LOG301 Information Management For Supply Chains

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LOG301 Information Management For Supply Chains

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LOG301 Information Management For Supply Chains

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Course Code: LOG301
University: Singapore University Of Social Sciences

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Country: Singapore

Question:
Part 1: Automotive company: TOYOTA

Critically evaluate, discuss as well as compare and contrast the “knowledge-as-possession view” and the “knowledge-as-practice view” in relation to an organisation of your choice in the automotive industry. Furthermore, in relation to an organisation of your choice in the automotive industry, discuss the meaning of these two schools of thought in relation to managing innovation in supply chains, whilst relating this to some of the innovation and relationship management concepts.
Part 2:
Critically evaluate and discuss the role of information technology (IT) in relation to a supply chain of your choice in the automotive industry. Please analyse the information technologies adopted in your chosen supply chain and critically discuss the impact of these systems on supply chain performance.

Answer:

Part 1: Introduction 
Over the last five decades, Toyota has sharpened their production system and supply chain management that helped in the ascending position of the company in global automobile industry. The methodologies the company implement does not stay limited within the department of production but also it extends to the supply chain management of the company creating a value added system. In this system, every link is important, beneficial and focuses deeply on the team-efforts, communication between links, better utility of resources, waste management. All these ensures continuous improvement in the process flow (Gao & Low, 2014).
Apparently, the focus of the automobile companies are shifting from traditional division based on the production system of the companies based on their geological locations, the companies are adopting different production ideas keeping for global audience. Regional ideas can no longer be the cause of success for any automobile company as they are giving huge efforts in delivering high-end technology and superior customer handling systems to make their marks in the competitive market of automobile industries (Lopes et al., 2017). Over the past years, Toyota has been able to transform the production process of the company as the major beneficial link in the overall supply chain management system (Alves & Alves, 2015). This has helped the company to ascend to the forth position among the global position of car manufacturers. Just after companies like General Motors, Ford and Daimler Chrysler, the successful combination of improved production management, excellent automobile manufacturing system and excellent customer care system. However, the production system of Toyota, which is closely associated with lean production, is the key factor of the success of Toyota besides an excellent supply chain management and good relation with their global suppliers (Bicking, 2015).
Epistemologies & Innovation
The production system and supply chain management of Toyota is a perfect example of combined implementation of organizational knowledge-as-possession viewpoint and knowledge-as-practical viewpoint (Nonaka, Kodama, Hirose & Kohlbacher, 2014). This is the reason the Toyota production process has been recognized as the revolutionary process as it has been upgraded to the future process of mass production with minimum error. The organizational knowledge in terms of possession viewpoint comes from the experienced employees of the company, which in case of Toyota is the greatest asset. While on the other hand, the company has improved their process of production and supply chain management by implementing their organizational knowledge, which comes from the knowledge-as-practice viewpoint. This practice has helped to improve their relationship with their suppliers and customers in global market (Birasnav, 2014). Toyota has successful combined to different aspect of organizational knowledge to define a production and supply chain management system, which is simply the next level for any competitor of Toyota. The company has implied the combined effect of possession and practical based knowledge in every link of the overall process (Ringen, Aschehoug, Holtskog & Ingvaldsen, 2014). To define the effect Toyota has implied it is necessary to understand all the links, which are the SMED program, Jidoka program, gradual elimination of Muda, exact time delivery production system and the Heijunka. Besides these links, it is also important to understand the supply chain management system of Toyota.
The SMED program
