• Toyota is renowned for its Lean manufacturing principles.
• Requirements:
  • Calculate the Overall Equipment Effectiveness (OEE) for a Toyota assembly line that operates 24/7. The line has an availability of 85%, performance efficiency of 90%, and quality rate of 95%.
  • Recommend actions to improve OEE.
  • Justify how improving OEE aligns with Toyota's Lean manufacturing principles.
  • Present a table showing the impact of OEE improvements on Toyota's income statement and balance sheet.

Metric	Calculation	Value
OEE	(Availability) × (Performance) × (Quality)	85% × 90% × 95%
Improved OEE	(New Availability) × (New Performance) × (New Quality)	New Value
Impact on Income Statement	Revenue increase due to improved efficiency	$X
Impact on Balance Sheet	Reduction in production costs and inventory	$Y