ISCOM 383 Week 5 Team Assignment Impact of Technology in Toyotas Cuban Business Venture
ISCOM 383 Week 5 Team Assignment Impact of Technology in Toyotas Cuban Business Venture
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Week 5 Team ISCOM383 Global Value Chain Management Week 5 Team Assignment lmpact of Technology in Toyota s Cuban Business Venture Impact of Technology in Toyota s Cuban Business Venture ISCOM383 Impact of Technology in Toyota s Cuban Business Venture The internet is not just for checking email or sur ng the web to look for the latest golf gear Companies are using the internet to help run their business more ef ciently and to save on overhead costs The internet is a less expensive option of communication throughout the company it also is saving companies money on marketing or advertising The internet is allowing companies like Toyota to expand to places like Cuba which is not the most technological developed country in the world quotThe data released by the Of ce of National Statistics ONE in fact put Cuba at or near the hemisphere s bottom in terms of xed telephone lines personal computers and access to the lnternetquotCuba headlines 2009 para 2 Even with this data Toyota will be able to communicate with a manufacturing facility ef ciently and for far less cost than using paper documents The internet will also save the company money by not having to travel to the country to have meetings or to check out the manufacturing processes It will all be available at a click of the mouse Accurate Information Toyota s recent safety challenges have exposed a weakness in the organization s data management implementation The quality safety issues that resulted in the recall of Toyota vehicles in 2010 were detrimental to Toyota s brand image in the marketplace As Toyota considers the Cuban manufacturing facility information infrastructure management will be doing more than just reviewing technical and regulatory standards going forward Shinichi Sasaki an executive Vice President said quotwe need to do more to consider customer expectations and realworld usage of our vehicles even irregular use Business Week 2010 The dissemination of accurate information to the appropriate management within Toyota will result in corrective actions sooner As Toyota moves into Cuba the information technology infrastructure will depend on the resources available at the manufacturing facility Because of the remote Cuban locale and poor resources for Internet infrastructure support Toyota has several decisions to make A substantial investment would ramp up the electrical system in the area of the manufacturing facility to support dedicated company Internet lines Toyota management will need to make accurate realtime decisions to maintain production quotas and inventory control A slow poorly supported system will hinder the precision ow of the Toyota Way As the manufacturing facility starts production it Will be essentially important to monitor the continual changes needed to run the facility remotely in Cuba The J ustinTime program Will coordinate the supply chain to support the needs of the Cuban facility The principles of the Toyota Way Will be the focus of the information infrastructure in Cuba The Five P5 of the Toyota Way in Sales and Marketing Eanrteuri m with the when anal L E i i l Connecting with the 53 fundamental ldE El l Toyota amnpc LE5 i i Connecting quotwith and Fi LES g respectin inur most MUMMNE 39 important assets WETIEES PEEF39JJE C nne ingwithactians f 7 i an meawresri a ensure market SUEJEESS FREE Ir nmez iny with remmmertded sirategjes for rsatis ying tui39stnmvE Toyota 201 1 It is important for Toyota to establish a strong information infrastructure that will be accurate veri able timely meaningful and costeffective in the information it produces Time Sensitive Information The advancements in global supply chain management have created many bene ts in the supply chain world Ecommerce has taken supply chain options to an entire new level of complexity and simplicity all within the same activities The complexity that Toyota would face in a country like Cuba is nding local suppliers via the Internet and knowing what lies behind the website what infrastructure they have to support the business The simplicity comes from being able to order online at anytime from anywhere Many suppliers will set a bidding process in place for contracts that have time sensitive deadlines to have submissions in by Toyota uses numerous suppliers and cannot afford for the delays contract bidding may cause The expectations of a short bidding term would help the organization in setting up contracts bids Time sensitive information can also come into play With the dealings of local laws and knowing What is needed Having a full understanding of the local laws and timeliness associated with filling taxes legal actions or any applications for license can be an important