Nov 3 2015
Seen this morning in a Lean consultant’s blog:
“Two decades later, VW has topped Toyota as the world’s number one automaker, but Toyota generally is considered to be […] far more productive. In 2015, VW employs 600,000 people to produce 10 million cars while Toyota employs 340,000 to produce just under 9 million cars…”
Is it really that simple? VW produces 10 million/600,000 = 16.67 cars/employee/year, and Toyota 9 million/340,000 = 26.47 cars/employee/year. Ergo, Toyota is 60% more productive than VW — that is, if you accept cars/employee/year as an appropriate metric of productivity. Unfortunately, it is a bad metric that can easily be gamed by outsourcing.