FINAL PROJECT
TOYOTA PRODUCTION SYSTEM (TPS)
Lecturer:
PUAN HASNAH BINTI HASHIM
Prepared By:
MOHD HUDZRUL NIZAM BIN ABDUL RAZAK
MOHD AMIN SYAHIR BIN AZAARI
Group NIMBSF4A
Submission date: 13 Jun 2015
Table of Content
Introduction
1-5
Organization Background
6-11
12-16
17
18-19
20
21
Types of IS
22
Details of Selected IS
23-25
Functional Description of IS
26
IS Components
27-28
IS Activities
29
30
31
32
33-34
35-36
Conclusion
37
References
38
Appendix
39-43
Preamble
Firstly after a month efforts and struggle in preparing this assignment finally it is completed
properly. Alhamdulillah, we are thankful and grateful to Allah S.W.T. for giving us the
chance to live every each day with a healthy mind to contribute in pouring ideas on
completing this task.
Great deals appreciated go to the contribution of my faculty - Faculty of Information
Management (IM221). I am also would like to thankful to our lecturer of IMS 552 Puan
Hasnah binti Hashim for his valuable guidance and advice of assignment. Without his help,
it is hard to done it properly.
My grateful thanks also go to our groups Mohd Amin bin Syahir. A big contribution and hard
worked from you guys during the two week is very great indeed.
Finally, deepest thanks and appreciation to our classmate group (NIMBSF4A) for their
cooperation, encouragement, constructive suggestion and full of support for the report
completion, from the beginning till the end.
Thank you.
Understand the technology lies at the heart of computer-based and information handling
characteristics and abilities
Information about how to handle the construction, and organization Used for a variety of
tasks and how the information is used by the system I can be with them, and as you do.
Others, Information systems of some size and complexity can be found in a great variety of
environments:
Government
Education
Health care
Military organizations
Entertainment
Most parts of industry including manufacturing, distribution, retailing, and services, etc.
1
Finally, our group decides to choose Toyota Information System for this project. Here you will
find some information about the following topics as:
Company background Information system used How information systems are helping Toyota
Advantages & Disadvantages of the information systems Other interesting issues
History of Toyota
Chronology
Toyota is the one of the largest automobile manufactures in the industry world, it first founded by
Kiichiro Toyoda in 1937, Japan. In this report will contain overview of the company, information
system used, how information systems are helping the company, advantages & disadvantages of
Toyota systems, plans of having additional information system and other miscellaneous issues.
Ever since its founding, Toyota has sought to contribute to a more prosperous society through
the manufacture of automobiles, operating its business with a focus on vehicle production and
sales.
To celebrate its 75th anniversary, the company has compiled 75 Years of Toyota. Have a look at
the company's progress over the last three-quarter century.
Akio Toyoda
:
:1 Toyota-Cho, Toyota City, Aichi Prefecture 471-8571, Japan.
: (0565) 28-2121
Nagoya Office
Phone
: (052) 552-2111
Date founded
Capital
Shareholders
Shareholder Composition
Fiscal Year
Business Sites
Number of employees
(consolidated)
Number of employees
(non-consolidated)
1924
1929
1930
1933
1935
1936
1937
1938
1950
Company faces a financial crisis; Toyota Motor Sales Co., Ltd. is established.
1951
1955
The Toyopet Crown, Toyopet Master and Crown Deluxe are launched.
1957 The first prototypes of the Crown are exported to the United States; Toyota Motor Sales
U.S.A., Inc. is established.
1959
1962
1965
1966
The Corolla is launched; business partnership with Hino Motors Ltd. begins.
1967
1974
1982 Toyota Motor Co., Ltd. and Toyota Motor Sales Co., Ltd. are merged into Toyota Motor
Corporation.
1984 Joint venture with General Motors (New United Motor Manufacturing, Inc.) begins
production in the USA.
