Continuous Improvement: The Lessons of History (or, There is nothing new under the sun )

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 Production: US England 1868 8,500 111,000 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: 1908 $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. 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

26. Kingsford Charcoal

27. 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

28. 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.