Interesting Costs Cutting Techniques By Companies

Posted in Popular, Total Reads: 7651

The Toyota Way

Toyota- Japanese automobile manufacturing company is the pioneer in setting up innovative cost cutting techniques in manufacturing/assembly lines. Toyota Motors continues to work on reducing its operational costs and improving efficiency by implementing variety of measures/techniques. One of the key approaches has been related to reducing number of platforms/levels in making a car in assembly line. Through ‘Value Innovation’ and global database management of its suppliers, Toyota has been able to get its raw materials at lowest possible prices. Where American companies were reducing costs by implementing ‘Economies of Scale’, Toyota has been able to reduce costs without it. It mainly focus on reducing inefficiencies in the system and waste. Toyota gave many innovative concepts to the world. Like ‘Five WHYs technique’ to reach to the root of the problem, Jidoka- to understand where the problem is occurring in production system, ‘Just-In-Time’ production philosophy, The Kaizen way- It enabled people to seek for the better, Heijunka- balancing the total order in daily production system etc.

Looking for Similar Lists, Browse more Top Lists

Share this Page on:
Facebook ShareTweetShare on Linkedin