The Machine That Changed The World

James P.Womack, Daniel T.Jones,

Daniel Roos

Introduction

• Evolution of lean manufacturing.• Craft to Mass production system.• lean producers led by Toyota.• Difference between mass production and

lean production.

Henry Ford and the rise of Mass Production• It was Henry Ford who really understood

the drawbacks of craft production.

• User friendly car of Henry ford (Model-t)

Manufacturing innovations

• Interchangeability• Labour force management.• Moving assembly line ( August, 1913)• Task cycle for the average Ford assembler

had been reduced from 514 to 2.3 minutes.

Sloan’s approach

At General Motors, Alfred Sloan ’s innovative thinking seemed to resolve the conflict between the need for standardization to cut manufacturing costs and the model diversity required by consumers.

• hang-on features For ex. Air Conditioning and Radios.

The decline of US car makers

• Mass production had become commonplace in countries across the world (1955)

• Technology had taken place somewhat slowly.

The Rise of Lean Production

• It was the Japanese who set out to change the rules of the game.

• Endless experimentation.• Discovery of die change(1950)

GM & Toyota: A Contrast

• Plant space

• Store inventories

• Authority to stop line

Shusa system of product development (Toyota)

The shusa is the leader of the team which designs and engineers a new product and gets it fully into production.

Lean Supply Chain

• Supplier pyramid• Supplier ’s production costs and quality• Cooperative relationship• Performance measurement• Deliver components directly to the assembly

line• Assemblers give suppliers advance notice of

changes in volume• Punishment to the suppliers.

Customer Relationship Management

• Coordination between the sales division and product planners

• Maximize the stream of income from a customer over the long term

• Provide defect free product & good after sales service

Thank you