School of Innovation, Design and Engineering KPP202. From Ford to Toyota. Mats Jackson and Anders Hellström. Product and Process Development

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1 School of Innovation, Design and Engineering 1 Competitive Production Systems KPP202 From Ford to Toyota Mats Jackson and Anders Hellström School of Innovation, Design and Engineering, g g g Product and Process Development

2 Objectives of the day Discuss the historic i development of industrial i production systems

3 Questions The driving i forces behind the development of industrial production systems? Why mass production? Why was Ford successful?

4 The Production System - A historic development

5 A historic development Craftmanship Make what the customer wants => Large demand for products large scale manufacturing Mass Production - Henry Ford and Alfred Sloan => The challenge of producing customized products with efficient manufacturing Lean Production Eiji Toyoda and Taiichi Ohno => Business environment dominated => Business environment dominated by change and uncertainty

6 A historic development The industrial breakthrough is often dated to the end of the 18th century in England The textile industry - forerunner Changes in material supply The colonization gave possibilities for cheap material cotton Changes in ways to distribute products New ways for transportation gave possibilities to deliver products far away Changes in the labor market Large-scale agriculture with increased productivity and the decreased mortality rates gave urbanization and a surplus of labor

7 Industrialization in England Early governmental support of road improvements and canal construction, Britain had a better transportation network than any other country in Europe. The British also had mastery of the seas, excellent ports, and a large merchant fleet. Industrialization in stable conditions profiting from war contracts between 1792 and No wars in England. The combination of inventiveness, growing markets, governmental support, and social flexibility made Britain the world's dominant economic power until the end of the nineteenth century.

8 A historic development Towards the industrial revolution - a revolution in manufacturing technique The transition from craft production to mass production - mechanization, using machines and engines replacing hand-made processes and human muscle power The steam engine was developed for industrial uses, which liberated industry from uncontrollable limitations of natural forces and energy E.g. the textile industry - weave-machines and steam spinning mills reduced the amount of manual labor and enabled the establishment of large-scale industries

9 Industrialization in making cloth Industrialization: The First Phase: John Kay's Flying Shuttle Crompton's Spinning Mule In 1733, John Kay ( ), a spinner and mechanic, patented the first of the great machines - the flying shuttle. This device made it possible for one person to weave wide bolts of cloth by using a spring mechanism that sent the shuttle across the loom. Five years later, a barber named Richard Arkwright ( ) built the water frame that made it possible to spin many threads into yarn at the same time. Ten years after that t Samuel Crompton ( ), 1827) a spinner, combined the spinning jenny and water frame into the water mule, which, with some variations, is used today. In 1785 Edmund Cartwright ( ) invented the power loom that mechanized the weaving process. In two generations what had once been a home-based craft became an industry. Cartwright right looms Finally, the textile industry became so large that it outgrew the possibilities of its power source: water power. Steam came to drive the machines of industrializing Britain. In the first part of the eighteenth century a mechanic, Thomas Newcomen ( ), made an "atmospheric engine" in which a piston was raised by injected steam. As the steam condensed, the piston returned to its original position. Newcomen engine

10 A historic development The huge increase in productivity, using machines, can be shown in the amount of raw cotton Britain imported in 1760 and In 1760 the British imported a bit over 1000 ton In 1850 the number had risen to over 222,000 tons.

11 A historic development 1800 craft production Knowledge to develop, manufacture and fit The apprentice system Decentralized workshops own companies Low production volume General purpose machines

12 A historic development The dramatic industrial changes in the 20 th century is often credited to the auto industry [Womack et. al., 1990]: Yet the auto industry is even more important to us than it appears. Twice in this century it has changed our most fundamental ideas of how we make things. And how we make things dictates not only how we work but also what we buy, how we think, and the way we live.

