The kaizen activities organized under the cost management system at Toyota Motor Co. is to continuously improve their business operations and always driving for innovation and evolution. One of the essential part of Kaizen’s theory is cost reduction and increase productivity.
The cost management in the production phase starts after mass production has begun. Firstly, these costs and standard times are not generally meet in production lines at least for the first few months because workers are not used to working in the new system. At Toyota, if the referential cost is not reached despite learning impacts, then kaizen exercises with a specific end goal to diminish the cost or new drawings will be attempted. Secondly, when the target profit …show more content…
Hence, the production volume contained only the products without any imperfection. When products were defective and require to repairs, their production efficiency fall in part for the sake of a decrease of production volume in a given time, and in part because the real working hours became long for a given production volume. Therefore, the workers had to assure the quality of products in their operations in order to keep or increase the production efficiency. Prolongation of genuine working hours happened dependably likewise as workers stop their production line when they had problems in their operations such as existence of imperfect parts or when their operations were delayed with respect to cycle time and allocated time for executing a series of elementary operations. At the point when inadequate parts were found, the problem was notified to their supplier whose architects were then inquire to verify and take care of the issue. When the production line stopped for others reasons, it forced supervisory staff to revise standard tasks after verifying whether this delay …show more content…
Although the PAC was determined in a very complex way, we examine here only that pertaining to blue-collar workers in Production Divisions. (the detail of Toyota’s wage system in this epoch is explained by Nomura, 1993) After adjusting the PE (production efficiency) in order to round off its fluctuations from month to month, this adjusted PE of all working units was ranked and classified into four levels A, B, C and D from top to bottom. Then the PAC was calculated as the average of the PEs within each level. If a working unit was classified at a higher level, its workers received a higher production allowance equivalent to their BW multiplied by PAC. It means then that the gains obtained by productivity increase were shared between the company and the
The cost management in the production phase starts after mass production has begun. Firstly, these costs and standard times are not generally meet in production lines at least for the first few months because workers are not used to working in the new system. At Toyota, if the referential cost is not reached despite learning impacts, then kaizen exercises with a specific end goal to diminish the cost or new drawings will be attempted. Secondly, when the target profit …show more content…
Hence, the production volume contained only the products without any imperfection. When products were defective and require to repairs, their production efficiency fall in part for the sake of a decrease of production volume in a given time, and in part because the real working hours became long for a given production volume. Therefore, the workers had to assure the quality of products in their operations in order to keep or increase the production efficiency. Prolongation of genuine working hours happened dependably likewise as workers stop their production line when they had problems in their operations such as existence of imperfect parts or when their operations were delayed with respect to cycle time and allocated time for executing a series of elementary operations. At the point when inadequate parts were found, the problem was notified to their supplier whose architects were then inquire to verify and take care of the issue. When the production line stopped for others reasons, it forced supervisory staff to revise standard tasks after verifying whether this delay …show more content…
Although the PAC was determined in a very complex way, we examine here only that pertaining to blue-collar workers in Production Divisions. (the detail of Toyota’s wage system in this epoch is explained by Nomura, 1993) After adjusting the PE (production efficiency) in order to round off its fluctuations from month to month, this adjusted PE of all working units was ranked and classified into four levels A, B, C and D from top to bottom. Then the PAC was calculated as the average of the PEs within each level. If a working unit was classified at a higher level, its workers received a higher production allowance equivalent to their BW multiplied by PAC. It means then that the gains obtained by productivity increase were shared between the company and the