Saturday, April 19, 2014

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Toyota is one of the world’s largest automobile manufacturers, selling all over five continents. Toyota’s philosophy is very customer-centric, which is based on the Japanese set of values and principles. Toyota was incepted in the 19th century, when Saki chi Toyoda invented first power loom, and later founded the Toyoda spinning and weaving company. His son, Kicchiro Toyoda, built an automatic loom. This young man developed quite an interest in nascent automotive industry of Europe and US. He sold off the patents of automatic looms and laid the foundation of Toyota Motors Corporation in 1937.

At Toyota, capacity planning is done on basis on demand. Their operations department not only calculates efficiency but also utilization as well.Capacity planning in any company is part of a supply-chain management for that specific company. Toyota’s way to capacity planning is that it strives to eliminate inventory. In achieving this objective Toyota relies heavily in pull system. Generally, the main objective is continuous improvement. The resource planning is done with the capacity planning. The tangible resources include material, machinery, parts, etc. whereas intangible resources include people, trademarks and patents. Toyota has adopted Total Quality Management, Kabana. How does Kabana works? According to Kabana each part travels with a card. New stock will only be required when that part has been used; the card is removed, using signals to re-stock this part. Kabana is well integrated in Toyota’s production system, because in Toyota there are limited numbers of parts with stable demand for them. Also, product mix is low and exchanges are infrequent.The dimensions of Quality are performance, aesthetics, special features convenience, safety, reliability, durability, perceived quality and service after sale example dimensions,Toyota ( Automobile),Performance,Everything works fit and finish and Antilock brakes.

 Toyota Company is a leader in emerging technologies. Toyota motor company can clearly be evaluated by using SWOT analysis. To integrate their company goals globally by using their systems effectively is their biggest strength in Toyota’s information. Toyota reaches its customers in different markets by using different online systems for different world regions. The language barrier is the major weakness of Toyota’s information system. The Japanese based company has language barrier with its international employees and customers. Language barriers on the international scene pose a significant hurdle to using information systems effectively. Toyota use English language mainly but their company is japan based so Japanese is their significant part of information sharing.

Transportation system has created new opportunities in Toyota .It is working globally with partners and government to improve the ease of transportation. In Toyota research transportation system they use information from their customers as well as from other companies. Toyota has success in transportation system.A threat to Toyota information systems includes resistance to information sharing between companies. Toyota needs to integrate information and share ideas with other companies such as ford and Honda to advance their information system. In competitive market companies don’t share information and research with their competitors. This poses a direct weakness to Toyota because the advancement of systems like their Transportation System initiative depends on the sharing of global information through the use of networks and information systems databases.

Another great way to evaluate the information systems for Toyota Motor Company is to examine the Porter Five Forces Model for competitive advantages. In examining this model as it pertains to Toyota, it's important to examine
·                     rivalry among existing competitors,
·                     the threat of new entrants,
·                     the threat of substitute products
·                     the bargaining power of buyers, and
·                     the bargaining power of suppliers.

 Toyota has strategically placed them into position to gain a competitive advantage by considering several of the Porter factors.In automotive markets Toyota motor company exists mainly, they have significant numbers of competitors. There major competitors are Honda ford GM and Chevrolet.in industry exist cost leads Toyota to competitive advantage in their information system .new hybrid synergy drive is one of the major example of an information systems competitive advantage for Toyota. As the automotive industry has suffered from high gasoline and crude oil costs, a computerized engine system is developed by Toyota that monitors engine performance and makes energy usage efficient in their Prius and Camry sedan model this system has employed which leads the market in hybrid vehicles.

Hybrid synergy drive has been evaluated by porter’s model factors for threat of substitute products. By developing similar drive and neutralizing other companies can enter the hybrid market .for their sedan model Nissan and Honda have developed similar technologies .Toyota still dominates the market for hybrid vehicles because Honda and Nissan do not have impact on the market yet. Toyota can lose its competitive advantage if hybrid vehicles take a bigger market share in automotive industry.

By using pricing key of components suppliers can exert influence. Toyota must have a strategy if large suppliers raise their price they use the strategy to stay competitive .Toyota uses a small supplier in order to gain a competitive advantage.Toyota has done an excellent job following porter’s five forces model for gaining a competitive advantage. Revolutionary hybrid vehicles have cornered the market on hybrid and advantages that boost sales. Toyota protects themselves from price shifts.  These factors have all led to Toyota successfully using their information systems to gain a competitive advantage.

Toyota has a unique business model it approaches the model with its inherent quality controls revolutionized the industry. ‘Just in time’’ Toyota supply chain concept become a model for manufacturers around the world not for automakers. The end product is pulled through the system. The right part reaches the right place at right time just they are needed with no excess. Toyota has developed a flexibility and responsiveness that continues to set the standard for the industry. Because of its Attention to continuous improvement, Toyota has attained die-changeover and machine-set times that are a fraction of its competitors'. Thus its capacity for reacting quickly to new market trends makes TPS an ideal system in today's rapidly changing global business environment. Toyota believes that it is important in ensuring quality control, and the delivery of reliable and dependable products to customers.

If problem arise at any production Toyota’s automatic error detection system called ‘judoka’ flags the defect and enable the line employees to stop the defect at the spot even if it means bringing production to halt. When error first occurs by calling attention to the equipment the Toyota system identify the problem and prevent the problem from progressing to other stages. Systems are agile but quality oriented measures make them economically possible. Customers can rest that Toyota motors will reach to the highest standard of quality, reliability and durability.



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