TOYOTA MIS PROJECT Prepared by: GROUP 18 MS23A032 - G Ganesh Naik MS23A034 - J Nikhil Raj MS23A039 - K Praneeth MS23A043 - M Ravi Kumar MS23A099 - V V PraneethContents: Acknowledgement Synopsis A. Critical Success Factors Industry Related CSFs 1, Technological Innovation 1.1, Investment in R&D 1.2. Incorporation of Emerging Technologies 1.3. _ Collaboration with Tech Partners and Startups 2. Global Supply Chain Management 2.1. Robust and Agile Supply Chain Infrastructure 2.2. Utilizing Data Analytics and Forecasting Tools Organization-Specific CSFs 1. Quality Control 1.1. Stringent Quality Control Measures 1.2, Advanced Quality Management Systems 2. Comprehensive Training for Employees Environmental-Specific CSFs 1, Sustainable and Eco-Friendly Technologies 2. Addressing Climate Change B. Strategic Plan for IT Applications at Toyota Value Chain Current IT Infrastructure Strategic IT Applications 3.1. Artificial Intelligence (AT) and Machine Learning (ML) 3.2, Big Data Analytics 3. Connected Vehicles and Telematics 3.4, Cybersecurity 3.5. _ IT infrastructure modernization 4, Implementation Plan eee C. Strategic Plan for IT Applications at Toyota 1, Industry Related CSFs 2. Organizational-Specifie CSFs 3. Environmental-Specific CSFs D. IS Supports for Toyota's CSFs ReferencesAcknowledgement Atthe beginning of this project report, we express our heartfelt thanks to everyone who played a crucial role in this process. Their active guidance, assistance, cooperation, and encouragement were instrumental in bringing this project to fruition. We are grateful to our esteemed mentors, Prof. Sanjiv Vaidya, for teaching and guiding us in the Management Information System course which helped us with the opportunity to embark on this live project. We are deeply indebted to our classmates and everyone for their support and valuable input in preparing this project report Synopsis Toyota, a leader in automotive manufacturing, thrives on technological innovation, global supply chain agility, and robust quality control. Embracing a differentiation strategy, it invests significantly in R&D, lean manufacturing, and innovative product development. External factors like regulatory compliance, economic stability, and consumer preferences shape its success. In the digital realm, Toyota integrates advanced IT applications across its value chain, leveraging tools from CAD for design to ERP for supply chain optimization, ensuring continued competitiveness in the dynamic automotive industryIndustry : Automotive Manufacturing Company : Toyota Business Model vehicles, as well through financing, leasing, and parts and service operations. A. Critical Success Factors (CSFs) Industry-Related CSFs 1. Technological Innovation 1.1, Investment in R&D: Toyota has consistently invested heavily in R&D, allocating over 1% of its annual revenue to research and development activities. In 2022, Toyota's global R&D expenditure reached a record high of ¥1.2 trillion (approximately $10.2 billion). This investment has led to the development of numerous innovative technologies, including: Hybrid electric vehicles (HEVs) such as the Prius, a global leader in the segment. Advanced driver assistance systems (ADAS) like Toyota Safety Sense, a suite of features designed to prevent accidents and mitigate injuries. Connected car technologies like Toyota Connected Services, which provide drivers with real-time information and remote access features. Toyota's commitment to R&D is evident in its global network of research centres, including the Toyota Research Institute (TRI) in the US, the Toyota Central Research & Development Laboratories in Japan, and various regional research facilities. Toyota generates revenue through the sale of new and used1.2. Incorporation of Emerging Technologies: Toyota has been actively incorporating emerging technologies into its vehicles, including: * Electric Vehicles (EVs): Toyota has announced plans to launch a range of new EVs in the coming years, including the bZ4X and Lexus RZ 4506. * Autonomous Driving: The company has partnered with several technology companies, including Uber and Lyf, to develop and test autonomous driving technology. connectivity: Toyota has integrated various connectivity features into its vehicles, allowing drivers to access real-time information and services such as navigation, traffic updates, and remote diagnostics. 