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Primary Purpose: Profit Through Cost Reduction
Primary Purpose: Profit Through Cost Reduction
Toyota Production system main purpose is to eliminate through improvement activities, the waste
in the company.
Attained through elimination of various wastes such as excessive workforce and excessive
inventory. These are the 4 kinds of waste in manufacturing production operations:
These also raise administrative costs, direct-material costs, labor costs and overhead costs.
Although cost-reduction is the most important goal, it must first meet 3 subgoals:
1. Quantity control
2. Quality assurance
3. Respect for humanity
“Producing the necessary items in the necessary quantities at the necessary time”