Management information system of toyota company
Contents
Management information system (MIS) 2
Weaknesses of the MIS system 9
Introduction
Management information system (MIS)
Based on the type of
industry, there are different form of management information system used
in an organisation. The diagram above, shows different level of users
and the type of management information system used. At the lower level,
transaction processing system or TPS is used. The TPS system is used to
record daily business transactions. For example, a POS system which is
used to record daily sales. The management information system or MIS is
used to help a manager to make structured decisions. The output of TPS
system is taken as an input of MIS system. At the top level, decision
support system or DSS is used which is also help a manager in making
structured decisions. Output of MIS system is taken as an input of DSS
system. It also gets data from other external sources like competitors
or market, etc. (MIS - Introduction - Tutorialspoint, 2020)
A management information system can be employed in two types, in an organisation, manual and computerized information system. The manual information system (IS) did not use any computerized device. All the tasks including record, store and retrieval of data is done manually by responsible peoples. It contains peoples, processes, data, reports and other system in this manual IS system. While the computerized information system, is used to identify challenges of manual IS system. It uses computerized systems like hardware and software to store, record and retrieval of data (Management Information Systems (MIS), 2020).
Use of MIS system
Advantages of MIS system in the industry
It enhances and develop team communication between different teams by collaboratively managing and facilitate information.
It helps a business to remain competitive and transform the ways to do business more effectively.
Toyota – company overview
They started concentrating on smaller manufacturing sectors and manufacture only what clients will needs, meeting their demands. Owing to their concentration in consistent development, they implement an effective change-over and machine set programs that are way ahead of their competitors. This capability of instant responding to the new market make TPS an effective system still today. They well understand the need of quality management and dependable products to the client. The major advantages of Toyota’s management information system (MIS) is their ability to combine their business objectives to utilize the system effectively. Toyota can now connect to the clients in many regions even they are at different sites or networks around the world. As their MIS system is connected to the global site (Toyota Motor Corporation - Company Profile, Information, Business Description, History, Background Information on Toyota Motor Corporation, 2020).
Management information system of Toyota company
As we discussed in the previous section, Sakichi Toyoda started Toyota in 1927. They start producing cars in year 1933. Today it is known as world’s largest automobile company by production and sales of vehicles. They develop an innovative management information system (MIS) to be used at the company. Toyota is functioning all over the world dealing with global clients & leaders to enhance the shipment process. They use several improvements in dealing with the shipment system since they started developing their customer base. After several process improvements, they develop a management information system that is now critical to aid in the company to gain success. This will help them in gathering large business information with significant time advantages to their employees. Till time all the analysation and documentation of information is done through manual process by their employees. To find a better MIS system, Toyota started developing procedures to meet strategic level. They analyse all their yearly reports, budget and operating scheme. They also consider and use futuristic need of the business while preparing business activities. Without the MIS system, it is exceedingly difficult to check the effectiveness of newly development programs and activities.
Andons – Toyota develop MIS system which has visual controls to immediately covey the status of ongoing production process. It helps in informing the workers weather the system is operating properly or there is something wrong with it. It halts the system if any issue is found. The Andons system also provide details about the which system is running with critical data or operation or working with real time situations as it is configured to work on.
Implementation analysis of the MIS system
The management information system developed by Toyota corp. is used in many business processes. Primarily, it is used in department level in many business operations. It improves their manufacturing processes and other related operations like they are now able to transport vehicles on time and save huge money in storing like activities (Transport and distribution | Toyota Material Handling Europe, 2020). The warehouse management system provides a smoother flow of operations. Where they keep watching of every process and structure from prototyping of a vehicle model to its production. This remove the repetitive processes under this procedure and a centralize system is now watching and storing all the activities. Better coordination with suppliers and developers provide more business opportunities. This new management information system (MIS) implemented at Toyota is known as model-mix structure which offer good efficiency and better productivity in operations. The model mix approach allows Toyota to enhance their operational procedures which are more important to them. The better planning allows effective processing of auto parts and their assembly to make the order ready soon. The SAP, as a part of MIS system, collect specialized orders of production which can include production and assembly of car parts. The SAP manage the order status and scheduling of each process till the completion of delivery of the order. All the suppliers relate to their online business portal. Where they can see the details of every process of the order with a detailed status in real time. These details may include real time order status, its schedule, order receipt, and other relevant information. When the corresponding supplier received their order, they can share shipment details to get informed the company and related management. This help in tracking the order and make the process much smoother so that delivery time will be reduced. Here, Toyota use the Jodika tool to conduct a real time monitoring of the assembling process. Jidoka track the process, verify it and record all the related information. It also manages the automobile parts and remove the parts from the stock which are used in the production process. It then uses this information in preparing order details like cost of the order by adding the cost of the used parts in that order. Customers are now having access to the resources of their interest like parts warranty and more through the online MIS portal. This also helps in reducing time to shipment process and increase the supply chain activities in terms of demand analysis and delivery tracking. As a result, Toyota is enabled to manage and reduce the time utilization among the delivery of vehicles to their loyal customers (TOYOTA MOTOR CORPORATION GLOBAL WEBSITE | 75 Years of TOYOTA | Personnel Matters | Information Systems, 2020).
Strength of the MIS system
Weaknesses of the MIS system
As we discuss in the above section about the advantages or strength of the MIS system used at Toyota, there are several weaknesses also of this system. Sometimes, the planned things will not work exactly we want and may create issues. Here are the issues or weaknesses of the management information system (MIS) of Toyota (systems and بي, 2020) –
While implementing a new system, need to dismantle the older system and provide training to the staff. Sometimes it is a complex task to do at the corporate level.
It requires detailed explanation and good understanding to use the processes
As it uses automated processes without any human interaction, can increase a level of depression among the employees.
Recommendation
Conclusion
References
Bizfluent. 2020. Application Of MIS In Business. [online] Available at: <https://bizfluent.com/facts-6938756-application-mis-business.html> [Accessed 23 September 2020].
Aristole Consultancy. 2020. Why MIS Is Important For Business – Advantages Of MIS & Reporting. [online] Available at: <http://aristotleconsultancy.com/mis-important-businesses/> [Accessed 23 September 2020].
systems, T. and بي, ع., 2020. Advantages & Disadvantages Of Toyota Information Systems. [online] Toyotaprojectteam.blogspot.com. Available at: <http://toyotaprojectteam.blogspot.com/p/advantages-disadvantages-of-toyota.html> [Accessed 23 September 2020].
Idii.com. 2020. [online] Available at: <http://www.idii.com/wp/wms-justification.htm> [Accessed 23 September 2020].
CORPORATION., T., 2020. Toyota Global Vision | Vision & Philosophy | Company | Toyota Motor Corporation Official Global Website. [online] Toyota Motor Corporation Official Global Website. Available at: <https://global.toyota/en/company/vision-and-philosophy/global-vision/> [Accessed 23 September 2020].
