Henry Ford and the Model T lessons for product platforming and mass customization Presenters: Tager Rostislav Yosef Nadav.

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Presentation transcript:

Henry Ford and the Model T lessons for product platforming and mass customization Presenters: Tager Rostislav Yosef Nadav

Introduction Mass production. Mass customization. Henry Ford’s model T. Nowadays car industry.

Mass production What it means? Production of standardized products in very high volume to reduces production cost. How Ford did it? Adopt & improve known methods.

Mass customization What it means? Flexible manufacturing systems that produce custom output. How Ford did it? Designed a common platform that allows modular customization. Outsourcing customization options. More then 5000 different personal features.

Key terms Horizontal integration Vertical integration Body on frame method (platform)

Henry Ford’s model T Background First launched in October 1908 and was a great success for almost 20 years due to fine performance and price. Producing about 15 million units (more then all other American car makers combined). *The invention of moving assembly line.

Henry Ford’s model T

Based on ‘body on frame‘ construction method. By mass producing a common platform ford has lowered prices and made his product available to everyone. Variety within the product line and also with many specific customized T models enabled ford to reach a wide range of specific customer demands. by outsourcing customization he could focus on mass production meanwhile his product reached every demand.

Henry Ford’s model T Ford’s advantages by using mass customization: Mass production efficiency (focused on body). Economic prosperity. Satisfying specific customer’s needs. Ford did not integrate customization into his manufacturing processes because product would not have been standard anymore.

Henry Ford’s model T How did he last so long? At the beginning, Ford outsourced components, but, in 1920 Ford reached his goal, to control overall production and producing 100% of his platform in his factory. By doing so Ford’s engineers could improve the entire product line by improving the platform design.

Nowadays car industries Ford’s design of the T model (platform) was very successful and many others up to this day try to duplicate his successes. The design of a main platform open to customization is something many companies try to accomplish.

Nowadays car industries Ford Ford is the second-largest U.S.-based automaker and the fifth largest in the world based on vehicle sales. Unibody car platforms rather than body on frame chassis. Flexible manufacturing and high adaptability to customer demand. In the near future, all Ford vehicles will be built off nine core platforms. Using advance robotics to perfecting the manufacturing process.

Nowadays car industries Volkswagen (volkswagen, audi, skoda & seat) The A platform (early 90’s) 19 different models were planned and built on the common A platform body with different ‘hats’ for each brand. This strategy saves billions of dollars in development costs but hurt their sales deeply as the brands lost their distinctiveness.

Nowadays car industries Dodge Resemblance to Ford’s platform. However, doesn’t allow late differentiation.

Nowadays car industries General Motors The Skateboard platform Very close to Ford’s platform. ‘Plug and play’.

The End