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Toyato Production System

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Submitted By goarmy25th
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How is Toyotas cars produced? stockless production
The Mind of the Strategist

Just in time production is the essence of economies of scale. It is subject to the law of diminishing return. You must have large enough demand for your finished products to receive free shipping on a particular day. The closer the manufacturer is to its supplier the less likely the manufacturer will have a supplier issue.
Financially sustainable The company receives the order then orders inventory to build the products.
Maintain high quality is maintained by having the right employee in the right job. The employee is consistently doing the same job.
Inventory buildup requires a lot of cash that could be used to reinvest into the company’s growth; research and development, lowers short term debt requirements. Inventory buildup increases storage cost which lowers your ROI.
Requires team work Lean production requires the integration of tasks, identification and removal of defects, kaizen production. Integrated tasks is

Requires discipline You must wait for orders to come in before you start manufacturing. This means that you need to have faith in your sales team.
Regular improvements to the design of the manufacturing system.
Look at Amazons system robots
As soon as the product is manufactured it is already sold.
Slow is smooth, smooth is fast

http://www.economist.com/node/13976392

http://www.economist.com/node/13941150

Problems with Just in time Just in time manufacturing is a difficult situation. You do not want to have too much inventory on hand but you also need to be able to have new inventory delivered to meet growing demand. The farther the factory is from its supplier the more difficult it becomes to fill orders.

Just in time is evolving into Vendor Managed Inventory system. Wal-Mart has given vendors access to Wal-Marts Point of sale

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