The Toyota Production System was created by Taiichi Ohno, the chief engineer of Toyota Motor Company in the years following the second world war. Ohno based his "lean production" system on the elimination of all wasted time and re-work from the mass production system of the American auto manufacturers.

The efficiency of the Toyota Production System is shown by the statistics. Toyota's Takaoka Assembly Plant produces cars with a gross assembly time of under 18 hours, and with only 45 assembly defects per 100 cars.

As a result of this efficient production system, Toyota is able to produce high quality automobiles (which consumers are willing to pay a premium price for) as one of the industries lowest cost producers. Toyota Motor Corporation is an example of a company with very limited slack evidenced by there being little or no waste and inefficiency.

General Motors is the largest company in the world. 1995 sales exceeded $154 billion dollars. The company has a staff of 692,800 employees.

General Motors is noted for its efficient mass production of automobiles. However, GM's production system requires more than twice as many assembly hours to build a car as Toyota does. (40.7 hours at G.M's Framingham Assembly Plant vs. 18.0 hours at Toyota's Takaoka plant.) Furthermore, GM workers rack up three times as many defects as the Toyota workers (130 defects per 100 autos vs. 45 at Toyota).

General Motors is an example of a company which has some slack which could be eliminated. Slack is evidenced by some waste and inefficiency.

Morgan Motor Company is proud to be the producer of the last coachbuilt car in the world. The Morgan factory is an anachronism in today's auto world. These true sports cars are built one at a time...by hand...just as they were when the factory was established in 1919. Skilled panel beaters form steel body panels over a frame made of wood. The company proudly advertises "There is no moving assembly line where tasks have been reduced to a monotonous routine." The staff numbers 130.

Morgans are cult cars. The Morgan Plus Eight is one of the fastest accelerating cars in the world, capable of 0 to 60 in under 6 seconds. Demand for Morgans outstrips the company's production capability of 500 cars per year. As a result there is a 4 to 5 year waiting list for one of these fine automobiles.

Morgan Motor Company is an example of a company which has survived in spite of a production process which has lots of slack. Compared to modern auto manufacturing plants, the Morgan plant embodies lots of waste and inefficiency. Even so, the high demand for the product relative to the production allows Morgan Motor Company to charge a premium price and stay in business.