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Narrative 18-1 In Recent Years, Japanese Companies Such as Mitsubishi, NEC, Fujitsu

Question 85

Multiple Choice

Narrative 18-1
In recent years, Japanese companies such as Mitsubishi, NEC, Fujitsu, and Sony began turning to North America to manufacture Japanese products. While Sony, Panasonic, and other Japanese giants still excel at cranking out high-quality consumer electronics products-such as camcorders and TVs-by the millions, it's a different story in industries with short product cycles and factories that must build what customers order instead of churning out products in anticipation of demand. Japan's great strength-repetitive manufacturing-is becoming its greatest weakness. This production-on-demand form of management cannot depend on JIT. Instead, the North American companies rely on raw-in-process inventory, or RIP. RIP calls for keeping a reasonable quantity of varied raw materials or components on hand to meet changing customer demand.
-Refer to the Narrative 18-1.When Chung Mong Koo,as Hyundai's new chairman and CEO,visited a Hyundai plant,he strode onto the factory floor and demanded to look under the hood of a Sonata sedan.He didn't like it when he saw loose wires,tangled hoses,and bolts painted four different colours.This car was not being built the way it was designed,and its manufacturing flaws resulted in it not working as it was supposed to.Therefore,which of the following did Hyundai have a problem with?


A) responsiveness
B) assurance
C) tangibles
D) reliability

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