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This engineer hasn't studied the Toyota Way. Put him in charge of production and he will kill your company. "We need 5000 widgets" "That will cost $10,000 but
by SixSigma 13y ago
This engineer hasn't studied the Toyota Way. Put him in charge of production and he will kill your company.
"We need 5000 widgets"
"That will cost $10,000 but if we make 10000 it will cost $15000 making each one cheaper"
Overproduction kills.
The pizza place is laughing because the cost of production doesn't square with the radius.
- drdaeman 13y agoDepends on the use case and personal preferences, I believe. For me, as I happen to love pizza, better prices on larger ones is a win. It's either cheaper calories (if I consume it at once) or meal that lasts longer (if I eat a half of it and eat leftovers for a several hours later). In rare cases I consider I really want just a tiny bit and won't like any more pizza for the next 6 hours I obviously order a smaller one.
- SixSigma 13y agoYou need to consider the times you don't eat your leftovers and the times you ate your leftovers because they were there and still ate the other meals you would have without having the pizza In business, inventory is expensive, especially if you end up throwing it away. http://mobile.businessweek.com/articles/2013-07-31/american-automobile-glut-unsold-cars-are-piling-up http://mobile.businessweek.com/articles/2013-07-31/american-... 3.27 million unsold cars sitting on the tarmac. That's two weeks total US car sales, and 10 of the top selling 20 are Japanese marques http://online.wsj.com/mdc/public/page/2_3022-autosales.html http://online.wsj.com/mdc/public/page/2_3022-autosales.html Producing more than twice what you sell makes no sense unless your metric is cost of production per car rather than sales per car produced