Boeing is back at the drawing board. In 2015, after releasing the Boeing 777x, an update to the widelypopular 777, they announced plans to redevelop their production process. Boeing hoped to extend theextremely successful process known as lean production to incorporate robotics and standardize productionfurther, leading to what Boeing calls advanced manufacturing.Lean manufacturing, pioneered by Toyota Motors of Japan, is based on the practice of having parts arriveon the factory floor just as they are needed for production. This reduces the amount of parts Boeing holdsin inventory as well as the amount of the factory floor needed for production. To help move from leanproduction to advanced manufacturing Boeing has turned to Toyota, hiring some of their top engineers.Boeing first adopted lean manufacturing in 1999 in the manufacture of the 737, the most popularcommercial airplane. By 2005, after constant refinement, it achieved a 50% reduction in the time it takes toproduce a plane and a nearly 60% reduction in parts inventory. An important feature is a continuouslymoving assembly line, moving products from one assembly team to the next at a steady pace andeliminating the need for workers to wander across the factory floor from task to task or in search of toolsand parts.Toyota's lean production techniques have been the most widely adopted, revolutionizing manufacturingworldwide. In simple terms, lean production is focused on organization and communication. Workers andparts are organized so as to ensure a smooth and consistent workflow that minimizes wasted effort andmaterials. Lean production is also designed to be highly responsive to changes in the desired mix of output-for example, quickly producing more sedans and fewer minivans according to changes in customerdemand.Toyota's methods were so successful that they transformed the global auto industry and severelythreatened once-dominant American automakers. Until the 1980s, the "Big Three"-Chrysler, Ford, andGeneral Motors-dominated the American auto industry, with virtually no foreign-made cars sold in theUnited States. In the 1980s, however, Toyotas became increasingly popular due to their high quality andrelatively low price-so popular that the Big Three eventually prevailed upon the U.S. government toprotect them by restricting the sale of Japanese autos in the U.S. Over time, Toyota responded by buildingassembly plants in the United States, bringing along its lean production techniques, which then spreadthroughout American manufacturing.QUESTIONS FOR THOUGHTWhat is the opportunity cost associated with having a worker wander across the factory floor from task totask or in search of tools and parts?Explain how lean manufacturing improves the economy's efficiency in allocation.

Opportunity cost is the cost of the next best alternative foregone. This concept arises due to…

opular 777, they announced plans to redevelop their production process. Boeing hoped to extend the ktremely successful process known as lean production to incorporate robotics and standardize production rther, leading to what Boeing calls advanced manufacturing. ean manufacturing, pioneered by Toyota Motors of Japan, is based on the practice of having parts arrive h the factory floor just as they are needed for production. This reduces the amount of parts Boeing holds inventory as well as the amount of the factory floor needed for production. To help move from lean roduction to advanced manufacturing Boeing has turned to Toyota, hiring some of their top engineers. peing first adopted lean manufacturing in 1999 in the manufacture of the 737, the most popular ommercial airplane. By 2005, after constant refinement, it achieved a 50% reduction in the time it takes to roduce a plane and a nearly 60% reduction in parts inventory. An important feature is a continuously oving assembly line, moving products from one assembly team to the next at a steady pace and iminating the need for workers to wander across the factory floor from task to task or in search of tools nd parts. byota's lean production techniques have been the most widely adopted, revolutionizing manufacturing orldwide. In simple terms, lean production is focused on organization and communication. Workers and arts are organized so as to ensure a smooth and consistent workflow that minimizes wasted effort and aterials. Lean production is also designed to be highly responsive to changes in the desired mix of output -for example, quickly producing more sedans and fewer minivans according to changes in customer emand. oyota's methods were so successful that they transformed the global auto industry and severely reatened once-dominant American automakers. Until the 1980s, the "Big Three"-Chrysler, Ford, and eneral Motors-dominated the American auto industry, with virtually no foreign-made cars sold in the nited States. In the 1980s, however, Toyotas became increasingly popular due to their high quality and latively low price-so popular that the Big Three eventually prevailed upon the U.S. government to rotect them by restricting the sale of Japanese autos in the U.S. Over time, Toyota responded by building ssembly plants in the United States, bringing along its lean production techniques, which then spread roughout American manufacturing. UESTIONS FOR THOUGHT 'hat is the opportunity cost associated with having a worker wander across the factory floor from task to sk or in search of tools and parts? kplain how lean manufacturing improves the economy's efficiency in allocation