A Brief History of Production
The Advent of TPS & Lean MFG
Before Factory Life…
Prehistoric Times
Hunters and Gatherers
Collect enough food for the day
…if they were Lucky!
10,000 Years B.C.
Agriculture and Domestication
of Animals
Mass Production (1800’s)
• Agricultural Revolution
precluded the Industrial
Revolution
• Mass Production:
A term coined during
Industrial Revolution
• Shift from Hand-made,
Craft Production
• Required Tolerances and
Standardization of Parts
Industrial Revolution Necessary for Automobile Production
Gottlieb Daimler
Automobile Engine
(1887)
Eli Whitney
Interchangeable Parts
(1799)
Ransom Olds
Olds Motor Co.
(1901)
Frederick Taylor
Scientific Management
(1890’s)
Ferdinand Porsche
Volkswagen/Porsche
(1930’s)
Charles Sorensen
Ford Manufacturing Strategy
(1910)
Mass Production:
Ford Highland Park Assembly Plant
•Specialized Labor Force
•Brutal Work Environment
Mass Production:
River Rouge Assembly Plant
• Built 1917 – 1925 banks
on Rouge River,
Dearborn, MI
• Initial Intention to make
Coke, Smelt Iron and
build Tractors
• Became the first fully
integrated Assembly
Plant
• 1930 employed 100,000
• Early model of
Industrial Revolution
• Vertical Integration
Model
Inside
River Rouge
Emergence of Quality Systems
Ransom Olds
Eli Whitney
Frederick Taylor
Charles Sorensen
WW II End
Quality Systems:
Deming
Juran
Ishikawa
During WWII hired by U.S. Government to
improve capability of War Materials Production
Hired by Japan to Rebuild
Father of Post War Japanese Industrial Revival
Dr. Edwards Deming
Toyota Enters the Picture…
Ransom Olds
Eli Whitney
Frederick Taylor
Charles Sorensen
WW II End
Quality Systems:
Deming
Juran
Ishikawa
World Class
MFG
Post War Rebuilding Japan
Eiji Toyoda
Shigeo Shingo
Taichi Ohno
Birth of TPS
Lean MFG
The Birth of the
Toyota Production System
• Recognized flaws of FORD System
• Recognized People were more than
Muscle – they can contribute Knowledge
• FORD Co. lacked flexibility
• Significance of Inventory (resources)
The Assembly Line of Ford
+
The elimination of WASTE
= Toyota Production System
Ford’s Lack of Flexibility
• Early Ford No Changeovers
…always Model T, always black
• Alfred Sloan lead General
Motors past Ford (mid 1930’s)
by adopting more Flexible
Factories
• Could not compete on Price, but
Quality and Selection
• Change was the enemy of
production, but necessary
Model T, 15.5 million sold for $280 - $950
Approach to Flexibility….
• Early Ford
Not necessary for Model T
Not Important Thereafter
• General Motors
Large Runs and Long Changeover Times
A Fixed Cost Built Into Price of Car
Toyota Changeover
Reduction:
Days to Hours to
Minutes!
• Toyota
Short Runs, Highly Responsive to Customer
A Variable Cost – Constant Improvement
I get Mad just
Thinking about
Inventory!!!
Shigeo Shingo (Toyota)
• Large Batches = Inventory = Pure Waste
• Post WWII limits on Resources
• Change-Over is NOT constant/fixed
• Reduction in Change-Over Time enables
an increase in frequency which enables a
reduction in Waste of Inventory
Ford (River Rouge) and Toyota
•Basic Technology the Same
•Assembly Line
•Finished Product a Car
Ford (River Rouge) Concept
• Molded Sheet Metal provides doors, fenders, body
• Parts produced at various buildings within the Complex
• Vertical Integration
Ford (River Rouge) and Toyota
•Push
Production
•Poor
Communication
•Much WASTE:
•Inventory
•Defects
•Transport
•Waiting
•Etc…
•People were
Laborers only
The Toyota System
Two Production Systems:
Mass & Lean Production
•
•
•
•
•
•
•
Common
Production Equipment
Assembly Line
Motors, Sheet Metal,
Rubber, etc…
Technology
Accounting, Engineering
and Administration
People
Produced a Car
Different
• The Interaction of the
Elements in the System
The Assembly Line of Ford
+
The elimination of WASTE
= Toyota Production System
Transportation
Motion
Scrap
Overproduction
Over-Processing
Waiting
Inventory
Wasted
TIME