Automotive industryFrom crisis to restructuring  Rewriting the rules of   automotive industry
Ten per cent or more…Automobile industry accounts for tenper cent or more of each nation’s grossnational products         ...
European by birth, American by          adoptionAlthough the automobile was invented inEurope, mass production as the basi...
First revolutionThe Ford system became the fundamental paradigm for production system in the US automobile industry and wa...
Second revolutionIn the US, mass production inherited fromthe Ford system was followed by a moremarketing oriented paradig...
Third revolutionIn contrast to the mass production model,the automobile industry in Japan, whichwas the last to join the d...
Lean productionThis is called the Japanese productionsystem       or     just-in-                    just-in-time     (JIT...
Alcune delle pubblicazioni        utilizzate       By Masters Division - Facoltà di            Economia di Torino
First revolutionHenry Ford and Fordism        By Masters Division - Facoltà di             Economia di Torino
A market for entertainmentWhen Henry Ford entered the car-making                              car-business in 1899, the op...
Marketing geniusHenry Ford’s marketing genius was torecognize that the desire to own a car wasnearly universal.        uni...
HENRY FORD IBy Masters Division - Facoltà di     Economia di Torino
Ford Motor Co. at lastHenry Ford’s first two tentative to set up a carmaker company failed.                               ...
From Model N to Model TAt the end of a long dispute, Henry Ford couldconcentrate on building an inexpensive car,          ...
FORD MODEL N (anno 1902)By Masters Division - Facoltà di     Economia di Torino
FORD MODEL T (anno 1914)By Masters Division - Facoltà di     Economia di Torino
Mass production at Highland ParkFord began production at a new plant atHighland Park, Michigan, on New Year’s Day1911The H...
HIGLAND PARK (primo stabilimento Ford)        By Masters Division - Facoltà di             Economia di Torino
To River RougeModel T production hit an all time peakof 1,6 million in 1924. 67.000 workerswere employed at Highland Park ...
Folk heroHenry Ford became an instant celebrity in the US on January 5 1914 when he announced that - he would pay his work...
Autocrat and despotSuccess with mass production and ModelT had given Henry a belief in theabsolute infallibility of his ju...
The best managers go awayMost of the Ford Motor Company talentedexecutives departed during the late 1910sand early 1920s, ...
Admired in Soviet UnionFord’s mass production revolution waswidely admired and emulated in the SovietUnion.Lenin and Trosk...
Grand CroixHenry Ford admired the enterprise, orderlinessand industrial skill of the German Third Reich.                  ...
Ford cease to holdDuring the 1930s Henry Ford turned overresponsibility for running his mass productionempire to Henry Ben...
Bennet’s takeoverBennet’s takeover  Ford believed that his son Edsel was not  tough enough to stand up to competitors, Uni...
Market share fellMany Americans fed up with Henry Ford’signorant pronouncements and brutal treatmentof workers refused to ...
Henry IIBy threatening to sell their company stock,the elder Henry’s wife and Edsel’s widowfinally forced the old man in 1...
HENRY FORD IIBy Masters Division - Facoltà di     Economia di Torino
The endMinutes after becoming president, armedwith a gun, Henry walked into Bennet’soffice and fired him from the company....
From Ford to FordismBy revolutionazing industrial production  Fordism made the automobile- affordable for most American fa...
..but it failed to detectFord Motor Company stumbled badlywhen it failed to detect changes inconsumer attitude during the ...