1.3. Collaboration with Tech Partners and Startups: Toyota has established partnerships with various technology companies and startups to foster innovation and accelerate the development of new technologies. Notable collaborations include: © Microsoft: Partnership to develop connected car technologies and cloud-based services. * Amazon: Collaboration to explore the use of Alexa voice assistant in Toyota vehicles. © NVIDIA: Partnership to develop artificial intelligence (AI) technology for autonomous driving. © SoftBank: Joint venture to invest in mobility startups. © Stanford University: Collaboration on research projects related to autonomous driving and smart cities.These partnerships allow Toyota to access cutting-edge technologies and expertise, while also providing startups with access to Toyota's vast resources and global market reach. Global Supply Chain Management 2.1. Robust and Agile Supply Chain Infrastructure: © Toyota's global supply chain network is renowned for its efficiency and resilience. It operates through a network of over 5,000 suppliers located in over 50 countries. © The company utilizes a multi-sourcing strategy, diversifying suppliers for key components to mitigate risks associated with disruptions in any one region or supplier. + Toyota has invested heavily in advanced logistics and transportation management systems, including: + Just-in-time (JIT) inventory management: This system minimizes inventory levels by ensuring that materials and components arrive at production plants only when needed. © Lean manufacturing principles: Eliminating waste and optimizing production processes to improve efficiency and agility. * Advanced robotics and automation; Toyota leverages automation in its logistics and warehousing operations to improve accuracy, speed, and safety. Internet of Things (loT) technology: Toyota utilizes sensors and tracking systems to monitor the movement of goods in real-time, allowing for proactive adjustments in response to demand changes or disruptions.2.2. Utilizing Data Analytics and Forecasting Tools: Toyota is a leader in leveraging data analytics and forecasting tools to optimize its supply chain operations. The company utilizes various data sources, including: + Point-of-sale data: Provides insights into customer demand and purchasing trends. + Production data: Monitors production efficiency and identifies potential bottlenecks. + Supply chain data: Tracks the movement of materials and components and identifies potential disruptions. By analysing and modelling this data, Toyota can: « Forecast demand more accurately: This allows the company to optimize production schedules and inventory levels. © Identify and mitigate risks: Early detection of potential disruptions enables Toyota to take proactive measures to avoid or minimize their impact. © Optimize transportation and logistics: Data analysis helps Toyota improve route planning, optimize fuel efficiency, and reduce transportation costs. Organization-Specific CSFs 1. Quality Control 1.1. Stringent Quality Control Measures Toyota's commitment to quality is a comerstone of its success. This commitment is evident in the company's rigorous quality control measures, which are implemented at every stage of the manufacturing process.These measures include: a. Thorough inspections of materials and components b. Multi-stage production line inspections c. Advanced quality control technology 4, Statistical process control (SPC) e. Jidoka principle: This principle emphasizes “automation with a human touch," allowing workers to stop the production line if they identify a defect. 1.2. Advanced Quality Management Systems: Toyota utilizes advanced quality management systems such as: A. Toyota Production System (TPS): TPS emphasizes continuous improvement and eliminates waste in all aspects of the manufacturing process, including quality control. B. Six Sigma: This methodology focuses on reducing defects and improving process efficiency. These systems help Toyota to: © Standardize quality control processes * Identify and address quality issues quickly * Continuously improve quality 2. Comprehensive Training for Employees: Toyota recognizes that its employees are key to achieving and maintaining its high-quality standards. The company provides comprehensive training to all employees at all levels, including Quality control procedures, Problem- solving skills, Continuous improvement. It also uses “Kaizen” whichemphasizes continuous improvement and encourages employees to make small, incremental improvements on a daily basis. Through comprehensive training, Toyota cultivates a culture of quality and empowers employees to contribute to the company’s success. External Environment CSFs . Sustainable and Eco-Friendly Technologies: Toyota has committed to achieving carbon neutrality by 2050 and is investing heavily in developing sustainable technologies such as + Hybrid electric vehicles (HEVs): Toyota is a global leader in HEVs, with models like the Prius achieving significant success. Fuel cell electric vehicles (FCEVs): Toyota was the first automaker to mass-produce FCEVs with the Mirai model. + Electric vehicles (EVs): Toyota is expanding its EV lineup with models like the bZ4X and Lexus RZ 450¢. + Advanced materials: Toyota is researching and developing lighter and more sustainable materials for its vehicles. 