Tata Motors of India produces a mini-car called the GenX Nano. This small car boasts an affordable price tag of under $5000. The firm is keeping costs down by eliminating large assembly-line manufacturing sites and high transportation costs. Workers prepare "kits" that are shipped to final retail destinations. The kits are assembled by trained technicians at the retail level. Which of the following does this example illustrate?
A) TQM
B) lean production
C) continuous flow process
D) old-style assembly lines

Question

Quizplus · Accepted Answer

The example illustrates lean production, which focuses on reducing waste and increasing efficiency by eliminating non-value-added activities such as transportation and excessive inventory. The use of kits and assembly by trained technicians at the retail level is an example of this approach.

Tata Motors of India Produces a Mini-Car Called the GenX