Toyota's Information System Assignment PDF
Toyota's Information System Assignment PDF
Toyota's Information System Assignment PDF
ECONOMICS AND
ACCOUNTANCY
BT22103
Toyota Motor Corporation (TMC) was founded in 1937 by Kiichiro Toyoda which is
conduct business in automotive industry. Before the company founded, in 1934 Toyota
Industries created the first product Type A engine before the first passenger car,
Toyota AA created in 1936. Nowadays, TMC has sells vehicles almost in 190 countries
and regions include Japan, Asia, North America and Europe. Meanwhile, Toyota also
has subsidiaries which is include Daihatsu Motor Co., Ltd (Daihatsu) and Hino Motors,
Ltd. (Hino) 1. Toyota be able to produces and sells commercial vehicles. They are three
of producing classification for Toyota which is hybrid vehicles, conventional engine
vehicles and fuel cell vehicles.
In terms of manufacturing the automobiles, TMC using a robot and recruited 71,116
employees around the world. The efficiency TMC which is applied Just In Time make
Toyota became the world’s largest automobile maker by sales and production2. Toyota
also has many achievements in the running their business, which is included Toyota
President’s Award for 11times, Toyota Part and Service Excellent Award, DealerRater
Consumer Satisfaction Award and Edmund 5 Star Dealer Award3.
1
Reuters. Company Profile : Toyota Motor Corporation (TMC). Retrieved from
https://www.reuters.com/finance/stocks/companyProfile/TM
2
UKessays (2016). Case Study Toyota Motor Corporation. Retrived from
https://www.reuters.com/finance/stocks/companyProfile/TM
3
Toyota. Achievement and Accolades. Retrieved from https://www.wow-toyota.com/achievements-and-
accolades.htm
other countries produce Daihatsu brand. While they are two manufacturing companies
in Japan and over 10 producers for Hino in other countries4.
When comes to Information Technology (IT), Toyota give more attention to develop
and using it to run their business. From IT, Toyota has opportunities to improve their
quality in and gain a competitive advantage for their product. Toyota applied many type
of information system, such as Enterprise Resource Planning (ERP) system which helps
Toyota to improve management and make decision5.
4
Reuters. Company Background Profile : Toyota Motor Corporation(TMC). Retrieved from
https://www.reuters.com/finance/stocks/companyProfile/TM
5
UKessays (2016). Case Study : Toyota Motor Corporation (TMC). Retrieved from
https://www.ukessays.com/essays/marketing/case-study-toyota-motor-corporation-marketing-essay.php
NATURE OF BUSINESS
Toyota is an economic activity that deals with the purchase and sales of commodities
and services. Every activity undertaken by it is supported by the exchange of money. Not only
do businesses sell their goods or services for profit but they also purchase raw materials. As a
result of this purchase, businesses have to shed out funds in order to acquire resources that
can bring them profits.6
Toyota Motor Corporation (TMC) are well known as Toyota is a multinational company
founded by Kiichiro Toyoda as an independent company in 1937 and is headquartered in Japan.
Toyota Motor Corporation group companies are Toyota, Lexus, Daihatsu and Hino Motors.
There are several non-automotive companies as well which form the TMC. The company mainly
deals with manufacturing of automobiles with factories in six continents around the world and is
the world’s largest automobile maker in terms of sales and production.
Apart from manufacturing automobiles, TMC also provides financial services through its
Toyota Financial Services Division and also deals in building robots. Fortune Global 500
companies for 2008 listed Toyota as the fifth largest company in the world (Toyota Website).7
Toyota is an economic activity that deals with the purchase and sales of commodities and
services. Every activity undertaken by it is supported by the exchange of money. Not only do
businesses sell their goods or services for profit but they also purchase raw materials. As a
result of this purchase, businesses have to shed out funds in order to acquire resources that
can bring them profits.
6
Nature And Purpose Of Business ; Namratha Reddy Published on 28th April 2018. Retrieved from :
https://www.toppr.com/bytes/nature-and-purpose-of-business
7
TBP : Toyota Business Process ( Jon Miller ). Published on 22 February 2009. Retrieved from:
https://blog.gembaacademy.com/2009/02/22/tbp_toyota_business_practice
Focuses on profits because profits are the entrepreneur’s (and employee’s earnings. Profits
are different that incomes or revenues. They refer to that margin of income which is not a part
of the cost price. Thus, profit = selling price – cost price.