2, Addressing Climate Change: Toyota has set ambitious goals for reducing its carbon footprint, including * Achieving carbon neutrality by 2050 * Reducing greenhouse gas emissions by 90% by 2050 © Investing in renewable energy which includes solar and wind energy.B. Strategic Plan for IT Applications at Toyota 1. Value Chain: + Research and Development: Designing and developing new vehicle models, technologies, and production processes. + Procurement: Sourcing and purchasing materials, components, and services from suppliers. + Manufacturing: Assembling and producing vehicles at Toyota plants around the world. + Logistics and Distribution: Delivering vehicles to dealerships and other customers. + Marketing and Sales: Promoting and selling vehicles to customers. + Service and Aftersale: : Providing maintenance and repair services to customers. 2. Current IT Infrastructure: Toyota has a robust and well-developed IT infrastructure that supports its global operations. This includes © Enterprise Resource Planning (ERP) system * Product Lifecycle Management (PLM) system © Manufacturing Execution System (MES) * Customer Relationship Management (CRM) system © Internet of Things (IoT) technology Business Goals and Objectives: * Maintain market leadership in the global automotive market. « Develop and launch new innovative and fuel-efficient vehicles. © Improve operational efficiency and reduce costs.* Enhance the customer experience. 3. Strategic IT Applications: 3.1. Artificial Intelligence (AI) and Machine Learning (ML) * Product development: Use Al and ML to optimize vehicle design and performance, predict customer preferences, and personalize the driving experience. © Manufacturing: Utilize AI and ML to automate quality control processes, predict and prevent equipment failures, and optimize production planning. * Predictive maintenance: Analyse vehicle data to predict potential problems and proactively schedule maintenance, reducing downtime and costs. 3.2. Big Data Analytics: © Customer insights: Analyse customer data to understand their preferences, buying behaviours, and service needs. © Supply chain optimization: Analyse data to optimize inventory levels, improve delivery schedules, and reduce supply chain disruptions. © Data-driven decision making: Use data analytics to make informed decisions about product development, marketing, sales, and operations. 3.3. Connected Vehicles and Telematics: © Remote diagnostics: Monitor vehicle performance remotely and provide proactive maintenance services. © In-vehicle services: Provide information and entertainment services to drivers and passengers, such as navigation, traffic updates, and music streaming,3.4, Cybersecurit * Protect sensitive data: Implement robust cybersecurity measures to protect customer data, intellectual property, and other sensitive information. * Prevent cyberattacks: Develop and implement strategies to prevent and mitigate cyberattacks. 3.5. IT infrastructure modernization: * Cloud computing: Utilize cloud-based solutions to improve scalability, flexibility, and cost-effectiveness. * Internet of Things (loT): Utilize IoT technology to connect vehicles, factories, and other assets to collect data and improve efficiency and decision-making. * Robotic Process Automation (RPA): Automate repetitive tasks to improve efficiency and reduce costs. 4. Implementation Plan: * Prioritize IT projects based on their alignment with business goals and objectiv © Develop a roadmap for implementation, including timelines, budgets, and resources. Implement IT projects in phases to minimize risks and disruptions. * Monitor and evaluate the effectiveness of IT projects regularly. © Make adjustments to the IT strategy and applications as needed.C.Information system needed to support the CSF Toyota is investing in information systems (IS) that support its critical suecess factors (CSFs). Here's an analysis of how IS supports each CSF. 1. Industry-Related CSFs: 1.1 Technological Innovation: + Required IS: Research and development (R&D) information systems, design and engineering systems, product lifecycle management (PLM) systems, collaboration platforms with research partners. + Implementation: Toyota has implemented advanced IS in these areas. For example, TRI uses AI and big data to develop autonomous driving technology, and Toyota has a global network of R&D centres with advanced design and engineering tools. 1.2 Global Supply Chain Management: + Required IS: Enterprise resource planning (ERP) systems, supply chain management (SCM) systems, transportation management systems (TMS), supplier relationship management (SRM) systems, Internet of Things (IoT) sensors for tracking goods. + Implementation: Toyota has a robust IS infrastructure for supply chain management. It utilizes Oracle ERP, SAP S/4HANA, and other advanced systems for planning, procurement, logistics, and supplier collaboration. 2. Organization-Specific CSFs: 2.1. Quality Control:Required IS: Quality management systems (QMS), statistical process control (SPC) tools, defect tracking systems, production line monitoring systems, employee training platforms. Implementation: Toyota has a well-established QMS based on Six Sigma principles. It utilizes SPC tools to monitor and analyse production data and identify potential defects. The company also invests heavily in employee training and development to promote a culture of quality. 