Roles of MIS in Toyota
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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 MIS of Toyota offers remedies for the organization concerning car and process structuring and planning for the smooth flow of operations. The MIS of Toyota aids the organization with regard to the enhancement of the operational procedures.
The smooth flow of operations is accomplished within Toyota through its various MIS, where the structuring of each car model and manufacturing 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 its MIS. Model-mix structuring allows Toyota to enhance the operational procedures that are important for the organization. The excellent planning options enable effective processing of assembly and parts of make-to-order deals.
The MIS of Toyota 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. The MIS generates the shipment schedules for each part to match Toyota's assembly-line procedures.
Toyota delivers these detailed information and precise shipment schedules to its suppliers. The significant suppliers obtain the information through electronic data interchange (EDI). 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 MIS to monitor the assembly process in real time (Ohno, 1988). The MIS 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.
Customer desires for various Toyota cars warranted a solution that would properly improve and help organize production. The MIS helps 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.
In Toyota, all accounting information is handled by all accounting heads. In this regard, the MIS of Toyota provides options that enhance the accounting operations and regulations of the company. The MIS provides options that enhance the accounting tasks of the organization, allowing them to react immediately and properly to the industry needs and developments.
The MIS of Toyota 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 the MIS (Hoseus, 2008).
The MIS of Toyota 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 MIS 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.
The MIS of Toyota helps the marketing operations of the organization with regard to product development, pricing activities, marketing, and sales forecasts (Liker, 2003). Just like other important company operations, the MIS of Toyota relies on external sources of data. These sources entail the opinion or feedback of customers.
e) Human Resource
The MIS of Toyota also aids the company's activities for the welfare of their workers, leaders, and other personnel. Because of the reality that the task of the human resources is critical to all other parts of the operations of Toyota, its MIS has a crucial role in ensuring progress for the company.
2) Facilitate decision making at the three tiers of management
a) Operational Level Systems
To transform the operational level decision making within Toyota very fundamental and productive, the MIS aids in providing and sending reliable information to all stakeholders. The MIS of Toyota is established to enhance the reporting of information that will be important in the proper decision making within the operational level of Toyota. The MIS is able to effectively collect and process data, process results, and able to adjust, cope and address inaccuracies right away.
b) Management Level Systems
The MIS of Toyota has effective internal controls that aid in the management level decision making tasks in Toyota (Magee, 2007). Information is collected through efficient processing and inner control tracking. An effective internal and outer audit process is utilized within Toyota through the MIS.
c) Strategic Level Systems
To have a productive and efficient strategic level decision making, important data within Toyota is processed and handled properly through its MIS. 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.
3) Serve as efficient means for managing business processes
The integration of 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.
The leaders of Toyota always ensure that its MIS is integrated on a sensible procedure that entails the following phases:
• Effective analysis of system options as the MIS is integrated or purchased, and task management.
• Policy formulation and effective transacting with suppliers.
• Implementation and management of the MIS. The leaders always consider the utilization of procedures to monitor progress as the MIS is being merged into the operations. Inner controls are established into the operations and periodically evaluated.
The current vehicle industry is characterized by growing product innovation and short term development times. One of the essential initiatives is to get within the industry faster by systematizing the product development and initial processes. A company can obtain this streamlining by establishing a great variety of properly organized processes, making use of information framework that has all the information about the vehicle and its varieties and is accessible at every stage to all consumers involved in production. This procedure, regarded also as process engineering, can be accessed when the leaders and employees of Toyota uses its MIS (Toyota Motor Corporation Global Site, 2010).
The MIS of Toyota merges business programs with certain activities to help the organization- as well as other producers, sales, and service firms- get important advantages by synchronizing the entire engineering, advertising and service business sector.
With its MIS integrated within the operations of Toyota, the organization is able to enhance essential company processes- and accomplish essential organizational goals:
* Reliable employees with excellent processes for talent hiring
* Financial progress with enhanced processes for financial performance management
* Operational efficiency with enhanced processes for operations control
The MIS of Toyota is specifically established to meet the demands and issues of the company and the automotive industry. It is a detailed and efficient remedy for Toyota that includes company operations from engineering design, production, sales and service. Established to be an effective and productive management information system, the MIS of Toyota is utilized according to different market segments that make up the pillars of automotive industry in its entirety.