BUSINESS PROCESS
The Toyota Business Practice is old wine in new bottles. Granted it’s very old, very good
wine, but is nothing new. Peeling off the label will reveal the last decade’s under-appreciated
but full-bodied PDCA brand of problem solving. Lately many people have found the A3 label of
problem solving to a refreshing take on PDCA. But it’s all the same old wine. From a branding
point of view, “the Toyota Way of Working” or “Toyota WOW” would have been cooler, but it
was probably too close to Toyota Way itself8
8
Essays, UK. Factors influencing (November 2013).the business environment of toyota Retrieved from:
https://www.ukessays.com/essays/marketing/factors-influencing-the-business-environment-of-toyota-marketing-
essay.php?vref=1
As a standard problem solving process, it is excellent and widely applicable. Inevitably
“PDCA” alone was too vague. The Socratic teaching method and talk of “it takes 40 years to
learn” at Toyota has given way to a more deliberate method of teaching this thinking process at
Toyota, based on what I have seen. We could say the TBP is the result of clarify, break down,
and so forth, applied to the teaching of PDCA.
Toyota approach is that this process is so simple, obvious, and offensive to the intelligence
and self-worth of most senior executives and go-getters out there that they close the book and
say, “That can’t be right. There must be more to it.” Most people won’t understand TBP or try it.
You can’t really understand it until you try it. So it comes back to a question of packaging and
motivation.
TOYOTA PRODUCT.
Toyota is a Japan’s big brand which is sell not only a bunch of vehicle but its run a wide
variety of business. Basically, Toyota got three field of business which is include
automobile, material handling equipment and textile machinery. Toyota develop and
manufactures vehicles, engines, car air-conditioning compressor, car electronics and
devices, and stamping dies. Toyota has manufactured over 50 years in compact
medium class vehicles. Toyota also produced gas, gasoline and diesel engines in classes
ranging around 1000 cc to 5200 cc. All of the engines that manufactured in Toyota
Industries are used in Toyota brand automobile9.
9
Toyota Industries Corporation (2018). Product : Automobile. Retrieved from https://www.toyota-
industries.com/products/automobile/index.html
10
Toyota Industries Corporation (2018). Product : Materials Handling Equipment. Retrieved from
https://www.toyota-industries.com/products/industrial_vehicles/index.html
11
Toyota Industries Corporation (2018). Product : Textile Machinery. Retrieved from : https://www.toyota-
industries.com/products/textile/index.html
CUSTOMERS RELATION MANAGEMENT SYSTEM (CRM)
Toyota is among the first company in the world that practising what they called Lean
Customer Relation Management (CRM). Toyota actually has created Lean CRM due to
the massive range of customer information that the company get from vary sources
during the customer lifecycle. The developed Lean CRM has allow Toyota to get to
know the change in their consumer behaviour and hence can response in any way they
could to get the consumer retentions. This has enable Toyota to increase the sales of
their product and at the same time shortening the supply chain and enhance the
repurchasing rate among the consumer.
1. Collaborative
12
Graham Hill (23 July 2007), Make Change Stick: How Toyota Implemented Lean CRM: Article, CustomerThink Corp
retrieve from http://customerthink.com/make_change_stick_toyota_lean_crm/ at 4 December 2018. Para.7
departments signed up to the Lean CRM A3 and agreed to loosely coordinate their own
customer management activities with the program.
The report by Graham Hills also mention that, however, the implementation of
Lean CRM does not work due to many reasons that cannot be controlled. Again, Toyota
choose to use a chronologically steps to run the Lean CRM involving a series of back-to-
back pilot projects were developed in close collaboration with the pilot dealers. The first
pilot involved extracting whatever data was available from source systems in Toyota
and the pilot dealers, loading it into an analytical data mart and analysing the data to
see what could be done with it. Once the step had been piloted and proven, it was
industrialized for general use by the program.13
Lean CRM programme in Toyota are keep going through several steps in
industrialised and at the same time, few groups were integrated into it14. The
collaboration then being manage by a part-time CRM coordinator that been recruited
within the company. Toyota management also established a customer management
forum alongside the dealer advisory board to provide a framework to manage
collaboration on a larger scale, now that the programme was already delivering results.
Graham Hills (23 July 2007), also emphasize that each time one of the earlier
steps in the program was industrialized, it went through a “Kaizen” process. Kaizen is
one of the core principles of The Toyota Production System, a quest for continuous
improvement and a single word that sums up Toyota’s ‘‘Always a Better Way’’
slogan16 . Kaizen improvements in standardised work help maximise productivity at
every worksite. Within the Toyota, Kaizen humanises the workplace, empowering
individual members to identify areas for improvement and suggest practical solutions
especially in production. As the Lean CRM program proceeded, Kaizen was increasingly
applied as a daily activity by all those involved in the program’s activities.
