The Toyota Motor Company is a global automobile manufacturer that operates on fi

Question

The Toyota Motor Company is a global automobile manufacturer that operates on five different continents. In the United States, it runs five major assembly plants. To man- age its operations efficiently and effectively around the globe, Toyota uses several types of information systems. It uses the Internet and global networks to communicate with its offices, plants, and dealerships around the globe.57 Toyota is one of the founders of the Toyota Production System, an early version of the Just In Time (JIT) inventory system.58 This system allows Toyota to have on hand the exact number of components needed at any time in order to continue its opera- tions, given that waste often occurs when components are inventoried and stored. To use a JIT inventory system, Toyota’s GIS must be capable of managing real-time inventory, not only within its own manufacturing facilities but in all of its suppliers’ facilities. Because of this, Toyota requires all of its suppliers to have a system capable of interfacing with the one Toyota uses for its own operations. Toyota worked with Dell, Microsoft, and WorldCom to develop a “Dealer Daily” system that offers a centralized data center for the more than 1,100 Toyota and Lexus dealers in the United States. This system allows dealers to spend more time focusing on selling cars and less time on paperwork. For example the system is capable of provid- ing a response to a financing application in 15 seconds.59 In 2011, using Oracle E-Business Suite 12.1, Toyota Motor Europe (TME) implemented Toyota’s Vehicle Order Management (VOM) system. This sys- tem, which encompasses 13 countries, enables TME to improve its European operations by reducing delivery time to customers and managing inventory more efficiently. As a result, the sys- tem reduces operating costs.60 percent.

1. What role do global networks play in the effective implementation of JIT?

2. What role does the Dealer Daily system play in Toyota’s implementation of a GIS?

3. What is the function of Vehicle Order Management (VOM)?

4. How many countries will be impacted by VOM and in which part of the world?

5. How do you think current politics will have an effect on the global network and supply chain.

Explanation / Answer

Ans 1 . Global Networks allows the communication with offices , plants and dealerships to manage the operations efficiently and effectively .

2.   

3 .The function of Vehicle Order Management is to improve and reduce the delivery time to customers and managing inventory efficiently.

4. 13 countries will be impacted by Vehicle Order Management i,e in Europe.

5. It will have an enormous effect on the global network and supply chain as the suppliers are located in various parts of the globe ,any political instability would cause the loss in the economy and suppliers ,clients etc. As all the operations of an company are globally linked thus effecting the organisations operations.

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