MANAGEMENT OF INFORMATION SYSTEMS

GROUP ASSIGNMENT

TOYOTA MOTOR CORPORATION

Alejandra Ortiz De Avila

Miguel Angel Gonzalez Rodriguez
Mitchell Vickers
Diana Victoria Castillo Martnez
Cristina Jaqueline Ruiz Leal
Andrea Athie Corral

INDEX
INTRODUCTION..3
1. Main components of the Information Systems of TOYOTA4
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2. Explanation of how TOYOTA is using its information system focusing on its

Enterprise Applications....7
3. Rich picture, Interaction of TOYOTA with its environment.8
4. Use Case Diagram (UCD) describing the interactions of TOYOTA with its
customers and suppliers..9
5. Event Process Chain (EPC) Diagram showing how TOYOTAs ERP are helping
to manage the different business Processes............................10
6. Data Flow Diagram (DFD) explaining the flow of data in TOYOTA.....13
7. Entity Relationship Diagram (ERD).........................................................................14
BIBLIOGRAPHY....15

INTRODUCTION
The implementation, design and innovation of information systems is a very important
component of business nowadays and investing in them is key to success and to
survive in a competitive global environment.

Information systems help a company manage its interactions with suppliers, customers
and different departments within the same organization, allowing for a better
communication and allocation of resources which also translate in efficiency and
savings.
As a multinational company, Toyota Motors has a very detailed and structured set of
models that illustrate their different processes used in all areas of the organization
which helps identify their competitive advantages as well as areas of improvement. The
following diagrams aim to give a general overview of Toyotas business activities and
the role of information systems in the company.

1. Main components of the Information Systems of TOYOTA.

Toyota , is a Japanese car manufacturer founded in 1933 by Kiichiro Toyoda. The
company headquarters are located in Toyota , Aichi Japan.
With factories and offices around the world Toyota is one of the biggest japanese
automakers, it was the largest automaker in 2012 ahead of Volkswagen Group and
General Motors.
Toyota is the world's fifth largest company with sales of 9.98 million vehicles in 2013.
The toyota need to control their processes and to know the needs of their customers is
simplified, despite its size, by the use of information systems.

Information systems are a set of components that interact to achieve a particular

purpose, which is to satisfy the information needs of the organization. These
components can be people , data, activities or material resources in general.
An information system is an organism that collects, processes, stores and distributes
information to simplify the process of decision making.
This information systems help TOYOTA to maintain its position in the market by
improving the efficiency, and the quality of the data and information.
The principal information systems of TOYOTA are:
Toyota comprehensive warehouse management system (WMS):
TOYOTA has developed a lot of information systems which helps its production system,
as you probably know TOYOTA uses the lean manufacturing and the just in time
method, the TOYOTA comprehensive warehouse management system is an important
part that make this methods possible. This infomation system is in charge of the
management of the company warehouses, since the moment the products are received,
to stocking and location management, and to deliver. Through this system people goods
and information are managed and the waste is eliminated. (Toyota Comprehensive
Warehouse Management System, 2010)
This system also generates warehouse reports and selects the important information so
the the decision makers can use it in a efficient way, otherwise, without this system this
big amount of information would be considered trash.
The TOYOTA WMS also helps to the identify patterns and trends to improve inventory
level accuracy, reduced labor costs, and improved customer service by reducing orderto-delivery cycle times. (Antiessays, 2015)

