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6. Case: Toyotas Kaizen Experience

Question (a)
The answer is required to cover a brief description of the concept of
Kaizen, and a detailed explanation of how Kaizen can be useful to
organizations in improving their operational efficiency and competitive
edge, drawing from the experience of Toyota.
The answer briefly describes the concept of Kaizen as well as that of
Shojinka along with the activities that go into it.
While the answer has some relevant points, how the concept helped
Toyota is not coming out clearly. Similar to the time and cost targets that
have been explained, the pre-requisites of Kaizen, the wastes identified at
Toyota, and how the Kaizen activities were largely aimed at eliminating
wastes should have been detailed. How the Kaizen had helped Toyota to
improve its operational efficiency and competitive edge in concrete terms
has not been dealt with fully.
Question (b)
The answer is required to cover a detailed explanation of Kaizen costing
for cost reduction, a discussion on how a labor crisis had arisen in Toyota,
and an examination of what steps an organization should take to avoid
such problems.
The answer has detailed the modifications Toyota had effected in the
calculation of production efficiency, workers wages etc. These measures
have been suggested as means of overcoming the problems that have
arisen in Toyota.
But the impact of this apt explanation has been lost as the reason for the
problems has not been brought out well. Kaizen, though very effective in
achieving objectives, put a great deal of pressure on workers in terms of
efficiency and rewards. This led to serious crisis, which should have been
detailed to make the answer comprehensive.