1988
1989
1992
1997
1999
2000
2001
2002 Toyota enters Formula One World Championship; Tianjin Toyota Motor Co., Ltd. begins
production in China.
2004
2005
2008
2010 Worldwide Prius sales top 2 million mark; Toyota and Tesla Motors agree on joint EV
development.
2011 Worldwide Hybrid Vehicle sales top 3 Million mark; Toyota Motor Manufacturing,
Mississippi, Inc. begins production in the USA.
2012
10
11
Toyota will lead the way to the future of mobility, enriching lives around the world with the
safest and most responsible ways of moving people.
Through our commitment to quality, constant innovation and respect for the planet, we aim to
exceed expectation and be rewarded with a smile. We will meet our challenging goals by
engaging the talent and passion of people, who believe there is always a better way.
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13
14
15
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At the time of the liberalization of the communications business in the 1980s, Toyota Motor
Corporation (Toyota) entered the communications business with an investment in Teleway Japan
Corporation (TWJ), International Digital Communications Planning Inc. (IDC) and IDO
Corporation. This growth field attracted considerable attention, however, and as a result of
business mergers and consolidation, Toyota came to support KDDI Corporation. In 2001, Toyota
established the IT & ITS Sales Division (now the Vehicle-Connected Product Business Division)
to develop the information technology (IT) business with a focus on mobile phone sales.
Intelligent Transport Systems (ITS) use IT such as state-of-the-art electronic technologies and
telecommunications technologies that link people, vehicles, and traffic environments and
infrastructure to create new social systems that can achieve environmentally-friendly, safe,
efficient, and convenient traffic and social environments. These initiatives are intended to build
vehicle transport systems that will help Toyota maintain a leading edge in the automobile
industry in the future. In recent years, research and development is being conducted through
collaboration by industry, government, and academia under national projects in various countries.
As a central leader in this field, Toyota has driven these efforts globally. Toyota is conducting
research and development with the aim of establishing commercial applications of ITS, primarily
through the ITS Planning Division (now the IT & ITS Planning Division), which was established
in 1996.
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18
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The systems would collect data from various locations at various points. These will ensure that
the data will be of required types. All the systems at Toyota will handle the alphanumeric data as
well as the integer data. The real numbers also will have to be handled when it comes to the
prices and other aspects with decimals in place. The data is collected from the source documents
and some of them are captured by the electronic form. For instance, many import data is captured
from the documents and entered into the system while there are other data points available in the
electronic form. For instance, the stores management system will capture vehicle data through a
barcode system and this does not involve of any manual data entering process. Thus the systems
are capable of capturing and handing various data types.
The systems will process the data and provide information to the parties who need such. This will
allow them to make decisions and take suitable action. Thus the information is the ultimate result
of these systems. Many of the reports generated by the finance system are used for these purposes
clearly. Thus the data captured via transaction processing systems are transformed into
information by the system. By analyzing the reports generated by the system, the company
management will be able to gain knowledge. The information will be used by the management
with the practical scenarios and this is the knowledge they create from the information given by
the system. Management combining information with the past and the environmental aspects
become creation of knowledge (Leibert, 2011).
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Any of the companies will have to have different information system modules in place running
the businesses over the long term (Istook, 2002). In the case of Toyota, the company has a
number of different systems in place and this would ensure that the company will have their
operations suitably in place. The following are the main systems the company has in place.
1. The import system This is the system which handle all the import related activities of the
company. The import price, shipping related costs and the duties will be entered into the system
and the system will provide the total cost of importing each vehicle and allow company to decide
the price of these vehicles.
2. The stores management This is the stores management system. Due to having a solid store
management system, the stores can issue a vehicle within two hours after a requisition was raised
for such release. Limited processing taking place also is managed by the stores management
system.
3.
The job costing system This is related to the vehicle serving activities of the company.
Thus the job costing system also plays a very important role in establishing the costs for each
jobs and the price that they would charge from the customers.
4.
