The Post-Mass Production Era
This is not so much about the decline of mass production, as about the paradigm shift taking place in manufacturing around the world. Old system of manufacturing seems misfit to the current economic, political and environmental conditions. No new idea springs from void. Changes and even sea changes happen gradually. Craft Production System of late 1800 gave way to mass production when Henry Ford introduced Model T in early '90s. What Ford could achieve was not only the continuous flow of production, but also the standardization and interchangeability of the parts. What mass production system lacks, however, is a necessary responsiveness to ever changing consumer demands. Thanks to Oil shocks of 70s, Sep'11, Financial Meltdowns, demand volatility casts a shadow of mass destruction in profitability --- enterprises of all sizes across the industry vertical are struggling to remain competitive in the choppy market place.
By 1950, Toyota Motor Company produced around 3000 automobiles, when a Ford Factory in High Land Park churned out several thousands in a single day. This was soon to change.
Eiji Toyoda and his Manufacturing prodigy Taiichi Ohno gave world an approach to respond to consumers demands quickly without compromising with quality of products, at the same time reducing cost of manufacturing and inventory. Womack , Jones and Roos poignantly described worldwide move from mass production to lean production in their seminal work - 'Machine that Changed the World'. In 2009 Toyota sold 7,234,439 vehicles followed by GM 6,459,053. Ford sold 4,685,394 vehicles.
Lean Manufacturing promotes a fundamental rethinking of how to produce and deliver goods and services. Largely, this rethinking represents a paradigm shift from supply driven supply chain to a Demand driven supply chain - where actual customer demand drives the production. Also to attain complete benefits of the new approach, manufacturing system requires a change from a "batch and queue" mass production to a production systems based on a product aligned "single-piece flow, pull production" system - from a work center approach to a cell centric production processes.
Though automotive especially Japanese car manufacturers led the way, followed by Electronics and Industrial manufacturers, there is an increasing trend of adoption of lean production across the industry. Today CPG and Pharmaceutical Industry too are embracing lean principles.
Comments
The Era of lean was in 90's. 'Machine that Changed the World' was written in 1996. Early 2000's saw the agility becoming an import aspect, again due to push from the real world industries. Later part of the decade saw the rise of lean and agile hybrid concept called as Leagile. Now whats going strong is the leagility along with the green conciousness. What I can see is the growing sense of responsibility and ways and means to do more.
Posted by: Arnab Banerjee | February 10, 2011 2:20 PM
It is a fait accompli that world is moving away from mass production. In this article I highlighted the transitions from craft to Mass Production, from Mass Production to Lean. Lean Manufacturing is not passe, rather it would gain momentum for its principles and fundamental rethinking about how humans work together to create value. Many supply chain practitioners interpret and limit scope of lean manufacturing only at shop floor – kanbans and heijunka. Lean principles can be applied to the entire supply chain. It is well known that how bull whip effects are eliminated by a pull based system. Production Hubs and ‘near shoring’ and advances in technology to share real time information among supply chain partners will further create conducive environment for Lean Manufacturing to prosper. Today Lean manufactures collaborate with tier I suppliers even at the time of product design and prototyping. My understanding of ‘Agile Manufacturing’ is that it is an ‘extension’ of Lean Manufacturing – an agile manufacturer has the necessary tools to collaborate with supply chain partners; it is responsive to the changes. Coming to the most important issues of our time – Climate Changes , companies must go beyond the “low hanging fruit,” a company must create a waste elimination culture. Lean Manufacturing is an environmental friendly manufacturing system, which inherently eliminates waste from the value stream. In my next blog I’ll highlight the relevance of lean manufacturing to fight climate changes and how this can be truly a ‘Green Manufacturing’ by eliminating wastes ( 7 mudas).
Posted by: Kallol Kumar Kar
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February 12, 2011 4:44 AM