JIDOKA
This system means automation with a human touch This infromation system
detects if a problem in one of the machines is affecting the production or not
functioning well enough, the system stops the machine so the person in charge can
identify the problem and after solving it start again the production. This way the
information system, the machine and the employee work together to make
improvements in the production and in the efficiency (Toyota Global Site JIDOKA,
2010)
Hybrid synergy drive (HSD)
The information systems of TOYOTA are not only present in the production or in the
company but in their products as well. The Toyota Prius, Toyota Auris HSD,
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Highlander Hybrid, Camry Hybrid, Lexus RX 400h, Lexus GS 450h and Lexus LS
600h/LS 600hL uses an hybrid synergy drive (HSD) This computerized systems
allows the engine to measure the energy of the car and make the power utilization
as efficient as it can be. (Ukessays, 2015)
As we know the car industry has a very strong competition between the companies
This system gives toyota a differentiation with its competitors.
Andons
This is another information system of TOYOTA; it helps the company with its
production efficiency.
This system is used to alert problems in the production process, it gives the operator
a signal that something is wrong and the system stops production and then
continuous when the problem is solved.
Some problems that this system can identify are the lack of materials, a defect in the
products, a defect in the machine or security issues.
The complexity of the systems may vary. The most simple way is a set of signals
with lights, one light color is okay and the production continues normally but when
the other light turns on production stops.
This systems allows the company to improve efficiency on the production process
and to eliminate the problems the moment they occur.
(Wikipedia, 2014)

PokaYoke
Pokayoke in japanese means foolproof is a dispositive to avoid errors. This
systems guarantees the security of the users who are working with a machine, or
process and does not allow them to fail in the production. (Gestionpolis, 2013)
In other words this system make impossible to fail for the person who is involved
with a process.
For example:

This is a POKA YOKE example, as you can see the plug can be connected just in
one way.

2. Explanation of how TOYOTA is using its information system focusing on its

Enterprise Applications.
Toyota uses Management of Information Systems across all its departments. The
operations of Toyota have improved because of the continuous development of
technology. Actually, these improvements have allowed that cars and parts
manufactured by Toyota are transported ahead time, preventing warehousing and
saving money for the enterprise. The Toyota Comprehensive Warehouse Management
System (WMS) provides comprehensive management for warehouses and logistics
centers of the entire process from the time goods are received, to stocking and location

management. People, goods, and information are managed, muri,mura, and muda
(waste, unevenness, overburden) are eliminated, and daily improvements are
supported (Toyota, 2016). This system offers remedies for the problems concerning
process structuring and planning for the flow of operations.
Productivity and efficiency is accomplished by Toyota through since it has excellent
planning aspects in his Management of Information Systems. Furthermore, Toyota has
a Model-Mix structure that allows it to improve its operational procedures. Moreover, this
excellent planning tool makes its assembly processes and make-to-order deals very
effective. The Mix-models objective is to smooth demand on upstream workcenter or
suppliers and thereby reduce inventory, eliminate changeovers, improve kanban
operation and eliminate difficult assembly line changeovers (Lee, 2006). So these MIS
helps the processes in the supply chain, and it also enhances activities with customers
of Toyota, improving its relationship with its clients.

However, MIS used by Toyota are not only implemented in the operations or supply
chain. The Finance and Marketing departments use them as well. In 2003, the Finance
department implemented the SAT software system that provides all the information
regarding to finance of all the company and its employees in order to analyze previous
and current financial figures and anticipate future financial outputs. SAP software also
enables the pricing and sales of cars by monitoring the available parts.

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 (Toyota, n.d.)

3.

Rich picture, Interaction of TOYOTA with its environment.

