6. Efficiency comparisons
Improving labor efficiency directly reduces cost of manufacturing and
assembly. The objective of each facility is to increase efficiency to optimal
level. According to the Harbour Report automotive companies such as
Toyota operates at 96 to 126% utilization. Advantages of improving efficiency
and utilization (Wilson 2010):
Reduce labor cost,
Reduce tool and machinery usage,
Reduce work in process,
Improve quality control,
Others.