13 A historic development 1800 craft production of automobiles No car dealers Hand built in small numbers Specified according to customer demands No standards measuring problems => dimensional creep

14 Discussion Is it possible to compete with craft production today?

15 Craft production today Aston Martin, Koenigsegg etc. precision-made and designed in-house hand-made metal and carbon fibre craftsmen that produce low volumes of incredibly high quality

16 A historic development Henry Ford is often said to be one of the persons behind the development of mass production it was in Detroit that the first real mass-productive production system for cars was born - Ford s model T began to be produced in th design over a five year period that began with model A Designed for manufacture User friendly no need for chauffeur or mechanic

17 Henry Ford Henry Ford ( ) Born July in Dearborn, Michigan In 1879 became an apprentice machinist 1893 Ford became chief engineer with the Edison Illuminating Company in Detroit In 1896 the completion of his self-propelled vehicle the Quadricycle Henry Ford had a dream of producing an automobile for the masses - that was reasonably priced, reliable, and efficient

18 Henry Ford Henry Ford was 40 years old when he founded the Ford Motor Company, which would go on to become one of the world's largest and most profitable companies. Ford was launched in a converted factory in 1903 with $28,000 in cash from twelve investors. During its early years, the company produced just a few cars a day at its factory on Mack Avenue in Detroit. Groups of two or three men worked on each car from components made to order by other companies. Henry Ford (ca. 1919)

19 Model T The first Model Ts were built at the Piquette Road Manufacturing Plant As demand for the car grew, the company moved production to the much larger Highland Park Plant, and in 1911, the first year of operation there, 69,762 Model Ts were produced, with 170,211 in By 1913, the company had developed all of the basic techniques of the assembly line and mass production. Sales in 1914 hit 308,162, and 501,462 in 1915 By 1914, the assembly process for the Model T had been so streamlined it took only 93 minutes to assemble a car. That year Ford produced more cars than all other automakers combined.

20 FORD Mass production Model T (1908) Manufacturer Ford Motor Company Production Predecessor Ford Model S Successor Ford Model A Body style(s) Engine(s) Transmission(s) Curb weight Designer Touring,, roadster, ton, closed cab ton truck, coupé, two door, center door, station wagon (SUV), convertible 177 in³ (2.9 L) straight-4, 20 hp Rear wheel drive, planetary gear, 2 forward speeds 1,200 pounds (540 kg) Henry Ford, Childe Harold Wills, Joseph A. Galamb and Eugene Farkas

21 Model T The Model T was a great commercial success, and by the time Henry made his 10 millionth car, 9 out of 10 of all cars in the entire world were Fords. In fact, it was so successful that Ford did not purchase any advertising between 1917 and 1923; in total, more than 15 million Model Ts were manufactured, more than any other model of automobile for almost a century. Henry Ford's eccentric approach to research and development meant few changes to the vehicle were made over its lifetime; he believed the Model T was all the car a person would, or could, ever need.

22 Ahi historic i development The key to massproduction of automotives: ti precision manufacturing interchangeability of components the simplicity of attaching them together diii division of labor - the demandd for versatile labor was not important when the assembly operations were broken down so that anyone could perform them the human being became interchangeable and in some cases eliminated by automation later - the moving or continuous assembly line => : 514 minutes => 2 3 minutes cycle time > : 514 minutes > 2,3 minutes cycle time => 1913 continuous assembly line: 2,3 minutes to 1,19 minutes

23 Ahi historic i development Precision i manufacturing: Measuring standards e.g. Johansson gauges There are only two people I take off my hat to. One is the president of the United States and the other is Mr. Johansson from Eskilstuna, Sweden. Henry M. Leland, around At the end of his career, in 1923, Johansson started to work for Henry Ford at,, y the Ford Motor Company, in Dearborn, Michigan.

24 The assembly line The assembly line concept was not "invented" at one time by one person, and no one person is the "father" of it. It has been independently redeveloped throughout history based on logic. Its exponentially larger development at the end of the 19th century and beginning of the 20th occurred among various people over decades, d as other aspects of technology allowed. The assembly line was introduced to Ford by William C. Klann upon his return from visiting iti a slaughterhouse h at Chicago's Union Stock Yards and viewing i what was referred to as the "disassembly line" where animals were cut apart as they moved along a conveyor.

25 The assembly line The Terracotta Army (circa 215 BC) commissioned by the first Chinese Emperor Qin Shi Huangdi is a collection of about 8000 life-sized clay soldiers and horses buried with the emperor. The figures had their separate body parts manufactured by different workshops that were later assembled to completion. Notably, each workshop inscribed ib its name on the part they manufactured to add traceability for quality control. Venetian Arsenal (1500s) employed some 16,000 people who apparently were able to produce nearly one ship each day, and could fit out, arm, and provision a newly-built galley with standardized parts on an assembly-line basis.

