Homework Clinic
Social Science Clinic => Business => Marketing => Topic started by: Caiter2013 on Dec 2, 2019
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What are the assumptions about mass production compared to Toyota Production system?
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Under the traditional assumptions related to mass production, there are five major differences: (1) maximize machine utilization; (2) fixed setup times; (3) build to inventory to reduce unit cost; (4) inspect at end of process; and (5) maximize backwards integration. On the other hand, in the Toyota Production System these five assumptions are: (1) labor is more costly than machines; (2) can reduce setup time; (3) minimize inventory to cut costs and waste; (4) inspect to prevent defective production; and (5) outsource from supplier specialists. These differences are remarkable. To achieve these gains at Toyota, production experts Taiichi Ohno and Shigeo Shingo challenged above-listed traditional assumptions associated with automobile manufacturing. They made changes to operations within the auto company itself such as reducing setup times for machinery. Their innovations have been widely embraced in the industry as a result, individual producers' value chains have been modified, and interfaces between producers and suppliers have been optimized to create more effective and efficient value systems.