Design
• Like the Internet boom of the „90s, automobile manufacturing was exploding on the scene. • As many as 3,000 firms organized to produce autos.
• Big three of the early 1900s were Olds, Ford & Cadillac.
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• Henry Ford‟s first two ventures into auto manufacturing didn‟t stick.
• One of those two ventures, The Henry Ford Company, became Cadillac, which became a central part of General Motors.
• Massive influence on industry thinking.
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• While many competitors focused on high-end cars for the rich, Ford focused on lowering prices, and increasing sales by way of productivity improvements.
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• Ford also put much of the company profits into innovations.
• Ford product diversity is minimized in order to maximize production efficiency. • Workers are paid well. • Roaring „20s… life is good.
• Find a new frontier • Saturate the market • Stay on top
• Ford technology gets stale. • GM grabs market share. • 1929, Stock market crash, hello great depression. • Henry Ford gets flaky, Ford Motors struggles.
• 1941, WWII saves Ford‟s butt.
• PRODUCE, PRODUCE, PRODUCE!
• 1950-1967 was a good time for the big three US auto manufacturers. • Small manufacturers went bankrupt.
• Any overseas competition had been bombed to irrelevance.
• Emphasis on cost cutting to maximize profit. • Focus on large vehicles due to higher profit margin.
• Japanese imports soared. • US consumers were willing to wait for Japanese cars with Japanese engines. • Reliability was far superior to US autos. • US‟ Big Three suffer from chronic over-production, and failed to foresee consumer demand for fuel efficient cars.
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• American statistician and quality guru, W. Edwards Deming. • Previously worked for the US Department of Agriculture, Bureau of the Census, and taught statistics at Stanford.
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