SW WI | PeteMN - 2/12/2026 21:45
Japanese car companies expect a decrease in part costs because engineering costs are accounted for in the initial production contract and that cost won't need to be paid for a second time unless some significant change is required (and if that happens then the new engineering costs will be accounted for in the new contract proposal). That way of looking at sunk costs makes a little sense. Production processes should become more efficient over time. Some companies have a system that pays their workers for ideas that improve efficiency. Sometimes relatively simple ideas can make company processes more efficient over time.
After WW2 Japanese manufactures namely Toyota took assembly line production ( alot from Henry Ford) and refined it. Lot of resources not available after WW2.How to make a valued product effciently with minimal waste with constant improvement
Sakichi Toyoda's innovations were instrumental in starting the Lean movement in Japan. Lean principles prioritize customer value, waste minimization, and continuous improvement. Initially coined in 1988, Lean manufacturing evolved to influence various global industries beyond manufacturing.
The goal of empowerment is based on the idea of showing respect for people. Respect for people extends beyond just the end customer and can include the workers, suppliers, and society. For the end customer, Lean strives to maximize value delivery while minimizing waste in the process. Lean aims to maximize human potential by empowering workers to continuously improve their work. Lean leaders facilitate this goal through problem-solving training. They help workers grow professionally and personally, allowing them to take pride in their work.
At the heart of the Lean philosophy is the concept of “kaizen” or continuous improvement. The goal of continuous improvement is to eliminate all waste in the value delivery process. To do this, Lean leaders must go where value is created – commonly known as the gemba. At gemba, they often spend their time coaching and developing their people. They encourage workers to actively identify problems and look for opportunities for improvement. |
Why Walmart has cheaper food price
