment of management documents to be studied by the leaders of
Toyota (Magee 2007).

Each market dominant company will have a minimum of one major competency —
that is, a task or operation they do better than their rivals. In the case of Toyota, by
establishing a formidable management information system it became possible for the
company to move ahead of its rival companies. The MIS systems of Toyota offer the
tools essential to obtain a better knowledge of the market as well as an improved
knowledge of the company itself.

The establishment of effective MIS in Toyota is the consequence of the implementation

of an environment of system ownership. The owner is a system user who understands
the present clients and their necessities and also has the capability to finance new
programs. Establishing ownership builds confidence in corporate procedures and aids
in guaranteeing responsibility. Even though the MIS of Toyota does not completely
minimize costs, the establishment of important systems, and their effective usage, will
reduce the chances that erratic choices will be done due to unreliable data.
Only a management information system that is versatile and effective could undertake
such activities economically possible. This management information system not only
aids in removing waste, which makes it more friendly to the environment, it also implies
that clients can be guaranteed that Toyota cars will adhere to the best standards of
quality, dependability and innovation.