Assembly line manufacturing evolution and automotive logistics
20th April 2023
As we enter the biggest transition of mobility since the automobile, and the greatest change in manufacturing since the Model T assembly line, what can we learn from Henry Ford?
The assembly line, its origins, and its impact on automotive mass production
The assembly line is recognised as one of the greatest manufacturing innovations of the 20th century. However, contrary to popular belief, Henry Ford did not invent the assembly line. Instead, he took the concept and innovated its application in ways that dramatically increased efficiency and reduced costs.
The first recorded assembly lines were as early as the 12th century, where Venetian shipbuilders utilised a canal to move vessels along a series of different manufacturing functions. The first recorded application in the automotive sector was when Ransom Olds created and patented the assembly line in 1901. Olds’ assembly line method was the first to be used in the automotive industry. Switching to this process allowed his Oldsmobile car manufacturing company to increase output by 500% in a single year.
Innovation is driven by a vision of what the future should be
Henry Ford was inspired by this automotive manufacturing method, and combined it with his experience of the meat-packing houses of Chicago, as well as a grain mill conveyor belt he had seen. He innovated the assembly line concept by introducing the moving platforms of a conveyor system. His thinking was that if he brought the work to the workers, they would spend less time moving about. To further optimise performance, he divided the labour into 84 distinct manufacturing process steps, with each step focused on a specific aspect of the assembly of his Model T. After much trial and error, in 1913 Henry Ford and his employees successfully began using this innovation. It reduced the time it took to build a car from more than 12 hours to one hour and 33 minutes. Often credited as the father of the assembly line, Henry Ford is more accurately referred to as the father of automotive mass production.
Henry Ford was not limited to ‘the what’, he focused on ‘the why!’
His innovation made the car more affordable, because he streamlined the costs of manufacture. His ‘why’ was ‘How can I make the car more affordable?’, so he could sell more to a wider audience. Understanding his influences were wide and varied, which means in this next phase of transportation evolution, the thinking needs to radically change. The rate of technological developments will require innovation, agility and flexibility to navigate through this fast-changing period of transition. To succeed in the new world of mobility, automotive original equipment manufacturers (OEMs) need to strike the right balance between optimising today’s business, while simultaneously investing in the vehicles of tomorrow.
We are already seeing history repeat itself
In an industry which constantly reinvents itself, we are already seeing history repeat itself. The growth of the electric vehicles (EV) market is creating new opportunities for the automotive industry, including the development of new components, services, and technologies. 2023 is going to be a year of substantial change, as the ‘box on wheels’ technologies will be supplanted by new smart vehicle technologies.
Innovation and data will drive the future of mobility
EVs are already cutting-edge pieces of technology, loaded with smartphone-like connectivity and infotainment systems. Looking towards the future, customised in-vehicle experiences, such as digital cockpits, biometrics, and voice-enabled services, will become the norm. Display screens will shift from touch controls to voice commands and haptic feedback, with artificial intelligence-based digital assistants. The physical aspects of automotive (or mobility) manufacturing will need to sharpen its focus on sustainable operations, including the end-of-life processing of vehicles, including EV batteries, sustainable sourcing of parts, and increased use of recyclable materials in the overall design.
Adoption of EVs will have a profound impact on the automotive supply chain
EVs are radically simpler in mechanical terms. The electric motors that power EVs comprise far fewer components than a traditional internal combustion engine (ICE). Other major systems that are essential to ICE vehicles are absent from EVs. Makers of exhaust systems, fuel systems, and transmissions face the prospect of disruption as EVs become more mainstream. These changes will naturally shrink suppliers’ potential addressable market as EV adoption rises. The share of EVs’ value added by component suppliers might total 35% to 40%, compared with 50% to 55% of an ICE-powered car. The disruption on the automotive supplier base will be profound.
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