System Concepts and Methodology
A system describes a set of operations that are interconnected to work together to achieve a specific goal. For optimum activity and in order to achieve goals, an organization needs to employ a business, technological or engineering system to facilitate its functions. Toyota is a motor vehicle assembly and manufacturing company that use its production system to organize manufacturing and logistics efforts with suppliers and customers in order to achieve its goals. The key objectives of the system are the process value delivery in a smooth, flexible non-wasteful manner. The production system, on the other hand, employs specific characteristics (Monden, 2011). These include being objective oriented as mentioned above, having a systematic input to the output transformation process, operating parallel and in connection with other company systems as well as having an allowance of controlling feedback. Toyota’s production system employs a continuous production whereby processes flow from one sequence to another. All handling within the company is done in a sequential automated conveyor format. This system has enabled the company to build a global reputation in terms of efficiency and quality of output. Many manufacturers even look to the Toyota production system (TPS) for inspiration on how to run their operations. This paper analyses the system concepts and methodologies used by the Toyota production system as well as the associated subsystems and limitations of the system.
The TPS is keen to fulfill customer demand most quickly and efficiently possible through the linking of all production activities to meet market demand. The process is very quantity specific and incorporates the use of items only when the need arises. Since the company is required to meet different sorts of demands at a given point, they usually shift system operation to meet these demands regularly. The system employs the use of Heijunka which defines a flow leveling (Monden, 2011). This can be further explained as a way for the company to manage inventory by having it arrive at the point they are needed when needed. The process also employs, Muda, which are the elimination of waste strategy that is good for the environment as well as the removal of things that do not add value to the overall company in profits. This ensures the company is on track with its objectives. Time management is also an essential purpose of the system; this provides that the company is continuously efficient in operations. Optimization of work time ensures the company is able to meet deadlines and reduces waste as much as possible.
Relation between sub-systems
The TPS uses a subsystem known as the Kanban card. The work of this is to ensure smooth, flexible, efficient, timely work flow. This also means that the system ensures that the right products or components are present when required. It consists of a visible device that the TPS uses to call-up components whenever they are necessary. This minimizes the number of elements within the assembly line at any given point ensuring that components are not held up at any given time. This also ensures just in time delivery of components since they are only asked for when required. The company also enlists the use of the Jidoka subsystem that controls processes ensuring that they come to a safe stop whenever any anomaly occurs (Monden, 2011). The company also use a management information system that encompasses the application of individuals, information, technologies, and processes to resolve business issues. This is the companies most crucial subsystem. It allows for safekeeping and management of data and documentation that every company requires in the day to day operations. The management information systems are used in the establishment and maintenance of information technology to help leaders and employees in the undertaking of activity connected to data analysis.
The structure of the management information system incorporated hardware, software, database, the procedure as well as personnel. The hardware consists of the physical components such as the machinery involved in the company production activities, input and output devices as well as the servers and central processing units. The software is the interfaces that supply information to the system users; they consist of the application as well as the operating systems and special purpose programs. The database is the collection of data put in an organized format to help in the reduction of duplication as well as save time when a need arises to extract given information. It also helps avoid data redundancy. The procedures highlight the instructions that are used in carrying out the processes in the most effective manner. The personnel on the other hand including the system analysts and managers need to be well defined for effective use of management information systems. The system is essential in the collection of data from both internal and external environments. It also converts data into a useful format for the interpretation of processes. The system also allows output to be made available to the user of the information and helps in providing feedback to the organization.
The Toyota processing system is used hand in hand with the management information system to carry out the processes as mentioned above. The TPS cannot function adequately without the aid of the management information system as well as the jidoka and the Kanban card (Rutledge, Xu, and Simpson, 2010). The help simplifies processes as well as ensure that the company objectives of keeping work streamlined, timely, efficient and cost-effective are met. Any organization would require such a subsystem incorporated into its central system to enjoy these benefits. The management information system also allows an organization to efficiently manage organizational data and information and communicate information between top management and staff to avoid cases of confusion and mix up of processes and also to maintain the heinjuka flow leveling (Rutledge, Xu, and Simpson, 2010). For a company looking to carry out flow leveling of its processes, the management information system is quite essential. TPS enlists the use of transactional processing systems that keeps track of inventory , resources, customers and sales, the operational information systems that organizes data into a user friendly format as well as accounting purposes., decision support systems which help in making important decisions as well as the expert systems that use human knowledge to make decisions on behalf of the entire TPS.
