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Originally Posted by Sutripta ...
and the mentioned examples most certainly are not. Today's economics don't allow one to handcraft a volume product.
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As you pointed out earlier, the reports need independent confirmation of the facts. That is also needed for the degree to which the stated facts are true, not just the statements of the fact.
However in general it isn't a golden rule that machines are cheaper. Believe it or not, several production tasks that are automated almost everywhere else in the world (e.g. tasks in PCB assembly) are done by hand in China. In fact in some chinese factories only the tasks that a human can't do well enough are done by machines.
Whether a task turns out cheaper to do by machines or by humans depends on a lot of factors. Usually volumes play a big part in deciding which method is cheaper - higher the volumes cheaper the machines are.
However in the above argument volumes are not necessarily model-volumes, but can be variant-volumes as well. Every Rolls Royce car is unique in its own, hence the effective volume for most of the parts is almost exactly one. So all the upholstery is hand sewed, even though computerised machines will be cheaper and better even in volumes of high hundreds.
In areas where volumes truly exist (engines etc.) they do use machines heavily, except where humans perform better and cheaper.
Even for high-volume manufacture where machines have significant but not back-breaking cost advantage, humans may still be preferable simple because the equivalent of "re-tooling" can be done in a matter of hours if not minutes at close to zero costs in most cases if humans are working the assembly line. With machines the process is complicated (requires software change, testing ...), expensive and time consuming. In electronics for example PCBs and assemblies for consumer electronics is very highly automated, while that for industrial electronics is much more flexible with a lot more human content.
Coming specifically to Toyota, apart from the above (the article mentions loss of flexibility) there may be non-economic reasons as well. Japanese companies are loath to lay people off in general, and if that is the case then getting work done from a human (rather than investing in a machine) is much cheaper on an incremental basis - you would have had to pay the salaries anyway.
Another problem may have to do with Toyota's problems with quality - while machines are usually better than humans in doing simple routine tasks, those very machines usually have no capability of observation and certainly none of "critical thinking". Japanese companies in particular that in the past have relied on all employees looking at any potential problems lose the critical feedback every time a human is replaced with a machine. Overall cost may actually increase rather than decrease.