Sales system this will make sure that all the sales activities are recorded. The pricing for
the products and the services are entered based on the costs provided by the other systems and the
management deciding on the markup they would keep on the service.
5.
Finance system this is the core of the information system and work with all the other
modules. The system will produce a number of management reports at the end of each of the
month.
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The system
Type
Transaction processing
information system
Sales system
Finance system
22
and
Management
The issue on Management Information Systems (MIS) for organizations is the system that helps
in the provision of information that is needed in the management of the effective organizations.
This is regarded to be a kind of subset for the internal controls for the organizations, especially
the procedures on how the business is run. This may cover documents, the application done by or
for the people, the procedures that are used by the accountants in solving their business problems,
the technologies that are encompassed and lastly the services or the business wide strategies put
in place. In early times, the internal reporting used to be done manually and only periodically, but
since the invention of computers, it has become paramount that business procedures and the
strategies
be
done
and
reviewed
regularly
in
the
organization.
The best way to describe the Information Systems for the Toyota Motor company is by looking at
its SWOT analysis, that is, the Strengths, the Weaknesses and the Opportunities. Its strength is
seen in the way they are capable of integrating the company goals globally by just using their
systems in a most effective manner. They get to serve their customers in a most efficient manner
such that even in todays competition in the motor industries, the company is listed as
commanding a large share of the customers. It therefore stands tall, and its management of the
MIS is high. The company is developing and manufacturing, as well as utilizing much of these
systems. An example is the Warehouse Management System (WMS) and stocking management
system for automatic warehouses.
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The T-WINS LS provides comprehensive management for warehouses and logistics centers of
the entire process from the time goods are received, to stocking and location management, to
delivery. People, goods, and information are managed, muri,mura, and muda (waste, unevenness,
overburden) are eliminated, and daily improvements are supported.
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The Toyota Production System (TPS) seems to be interconnected with the companys culture
because it is so integrated into everything the production division does. Jidoka enables line
workers to stop production in order to immediately correct mistakes or defects. Monitoring
software provides real-time alerts of malfunctions in equipment or robots. These types of built-in
processes create an atmosphere of empowerment and send a strong message to workers that the
corporations basic principles are indeed part of its culture.
TPS and the companys culture seem to be interdependent. If TPS wasnt available, the workers
wouldnt have the capability and processes available that give them the tools they need to meet
cultural expectations. Its doubtful either could operate without the other. Processes must be in
place to provide mechanism and avenues for workers to be able to stop production in order to
correct errors or fix mistakes. TPS wouldnt work if the culture didnt support it.
The Toyota Production System (TPS) was established based on two concepts: The first is called
"jidoka" (which can be loosely translated as "automation with a human touch") which means that
when a problem occurs, the equipment stops immediately, preventing defective products from
being produced; The second is the concept of "Just-in-Time," in which each process produces
only what is needed by the next process in a continuous flow.
Based on the basic philosophies of jidoka and Just-in-Time, the TPS can efficiently and quickly
produce vehicles of sound quality, one at a time, that fully satisfy customer requirements.
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Process the associated transactions, including shipping, receiving, put away and
picking .
Direct and optimize stock put away based on real-time information about the status of
bin utilization .
When Toyota Warehouse Management System (WMS) combined with the logistics equipment
of TOYOTA Material Handling Company, they are able to provide customers with
optimized logistics solutions at their worksite.
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27
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29
Fujitsu Software Technologies (formerly Fujitsu Prime Software Technologies [PST]), following
the burst of the IT bubble in 2000, introduced the Unified Modeling Language (UML) and
intensified its project management to improve the productivity of software development. These
efforts improved productivity, but not enough to overcome IT deflation. To break through this
situation, the Toyota Production System (TPS) which has already proven its effectiveness in
hardware manufacturing, was introduced experimentally to the software development processes.
