Auto Manufacturing: GM versus Toyota circa 1980s

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Auto ManufacturingGM versus Toyota(circa 1980s)

• 70 in-house
• 10,000
• suppliers
• parts
• design by auto firm, select by competitive bid
• one year, fixed price
• dies owned by auto company
• inspect on delivery

• 30 in-house
• 150 1st-tier
• suppliers
• systems
• select before design,design by supplier
• model run, ex post pricing
• dies owned by supplier
• deliver to line