was ramping back production at its Japan-based factories on Wednesday after a computer system processing orders for vehicle parts broke down on Tuesday, forcing the closure of 14 assembly plants.shut down a system that is at the core of Toyota's lean manufacturing, a way of reducing inventory and maximising production efficiency that the Japanese automaker pioneered and its rivals have widely adopted.
Toyota's domestic output was up 29% in the first half of this year, the first such increase in two years. Toyota makes a full range of vehicles in Japan from the budget Yaris to its most expensive models, including luxury Lexus brand cars. Its average global vehicle sale price in the most recent quarter was equivalent to $26,384, based on its financial reporting. Using that as a proxy would mean a full-day of production at the 14 plants would be equivalent to $356 million in revenue.WHAT IS TOYOTA'S PRODUCTION AND SUPPLIER MANAGEMENT SYSTEM?
"Kanban" means signboard in Japanese, and the Toyota engineer and later executive, Taichi Ono, who developed the system drew inspiration from watching an American supermarket chain, Piggly Wiggly, manage its shelve stock on a trip to the United States in the 1950s.
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