Dasmariñas City, Cavite
GRADUATE SCHOOL OF BUSINESS ADMINISTRATION
Masters in Business Administration
Production and Operations Management
Flores, Patricia Joy A.
Mojica, Krisha May S.
Dr. Mario S. Mecate
Agile is defined as to be able to move quickly.
Manufacturing is the making of goods or wares by manual labor or by machinery, especially on a large scale, from raw materials or unfinished materials. It is the making of a finished product or good'. Combine the two words together agile and manufacturing it is defined as is an approach to manufacturing which is focused on meeting the needs of customers while maintaining high standards of quality and controlling the overall costs involved in the production of a particular product. This approach is geared towards companies working in a highly competitive environment, where small variations in performance and product delivery can make a huge difference in the long term to a company's survival and reputation among consumers. HISTORY
Handcraft production has been with us since the Stone Age. Our modern-way of manufacturing only truly began with the British Industrial Revolution, which soon spread around the world. This revolution launched mass production, standardization, and job opportunities for unskilled labors. It also brought about competitiveness with companies wanting to sale their product to the limited number of consumers of that time. There have been three major phases or paradigm shifts of industrial production in the modern world. These phases are as follows: 1. Craft production - The phase in which craftsmen contracted and completed individual projects on a job-by-job basis. Consumer requests were typically for unique products, which varied to some extent from a previously manufactured item. Eli Whitney the inventor of the cotton gin was one of the first pioneers who tried to move away from this practice. He developed capability to make interchangeable parts. Whitney developed this about in 1799 when he took a contract from the U.S for the manufacture of 10,000 muskets. 2. Mass production - This phase, largely associated with the coming of age of Henry Ford's mass production assembly line, was the time in which "cookie-cutter" products were rolled off the end of the line at breakneck speeds. Product variety was minimal at the beginning of this phase and increased somewhat as time progressed. Ford's success inspired many others to copy his methods. But most of those who copied did not understand the fundamentals. Ford assembly lines were often employed for products and processes that were unsuitable for them. When the world began to change, the Ford system began to break down and Henry Ford refused to change the system. For example, Ford production depended on a labor force that was so desperate for money and jobs that workers would sacrifice their dignity and self esteem. The prosperity of the 1920's and the advent of labor unions produced conflict with the Ford system. Product proliferation also put strains on the Ford system. 3. Lean/jit production - At Toyota Motor Company, Taichii Ohno and Shigeo Shingo, began to incorporate Ford production and other techniques into an approach called Toyota Production System or Just In Time. They recognized the central role of inventory. The Toyota people also recognized that the Ford system had contradictions and shortcomings, particularly with respect to employees. Shingo, at Ohno's suggestion, went to work on the setup and changeover problem. Reducing setups to minutes and seconds allowed small batches and an almost continuous flow like the original Ford concept. It introduced a flexibility that Henry Ford thought he did not need. All of this took place between about 1949 and 1975. These developments lead to development of the lean...
References: William J. Stevenson - production-operations management (5th ed.) p. 29
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