26 The assembly line Block production at Portsmouth: Brunel, Maudslay, et al ( s) - probably the first linear and continuous assembly line of post-renaissance times was created in 1801 by Marc Isambard Brunel (father of Isambard Kingdom Brunel), with the help of Henry Maudslay and others, for the production of blocks for the Royal Navy. This assembly line was so successful it remained in use until the 1960s, with the workshop still visible at HM Dockyard in Portsmouth, and still containing some of the original machinery. Eli Whitney (1780s-1820s) is sometimes credited with developing the armory system of manufacturing in 1801, using the ideas of division of labor, engineering tolerance, and interchangeable parts to create assemblies from parts in a repeatable manner. Ransom E. Olds (1890s-1900s) patented the assembly line concept, which he put to work in his Olds Motor Vehicle Company factory in 1901, becoming the first company in America to mass-produce automobiles - Curved Dash Oldsmobile.

27 A historic development Mass Production - disadvantages Extreme work specialization and task allocation gave bad working conditions with monotonic and boring tasks in a high tempo As a consequence a number of disadvantages with the mass production system surfaced: High turnover of employees Absence and injuries due to the work environment Poor motivation to improve the processes Bufferts

28 Mass production In January 1914, Ford solved the employee turnover problem by doubling pay to $5 a day, cutting shifts from nine hours to an eight hour day for a 5 day work week (which also increased sales; a line worker could buy a T with under four months' pay), and instituting hiring practices that identified the best workers, including disabled people considered unemployable by other firms. Employee turnover plunged, productivity it soared, and with it, the cost per vehicle plummeted. Ford cut prices again and again and invented the system of franchised dealers who were loyal to his brand name.

29 Scientific Management Frederick Winslow Taylor was an American mechanical engineer who sought to improve industrial efficiency. Taylor was the first man in recorded history who deemed work deserving of systematic observation and study. An innovation within industrial engineering, particularly in time and motion studies, paid off in dramatic improvements in productivity

30 Scientific Management F. W. Taylor ( ) Published "Scientific Management" in 1911 factories are managed through scientific methods rather than by use of the empirical rule of thumb Taylor created planning departments, staffed them with engineers Task allocation is the concept that breaking task into smaller and smaller tasks allows the determination of the optimum solution to the task Taylor have been credited with destroying the soul Taylor have been credited with destroying the soul of work, of dehumanizing factories, making men into automatons

31 Scientific Management F. W. Taylor ( ) Taylor s attitude towards workers was full of negative bias [Taylor, 1911]:..in the majority of cases this man deliberately plans to do as little as he safely can Even though Taylor has been extensively criticized, it is a fact that he had great impact on the view of manufacturing and the way to run operations

32 Discussion What do you think of Taylor and his principles?

33 A historic development Model T By 1918 half of all cars in America were Model T Large factory in Highland park automobiles with the Model T engine You can paint it any color, so long as it s black Ford succeeded in his quest to build a car for the masses!

34 A historic development Vertical integration from mine to car The Ford River Rouge Complex (commonly known as the Rouge Complex or just The Rouge) is a factory complex located in Dearborn, Michigan Rubber plantations in Brazil Iron mines in Minnesota Dearborn, Michigan 1927 Great lake steamboats, railroad to Detroit Steel mill,,glass factory, automobile assembly Mass production of everything from food to air transportation

35 A historic development The Ford dilemma Bad organization Centralization Top-management himslef The concept was unworkable almost drove the company under in the 1930s when his mental powers declined

36 A historic development Alfred Sloan ( ) at General Motors Sloan would make the system Ford had pioneered complete Decentrilized divisions managed objectively by the numbers separate profit centers Five-model product range Stable outside funding

37 Mass Production Summary The focus of management in the mass production systems was labor efficiency and Tayloristic influences as means to increase productivity This could be explained by the large demand for products during the mass production era before and after the Second World War The overall objective of manufacturing at this time was volume and growth, since all products produced could be sold Thus internal labor efficiency was enough to maintain competitiveness during the Mass Production Era

38 A historic development Mass Production on it s peak cars sold in USA Ford, GM, Chrysler - 95% of sales 6 models accounted for 80% of all cars sold In 1950 the Toyota Motor Company in Japan had in total produced 2685 automobiles compared with 7000 cars produced per day in the Rouge

39 Discussion Is mass production still used today? Why?

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