2.2. Operational Efficiency: Required IS: Manufacturing execution systems (MES), lean manufacturing tools, Kanban systems, production planning and scheduling systems, automation and robotics. Implementation: Toyota is a leader in lean manufacturing and utilizes advanced IS to optimize production processes. The company employs MES, Kanban systems, and automation to minimize waste and improve efficiency. 3. External Environment CSFs 3.1. Regulatory Compliance: Required IS: Compliance management systems, regulatory tracking tools, data analytics platforms for risk assessment, reporting systems. Implementation: Toyota has implemented a comprehensive compliance management system to ensure adherence to environmental and safety regulations. The company utilizes data analytics tools to identify and mitigate potential compliance risks. 3.2. Sustainable and Eco-Friendly Technologies:Required IS: Environmental management systems, _ energy management systems, carbon footprint tracking tools, research and development platforms for sustainable technologies. Implementation: Toyota has made significant investments in sustainable technologies and utilizes IS to monitor its environmental impact. The company tracks its carbon footprint and implements energy management systems to reduce its environmental footprint. D. IS Supports for Toyota's CSFs Toyota has a strong foundation of information systems supporting its critical success factors (CSFs). However, there's always room for improvement. Here are some ways to enhance IS support through different information technologies, along with potential pitfalls, Opportunities: Implementation of AI and machine learning (ML) for design optimization, predictive maintenance, and personalized in-vehicle experiences. Utilizing blockchain technology for secure and transparent supply chain management, logistics, and data sharing with partners. Leveraging AI for demand forecasting, inventory optimization, and proactive risk mitigation Implementation of real-time tracking and monitoring of goods using Internet of Things (oT) sensors. Utilization of machine vision and sensor technology for automated quality inspections and defect detection. Implementation of advanced data analytics for root cause analysis and continuous process improvement.Leveraging robotics and automation for repetitive tasks, reducing costs and improving safety. Utilize digital twins for virtual simulation and optimization of production processes. Utilize smart grid technologies and renewable energy sources for carbon footprint reduction. Pitfalls: Bias in data and algorithms, ethical concerns, lack of explainability in Al decisions. Scalability challenges, regulatory uncertainty, resistance from stakeholders. Lack of data quality and integration, potential for job displacement. Cybersecurity vulnerabilities, data privacy concems, high cost of implementation. High initial investment, potential for false positives, dependence on data quality. Difficulty in identifying and interpreting complex patterns, data silos hindering analysis. Job displacement concerns, high upfront investment, potential for malfunctions. Data accuracy and model complexity, potential for unrealistic simulations. Difficulty in keeping pace with evolving regulations, data security vulnerabilities. By carefully considering these opportunities and pitfalls, Toyota can leverage information technology to further enhance its CSFs and maintain its competitive edge in the global automotive industry.REFERENCES 1. Toyota Global Website: https://global.toyota/en/ 2. Toyota Research Institute: https://www tri. global 3. Toyota Investor Relations: htips://global toyota/enir 4, Forbes: https://www.forbes.comvsites/simonmainwaring/2018/11/13/purpose-in action-how-toyota-is-driving-growth-innovation-and-impact/ AutomotiveNews: https://www.pmewswire.com/news-releasesitoyota-remains-rd- patent-Ieader-among-automakers-301222408.html ToyotaProductionSystem: htips://global.toyota/en/company/vision-and- philosophy/production-system/ 2 a ‘Toyota Supplier Sustainability Guidelin : https://global,toyota/en/sustainability/ SupplyChaiManagementReview: hutps://www.semr.com/article/supply_chain_management review year _in_review 20 2 9. Harvard Business Review: https://www.hbs.edu/faculty/Pages/item aspx’’num=63386 10. MeKinsey& Company: https://www.mekinsey.convcapabilities/operations/our- insights/future-proofing-the-supply-chain 11. ToyotaQualityControl:https://www.toyota- boshoku.com/global/sustainability/social/consumer/ 12. ISO 9001: https://www.iso.org/obp/ui/#iso:std:iso:9001:ed-5:v l:en. 13. Six Sigma: https://asq.org/training/lean-six-sigma-green-belt-vsse_ 14, Toyota Environmental Sustainability Report: https://global toyota/pages/global_toyota/sustainability/report/sdb/sdb22_en.p af 15, Toyota Climate Change Strategy: https://www toyota. com/usa/environmentalsustainability/challenge-2050- education 16. International Council on Clean Transportation: https:/theicet.org 17. World Business Council for Sustainable Development: https://www.wbesd.org/_