Mass production

This presentation is about mass Production under operation and supply chain management.

1. Mass Production

2. 'Mass Production' Overview
•Massproductionisthemanufactureoflarge
quantitiesofstandardizedproducts,frequently
utilizingassemblylinetechnology.
•Massproductionistypicallycharacterizedbysome
typeofmechanization,aswithanassemblyline,to
achievehighvolume,thedetailedorganizationof
materialsflow,carefulcontrolofqualitystandards
anddivisionoflabor.

3. History
Mass productionwas
popularizedinthe1910s
and1920sbyHenryFord's
FordMotorCompany,
whichintroducedelectric
motorstothethen-well-
knowntechniqueofchain
orsequentialproduction.

4. The evolution of mass
production
•HenryForddesignedhisfirst
movingassemblylinein
1913,andrevolutionizedthe
manufacturingprocessesof
hisFordModelT.
•Thisassemblyline,atthe
firstFordplantinHighland
Park,Michigan,becamethe
benchmark for mass
productionmethodsaround
theworld.

5. Characteristics
Mass production is used in the following circumstances:
•Standardization of product and process sequence.
•Dedicated special purpose machines having higher
production capacities and output rates.
•Large volume of products.
•Shorter cycle time of production.
•Lower in process inventory.
•Perfectly balanced production lines.
•Flow of materials, components and parts is continuous
and without any back tracking.
•Production planning and control is easy.
•Material handling can be completely automatic.

6. Advantages
Following are the advantages of
mass production:
•Higher rate of production
with reduced cycle time.
•Higher capacity utilization
due to line balancing.
•Less skilled operators are
required.
•Low process inventory.
•Manufacturing cost per unit
is low.

7. Limitations
Following are the limitations of mass
production:
•Breakdown of one machine will stop an
entire production line.
•Line layout needs major change with the
changes in the product design.
•High investment in production facilities.
•The cycle time is determined by the
slowest operation.

8. Effects on the organization of
work
Thedevelopmentofmassproductiontransformedthe
organizationofworkinthreeimportantways.
•Taskswereminutelysubdividedandperformedbyunskilled
workers,oratleastsemi-skilledworkers,sincemuchofthe
skillwasbuiltintothemachine.
•Manufacturingconcernsgrewtosuchsizethatalarge
hierarchyofsupervisorsandmanagersbecamenecessary.
•Theincreasingcomplexityofoperationsrequiredemployment
ofalargemanagementstaffofaccountants,engineers,
chemists,and,later,socialpsychologists,inadditiontoalarge
distributionandsalesforce.

9. Mass Production Era
(1910-1980)
Included five stages such as………
•Moving Assembly Line (Ford)
•Statistical Sampling (Shewhart)
•Economic Order Quantity (Harris)
•Linear Programming (Dantzig)
•Material Requirements Planning

10. Moving Assembly Line
(Ford/Sorensen)
•InthefirstmodelofmovingassemblylineHenryFord
tookthepraise,butCharlesSorensendidthework.
•Sorensen(1881-1968)servedasFord’sproductionchief
for40years.
•Sorensenmastermindedtheautomatedproduction
processesandequipmentusedinFord’sthreemost
famousfactories.
•Ford’sshowcaseassemblylinefrom1910to1927
producedmillionsofModelT’s.

11. Moving Assembly Line
(Ford/Sorensen)
•Sorensenworkedhiswayuptoproductionchiefina
careerthatlasteduntil1944.Alongtheway,he
developedawidevarietyofnewmanufacturingmethods,
assemblylines,conveyorsandautomatedequipment
thatmadeFordtheworldleaderinmassproduction.
•OnApril1,1913,thefirstmovingassemblylinefora
large-scalemanufacturingapplicationbegantooperate.

