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Case Study Of Mass Production At Toyota

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Automobile industry of japan witnessed an awesome accomplishment with the growth of Toyota. It became the biggest maker in the worldwide business. Toyoda kiichiro was hesitant to invest in automobile sector. In the year 1933 the company started its production. In order to have cost efficiency they adopted the mass production technology. The production of cars was hampered due to the war. The government on judgement of the military denied generation of passenger cars. But after the war Kiichiro decided to again establish the company and start production of cars. But certain problems were faced. • The market was limited for mass production as they had planned earlier. • There was another problem of setting up capital required by the company for starting the production. • According to the new law, the labours cannot be laid off easily. • Other countries were ready to enter the Japanese market. These all created a problem for re production process for Toyota. Mass Production at Toyota: As the company started its production the main focus was on mass production. The fundamental reason behind large scale manufacturing was to create a constrained product offering in large amounts to increase economies of scale. This was one of the competitive advantage they wanted to create over others. Another reason was to …show more content…

This helped the company to have a competitive advantage for the suppliers opportunity cost. Suppliers were paid incentives for improving the process. Continuous contact with the suppliers helped the company to have control for quality and also the computer aided layouts were dispersed. If the supplier used ideas to reduce cost then profit was being shared with them. This encouraged the suppliers to bring more innovation the process and thus Toyota had a competitive advantage over its suppliers if compared to its

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