13
Graham Hill (23 July 2007), Make Change Stick: How Toyota Implemented Lean CRM: Article, CustomerThink Corp
retrieve from http://customerthink.com/make_change_stick_toyota_lean_crm/ at 4 December 2018. Para.8
14
Graham Hill (23 July 2007), Make Change Stick: How Toyota Implemented Lean CRM: Article, CustomerThink Corp
retrieve from http://customerthink.com/make_change_stick_toyota_lean_crm/ at 4 December 2018. Para. 10
16
Kaizen – Toyota Production System Guide (31 May 2013), Latest News; Home; The Official Blog of Toyota GB retrieved
from https://blog.toyota.co.uk/kaizen-toyota-production-system at 12 December 2018.
Year 2009 2010 2011 2012 2013 2014 2015
Sales 149621 148858 139683 176480 189387 200437 209854
1 8 7 2 4 3 5
Market 14.34 12.84 10.93 12.18 12.15 12.12 12.01
Share(
%)
Sales record of Toyota from 2009 to 201517
The Lean CRM program is a success within Toyota. It now manages all of
Toyota’s outbound contacts with customers and an increasing number of inbound ones.
The efficiency and effectiveness of marketing activities have been greatly increased,
with a doubling of response rates to marketing campaigns and a halving of costs. This
is shown by the massive decrement of total cost and expenses from ¥20,990,581
million in 200918 to ¥8,661,487 million in 201519.
The secret of success was not only the new CRM capabilities introduced through
Lean CRM, but also the step-by-step way in which the changes associated with the
program were implemented. Just as with individuals in everyday life, corporate change
does not have to be painful.20
17
Toyota; US Car Sales Data; Home. CARSALESBASE. Retrieved from http://carsalesbase.com/us-car-sales-data/toyota/
at 12 December 2018
18
Selected Financial Summary(U.S GAAP); Annual Report 2009. Toyota Motor Corporation. Pages 43 .Retrieved from
https://www.toyota-global.com/pages/contents/investors/ir_library/annual/pdf/2009/pdf/ar09_e.pdf at 9 December
2018.
19
Statement of Income (31 March 2015),Financial Summary FY2015. Toyota Motor Corporation. P.26. Retrieved from
https://www.toyota-global.com/pages/contents/investors/financial_result/2015/pdf/q4/summary.pdf at 29 November
2018
20
Graham Hill (23 July 2007), Make Change Stick: How Toyota Implemented Lean CRM: Article, CustomerThink Corp
retrieve from http://customerthink.com/make_change_stick_toyota_lean_crm/ at 4 December 2018. Para. 13
2. Consumer Data Platform
Standardized
AppExchange Utilized
Mahajan and others (2011) also wrote that, Force.com somehow re-
implementing the traditional development, deployment and distribution of any business
application22. Developers, customers and partners of Toyota motors can use Force.com
to easily create new generation of on-demand applications and deploy them worldwide
as a service. Force.com allow applications to be easily shared, exchanged and installed
21
Ankit Mahajan, Arushi Agarwal, Hari Krishnan & others (2011), Study of Implementation of Lean CRM in Toyota,
retrieved from https://www.scribd.com/doc/64467820/Implementation-of-Lean-CRM-in-Toyota-2 at 5 December 2018.
Pg.13
22
Ankit Mahajan, Arushi Agarwal, Hari Krishnan & others (2011), Study of Implementation of Lean CRM in Toyota,
retrieved from https://www.scribd.com/doc/64467820/Implementation-of-Lean-CRM-in-Toyota-2 at 5 December 2018.
Pg. 14
with a few simple clicks via Sales.com’s AppExchange marketplace. It is enabling all the
innovation that Force.com to be easily distributed to the entire on-demand community.
23
http://www.salesforce.com/appexchange
SYSTEM APPLICATION AND DATA IN PROCESSING (SAP)
Toyota as a global leader in automotive manufacturing use SAP to help them build
the infrastructure of the company. SAP is a software that used to help in managing and
supporting the company operational activity to be more efficient. This software is a new
accounting system to centralized information sharing system mainly to help the
company respond to any business or market changes. With Sap software implemented
in the company, it helps Toyota to reap benefits of faster response time to assist them
in strategy decision, latent and future risk in company business.24 (Sap News, 2018)
Next, SAP helps them take control of finance as it provides a tools to manage the
company financial operation, where it automates day to day accounting tasks such as
maintaining ledger and journal entries , tax calculation and many more. In controlling
aspect, SAP can accurately manage their cash flow, expenses and control their budget.
