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Brief History of Mfg Systems

Before the Industrial Revolution “Craft Production” was the only known system – if a person wanted an article that they could not personally make, a craftsman using hand tools, would make the "one-off" item specifically for them.

With the arrival of the Industrial Revolution the craftsman’s ability to produce more product was enhanced by the introduction of machines.  Gradually a “Factory System” evolved where tasks were segregated to experts who concentrated on making specific parts of a product, which were then sent to an assembler.  The clock and watch making industry used this system. The first attempt at using specialized machinery to produce “rough watch movements” was made in France by Frederic Japy in 1799.  Although he used machines to make 40,000 movements per year, the parts were not interchangeable and therefore effectively “one-offs”.  Later, in 1835 a Swiss worker named Pierre-Frederic Ingold thought that machines could be developed to make interchangeable parts.  His venture was not successful but others were soon to follow.  By 1839 Vacheron and Constantin, Swiss watchmakers, had standardized their movement designs to allow them to be placed in standard sized cases which introduced a degree of inter-changeability.  Meanwhile in the USA, Henry and James Pitkin produced about 500 watches with interchangeable parts as early as 1837, but the real start in the USA was in 1850 when a company “Dennison, Howard and Davis” was set up.  This company experienced production start up problems but within four years they had opened a new steam powered factory producing 30 – 40 watches per week, employing 100 workers.  The idea of using specialized machines to make tight tolerance interchangeable parts was taken up by many industries in the USA during the mid-nineteenth century and lead to the dramatic economic growth of that country.  The use of interchangeable parts was a dramatic industrial development that enabled products to be economically repaired and maintained.  The firearms industry developed this “factory system” (called the “American System”) with the encouragement of the US government who realized that the repair of firearms was important.

Mass Production” pioneered by Henry Ford was a dramatic extension of the “American System”.  It maintained the key elements of the previous system but added: flow; economies of scale; product standardization and operational efficiency, all of which lowered costs and prices.  The effect was that as costs and prices lowered, demand escalated enabling companies to expand yet further and further lower costs.  The system also saw the introduction of professional managers and production experts.  To start with, the system was very inflexible, producing enormous quantities of standard parts, but it was extremely effective.  Machines were developed to fabricate parts at very high production rates.  To ensure that they were run efficiently the machines were operated as fast and for as long as they could.  Large banks of stock would be made, stored and then transferred to assembly lines where the parts would be assembled in a given sequential flow.  As people working in these systems were given smaller and smaller tasks to do each task became easier to automate.  Many of those people did not need the skill levels of the previous system.  The system relied heavily on factories operating at maximum output.  In later years the “Mass Production” system has struggled to cope with the need for variety within product ranges.

In 1937 Taiichi Ohno heard that an American worker could produce about tens times the amount of product a Japanese worker could make.  He wondered how the Americans could exert ten times more physical effort.   He concluded that if they could eliminate waste, productivity would rise to the USA level.  These initial thoughts later led to the birth of the revolutionary “Toyota Production System” now called “Lean Manufacturing”.   Looking back he saw that in “Craft Production” the craftsman would make the whole product relatively quickly and was not burdened with a large stock of in process parts.  There was little waste.  Unfortunately the craftsman could not compete with the productivity of “Mass Production”.  Hence, Ohno sought to combine the “Craft Production” system advantages with the gross productivity of “Mass Production” and created “Lean Manufacturing”.