Japanese Firms

This topic has expert replies
Junior | Next Rank: 30 Posts
Posts: 19
Joined: Tue Mar 31, 2009 11:38 pm
Thanked: 2 times

Japanese Firms

by Sunshine85 » Tue Sep 15, 2009 7:03 am
Japanese firms have achieved the highest levels of manufacturing efficiency in the world automobile industry. Some observers of Japan have assumed that Japanese firms use the same manufacturing equipment and techniques as United States firms but have benefited from the unique characteristics of Japanese employees and the Japanese culture. However, if this were true, then one would expect Japanese auto plants in the United States to perform no better than factories run by United States companies. This is not the case; Japanese-run automobile plants located in the United States and staffed by local workers have demonstrated higher levels of productivity when compared with factories owned by United States companies.
Other observers link high Japanese productivity to higher levels of capital investment per worker. But a historical perspective leads to a different conclusion. When the two top Japanese automobile makers matched and then doubled United States productivity levels in the mid-sixties, capital investment per employee was comparable to that of United States firms. Furthermore, by the late seventies, the amount of fixed assets required to produce one vehicle was roughly equivalent in Japan and in the United States.
Since capital investment was not higher in Japan, it had to be other factors that led to higher productivity. A more fruitful explanation may lie with Japanese production techniques. Japanese automobile producers did not simply implement conventional processes more effectively: they made critical changes in United States procedures. For instance, the mass-production philosophy of United States automakers encouraged the production of huge lots of cars in order to utilize fully expensive, component-specific equipment and to occupy fully workers who have been trained to execute one operation efficiently. Japanese automakers chose to make small-lot production feasible by introducing several departures from United States practices, including the use of flexible equipment that could be altered easily to do several different production tasks and the training of workers in multiple jobs. Automakers could schedule the production of different components or models on single machines, thereby eliminating the need to store the buffer stocks of extra components that result when specialized equipment and workers are kept constantly active.


1. The primary purpose of the passage is to
(A) present the major steps of a process
(B) clarify an ambiguity
(C) chronicle a dispute
(D) correct misconceptions
(E) defend an accepted approach



OA is E

Please Explain

Legendary Member
Posts: 527
Joined: Mon Jun 02, 2008 9:14 am
Location: Atlanta
Thanked: 17 times

by pandeyvineet24 » Tue Sep 15, 2009 7:31 pm
I was between B or D.
Chose D.
How is E the answer ?

Junior | Next Rank: 30 Posts
Posts: 19
Joined: Tue Mar 31, 2009 11:38 pm
Thanked: 2 times

by Sunshine85 » Wed Sep 16, 2009 2:51 am
Even I stand for D.

But even I am quite confused at looking OA.

Legendary Member
Posts: 1161
Joined: Mon May 12, 2008 2:52 am
Location: Sydney
Thanked: 23 times
Followed by:1 members

by mehravikas » Wed Sep 16, 2009 1:05 pm
Answer should be 'D'...

what's the source?

Senior | Next Rank: 100 Posts
Posts: 73
Joined: Sat Oct 03, 2009 10:37 pm

by kiennguyen » Wed Nov 04, 2009 11:41 pm
another D

Legendary Member
Posts: 544
Joined: Thu Oct 08, 2009 9:14 am
Location: Pune, India
Thanked: 31 times
Followed by:2 members

by adi_800 » Sun Aug 08, 2010 10:20 am
is it the case that answer is D because the one statement in para1 says that the some J observers assumed that Japanese firms use the same manufacturing equipment and techniques as United States firms but have benefited from the unique characteristics of Japanese employees and the Japanese culture.... If this were the case...then something... But this is not the case...
So, first a misconception is presented and then later clarified in para2/3/4...
Is this the reason for answer to be D?

Or else B would be correct...
Also wanna know Why B is incorrect??

Legendary Member
Posts: 544
Joined: Thu Oct 08, 2009 9:14 am
Location: Pune, India
Thanked: 31 times
Followed by:2 members

by adi_800 » Sun Aug 08, 2010 10:23 am
Which of the following statements concerning the productivity levels of automakers can be inferred from the passage?
(A) Prior to the 1960's, the productivity levels of the top Japanese automakers were exceeded by those of United States automakers.
(B) The culture of a country has a large effect on the productivity levels of its automakers.
(C) During the late 1970's and early 1980's, productivity levels were comparable in Japan and the United States.
(D) The greater the number of cars that are produced in a single lot, the higher a plant's productivity level.
(E) The amount of capital investment made by automobile manufacturers in their factories determines the level of productivity.


Would like to know answer to this question as well...