Other than that, the software helps in banking and reconciliation where the process of
transaction such as payment by check, cash and bank transfer can be done in short
amount of time. At the same time, SAP software could gather all information in one
24
SAP News, 22 July 2018, Toyota Motor Corporation Chooses SAP S/4HANA and SAP HANA to Help Drive Operational Efficiency,
SAP News Center
25
Benefits of SAP Software: What Can It Do For Your Business. Steven Saslow. December 24, 2014
platform to generate standard and reports from real-time data for the company
business planning and for audit review purposes.26(Purnell, 2018)
Apart from helping in term of financing and operational, SAP also can create a loyal
customer base to attract customer to maximize the profit. Moreover, with the help of
SAP they can store the data of customers in a single place to secure the information of
the customer. By having this help to the management, the employee are able to work
efficiently and orderly in short amount of time. SAP can provide service management by
providing warranty and service. Last but not least, it can assist the company to create a
detailed analysis report of sales and also forecasting and tracking the pipeline of their
company sales.27(Saslow, 2014)
26
Freya Purnell, 30 July 2018, Toyota to Implement S/4HANA to blend Transactional and Analytical Data Processing,
Market Insight.
27
Benefits of SAP Software: What Can It Do For Your Business. Steven Saslow. December 24, 2014
TOYOTA PRODUCTION SYSTEM (TPS)
Toyota are actively influence the development and innovation in their information
system by corporate with the processing technologies while spread the effect to various
changes in the external environment which is the globalization of development ,
manufacturing and sales operations , and advancements in car electronics technologies
as well changes in the Japanese and global economy. According Steven Taylor the
Toyota Production System revolutionized the process of automobile manufacturing not
only in Japan, but also within the United States, this revolutionary system changed the
28
scope of the automobile industry in the United Stated .
The main objectives of the TPS are to avoided any overburden and inconsistency
as well to eliminate any wasteful things (Ohno, 2013). The most significant effect on
process value deliver are achieved by designing a process capable of delivering the
required results smoothly that required to unwanted lack of uniformity. It also ensure
the process are running with flexibility without the overburden or overstress because it
will arise the wasteful part. There several waste that mentioned which is waste
28
Steven Taylor. The Toyota production system’s effect on the American Automobile Manufacturing
industry .Retrived from : http://campus.murraystate.edu/academic/faculty/wlyle/540/2012/Team2.pdf
29
Shmula (2017, July 9 ). The History of the Toyota Production System. Retrieved from :
https://www.shmula.com/tps-the-history-of-the-toyota-production-system/23618/
overproduction, waste of time on hand, waste of transportation, waste of processing
itself, wast e of stock at hand, waste of movement, waste of making defective products
and waste of underutilized workers. ( Atwater & Herbert, 2008)
The foundations of the Toyota Production System has there main elements which
Kaizen, production levelling (Heijunka) and standardization. On Kaizen stage , it is a
continuous improvement process that tries to improve producht as well as internal
process. For instances, development, production, distribution and sales. The objective
of Kaizen are to create quality from the beginning and standardization of operations in
accordance with the considerations of the involved employees by identification with the
task and correctly follow the self-imposed standards. In addition, Kaizen’s goals also o
achieve a conscious and responsible avoidance of waste of resources such as material
and time. (Fritze, 2016)
As for production levelling (Heijunka) , the production areas and their logistics
become smoothed and the demand for sub-assemblies and components from the
supplier are the same every day. (Black, 2007). Heijunka helps to master the enhance
of product diversification and prompt visualization of production orders and leads to
soothe production processes. (Ohno, 2013). The goals of Hejunka are creation of
contstant material and information streams to achieve a higher possibility of planning ,
ensure a smooth production rhythm through decoupling of the customer’s production
orders and creation of customer effective flexibility while continuous reduction of the
total costs. (Dickerman, 2015).