Implementing the vision of Toyota’s chief engineer Taiichi Ohno, Toyota has developed easy die changing process. In this process the dies are changed as frequently from a day to even three minutes. Initially the process was-planned five decades ago and was developed experimentally using second-hand American presses. As the process proved to be helpful, it was implemented in the production system, which reduced the necessity of die specialists. The process is termed as the Single Minute Die Change process program (Tekin et al., 2018). This system has helped reduce the overall cost of small units of stamping. The SMED process has been beneficial for two major reasons. Manufacturing small units reduce the carry cost of the enormous units of completed parts, as mass production department required calculated amount of parts. On the other hand, this reduces the overall manufacturing mistakes, as having small number of parts while assembling a car makes requires higher accuracy rate in the system. This improves the quality of product in every batch.
Jidoka or Autonomation
Jidoka is the Japanese term for autonomation, which is defined as an automation system with human intelligence. Jidoka refers to the self-improving system of Toyota production system, which stops in case of any problem in the production chain or over-production happens and analyzes the problem immediately. After that, it takes necessary action to overcome these problems, implement them in the system, and restart the production line again (Yang & Yang, 2013). This way Toyota has been able to reduce industrial waste which the Japanese people call Muda and improve the quality of the products. This also helps the company to reduce the overall production cost, which indirectly reduces the price of their cars in global market.
Gradual or moderate clearance of Muda or industrial waste
Muda or industrial waste are those by products generated in a production system, which only increases the cost of production without adding any value to the process, or experience of the employees or the system itself. Toyota has implied three methods to cope up with the industrial waste. They are Kaizen, analysis of main cause or Root-cause and the Poka-Yoke (Chiarini, Baccarani & Mascherpa, 2018). Kaizen is the Japanese version of progressive advancement system. The company makes a team of experienced construction employees and engineers to suggest progressive ways to improve the manufacturing system. It is the duty of the team members of Kaizen to come up with collective ideas about improving the process, quality of products, and every possible aspects related production (Knechtges & Decker, 2014). This way Toyota is implementing the knowledge-as-possession of the employees to improve the system. By convincing, the employees to join the improvement process of the company, Toyota is not only identifying new horizons of innovation but also giving chance to the employees to explore their job and the opportunities.
The Main reason or Root-Cause analysis method of Toyota combines with 5Ws and 1H. W stands for WHY and H stands for HOW-TO-DO (Macpherson, Lockhart, Kavan & Iaquinto, 2015). Each employee of Toyota is trained to ask 5Ws whenever they face any trouble in the manufacturing system. This way, employees will be able to identify the problems clearly and analyze what to do to cope up with the issue. For every 5Ws, the employees have to answer 1H, which is the exact way to solve the issue. This process does not require any survey analysis or statistical record and can be implemented very fast.
Poka-Yoke is a manufacturing system technology, which prevents any kind of error to occur in the production system. The technology is simply like a proof reading system. The system of Poka-Yoke is designed with standard set of requirement of even the smallest part required for every car. This way in case any faulty piece is loaded in the system, it will automatically stop the process. This way Toyota is implementing the organizational knowledge-as-possession of engineers and employees and build knowledge-as-practice to improve the overall system.
Cross-training the employees
The administration of Toyota, simply making groups of employees with an experienced team lead. The job role of the team lead is to assign different tasks to every employees in the group (Saurin, Rooke & Koskela, 2013). This way every employees are trained in every task and the cost of recruiting experts is reduced.  In total, this will reduce the overall production cost of the company.
In-time production
Coordinating the production of small parts and construction of the car in daily base is the best way to reduce the overall production cost. This is the best way to reduce the stock by decreasing over-production of parts (Chopra & Sodhi, 2014). In-time production has been proved beneficial for the company by not only eliminating extra production and reduction in the manufacturing process but also providing flexibility of modifying the overall production process anytime.
Heijunka
Heijunka is a Japanese term used to define the level matching of production. This is a method of smoothing the demand level in the market (??ler & Güner, 2014). Toyota has adopted a policy of doing market survey based on the requirement and demand of their car in the market in weekly and monthly basis. In this way, they can shortlist the exact amount of production need to be done. This will help in reducing excess production and overall production cost. Toyota has adopted the organizational knowledge-as-practical viewpoint via Heijunka to reduce the production cost and improve productivity of the company.
Supply Chain management 