12. Moving Assembly Line
(Ford/Sorensen)
•Sorensenworkedhiswayuptoproductionchiefina
careerthatlasteduntil1944.Alongtheway,he
developedawidevarietyofnewmanufacturingmethods,
assemblylines,conveyorsandautomatedequipment
thatmadeFordtheworldleaderinmassproduction.
•OnApril1,1913,thefirstmovingassemblylinefora
large-scalemanufacturingapplicationbegantooperate.

13. Model T
•OnOctober1,1908,afterlotsof
hardwork,Fordintroducedhis
newcar.ItwascalledtheModel
T.
•Ithad many important
innovations—such as the
steeringwheelontheleft,which
everyothercompanysoon
copied.

14. Statistical sampling and Quality
Control (WALTER A. SHEWHART)
•Dr.Shewhartcreatedthebasisforthecontrolchartand
theconceptofastateofstatisticalcontrolbycarefully
designedexperiments.
•Hedrewfrompuremathematicalstatisticaltheoriesand
understooddatafromphysicalprocessesneverproduce
a'normaldistributioncurve’.
•Shewhart,successfullybroughttogetherthedisciplines
ofstatistics,engineering,andeconomicsandbecame
knownasthefatherofmodernqualitycontrol.

15. Statistical Process Control
Typically used for quality control
•Based on theory of variation
•Long history of use within manufacturing
•Gaining popularity in health care
•The Joint Commission uses SPC to analyze hospital
performance
•Differentiates true change from random noise
•Emphasizes early detection of meaningful change
•Visualization can engage additional stakeholders
•Allows timing and degree of intervention impact to
be detected

16. Features of an SPC Chart

17. Economic Order Quantity
EOQ (Harris)
•TheEOQmodelandformulaareattributedtoFord
WhitmanHarrisandoriginallypublishedin1913in
Factory,TheMagazineofManagement.
•Theeconomicorderquantity(EOQ)isusedtocalculate
theoptimalquantitythatcanbepurchasedorproduced
tominimizethecostofboththecarryinginventoryand
theprocessingofpurchaseordersorproductionset-ups.

18. Economic Order Quantity
EOQ (Harris)
Principal Assumptions
•The ordering cost is constant over a period
•The demand is constant and known throughout the
period
•The new order is delivered in full when inventory reaches
zero
•Lead time is fixed
•Purchase price of the item is fixed
•The replenishment is made instantaneously
•Only one product is involved

19. Economic Order Quantity
EOQ (Harris)
•Q=optimalorderquantityoreconomicorderquantity
•D=demandoftheitem
•S=fixedorderingcostorsetupcost
•H=inventoryholdingcostperunit
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20. Economic Order Quantity
EOQ (Harris)

21. Economic Order Quantity
EOQ (Harris)
Principal Assumptions
•The ordering cost is constant over a period
•The demand is constant and known throughout the
period
•The new order is delivered in full when inventory reaches
zero
•Lead time is fixed
•Purchase price of the item is fixed
•The replenishment is made instantaneously
•Only one product is involved

22. Breaking down -EOQ
TheEOQformulacanbemodifiedtodeterminedifferent
productionlevelsororderintervallengths,andcorporations
withlargesupplychainsandhighvariablecostsusean
algorithmincomputersoftwaretodetermineEOQ.

23. Breaking down -EOQ
TheEOQformulacanbemodifiedtodeterminedifferent
productionlevelsororderintervallengths,andcorporations
withlargesupplychainsandhighvariablecostsusean
algorithmincomputersoftwaretodetermineEOQ.

24. References
•Zigu. 2017. Harris-Wilson EOQ/ EBQ Model Definition |
Operations & Supply Chain Dictionary | MBA Skool-
Study.Learn.Share.. [ONLINE] Available at:
http://www.mbaskool.com/business-concepts/operations-logistics-
supply-chain-terms/6729-harris-wilson-eoq-ebq-model.html.
[Accessed 10th January 2017].
•Sorensen, Charles, E., My Forty Years with Ford (1956); Banum,
Russ, The Ford Century (2002); Brinkley, Douglas, Wheels for the
world: Henry Ford, his company, and a century of progress, 1903-
2003 (2003

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