time sensitive issue that the company would need to have a full understanding of Having local expertise in these areas would need to be a focus for the organization Hiring local legal expertise would be a benefit to work with the global legal team for Toyota to establish legal requirements to conduct business in the territory The speed at which video communications can now occur will assist in keeping everyone on the global legal front in the communication loop promptly Complete Information The instantaneous sharing distilling and synthesizing of information across the entire scope of an organization39s different operation sites characterizes a model modern global value chain The latest research and development intelligence must reach the proper departments immediately after discovery The responsible source of con guration and logistics best practices must spread the word to key constituents in an ef cient manner When coordinating a number of far ung international production outposts a global value chain manager must have complete and thorough information Haines 2005 In order for Toyota to arm the gauntlet of partners and suppliers that comprise its value chain with total and complete information it must partner with information technology IT solution providers and not merely IT vendors The distinction is that of day and night An IT vendor simply provides the barebones infrastructure connecting all components of the value chain The IT solutions provider goes well beyond this basic service The IT solutions provider routinely gauges new and relevant technologies technological trends within its clients39 industries and keeps its clients abreast of the results In this way the IT solutions provider continually introduces new technology that ensures value chain players pass even more complete information between links and that the channels connecting links are as dynamic and broad as possible Haines 2005 Selecting choice IT solutions providers to partner with is a particularly important decision for Toyota This facet of the value chain aggregate is the face of the chain for Toyota s customers As the link directly involved with Toyota s Internetsavvy consumers the IT solutions provider must share Toyota s goals understand its ambitions and mirror its corporate culture The IT solutions provider in essence represents its client39s value chain to the consumer As such the provider is responsible for nurturing the customer experience It must deliver a complete package of total breadth of information to woo the modern Internetage consumer and hold his or her attention Haines 2005 Information Technology Systems One of Toyota39s guiding business principles is Kaizen The Kaizen stands for continuous improvement of its operations and focus on innovation and development Toyota 2011 This principle is evident in all areas of Toyota s business and business development and equally advocated in its global business units As mentioned earlier in parts of this study Toyota39s TPS and JIT are advanced systems enabling Toyota to hold virtually no inventory JIT and to eliminate waste TPS An important aspect of such systems is technology and availability of accurate timesensitive and complete information To achieve this Toyota employs proprietary applications to manage its manufacturing and also technology from outside vendors like Oracle Siebel and Microsoft to manage its business Abila 2006 The following image depicts applications used by Toyota TehranBa rzuriarn39aairil39gr ueee preprietar y applieat iene te run lite manufacturing eperatfene awn5 teehneilegy frei n euteis e veindare 39Ee mariag the busineeet Ite ereI erenee ie te standardize an lune technnlEgyquot ti eliminate Muda wastE APELIE n H PREDICT EMIPFE LZEZER Eemplete Elite 1quot ente rpriaee eleftware LEE aperatienej V graciefPeeg e eft ERP Vibraeiefpeep e efti r Database Fer ERP Ezrame Eli Gracie ten1 Eieeel fer Humme ye Si etan raeEe Eueineee intelligence SeE Eueineee Inteltigenee See Eueineee in telligenee Hyperien i nte ligence Hype rEesrzi E elutiene Eueineee intelligence Fewerplav Imgjmmp tm fungiquotLEE aFjpliica tinr39l integratien Ti39hizla Euei nessxwuuriks Tihizia Sn ware Sewiear erien ted arehiat es tyre quotMetaLegii EIlEJ JI Syatema Farte anal aeeesee e ferecas ting Elemand Planner i2 Technelegiee Fluent meni tering agate m tt tivplant F e rtetT39rI arrea Management System A tivp ant Want eel eduljng system Meem jiy Line antral System Teeeta pureprietanga Beater aily vehicle erdering ayetem Wfrntiewe En terne I Be we r Eye stem Miereee E Lileater Bailg databaee 5Q Senaer 2931 Enterprise Ed itien Miereee Dealie r Daily handea re Elem zeee lieEILEHE EBF FJIEFS Dell Deellttepi and eemer appl eatiene Cif EE QuitE Wineewe Sewer BurghElia Miereeeft n ti ei rue WE tDFiI Train Eli Mic Eymante fTrerl d Miere Mebile meseaging aelt e my Er terpriee EeWEr eeeareh in Me tian Dea ership terminals CiltTi Ia