Some of the systems adopted by Toyota, by combining organizational knowledge of possession and practical viewpoint, has been proved helpful even in supply chain management policies of the company. For example, Toyota has used the just-in-time production policy for suppliers and dealers too. The company has implied timely stock clearing and supply based on demand to the dealers. Excess stock can bring up the production cost of the cars and parts of them. On the other hand, keeping stocks timely cleared offer chance of productivity and also production cost is also reduced. This way Toyota has been successful in achieving one of the top positions in the automobile industry using the organizational knowledge in every possible way.
Conclusion
The case study of Toyota is an example of how to combine to different viewpoint of organizational knowledge and achieve the best result. The company has utilized the knowledge-as-possession viewpoint achieved from experienced employees to implement new and effective ways to reduce the overall production cost. On the other hand, they have implemented the knowledge-as-practical viewpoint to bring out the best of their employees and improve the overall productivity. The company is a perfect example of perfection achieved by implementing two different viewpoints.
Part 2: Introduction
The supply chain management of Toyota is an important aspect of the operation techniques, which is totally based on the internal production model, termed as Toyota Production system (Fritze, 2016). The system was developed shortly after the Second World War. The principal of action of this system is termed as the “lean manufacturing” system and it depends on the concept of understanding and deriving the best out of every available resources be it human resource or machines or information system (Martínez-Jurado & Moyano-Fuentes, 2014). On the other hand, eliminating waste or Muda is another major concern of the system. No soon has the company gained success in the global platform, other automobile companies started to implement their own version of TPS in their companies.
Information technology in supply chain management of Toyota
The information technology implemented in the supply chain management and production process of Toyota is termed as Toyota Supplier Partnering Hierarchy: mutual understanding and trust, interlocking structures, control systems, compatible potentials, information sharing, joint advancement activities and last but not the least Kaizen and learning process (Dominici & Palumbo, 2013).
The “Just-In-Time” operation system implemented by Toyota is the key feature of the overall supply chain management, which controls the flow of information and resources among different departments and suppliers of the company (Pinto et al., 2018). The principal of “Just-In-time” operation are active participation of pulling of the system in case of any problem arises based on the Kanban analysis, quality control management, waste management, reducing over-production of inventories, improve productivity and parts and focusing on the co-operation among employees.
As per the Kanban analysis, every part comes with an identification card, which is used in every phase it passes by. The card contains information regarding every details of the part. This is an integrated part of the IT system of Toyota. Whenever, the part is used, the card is removed which signals refill to stocks of the company. Kanban is a very efficient IT system implemented by Toyota as the company believes in keeping limited stock based on demand and fresh supply of products (Tseng, 2014). This reduces the excess cost of stock piling and lowers the chances of quality mismatch and exchanges.
The information technology adopted by Toyota also helps in potential analysis of the company. The principal of the IT system adopted by Toyota is different from other companies as it strives to limit the inventories of the company. The aim of such system is to include space for productivity in the overall system. This is why the system totally depends on strict analysis of the demand survey within the production system of the company. Toyota has implemented the concept of “Lean Production and Management” in their IT system to stop excess production, eliminate problems and provide superior quality customer care (Aguado, Alvarez & Domingo, 2013). The primary objective of “Lean” implementation is to eliminate every kind of waste. Just-In-Time production is the best application of “Lean Production” for this purpose (Dombrowski & Mielke, 2014).
The IT system of Toyota works in cooperation with the order and demand survey in the market especially for the administration who are not aware of the technical details of production. The information flow within the system of the company coordinates details of every phase of production regarding every car model. For example, the sales increment of cars during any occasion will have huge impact on all the phases of production. This way, all the departments not by single one do integrated planning. In general, the company provides easy registration to the customers, which is a huge risk for the customer relationship of the company. However, if the integrated report has any backlog for the administration then rechecking of the overall system is done by reviewing the individual reports of every department. The process comprises of three steps. They are as follows.

