Toshiba retained its position as market leader at that time by beating its competitor with aggressively priced, technologically superior products. The Ome operation was key to that strategy, because it enabled Toshiba to produce higher quality products at lower prices. Relentless improvement to the manufacturing process resulted in higher quality products, making the products more attractive, and the increases in efficiency generated lower unit costs, which made their products more competitive and allowed the company to make further investments in quality and exploit an advantage on its …show more content…
(2) What would be good measures for evaluating the performance of Toshiba’s Ome operations?
The ultimate measure of their performance can be seen in the overall success of the company’s product line. But to specify how the Ome operation is succeeding or failing in its role, focus should be paid to the following metrics:
* Quality of the product
--Quality can be seen by the rate of errors or problems, or products that fail post-production quality testing. But it can also be seen in how well or poorly the products satisfy customer demands, and how durable and reliable the products turn out to be. Not all of this can be put down to the quality of the manufacturing—design issues also play a role, and the quality of suppliers and components. But given the integration efforts at Ome, the assembly operation takes some responsibility in the overall product conception and production. * High productivity
--Ome can be measured by how well it is improving its productivity, reducing costs while maintaining quality, and