a39fralirame and Meta F ra me Eitriat Eyeteme Abila 2006 para 12 Based on this image it is evident that Toyota focuses on all aspect of information By employing the ERP Toyota bene ts from comprehensive information in one central place As such this information can be crossmatched shared with other departments and business units by using Internet or EDI interface and eliminate duplication Furthermore the use of ERP enables Toyota better to manage its nancial information globally share tactic knowledge reduce cycle time and facilitate faster information transactions Burt Dobler amp Starling 2003 The use of ERP systems in turn ensures that the information is not only timesensitive delivered globally instantaneously by Internet or EDI interface but also that it is accurate and complete As a company that prides itself in consumer relationship management Toyota announced recently the new mobile application Toyota Entune quotToyota Entune leverages the customer s mobile phone to create a rich invehicle experience that offers fully integrated and upgradeable entertainment navigation and information servicesquot Toyota USA 2011 para 1 By creating consumerfriendly applications Toyota not only emphasizes consumer value but also focuses on consumer relationship management In doing so Toyota39s use of modern technology and applications further demonstrate its market awareness and modern consumer demands As a part of the JIT inventory control and TPS system Toyota employs single card and dual card Kanban The Kanban system bases itself on delivery of manufacturing materials on asneeded basis by issuing a Kanban card The Kanban card represents a pull strategy as opposed to the material requirements planning system that is a push strategy Schonberger 1983 The dual Kanban card used by Toyota describes how many parts are needed for manufacturing and also where the parts will be used and when The Kanban card is electronically scanned and sent to the suppliers making the system very ef cient Toyota Japan 2011 In doing so Kanban ensures accurate and timesensitive data is shared and actions based upon it Conclusion Toyota is taking a large risk in deciding to put a manufacturing facility in Cuba Cuba is not the most ideal location for a new facility By establishing a manufacturing plant in Cuba Toyota is telling the world a few things The rst thing that Toyota is telling the rest of the world is that Cuba has enough resources to handle a highpro le company39s manufacturing plant Toyota is also telling the world that by putting a facility in Cuba the company feels that it will be able to make money Toyota is willing to take a chance on producing product in Cuba By all thee research that has been done Cuba is not only a great place to put a manufacturing facility it is the next logical choice Cuba being only 90 miles from the United States border makes it an ideal place for materials to be manufactured and shipped out of Toyota is a company that is looking to bring value not only to the consumers but to the stockholders With the move to Cuba the company will be able to cut down on shipping costs have inventory on hand 90 miles for US soil and a country and workforce willing to do whatever it takes to succeed Cuba is looking for an opportunity as well to show the rest of the world that the country can contribute This situation is a win for everyone especially Toyota References Abila P 2006 Information Technology at Toyota Retrieved on April 1 2011 from httpWWWshmulacominformation technologyattoyota205Cuba Headlines 2009 Burt D Dobler D and Starling S 2003 World Class Supply Management The Key to Supply Chain Management 7th ed McGraWHill 2003 New York NY Cuba Headlines 2010 Cuba Falls Behind in Communication Technology Latin Business Chronicle Retrieved April 3 2011from http WWWcubaheadlinescorn 200907 22 1 8046 cubafallsbehindcommunication technologyhtml Haines M 2005 May Optimize your role in the IT channel value chain Ways you can Ensure that a weak link won39t sink your company VARbusiness 21 12 63 Schonberger R J 1983 Applications of SingleCard and DualCard Kanban Interfaces 134 5667 Retrieved from EBSCOhost Toyota 2011 Relations with Business Partners Retrieved on April 1 2011 from httpwwwtoyota globalcomsustainabilitystakeholdersbusinesspartnerhtml Toyota 2011 Relations with Employees Retrieved on April 1 2011 from httpWWWtoyota globalcomsustainabilitystakeholdersemployeeshtml Toyota Japan 2011 What Is Kanban System Retrieved on April 1 2011 from httpWWW2tovotacoiDenlddsfaqentrv6042phD Toyota USA 2011 Toyota Announces Entune Multimedia System at the 2011 Consumer Electronics Show Retrieved on April 1 2011 from httppressroomtovotacomarticle displavcfmarticle id2830 Wartzman J 2010 Toyota s Management Challenges Business Week Retrieved on April 1 2011 from httpwwwbusinessweekcommanagingcontentmar2010ca2010034000939h m
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