Preparing an integrated planning to understand the logical issues within the company planning process. This process incorporates activities to build an overall integrated planning, which will be beneficial for the supply value chain incorporating the decision-making in every phase of production adding value to the overall system (Schaltegger & Burritt, 2014). This way the process benefits the end customers and suppliers all by information flow.
The process steps one common goal for every phase of production to logistics and suppliers. This is to serve the best to the customers. This way the company sets a common goodwill for every link in the overall supply chain to deliver the best result.
The administration helps in rebuilding a common understanding between different departments. This is important to set the common objective of the supply chain management and deliver the best to the customers. This includes details planning and necessary quality management of the system. To provide the best to the customers and maintain a healthy supply management system this is important.

Conclusion
The supply chain management and the production system of Toyota are the key features that defines the quality of service they provide to their customers. The information system of Toyota aims to serve their customers with the best quality products and services as much as possible. Besides this reducing production cost is the major principal of the IT system implemented by the company. when the major automobile companies of Europe and America are focusing on mass production to reduce the production cost, the automobile giant from Japan has devised a way to reduce production cost by utilizing all the available resources and limiting production as per demand and eliminating as much waste from the production line as possible. This is all done by implementing a high-end information technology, which ensures timely flow of information from suppliers from the top administration of the company and vice versa. In recent times the company tied bonds with the tech giant Softbank to handle their information technology and launch self-driving cars in the market. The information technology is playing an important role in Toyota to survey the demand in the market regularly and calculate the production on basis of this. On the other hand, it also helps in improving employee administration connection by providing detail information about every employee in the system.
References
Aguado, S., Alvarez, R., & Domingo, R. (2013). Model of efficient and sustainable improvements in a lean production system through processes of environmental innovation. Journal of Cleaner Production, 47, 141-148.
Alves, J. R. X., & Alves, J. M. (2015). Production management model integrating the principles of lean manufacturing and sustainability supported by the cultural transformation of a company. International Journal of Production Research, 53(17), 5320-5333.
Bicking, C. J. (2015). Toyota Production System (TPS) Theories-In-Action and Lean Implementation Theories-In-Action: A Contrast In Maximization of Human Potential(Doctoral dissertation, Fielding Graduate University).
Birasnav, M. (2014). Knowledge management and organizational performance in the service industry: The role of transformational leadership beyond the effects of transactional leadership. Journal of Business Research, 67(8), 1622-1629.
Chiarini, A., Baccarani, C., & Mascherpa, V. (2018). Lean production, Toyota Production System and Kaizen philosophy: A conceptual analysis from the perspective of Zen Buddhism. The TQM Journal.
Chopra, S., & Sodhi, M. (2014). Reducing the risk of supply chain disruptions. MIT Sloan Management Review, 55(3), 72-80.
Dombrowski, U., & Mielke, T. (2014). Lean leadership–15 rules for a sustainable lean implementation. Procedia CIRP, 17, 565-570.
Dominici, G., & Palumbo, F. (2013). Decoding the Japanese lean production system according to a viable systems perspective. Systemic Practice and Action Research, 26(2), 153-171.
Fritze, C. (2016). The Toyota Production System.
Gao, S., & Low, S. P. (2014). The Toyota Way model: an alternative framework for lean construction. Total Quality Management & Business Excellence, 25(5-6), 664-682.
??ler, M., & Güner, M. (2014). HEIJUNKA TECHNIQUE FROM LEAN PRODUCTION TOOLS AND ITS APPAREL APPLICATIONS.
Kitazuka, R. E. (2016). Jidoka. In Toyota by Toyota (pp. 64-75). Productivity Press.
Knechtges, P., & Decker, M. C. (2014). Application of kaizen methodology to foster departmental engagement in quality improvement. Journal of the American college of radiology, 11(12), 1126-1130.
Lopes, C. M., Scavarda, A., Hofmeister, L. F., Thomé, A. M. T., & Vaccaro, G. L. R. (2017). An analysis of the interplay between organizational sustainability, knowledge management, and open innovation. Journal of Cleaner Production, 142, 476-488.
Macpherson, W. G., Lockhart, J. C., Kavan, H., & Iaquinto, A. L. (2015). Kaizen: a Japanese philosophy and system for business excellence. Journal of Business Strategy, 36(5), 3-9.
Martínez-Jurado, P. J., & Moyano-Fuentes, J. (2014). Lean management, supply chain management and sustainability: a literature review. Journal of Cleaner Production, 85, 134-150.
Nonaka, I., Kodama, M., Hirose, A., & Kohlbacher, F. (2014). Dynamic fractal organizations for promoting knowledge-based transformation–A new paradigm for organizational theory. European Management Journal, 32(1), 137-146.
Pinto, J. L. Q., Matias, J. C. O., Pimentel, C., Azevedo, S. G., & Govindan, K. (2018). Just in Time. In Just in Time Factory(pp. 25-38). Springer, Cham.
Ringen, G., Aschehoug, S., Holtskog, H., & Ingvaldsen, J. (2014). Integrating quality and lean into a holistic production system. Procedia CIRP, 17, 242-247.
Saurin, T. A., Rooke, J., & Koskela, L. (2013). A complex systems theory perspective of lean production. International Journal of Production Research, 51(19), 5824-5838.
Schaltegger, S., & Burritt, R. (2014). Measuring and managing sustainability performance of supply chains: Review and sustainability supply chain management framework. Supply Chain Management: An International Journal, 19(3), 232-241.
Tekin, M., Arslandere, M., Etlio?lu, M., Koyuncuo?lu, Ö., & Tekin, E. (2018, August). An Application of SMED and Jidoka in Lean Production. In The International Symposium for Production Research (pp. 530-545). Springer, Cham.
Tseng, S. M. (2014). The impact of knowledge management capabilities and supplier relationship management on corporate performance. International Journal of Production Economics, 154, 39-47.
Yang, C. C., & Yang, K. J. (2013). An integrated model of the Toyota production system with total quality management and people factors. Human Factors and Ergonomics in Manufacturing & Service Industries, 23(5), 450-461.

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