Optimum output has to do with making the most profit from operations, not just having high production. Production is having an output, and that output must have value to the consumer. In order to find optimal output, the managers have a responsibility to find the point where the cost of producing one more unit is equal to the profit that the unit will bring in. So, optimum output is when marginal cost is equal to marginal revenue. That makes the profit maximized as well. On top of this idea, the production must be sustainable to create growth. If a firm cannot maintain their production level, especially at optimal output, then they may have declines in profit. Some of the causes of a loss in optimum output are over- or underproduction, which can be costly for a firm. Some of the factors that affect production are things like supplies of raw materials or labor. If these costs change, externally to the firm, then production levels can change as well, thereby shifting the optimal output. With regards to Honda, I think they are constantly striving to achieve optimum output. They have closely tied their output to those resources needed to create production