Toyota’s Time to Squeeze Suppliers

Toyota is making a renewed push to produce cars more efficiently and at lower costs. Per a recent WSJ article the world’s biggest carmaker set a target for supplier’s of 30 to 40% in three years.

The a program is called RRCI, which stands for

• Ryohin (quality),
• Renka (low-price),
• Costs and
• Innovation

Much has been written about Toyota’s lean manufacturing capabilities. Their ability to partner with suppliers to drive cost reduction and innovation is admired by many. But I have no idea how to provide a broader definition for “Renka”. An internet search provides no clues.