continuous improvement: the lessons of history
TRANSCRIPT
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Continuous Improvement: The Lessons of History(or, There is nothing new under the sun)
SCM 352
Dr. Ron Lembke
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Eli Whitney• introduced interchangeable
parts in large musket contract for U.S. Army
• Interchangeable parts the true secret of Ford’s success
• Made possible by advances in measurement and tool steel
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Frederick W. Taylor
• Frederick W. Taylor:
• Father of “Scientific Management”
• Find ways to improve work environment and work processes
• Quantify, measure & track everything:
Time required to haul wheelbarrow:
B p aL
051 0 0048
27127. . .distance hauled
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Factory Life
“Schmidt”
Taylor’s Factory
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Frank and Lillian Gilbreth• Systematically study a work environment and find the
best way to achieve a particular task
• With Taylor, pioneered “industrial engineering” -- time and motion studies
• “Cheaper by the Dozen”
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Motion Capture
• Lights illuminate key motion joints
• For Computer Generation, convert to 3D
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Tim Lincecum
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Chronocyclegraph light-1914
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Typesetter
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Bricklayer
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Pencil Holder
• Color coded slots
• Groove for grabbing pencil
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Ergonomics
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Ergonomic chairs
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Andrew Carnegie
• Telegraph operator to RR division superintendent
• Adopted latest technology, built first steel plant laid out to optimize flow
• Focused on knowing, lowering unit cost
• Raise prices with everyone else in booms, slash prices in recession
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Andrew CarnegieProduction: US England
1868 8,500 111,000
1902 9,138,000 1,862,000
Steel Prices: (per ton)
1870 $100
1890 $12How? Continuous Process Improvement
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The Richest Man in the World• Found out strike organizers, fired before
• 1886 “Triumphant Democracy”, Forum magazine-workers’ right to unionize
• 1889 “Gospel of Wealth:” rich need to help the poor ($25m annual income)
• 1892 Homestead strike: 12 hour gunfight, Pinkerton defeated (12 died), state militia called in, strike breakers hired
• 1901 sells out to J.P. Morgan: $480m
• Built 2,500 libraries. “The man who dies rich dies disgraced.”
• 1919 dies, having given away 90%
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Skibo Castle
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#2 Richest person EVER
Data from Forbes. Picture from BusinessIntelligence.com
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Henry Ford
• Continuous Process Improvement
• Advances in metal cutting allowed him to cut pre-hardened steel, produce identical parts
• Standardized parts facilitated standardization of jobs, moving assembly line
• Model T: 1908 $850
1920’s: $250
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Vertical Integration• Owned forests, iron mines, rubber plantation, coal mines, ships,
railroad lines• Dock facilities, blast furnaces, foundries, rolling mills, stamping
plants, an engine plant, glass manufacturing, a tire plant, its own power plant, and 90 miles of RR track
• 1927 Model A Production begins• 15,000,000 cars in 15 years• 120,000 employees in WWII
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Details to the Max
In his autobiographies “My Life and Work” (1922), and “Today and Tomorrow” (1926), Ford gives great detail on innovations he and his company have made, including:
• Glass making, Artificial leather
• Steering wheels out of Fordite
• heat treating -- saved $36m in 4 years (1922)
• Forging parts, wiremaking
• Riveting, bronze bushings, springs
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Kingsford Charcoal
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Shigeo Shingo and Toyota
• Toyota’s quest for Quality
• Focused on allowing product to flow through the plant as evenly as possible.
• Kanban and JIT are two important ways to achieve this
• Continuous Process Improvement
1977 1989
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The Lessons of History
• Continuously improving your products, your services is the only way you will survive
• Ignore your customers, and they’ll go away
• Those who do not learn from the past are doomed to repeat it.