Last but not least , the standardized work processes can be define by effectively
implemented within the car manufacturing industry and enters particularly in context of
holistic production systems in focus. The standardization of mounting forms the
main focus of standardization. This standardization is partly achieved by
30
documentation in so called standard operations through the employees . (Fritze,
30
Christopher Fritzed (2017). The Toyota Production System : The Key Elements and the Role of Kaizen with the
system. Retrieved from: https://www.researchgate.net/publication/289519018_The_Toyota_Production_System_-
_The_Key_Elements_and_the_Role_of_Kaizen_within_the_System
2016). The standard operation can be summarized with this components of working
style which is the work sequence explains the content and the sequence describes the
build upon each other steps which are necessary for the fulfilment of the tasks and the
cycle time describes the maximum amount of time to create a product. The cycle time
depends on the production quantity and results out of the available working time and
the number of units that needs to produced. (Fritze, 2016)
As a conclusion , the effective of usage this system are proven by the economic history
whereby the economic crisis that shook the world from 2008 to 2009 that give more
impact to several country. Toyota has been succeed regarding with the overcome of
that issue because of the practising of information system that leads them use the
organization wisely and avoid any wasteful and ineffective management.
TECHNICAL DATA PROCESSING SYSTEM.
A data processing technical is mainly responsible for organizing and cataloging data.
Technical data require to be very detail-oriented and to maintain focus while performing
repetitive duties. Toyota has actively propelled growth and innovation in its information
systems by incorporating new information processing technologies while responding to
various changes in the external environment, including rapid globalization of
development, manufacturing, and sales operations, advancement in car electronics. We
can different in five parts of development in technical Data Processing systems of
Toyota.
31
Mike Bafan (1962 August 18 ), General Manager of information Management , Toyota motor North America,
has used first this system. http:// Toyota global business.com/ technical _information_ system_globally/ at 21
September 2017.
32
Shean Whatson - Data management system of Toyota (31 jun 2017), 3rd part has been given information of data
management from https: Toyota.com. bd/ Whatson_information_system_of Toyota.
integrated into all in one unit. During the data processing stage, instruction sets,
known as programs, they provided to let the system know what to do with the
entered system data33.
33
Selected technical information system(31 March 2014) data summery bt 2014. Toyota
corporation .Www.Toyota_global_Motor_corporation_business_Process_info rmation/ data processing
system.summary.pdf at information sector.
Conversion of body shape to numerical data (Linear). (1979- Andrew Coetzee-
group vice president- research & technology department “head office Japan”)
Toyota company conversion of body shape to numerical data (curved surface)
and Provision of CAM to body manufacturers commenced also body CAD (win
outstanding information processing system award in (1985).
34
Toyota; Us Car Sales Data, Home.CARSALESBASE. RETRIEVED from hhtp://caresalesbase.com/uk-car-processing-
data / toyota/ at the 18 OCTBER 2016.
REFERENCES
Ankit Mahajan, Arushi Agarwal, Hari Krishnan & others (2011), Study of Implementation
of Lean CRM in Toyota, retrieved from
https://www.scribd.com/doc/64467820/Implementation-of-Lean-CRM-in-
Toyota-2 at 5 December 2018. Pg.13.
Christopher Fritzed (2017). The Toyota Production System : The Key Elements and the
Role of Kaizen with the system. Retrieved from:
https://www.researchgate.net/publication/289519018_The_Toyota_Production_
System_-_The_Key_Elements_and_the_Role_of_Kaizen_within_the_System
Essays, UK. Factors influencing (November 2013).the business environment of toyota
Retrieved from: https://www.ukessays.com/essays/marketing/factors-
influencing-the-business-environment-of-toyota-marketing-essay.php?vref=1
Graham Hill (23 July 2007), Make Change Stick: How Toyota Implemented Lean CRM:
Article, CustomerThink Corp retrieve from
http://customerthink.com/make_change_stick_toyota_lean_crm/ at 4
December 2018. Para.7
Kaizen – Toyota Production System Guide (31 May 2013), Latest News; Home; The
Official Blog of Toyota GB retrieved from https://blog.toyota.co.uk/kaizen-
toyota-production-system at 12 December 2018.
Mike Bafan (1962 August 18 ), General Manager of information Management , Toyota
motor North America, has used first this system. http:// Toyota global
business.com/ technical _information_ system_globally/ at 21 September 2017.
Nature And Purpose Of Business ; Namratha Reddy Published on 28th April 2018.
Retrieved from : https://www.toppr.com/bytes/nature-and-purpose-of-business
Shmula (2017, July 9 ). The History of the Toyota Production System. Retrieved from :
https://www.shmula.com/tps-the-history-of-the-toyota-production-
system/23618/
Steven Taylor. The Toyota production system’s effect on the American Automobile
Manufacturing industry .Retrived from :
http://campus.murraystate.edu/academic/faculty/wlyle/540/2012/Team2.pdf
ket Insight.
TBP : Toyota Business Process ( Jon Miller ). Published on 22 February 2009. Retrieved
from:
https://blog.gembaacademy.com/2009/02/22/tbp_toyota_business_practice