L1 : Introduction to Lean Manufacturing Q1 What are the features/characteristics of Craft Production ? Ans: Reference L1 ppt pg 16 Craft production continues to survive in tiny niches, usually for luxury products. For example, companies including Rolls Royce , Lamborghini, Ferrari, and Aston Martin . Q2 Can you think of a contemporary industry or profession that employs craft production principles? a. What are the strengths of this industry or profession? b. What are the weaknesses? c. What are the biggest threats it faces? d. What do you think this industry or profession needs to do to improve? Ans : Reference T2 book pg 1, 2 , L1 ppt pg 18,19 Some industries that employ craft production principles are : Rolls Royce , Lamborghini, Ferrari, and Aston Martin . a) 1. 2. 3. Strengths of craft production Flexibility in the product design in accordance with the customer requirements . As each product was unique, high degree of customization was possible. Customer satisfaction as the customer could directly interact with the manufacturer and his team .Nostalgist look on craft production as a golden era when craftsmanship counted and companies gave personal attention to each customer. b) Weaknesses of craft production 1. Long Lead times 2. Low production volumes with high prices 3. Only the rich could afford the product. 4. Quality was unpredictable—each product was essentially a prototype. c) What are the biggest threats it faces Improvement activities were not widely shared. In fact, some trade organizations saw improvement as a threat. d. What do you think this industry or profession needs to do to improve? Not sure about this part of answer . Fred Winslow Taylor and Ford sought to overcome these problems . Taylor’s scientific management laid the foundation for mass production . His innovations included Standardized work—identifying the best and easiest way to do the job. Reduced cycle time—the time it takes for a given process. Time and motion study—a tool for developing standardized work. Measurement and analysis to continually improve the process (a prototype of the plan-do-check-act cycle). Ford's factory innovations laid the foundation for mass production . His principal innovations were: Interchangeability and ease of assembly of parts. Reduction of actions required of each worker. Moving assembly line. Q3 What are the features of Mass Production ? Ans : The features of mass production are: 1. Advent of the moving conveyor 2. 3. 4. 5. Establishment of standardized, interchangeable parts Development of standard methods of production Increased productivity Lower costs • Example 1 : Ford Cars . By 1926 Ford became leading manufacturer in producing half of all cars. Quality control was less, finished cars inspected rarely but they were durable and could be repaired by average user . This was a major selling point. Q4 Can you think of an industry or profession that employs mass production principles? a. What are the strengths of this industry or profession? b. What are its weaknesses? c. What are the biggest threats it faces? d. What do you think this industry or profession needs to do to improve? Ans : Reference last sem ppt https://bstrategyhub.com/swot-analysis-of-ford-2019-ford-swot-analysis/ Example 1 : Ford Cars used mass production . By 1926 Ford became leading manufacturer in producing half of all cars. Quality control was less, finished cars inspected rarely but they were durable and could be repaired by average user . This was a major selling point. In Ford all the divisions are properly divided and special care for the specifications are given and a larger number of products at lower unit cost. a) strengths of this industry Ford is now standing 4th in the world in the sector of automobiles. There are many reasons like: 1.Strong R&D-Committed to increase the efficiency of the vehicle in terms of the fuel efficiency, safety of the passengers, customer satisfaction and also in developing new products. 2.Patents-Ford at this time have almost 38,500 active patents and pending patents globally. 3.New technology- As the company have a strong R&D team there are frequent innovations in the field of fuel efficiency, design, safety, hybrid and plug in hybrid powertrains. 4.Product portfolios-Ford have a huge products portfolio which ranges from small scale vans to full sized trucks. 5) Huge Network of dealers 6) Strong Financial Position 7) Global Recognition b and c)Some of the weaknesses and threats faced by Ford are: 1.Product Failure-In 2013-2014 around 214000 vehicles F-150 replaces the brake master cylinder in May 2016. In 2015 the company have to bear the failure of the Takata airbags of the vehicle. 2.Emerging markets-the company is not doing good in the emerging market. d)Some of the improvements are: 1.The company have to be more focused to generate more revenue and global market share. 2.The company can invest more in the field of hybrid vehicles as due to so many environmental concerns, it is one of the best opportunity for the company. 3.The company can go for expansion and also enter in the new sectors for the expansion of the overall company name and revenue. Q5 What are the strengths and weaknesses of mass production ? Ans : Reference combined student notes pg. 6 L1 ppt 23,24 for more elaboration if needed . a) 1. 2. 3. 4. 5. b) Strengths of mass production Advent of the moving conveyor Establishment of standardized, interchangeable parts Development of standard methods of production Increased productivity Lower costs Weaknesses of mass production The limitations of Mass Production are: 1)Worker alienation 2) Higher capital costs leading to batch manufacturing 3) Distance from the customer 4) Management by numbers as advocated by Alfred Sloan at General Motors – management disconnected from the shop floor 5) Engineering became specialized – lack of communication among different specialties and with manufacturing – longer product development time 6) Due to large expensive equipment that had to be kept busy to justify the high cost, production was in large batches, whether, or not, this was required by the customer 7) Due to management by numbers, accounting became a very important discipline. Inventory was treated as an asset in accounting leading to high inventories.