This means that the concepts of TPS such as the elimination of muda (waste), heijunka (leveled
production), jidoka (automatic detection of abnormal conditions), and visual management are
practiced in the software development processes. To implement these concepts, the agile
development process (hereafter called agile development) and the store management method,
which employ TPS, have both been introduced.
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PSTs software maintenance support business is not suited to agile development. However, PST
improved the operation of this business by introducing the store management method. The
problems affecting the traditional operation of this business and the advantages of the store
management method are described below. The problems were as follows:
1. The workload tended to be concentrated at the end of the week and in the late afternoon.
Therefore, workers frequently had to work overtime and on holidays.
2. Because of the workers differing abilities, some workers had an especially high
workload.
Implementing the store management method had the following effects.
1. Visual management of the workload status enabled the team members to always
understand the distribution status of the workload and to level the workload
independently. Since the store management method was introduced, none of the current
team of workers has had to work during a holiday.
2. The difference in overtime hours was reduced to about 30% by leveling the workload
between workers.
3. The teamwork capability was enhanced by about 20%. Before the store management
method was introduced, there were no methods to measure the quantity of work in the
software maintenance support operation; therefore, it was not possible to understand the
work capability quantitatively. However, after the introduction of the store management
method, all of the work has been recorded on work cards so the work capability can be
understood and evaluated by analyzing and aggregating these work cards. This is another
big advantage of the store management method.
31
WMS likely increases the accuracy, reduce the labor costs. Provided the labor required to
maintain the system is less than the labor saved on the warehouse floor.
Increased the accuracy and efficiencies in the receiving process may reduce the level of
safety stock required.
Improving quality. This enabled it to become one of the ten largest companies in the
world.
It based on the basic philosophies of Just-in-Time, the TPS can efficiently and quickly
produce vehicles of sound quality, one at a time, that fully satisfy customer requirements.
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STRENGTH
Warehouse Management System (WMS)
Less movement of the producing labor leads to less time in producing (just in time).
Every step of the production can be checked, go smoothly and without any mistakes due
to (jidoka).
Good quality
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Costly
Complex to use
To implement this system they need to dismantle previous systems, train employees
how to use it.
Complex to use.
Supply problems.
In lean manufacturing they keep small amount of inventory in hand, so they need a
supplier that they fully trust not to interrupt or delay the supplies and
always stay on schedule
34
In order to solve the weakness, we need to keep improving these systems, by reducing its
complexity at the lowest possible cost.
A platform depend on the cloud computing of Windows Azure that focus on the services
over the internet as it will be integrated with Toyota telematics services that depends
on the telecommunication plus information systems with connection to the mobility
feature of the smart phones such as iPhones.
2) New system:
New system will be able to serve the customer in new innovative ways:
1- Ability to monitor and control the car any time with safety code as it's connect to the cloud
software:
Customer can monitor the miles to the next charging station directly through the GPS
systems of the vehicles
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3-
Customer can check the battery power level by the remote technology that smart phones
can offer
Giving the command to the car to charge when the power demanded as it connect to the
smart grid by using the voice recognition of the customer
Environmental advantage:
Less use of fuel as it is using the electricity. The result is less carbon.
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This report explain many points: Overview of the company, information system used how
information systems are helping the company, advantages and disadvantages of Toyota systems,
plans of having additional information system. To sum up, we find that Toyota Company has
important information systems. According to our study we come up with these points.
Getting a lot of information about Toyota Company Systems, knowing:
How the data are converted to information and information is converted to knowledge in
the real system.
How Toyota Company Systems benefits the organization by improving process and
customer satisfaction.
When implementing the TPS concept using agile development and the store management method,
we found it is useful to return to the fundamental principle of manufacturing in the software
field and to improve our software development process. The concept of TPS was introduced to
some of the divisions experimentally in 2003, and by the end of 2004, it had been introduced to
every PST division. PSTs profits stopped declining in September 2004, and the company has
been on a gradual recovery since then.
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The End
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