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Parte 1 first revolution [modalità compatibilità]

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Parte 1 first revolution [modalità compatibilità]

  1. 1. Automotive industryFrom crisis to restructuring Rewriting the rules of automotive industry
  2. 2. Ten per cent or more…Automobile industry accounts for tenper cent or more of each nation’s grossnational products By Masters Division - Facoltà di Economia di Torino
  3. 3. European by birth, American by adoptionAlthough the automobile was invented inEurope, mass production as the basis ofmass marketing was developed andestablished in United States By Masters Division - Facoltà di Economia di Torino
  4. 4. First revolutionThe Ford system became the fundamental paradigm for production system in the US automobile industry and was then transferred to advanced nations, including those in Europe, Japan and other Asian nations, and adapted to the current state. state. By Masters Division - Facoltà di Economia di Torino
  5. 5. Second revolutionIn the US, mass production inherited fromthe Ford system was followed by a moremarketing oriented paradigm shift….. shift…..created by A.P. Sloan of General Motors,which respond better to a mature market. market. By Masters Division - Facoltà di Economia di Torino
  6. 6. Third revolutionIn contrast to the mass production model,the automobile industry in Japan, whichwas the last to join the developed nations,gathered mass productionmanufacturing techniques from boththe European and US system, butgenerated a production systemdifferent from both. both. By Masters Division - Facoltà di Economia di Torino
  7. 7. Lean productionThis is called the Japanese productionsystem or just-in- just-in-time (JIT)manufacturing. anufacturing.A further development based of thissystem is lean manufacturingwhich took shape by absorbing automotiveproduct development systems andsupplier systems of keiretsu companies. companies. By Masters Division - Facoltà di Economia di Torino
  8. 8. Alcune delle pubblicazioni utilizzate By Masters Division - Facoltà di Economia di Torino
  9. 9. First revolutionHenry Ford and Fordism By Masters Division - Facoltà di Economia di Torino
  10. 10. A market for entertainmentWhen Henry Ford entered the car-making car-business in 1899, the optimalmanufacturing strategy was to concentrateproduction on a small quantity ofrelatively expensive products and sellthem at a high markup. By Masters Division - Facoltà di Economia di Torino
  11. 11. Marketing geniusHenry Ford’s marketing genius was torecognize that the desire to own a car wasnearly universal. universal.… early producers assumed that the market wasprimarily for the recreational and leisurepurposes of the wealthy. wealthy.Ford however believed that a vast marketexisted among poorer people for aninexpensive vehicleHe saw that the key to making inexpensivevehicles was to change the production process. process. By Masters Division - Facoltà di Economia di Torino
  12. 12. HENRY FORD IBy Masters Division - Facoltà di Economia di Torino
  13. 13. Ford Motor Co. at lastHenry Ford’s first two tentative to set up a carmaker company failed. failed. Detroit Automobile Company, established in 1899, built a couple Company, 1899, of dozen vehicles before closing in 1900. 1900. Reorganized as the Henry Ford Company in 1901, the firm failed 1901, again within a year. Ford himself claimed that his financial backers year. had given up on him too quickly, while his critics charged that he was more interested in racing cars than in building them. them. The Ford Motor Company, Henry Ford’s third and ultimate Company, successful attempt to make cars, was founded in 1903. 1903. By Masters Division - Facoltà di Economia di Torino
  14. 14. From Model N to Model TAt the end of a long dispute, Henry Ford couldconcentrate on building an inexpensive car, car,beginning with the four-cylinder Model N four-introduced in 1906 at a price of 600 dollars.Model N was greeted enthusiastically and Fordsales rose to 10.000 in 1908.The successor to the Model N, Model T, was T,priced at 650 dollars on its introduction on 1909. By Masters Division - Facoltà di Economia di Torino
  15. 15. FORD MODEL N (anno 1902)By Masters Division - Facoltà di Economia di Torino
  16. 16. FORD MODEL T (anno 1914)By Masters Division - Facoltà di Economia di Torino
  17. 17. Mass production at Highland ParkFord began production at a new plant atHighland Park, Michigan, on New Year’s Day1911The Highland Park complex was known as theCrystal Palace, as 75% of the building façade Palace, 75%was glass. glass.After installing the moving assembly line in 1913, 1913,Ford finally hit the 500 dollars target. In its target.last year of production, in 1927, Model T could 1927,be purchased for 290 dollars By Masters Division - Facoltà di Economia di Torino
