ABSTRACT

Toyota buys its raw materials, processed materials, parts, electricity and water at the prevailing market value. The price of its products is also governed by the rules of the same marketplace. All manufacturers share the same marketing consideration. The manufacturing industries derive their profit from the added value obtained through the process of manufacturing. Therefore, manufacturing industries and commercial enterprises cannot make money in the same way. Toyota has a number of assembly plants overseas. There the number of processes required in assembling the same Corolla or Corona may be five to ten times that of Japan. Toyota's man-hour reduction movement is aimed at reducing the overall number of man-hours by eliminating wasted motions and transforming them into work. All of us have some notion of what our work consists of. This movement eliminates from our work those actions which do not produce profit and which do not advance our process.