Changes in the Manufacturing Industry in Michigan: Part 1

Tina, For the past 21 years I have worked within the auto industry, as a mechanical engineer. I have been a member of management for 17 of those, working for various departments. I will tell you that you are spot on with your evaluation of the industry. I see that you have done your homework before creating your blog. The concept of flexible manufacturing has been around for many years. Some adapting it 30 plus years ago while others are just re-establishing themselves and streamlining within the last 5. An important point to recognize is that much of this need is customer driven. At one time a car company may only launch one or two models. Today, they may have 7 or 8 with many variations within a model. To tool up a manufacturing line would take 3 to 5 years as the lines were specialized for that product. The consumer is no longer satisfied with the wait for that new 'eye catcher'. In today's market it is not uncommon to see a new model launch in 18 months from concept to mass production. The competitive edge is extremely short. A car with new features may only lead another maker by a few months. They need to win over the masses in that short time or the window of opportunity slams shut. So, flexible manufacturing is key for many reasons. You hit the most important. The cost of tooling a line and the space requirements are the most significant. Launching new models quickly is another. It also has the benefits of standardization and safety. If the associates running the line are familiar with all model variations they can arrange the work stations to have similar tasks for each of them. This improves efficiency and reduces the risk of quality errors. By fitting the line to the associate ergonomically it also cuts down on injury. Health care costs reflect some of the highest levels of inflation. So avoiding time off, prescription medication, physical therapy, training of 'temporary' associates, etc. is extremely important. I hope some of this information is helpful in your studies. You have captured an understanding of flexible manufacturing very well for not having worked in the field.