4. Use Case Diagram (UCD) describing the interactions of TOYOTA with its
customers and suppliers.

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The previous Use Case Diagram represents the interactions that a Toyota customer has
to engage in when placing an order at of the Toyota dealerships. It is important to
understand the different levels of engagement that occur because the simple action of
buying a car involves a whole set of activities in order to fulfill the demand, these
activities involve the agency (and all of its employees) the manufacturer (Toyota), the
customer and also the financial institutions needed to process the payment (banks)
The diagram starts when the customer is decided to buy a car from the dealer but the
dealer has to place an order to get it customized as the client wants it, then the
manufacturer starts working on the production which then extends to quality control
tests before it is delivered to the agency who in the meantime will be processing, with
the help of the banks, the two payments needed for the production order. When the car
is ready to be delivered to the customer, the agency will contact him and they both will
work on the documents and payments needed to claim ownership and release the car.
The diagram ends when the agency delivers the car to the customer.
5. Event Process Chain (EPC) showing how TOYOTAs ERP are helping to manage
the different business Processes.
In the next diagram we can see the flow of the sale process in the company Toyota.
We have all the process that they develop, since the arrival of their customer to the
agency, until they deliver the car to their customer.
This type of diagram is very special because it let us see the process divided between
the functions and the events that are developed during the whole procedure. Each
Organizational Element has its specific function in the different stages of the process, in
this case we have as Elements the Customer, the Agency, the Manufacturer, and the
Banks. The Data Elements are also clearly pointed when used in the process, and this
help us to understand better from where the information comes or where it goes.
Also, these diagrams helps the companies to see easier through the flaws of their
processes and to identify when and where theres a problem in their procedures.

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6. Data Flow Diagram (DFD) explaining the flow of data in TOYOTA.

A data flow diagram (DFD) is a visual representation of the "flow" of data through an information
system, modelling its process aspects. A DFD is usually used as a preliminary step to create an
overview of the system, which can later be elaborated. DFDs can also be used for the visualization
of data processing (structured design).
A DFD shows what kind of information will be input to and output from the system, where the data
will come from and go to, and where the data will be stored. It does not show information about the
timing of process or information about whether processes will operate in sequence or in parallel.

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7. Draw its Entity Relationship Diagram.

An entity relationship diagram is a data modelling technique that graphically

illustrates and information systems entities and the relationships between those
entities. The diagram is composed by entities, relationships and attributes.
One customer can buy one or as many cars as she/he wants.
One car is supply by one supplier.
One sales man/woman serve 0 or too many customers, but one
customer only has one sales person.

Entity Relationship Diagram

BIBLIOGRAPHY:

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1. Anonymous. (23-03-2015). Management Information System In Toyota

Management Essay. 22-03-2016, de UKessays Sitio web: Management Information
System In Toyota Management Essay
2. TOYOTA. (2010). Jidoka Manufacturing high-quality products. 22-032016, de TOYOTA Sitio web: http://www.toyotaglobal.com/company/vision_philosophy/toyota_production_system/jidoka.html
3. Cotilla Ivonne. (2008, abril 9). Poka Yoke. Tcnica de calidad para la mejora
continua. Recuperado de http://www.gestiopolis.com/poka-yoke-tecnica-decalidad-para-la-mejora-continua/
4. Wikipedia. (23 sep 2013). Hybrid Synergy Drive. 22 mar 2016, de WIKIPEDIA
Sitio web: https://es.wikipedia.org/wiki/Hybrid_Synergy_Drive
5. Wikipedia. (8 JUL 2014). Andon. 23 MAR 2016, de WIKIPEDIA Sitio web:
https://es.wikipedia.org/wiki/Andon_(sistema_de_control)
6. Anonymous. (23 mar 2015). Factors influencing the business environment
of toyota. 22 mar 2016, de UKessays Sitio web:
https://www.ukessays.com/essays/marketing/factors-influencing-the-businessenvironment-of-toyota-marketing-essay.php
7. Techopedia. (2016). Entity-Relationship Diagram (ERD). March 21th, 2016,
from Techopedia Web site: https://www.techopedia.com/definition/1200/entityrelationship-diagram-erd
8. Toyota Brand.(2016). Information Systems. Retrieved on March 22nd from
http://www.toyota-industries.com/product/indv/lf/buturyu04.html
9. Lee Q. (2006). Mix Model Production. Retrieved on March 22nd from
http://www.strategosinc.com/downloads/mixed_model-dl1.pdf
10. Toyota. (n.d.). Toyota Material Handling. Retrieved on March 22nd from
http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/30e64e88-ee392b10-839c-a08f03c7c409?QuickLink=index&overridelayout=true&30296699373615

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