Shareholder expectations and requirements
Large companies such as Toyota possess a large number of shareholders. These are the backbone of the company as they provide capital and govern ship as to how the company should be run towards its success. They are also crucial in enabling company financing is possible, the directly or indirectly control the company operations as well as determination of those that take up leadership roles within the company (Harris, and Raviv, 2010). Shareholders say it is essential towards the betterment of the company and they are the ship behind Toyota’s success (Harris, and Raviv, 2010). Within the company they expect business to be done in the most ethical, cost-effective manner while upholding their goals, vision, mission, and objectives at the forefront. Since they offer the bulk of capital for the company operations, they hence require the management to run the company a certain way in order to maximize profit while minimizing cost. As discussed earlier, Toyotas policy of running operations with minimum waste, high efficiency, and systematic manner is the principal shareholder demand. This then means the TPS and the MIS need to supply efficiency as well as a costly way of doing things.
With any company, however, there must be a few problems or hurdle s they face which helps the company get better and stronger working systems. The problem with Toyota is that they were not able to manage their information systems. For any organization, there must be consistent forms of managing user data. This helps the company also maintain a competitive edge and superior quality services to allow for higher customer retention rates as well as inventory checks for the reduction of losses. Toyotas database consists of millions of records that are inconsistent or misaligned to the addresses specified. This can spell doom for the company since they cannot prove accountability towards specific claims. This can frustrate shareholders who may intern opt to withdraw their stake in the company which could project losses. The company also faces data quality challenges within their systems. This at a given point leads to damages for the company as they were trying to pay off, at a certain point, Lexus owners that had complained of having defective tires for their vehicles. The company decided to compensate all Lexus owners with the sum of $ 400 to cover the expense of replacing these, but some of the money went into the hands of non-Lexus owners or owners that had already sold their vehicles. This led to massive losses for the company.
Systemic challenges
The soft system methodology (SSM) is an approach towards organizational process modeling that can be used for both general problems solving as well as change management. It bases its problem solving on human activity ensuring that all groups of people are involved in developing a solution while the hard system approach requires step by step procedures that can be repetitive to quantifiably solve issues while maintaining quality (Alavy, Nguyen, Leong, and Dworkin, 2013). Toyota implements a hard system approach. This enables the company defines its processes in a systemic format while taking note of the more critical processes. The hard approach is realistic for the company since its production process is systematic and iterative (Taleghani, 2010). Changes are only applied when the need arises which does not happen often. Customer satisfaction is the baseline for the company’s processes, and it is therefore essential in fashioning the approach used by the company. According to Taleghani, (2010), the methodology defines a thought process that starts with the problem, the problem is then determined, the situation analyzed, constraints and objectives identified, performance measuring and objective routing is then done followed by developing of options, testing the possibilities then coming up with the choice followed by implementation of the resultant decision.
Limitations and Solutions
Implementation of the systems approach may come with some restrictions, these may include the fact that the approach chosen may not always be practical and holds the possibility of delaying decision making. The dependence on the method may not be defined on an application which may lead to problems later on in the cycle. If the classification of the relationships between issues is not well done, it may end up being counter-productive. And the approach chosen may appear not to cater for contingencies or a particular style of functioning in the organization. It may also be impractical for a given situation. Since hard system approaches are conceptual in nature, they require skilled personnel in their application. The problem, however, might be the universality of the approach. It may not mesh well with a particular problem but it may with another. The solution to this might be the implementation of either soft or hard approaches as the need arises.
In conclusion, the TPS is quite revolutionary in the way that it promotes Kaizen. This means that it champions for continuous process improvement. It encourages team members to participate in coming up with strategies and techniques for improving current company operations. To add to this, the model of working with a no-waste strategy allows the company to meet time and resource constraints as well as ensuring optimum efficiency for the company. The beauty of Toyota’s production process with the implementation of management information systems is that it allows for speedy, efficient product output as well as customer satisfaction.
References
Alavy, M., Nguyen, H.V., Leong, W.H. and Dworkin, S.B., 2013. A methodology and computerized approach for optimizing hybrid ground source heat pump system design. Renewable energy, 57, pp.404-412.
Harris, M. and Raviv, A., 2010. Control of corporate decisions: shareholders vs. management. The Review of Financial Studies, 23(11), pp.4115-4147.
Monden, Y., 2011. Toyota production system: an integrated approach to just-in-time. Productivity Press.
Rutledge, J., Xu, M. and Simpson, J., 2010. Application of the Toyota Production System improves core laboratory operations. American Journal of Clinical Pathology, 133(1), pp.24-31.
Taleghani, M., 2010. Key factors for implementing the lean manufacturing system. Journal of American science, 6(7), pp.287-291.
