Directions: Read the given passage carefully and answer the questions as follows:
Passage
Japanese firms have achieved the highest levels of manufacturing efficiency in the world automobile industry. Some observers of Japan have assumed that Japanese firms use the same manufacturing equipment and techniques as United States firms but have benefited from the unique characteristics of Japanese employees and the Japanese culture. However, if this were true, then one would expect Japanese auto plants in the United States to perform no better than factories run by United States companies. This is not the case; Japanese-run automobile plants located in the United States and staffed by local workers have demonstrated higher levels of productivity when compared with factories owned by United States companies.
Other observers link high Japanese productivity to higher levels of capital investment per worker. But a historical perspective leads to a different conclusion. When the two top Japanese automobile makers matched and then doubled United States productivity levels in the mid-sixties, capital investment per employee was comparable to that of United States firms. Furthermore, by the late seventies, the amount of fixed assets required to produce one vehicle was roughly equivalent in Japan and in the United States.
Since capital investment was not higher in Japan, it had to be other factors that led to higher productivity. A more fruitful explanation may lie with Japanese production techniques. Japanese automobile producers did not simply implement conventional processes more effectively: they made critical changes in United States procedures. For instance, the mass-production philosophy of United States automakers encouraged the production of huge lots of cars in order to utilize fully expensive, component-specific equipment and to occupy fully workers who have been trained to execute one operation efficiently. Japanese automakers chose to make small-lot production feasible by introducing several departures from United States practices, including the use of flexible equipment that could be altered easily to do several different production tasks and the training of workers in multiple jobs. Automakers could schedule the production of different components or models on single machines, thereby eliminating the need to store the buffer stocks of extra components that result when specialized equipment and workers are kept constantly active.
Question for Practice Test: Reading Comprehension (RC) - 76
Try yourself:Which of the following statements is supported by information stated in the passage?
Explanation
The correct answer is A. Japanese and United States automakers differ in their approach to production processes. Japanese automakers use small-lot production, which is more efficient than the mass-production philosophy used by United States automakers. This allows Japanese automakers to utilize their equipment and workers more effectively, resulting in higher productivity levels.
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Question for Practice Test: Reading Comprehension (RC) - 76
Try yourself:According to the passage, which of the following statements is true of Japanese automobile workers?
Explanation
The correct answer is D. The passage states that Japanese workers are trained in multiple jobs, which makes small-lot production feasible. This allows automakers to schedule the production of different components or models on single machines, which eliminates the need for extra components.
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Question for Practice Test: Reading Comprehension (RC) - 76
Try yourself:The primary purpose of the passage is to
Explanation
The primary purpose of the passage is to correct misconceptions.
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Question for Practice Test: Reading Comprehension (RC) - 76
Try yourself:It can be inferred from the passage that one problem associated with the production of huge lots of cars is which of the following?
Explanation
The problem associated with the production of huge lots of cars is the need to store extra components not required for immediate use. This is because specialized equipment and workers are kept constantly active, which results in the production of buffer stocks of extra components.
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Question for Practice Test: Reading Comprehension (RC) - 76
Try yourself:Which of the following statements concerning the productivity levels of automakers can be inferred from the passage?
Explanation
The most fruitful explanation for the higher productivity of Japanese automakers may lie with Japanese production techniques. Japanese automobile producers did not simply implement conventional processes more effectively: they made critical changes in United States procedures.
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Question for Practice Test: Reading Comprehension (RC) - 76
Try yourself:With which of the following predictive statement regarding Japanese automakers would the author most likely agree?
Explanation
The efficiency levels of the Japanese automakers will decline if they become less flexible in their approach to production.
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Question for Practice Test: Reading Comprehension (RC) - 76
Try yourself:The author suggests that if the observers of Japan mentioned in line 3 were correct, which of the following would be the case?
Explanation
The author suggests that if the observers of Japan mentioned in line 3 were correct, then Japanese workers would be trained to do several different production jobs.
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Question for Practice Test: Reading Comprehension (RC) - 76
Try yourself:Which of the following best describes the organization of the first paragraph?
Explanation
The first paragraph of the passage presents a thesis that Japanese firms have achieved the highest levels of manufacturing efficiency in the world automobile industry. This thesis is supported by the observation that Japanese-run automobile plants located in the United States have demonstrated higher levels of productivity when compared with factories owned by United States companies.
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