Strategic Information System of Toyota: Analysis and Proposal

Running head: Strategic information system
Strategic information system

Strategic information system
Table of Contents
Introduction.................................................................................................................................................3
Identify the company’s critical success factors and objectives....................................................................3
Primary objectives of Toyota.......................................................................................................................4
Information that might be helpful in analyzing objectives...........................................................................4
Mission statement that would be suitable for client business.......................................................................4
Develop a formal organizational chart.........................................................................................................5
Current system of Toyota............................................................................................................................5
Identification of specific control weaknesses within Toyota.......................................................................7
Flow chart and data flow diagram of Toyota current system.......................................................................9
Primary features of new system and best solution the client......................................................................10
Relevance of new advanced technologies..................................................................................................11
The proposal contain various items...........................................................................................................12
Technology platform for the system......................................................................................................12
List of financial and nonfinancial data attributes for each entity in the ER diagram..............................13
Four users views that are source documents..........................................................................................14
Potential security risks, data breaches and appropriate accounting controls for the new system...............14
Conclusion.................................................................................................................................................15
References.................................................................................................................................................15
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Strategic information system
Introduction
The main purpose of this task is to discuss about the strategic information system of Toyota.
Toyota is an automobile company which in incorporated in 1933 in Japan (Toyota, 2018). It is one
of the biggest automakers measured by revenue. The headquarter of the firm is situated in Aichi
prefecture, Japan (Toyota, 2018). The firm sells and manufactures vehicles and spare parts across
the globe (Parker, 2018). The paper further outlines that how the company has been able to build a
dynamic image in the global market. Critical success factors, mission statement and information
system for Toyota also have been discussed in the task briefly. Furthermore, it discusses the EDI,
MRPII and MRP technologies of the company that help in attaining competitive benefits
globally. A description of the technology platform for the system, potential risks and data
breaches also has been discussed in the task. The organizational chart of Toyota and flow chart
also has been prepared in the task. More detail of the task has been detailed below.
Identify the company’s critical success factors and objectives
Toyota is one of the biggest and unique manufacturers of vehicles. Some of the unique factors of
Toyota’s success have been discussed below.
Production and manufacturing facilities: Toyota has its manufacturing plants at several
locations around the globe. Company produces and assembles the automobiles for the local
market supply. The company implements the lean manufacturing and JIT production that is
significant key success elements for the firm (Mba-lectures, 2011).
Extensive research and development: Durability, reliability, convenient, quality and value for
money are the factors on which companies research and development values relies. Along with
this, the firm has implemented new and innovative technologies such as gasoline electric
automobile and bulk produced hybrid to overcome the competitors in the global market. It has
manufactured Lexus and scion vehicles and further well known for quality and reliability (Mba-
lectures, 2011).
Management philosophy: It has been analyzed that Toyota follows JIT distribution techniques
and methods to build a dynamic image in the minds of the target audience.
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Strategic information system
Innovative activities: It is analyzed that “innovative international multi-purpose vehicle” plan
(IMV) was started by the Toyota to utilize its gloabal manufacturing and supply methods for the
different purposes. The firm also is trying to indulge its market demand across the globe to
increase, its number of countries supplying the automobile, more than 142. (Mba-lectures, 2011).
Primary objectives of Toyota
 The primary aim of Toyota is to highlight Toyota’s efforts towards environmental
protection as part of its international vision.
 To explain whether the company will attain its objective of becoming the growing player
in automobile industry.
 Attaining market leadership by rendering value to customers.
 Increasing its quality, reliability, and durability by built in engineering.
 Enhancing and improving the 3S dealership network quality
 To follow the laws of land and ethical business practices.
Information that might be helpful in analyzing objectives
There are ample of information required to attain desired objectives and goals. The company
needs to sustain a high form of rivalry structure of cost that would be helpful to minimize and
eliminate the extra cost of vehicles. Toyota needs to focus on the plans, policies and strategies of
the competitors to be a leader in the international market. Moreover, strategic actions shall be
taken to focus on the quality and features of automobile products and services to stand over the
rivalries internationally. Furthermore, Toyota should also focus on the generic strategies to
reduce the cost of automobile products (Toyota, 2018).
Mission statement that would be suitable for client business
Toyota has a mission of attracting and retaining its high value customers with the help of
company’s high value of products as well as services. This will satisfy their customer’s
ownership expectations.
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Strategic information system
Develop a formal organizational chart
Figure 1 Organizational chart of Toyota
Current system of Toyota
The current system of Toyota is unique and effective to stand out against the rivalries in the
global market. The company has actively and effectively propelled innovation and growth in its
information system by collaborating and incorporating new information processing technologies
while responding to ample of changes in the macro environment including sales, manufacturing
operations, rapid globalization, electronics technologies, benefits in care, changes in the
economy and compliance with universal environmental standards (Graphicsproducts, 2018). The
firm has built and improved CAM/CAD systems to broader areas of activity and actions to gain
competitive benefits across the globe. It has been found that Toyota lean production system has
changed the manufacturing industry (Dora et al, 2013). It is stated that Toyota production system
is the zenith of the organization’s dedication to continuous enhancement and improvement. It is
the unique and effective culture initiated by workers and management alike. In the company
production system, each and every person follows the same set of rules, regulations and
principles that focus on improving and enhancing production processes based on the needs and
requirements of the customers. Toyota Motor Corporation may be defined as way or process of
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Strategic information system
making things which is referred to as a system called “Just in time system” or Lean
manufacturing system”. The firm is well known and famous for its production system. Along
with this, this system for the production has also been set up based on its experience of many
years of constantly enhancement and improvements to offer the automobile vehicles as rapidly as
possible. It has been analyzed that Toyota production system is based on two major concepts.
The first is known as “Jidoka” which means if an issue or cause occurs, the instrument will stop
working immediately, eliminating defective products from being manufactured. The other
concept is well known as “Just in Time” which means that each and every process manufactures
only what is required by the next process in a constant flow (Toyota, 2018).
Jidoka may be defined as a process that a machine stops safely when it’s the normal approach or
processing is completed. It means that if a problem arises, the machine or system detects the
issue or problem on its own and prevents or reduces defective and damage products from the
production. As a result, only automobile products are satisfied good quality standards and
policies while producing the products and services. “Just in time” is other option that used by the
company while manufacturing the vehicles in the international market. In this system, a
production instruction shall be issued to the beginning of the automobile vehicle production
when a vehicle order is received. The assemble line shall be stocked or stored with sufficient
quantity of its spare parts in order to produce a new cat at the time of demand without any delay
in the order just because of lack of spare parts’ supply (Toyota, 2018).
In Toyota production system, an effective and dynamic production control tool called the
“Kanban system” plays a significant role. This method is also called as “supermarket method”
just because the thought behind it was rented from the supermarkets. Such kind of stores initiate
production control cards where vehicle related ample of information such as code, product name,
storage location are entered (Monden, 2011). In this way, it is noted that Toyota production is
dynamic and significant to attract maximum number of customers across the globe (Toyota,
2018).
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