Ⅲ. Consequences: where do companies save money when labor costs rise to the top? Could that be related on a long-term view?
a) Manage making and increasing profits despite high labor costs in car industry, especially Toyota
Labor cost is never a small part that influences the total cost in manufacturing industry, nor for all the industries. According to the latest EU labor cost statistic report , the labor cost in France (wage + benefits ) has raised from 31.2 euros in 2008 to 34.6 euros in 2015, representing an increase of 10.9% (Eurostat, 2015)[20]. Meanwhile, EU either France is not the only economic unit that is suffering from this high pressure, in the Unites States, the data is rized from 101 dollars to 107.26 dollars (latest data …show more content…
As a Japanese oversea manufacturing division company, Toyota has also taken the high labor price to pay for local employees, Toyota Motor Europe has in total 2023 persons, in France, 3720 local employees in 2009(Toyota motor europe corporate, 2015)[25] . Meanwhile, human resources investment has always been a core investment in the Toyota’s culture, despite the high labor cost of the latest 6 years, Toyota’s human resources strategy is constantly focus on individual intelligence investment and the Lean management method has been developed since 1950s, core value of Lean management has highlighted the importance of waste reduction and the relation between efficiency and cost saving (Pascal cotte et al, 2013)[26].
The fact comes out that Toyota has become a successful symbol in manufacturing domain , human resources efficiency has transformed into business …show more content…
This well organized system has changed the traditional production system into a more efficient way. The 2 main concepts are as follow: Production control system. Which aim at “making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible." And it has achieved a high-efficiency changeover time and configuration machine than their competitors, this allow them have a quick reaction when facing the emergency problem occurred in the production process. Their immediate response to the new market trends TPS makes them becoming an ideal system forward to the rapid changes in the global trade. “Just in time” improvement. They produce the car in demand of their customer to avoid the production waste, inconsistent and unreasonable requirements on the production line in order to have efficiency productivity. With which they can achieve that the car ordered by the customer can be delivered as soon as
a) Manage making and increasing profits despite high labor costs in car industry, especially Toyota
Labor cost is never a small part that influences the total cost in manufacturing industry, nor for all the industries. According to the latest EU labor cost statistic report , the labor cost in France (wage + benefits ) has raised from 31.2 euros in 2008 to 34.6 euros in 2015, representing an increase of 10.9% (Eurostat, 2015)[20]. Meanwhile, EU either France is not the only economic unit that is suffering from this high pressure, in the Unites States, the data is rized from 101 dollars to 107.26 dollars (latest data …show more content…
As a Japanese oversea manufacturing division company, Toyota has also taken the high labor price to pay for local employees, Toyota Motor Europe has in total 2023 persons, in France, 3720 local employees in 2009(Toyota motor europe corporate, 2015)[25] . Meanwhile, human resources investment has always been a core investment in the Toyota’s culture, despite the high labor cost of the latest 6 years, Toyota’s human resources strategy is constantly focus on individual intelligence investment and the Lean management method has been developed since 1950s, core value of Lean management has highlighted the importance of waste reduction and the relation between efficiency and cost saving (Pascal cotte et al, 2013)[26].
The fact comes out that Toyota has become a successful symbol in manufacturing domain , human resources efficiency has transformed into business …show more content…
This well organized system has changed the traditional production system into a more efficient way. The 2 main concepts are as follow: Production control system. Which aim at “making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible." And it has achieved a high-efficiency changeover time and configuration machine than their competitors, this allow them have a quick reaction when facing the emergency problem occurred in the production process. Their immediate response to the new market trends TPS makes them becoming an ideal system forward to the rapid changes in the global trade. “Just in time” improvement. They produce the car in demand of their customer to avoid the production waste, inconsistent and unreasonable requirements on the production line in order to have efficiency productivity. With which they can achieve that the car ordered by the customer can be delivered as soon as