Analysis of Toyota Motor Manufacturing, USA, Inc. Case Study

This case study examines the operational challenges faced by Toyota Motor Manufacturing, USA, Inc., focusing on issues within its online processes, supplier relationships, and offline repair procedures. The analysis highlights problems such as data overload, information inconsistency, decision-making ...Read More

Running head: INFORMATION SYSTEM
INFORMATION SYSTEM
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The Toyota Company is one of the most renowned company in the car services. It is
based at Japan and now it one of the largest vehicle manufacturing company of the world. All
though it is one of the business giants, there are certain problems that are faced by the
company as well and they are given below.
 Problems with the Online-process:
The Toyota Company is facing certain issues regarding the Corporate Customer
Information System Problem. The system produce unnecessary data which results in the data
overloading. There are multiple sources of information that is utilized by the system. The
company uses heterogeneous information system which leads to the inconsistency of the
information.1
The other problem faced by the company for the online process includes, the quality of
the information and the data challenges.2
The waste products are generated in huge lumps, which lead to the issues of the waste
management. The warehouse were developed for the management of the entire process.
One of the greatest disadvantage of the company is the deficit of the risk management.
The risk management helps in identification of the issues that may occur due to the entire
process of development. Thus the problems remained undiscovered until faced.
 Problems with the suppliers:
The process of decision making is one of the most important action in the process of
management. In case of Toyota, the entire process of decision making is controlled from the
1 Das, Srijan, Rui Dai, Michal Koperski, Luca Minciullo, Lorenzo Garattoni, Francois Bremond, and Gianpiero
Francesca. "Toyota smarthome: Real-world activities of daily living." In Proceedings of the IEEE International
Conference on Computer Vision, pp. 833-842. 2019.
2 Polancich, Shea, and Bonnie Pilon. "The Application of the Toyota Production System LEAN 5S Methodology in
the Operating Room Setting." Nursing Clinics 54, no. 1 (2019): 53-79.

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central management system in Japan. Thus the problems related to the suppliers takes longer
time to get solved that it should actually take for solving any matter.3
The supply chain process gets hindered due to the online problems that has been faced by
the company.
Due to financial downturn, the production was hindered in 2009 which resulted in the
faulty vehicles manufactured by Toyota.
Toyota’s tendency of cost cutting has led big burdens on the shoulder of the suppliers.
Poor risk management in the supply chain process is also the cause of the poor supply chain
management.
The quality is degraded due to the cost cutting from the company’s behalf.4
 Problems with the offline repair process:
The offline process of the repair was delayed deliberately by Toyota due to the financial
downturn. Reports mentioned that the company was well aware of the fact but they did not
initiate the repair process until 2010.
The average score of the mean area was calculated and some of the statistical analyses
were performed. Moreover, the issues connected with the repairing process of Toyota like the
understanding within the respondent organizations. There are many obstacle using the tools
and techniques. The multiple issues that can come while the implementation process of the
repairing technique in the Toyota industry are the technical and management issues. Some of
the lack of the contingency, human aspect and coping with the variability are the some
barriers in the industry. The main issue is the human aspects that can be faced while the
implementation of the repairing process. There are also many difficulties that the
3 Monden, Yasuhiro. Toyota management system: Linking the seven key functional areas. Routledge, 2019.
4 Dillon, Andrew P. A study of the Toyota production system: From an Industrial Engineering Viewpoint. Routledge,
2019.

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organization encounters in the repairing process of Toyota. There is lack of the suitable and
extensive knowledge of the repairing that is related to the probable issues in the organization
by the managers, gap and direction and there is lack in the recognition of the lean culture of
the organization.
Recommendation:
 Toyota should consider on development of more customer-centric approaches while
designing a car.
 The skilled labor services should be increased in order to improve the efficiency of the
business.
 Producing hybrid cars are better considering the scenarios of increasing the oil prices around
the world.
 In the world where energy is at crisis, development of the eco-friendly car is extremely
effective.
 Increasing the capacity of production all around helps in meeting the global competition.
 The performance of the car can be measured with the feedback generated by the customers
all around. Improving the customer feedback over the internet or website helps in effective
improvement of the company business.


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References:
Das, Srijan, Rui Dai, Michal Koperski, Luca Minciullo, Lorenzo Garattoni, Francois Bremond,
and Gianpiero Francesca. "Toyota smarthome: Real-world activities of daily living."
In Proceedings of the IEEE International Conference on Computer Vision, pp. 833-842.
2019.
Dillon, Andrew P. A study of the Toyota production system: From an Industrial Engineering
Viewpoint. Routledge, 2019.
Monden, Yasuhiro. Toyota management system: Linking the seven key functional areas.
Routledge, 2019.
Polancich, Shea, and Bonnie Pilon. "The Application of the Toyota Production System LEAN 5S
Methodology in the Operating Room Setting." Nursing Clinics 54, no. 1 (2019): 53-79.