  18. 18. HIGLAND PARK (primo stabilimento Ford) By Masters Division - Facoltà di Economia di Torino
  19. 19. To River RougeModel T production hit an all time peakof 1,6 million in 1924. 67.000 workerswere employed at Highland Park in 1925.…. but the plant’s days were numbered.When Model T production ended in1927, Highland Park closed and theassembly line itself was moved to Ford’sRiver Rouge complex By Masters Division - Facoltà di Economia di Torino
  20. 20. Folk heroHenry Ford became an instant celebrity in the US on January 5 1914 when he announced that - he would pay his workers 5 dollars a day, reduce the work day from 9 to 8 hours, - and hire several thousand additional workers to staff a third shift By Masters Division - Facoltà di Economia di Torino
  21. 21. Autocrat and despotSuccess with mass production and ModelT had given Henry a belief in theabsolute infallibility of his judgment. judgment.Ford criticized teachers, bankers andlawyers.He wanted to kick out all the doctors fromthe Henry Ford Hospital and replace themwith chiropractors. By Masters Division - Facoltà di Economia di Torino
  22. 22. The best managers go awayMost of the Ford Motor Company talentedexecutives departed during the late 1910sand early 1920s, including most of thosethat had been instrumental for thecompany’s early success.Thereafter Henry Ford became a despotwho wielded absolute, arbitrary authorityover his company. By Masters Division - Facoltà di Economia di Torino
  23. 23. Admired in Soviet UnionFord’s mass production revolution waswidely admired and emulated in the SovietUnion.Lenin and Trosky thought of Ford not as acapitalist but as a revolutionary.Ford tractors had a key role in improvingSoviet agricultural productivity.Ford rejected Soviet government request tobuild a factory there, having determined that itcould not be profitable By Masters Division - Facoltà di Economia di Torino
  24. 24. Grand CroixHenry Ford admired the enterprise, orderlinessand industrial skill of the German Third Reich. Reich.On his seventy-fifth birthday, July 30 1938, one seventy- 1938,month before of the Munich Pact, Ford acceptedthe Grand Croix of Germany by the German viceconsul in front of a cheering crowd in Dearborn. Dearborn. By Masters Division - Facoltà di Economia di Torino
  25. 25. Ford cease to holdDuring the 1930s Henry Ford turned overresponsibility for running his mass productionempire to Henry Bennet a boxer with connectionto organized crime.Bennet beat up workers suspected of unionsympathies, prevented them talking to eachother and monitored their trips to the bathroom.Bennet power exceeded even that of HenryFord’s son, Edsel, who had the title of company Edsel,president. By Masters Division - Facoltà di Economia di Torino
  26. 26. Bennet’s takeoverBennet’s takeover Ford believed that his son Edsel was not tough enough to stand up to competitors, Union organizers and government regulators, whereas Bennet got things done in a hurry, especially disagreeable task, like as firing union sympathizer. When forty-nine-years- old Edsel died in 1943, forty-nine-years- the old man returned as president at age eighty, but in reality Bennet’s takeover of the company was by then nearly completed. By Masters Division - Facoltà di Economia di Torino
  27. 27. Market share fellMany Americans fed up with Henry Ford’signorant pronouncements and brutal treatmentof workers refused to buy Ford cars.Ford’s market share fell from 51% in 1924 to20% in 1942. It was in third place behind GMand Chrysler when production was halted threemonth after the Japanese attack on PearlHarbor. By Masters Division - Facoltà di Economia di Torino
  28. 28. Henry IIBy threatening to sell their company stock,the elder Henry’s wife and Edsel’s widowfinally forced the old man in 1945 to turnover the presidency of the company toyoung Henry II (Edsel’s oldest son,twenty-six-twenty-six-years old). By Masters Division - Facoltà di Economia di Torino
  29. 29. HENRY FORD IIBy Masters Division - Facoltà di Economia di Torino
  30. 30. The endMinutes after becoming president, armedwith a gun, Henry walked into Bennet’soffice and fired him from the company.Two years later, Henry Ford died. By Masters Division - Facoltà di Economia di Torino
  31. 31. From Ford to FordismBy revolutionazing industrial production Fordism made the automobile- affordable for most American families- and brought decent wages to workers in the automotive industry. By Masters Division - Facoltà di Economia di Torino
  32. 32. ..but it failed to detectFord Motor Company stumbled badlywhen it failed to detect changes inconsumer attitude during the 1920s. 1920sIts market share slipped from one-half to one-one forth. forth.Ford ha sold most American families theirfirst motor vehicle, but General Motorssold them their second, third and second,subsequent vehicles. vehicles. By Masters Division - Facoltà di Economia di Torino
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