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Message: <blockquote data-quote="Lennon" data-source="post: 2270210" data-attributes="member: 11714">Economic scale means buy in bulk in order to get cheaper price....... but Toyota doesn't order millions of steering for the Corolla's entire lifetime at a time, that's false..... No manufacturer order parts for one or two year planning ahead, that's a very bad financial practise.......Toyota practise it owns perfected creation call JIT (Just-In-Time) system, Wat they do is they projects orders collected from sales, set an amount target for it's daily production so that suppliers will send them steerings a day earlier..... Toyota doesn't like to stock parts, you'll need a large warehouse, more workers and machinery to move things around...... Don't forget software will be required for stock keeping (Many people doesn't know software was blardy hell expensive, you'll know when you start to deal will company like SAP)....... Toyota work closely with their suppliers, they tell them wat future orders likes..... In return, suppliers themselves would keep stock for Toyota..... However JIT system will not work well, if you're not able to control your supplier or your company is not as big as Toyota....... Proton fell is becos of workers attitude, corrupted management and Boards of unqualified managers.... You don't see it in Toyota..... Most japanese companies teaches values and dicsiplines to their staff, i dunno whether Proton have these......</blockquote>

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