1. Continuous Improvement: The Lessons of History (or, There is nothing new under the sun)
SCM 352
Dr. Ron Lembke

3. 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

5. 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:

7. Factory Life
“Schmidt”
Taylor’s Factory

8. 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”

9. Motion Capture Lights illuminate key motion joints
For Computer Generation, convert to 3D

10. Tim Lincecum

11. Chronocyclegraph light-1914

12. Typesetter

13. Bricklayer

14. Pencil Holder
Color coded slots
Groove for grabbing pencil

15. Ergonomics

16. Ergonomic chairs

17. 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

18. Andrew Carnegie 1902 9,138,000 1,862,000 Steel Prices: (per ton)
Production: US England
1868 8, ,000
1902 9,138,000 1,862,000
Steel Prices: (per ton)
1870 $100
1890 $12
How? Continuous Process Improvement

19. 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%

20. Skibo Castle

21. #2 Richest person EVER
Data from Forbes. Picture from BusinessIntelligence.com

22. 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: $850
1920’s: $250

23. 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

25. Henry Ford 1919 bought paper Buys newspaper Jan, 1919
May, 1920, anti-Jewish articles start
Mein Kampf, p. 929
Grand Cross of the German Eagle, 1938
1920, German version 1922
1925
1919 bought paper

26. Denial
“Shocked!” Closes paper, 12/27 Apologized 4/5 of letters to Ford in July, 1927 were supportive, from Jews. Jan, 1937 disavows “any connection whatsoever with the publication in Germany of a book known as The International Jew.”
With son Edsel, 1927

27. 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

28. Kingsford Charcoal

29. 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

30. 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.