Available online at www.sciencedirect.com Available online at www.sciencedirect.com ScienceDirect ScienceDirect AvailableAvailableProcedia online online Manufacturing at at www.sciencedirect.com www.sciencedirect.com 00 (2017) 000–000 Procedia Manufacturing 00 (2017) 000–000 www.elsevier.com/locate/procedia www.elsevier.com/locate/procedia ScienceDirectScienceDirect Procedia Manufacturing 13 (2017) 1397–1404 Procedia Manufacturing 00 (2017) 000–000 www.elsevier.com/locate/procedia Manufacturing Engineering Society International Conference 2017, MESIC 2017, 28-30 June Manufacturing Engineering Society2017, InternVigo (Pontevedra),ational Conference Spain 2017, MESIC 2017, 28-30 June 2017, Vigo (Pontevedra), Spain in Cadiz 1929-1923 Manufacturing EngineeringFord Motor Society Company International in Conference Cadiz 1929-1923 2017, MESIC 2017, 28-30 June S. González-Crespo2017, Vigo (Pontevedra),a, J. M. Vazquez Spain b,* S. González-Crespoa, J. M. Vazquezb,* aTEYP Ingeniería S.L. – SURIMEX Aeronáutica. C/ Ciudad de San Roque 208, Pol. Ind. Zona Franca, Cadiz E-11011, Spain a CostingTEYPb Mech. Ingenieríamodels & Ind. S.L. Design – SURIMEXfor Dept. capacity University Aeronáu tica.of Cadiz. C/ optimiza Ciudad Av. Un deiversidad San Roquetion de Cadiz208, Pol.in 10, Ind.PuertoIndustry Zona Real Franca, (Cadiz) Cadiz4.0: E-11519, E-11011, Trade-off Spain Spain b Mech.between & Ind. Design Dept. used University capacity of Cadiz. Av. Unaniversidadd operational de Cadiz 10, Puerto Real efficiency (Cadiz) E-11519, Spain

Abstract a a,* b b Abstract A. Santana , P. Afonso , A. Zanin , R. Wernke The history of the automobile, is directlya University associated of Minho, with the4800-058 history Guimarães, of the firs Portugalt mass manufacturer of vehicles, Ford Motor Company.The history The of thedevelopment automobile, of istechniques directly bassociated Unochapecó,focused on with 89809-000the theim provementhistory Chapecó, of theofSC, productionfirsBrazilt mass manufacturerand the introduction of vehicles, of technological Ford Motor advancesCompany. in The the fielddevelopment of manufacturing of techniques has favored focused the on rapid the eximpansionprovement of theof companyproduction around and the the introductionworld. In the of present technological work, a bibliographicaladvances in the reviewfield of of manufacturing the most interest has ingfavored aspects the in rapid the installationexpansion ofand the evoluti companyon of around the first the Ford world. factory In the in present Cadiz (Spwork,ain), a wasbibliographical carried out. reviewIn addition, of the the most main interest modelsing aspects and manufacturing in the installation procedures and evoluti are describedon of the thatfirst were Ford developed factory in in Cadiz this locati(Spain),on. Abstract©was 2017 carried The out. Authors. In addition, Published the mainby Elsevier car models B.V. and manufacturing procedures are described that were developed in this location. Peer-review© 2017 The Authors.under responsibility Published by of Elsevierthe scientific B.V. committee of the Manufacturing Engineering Society International Conference UnderPeer-review© 2017 theThe Authors.underconcept responsibility Publishedof "Industry by of Elsevierthe 4.0", scientific B.V.production committee proce of thesses Manufacturing will be pushed Engineering to be Society increasingly International interconnected, Conference 2017.Peer-review under responsibility of the scientific committee of the Manufacturing Engineering Society International Conference 2017. information2017. based on a real time basis and, necessarily, much more efficient. In this context, capacity optimization goesKeywords: beyond Ford the Model traditional T; Fordism; aim Mobile of capacity assembly maximization,line; Expansionism. contributing also for organization’s profitability and value. Indeed,Keywords: lean Ford Modelmanagement T; Fordism; and Mobile continuous assembly line; improvement Expansionism. approaches suggest capacity optimization instead of maximization. The study of capacity optimization and costing models is an important research topic that deserves contributions1. Introduction from both the practical and theoretical perspectives. This paper presents and discusses a mathematical 1. Introduction model for capacity management based on different costing models (ABC and TDABC). A generic model has been developedIn the firstand itdecades was used of tothe analyze twentieth idle capacitycentury, anda significa to designnt strategiesexpansion towards of the theemerging maximization industry of in organization’s the world is In the first decades of the twentieth century, a significant expansion of the emerging industry in the world is value.produced, The takingtrade-off a specialcapacity relevance maximiza intion the vs field operational of automotive. efficiency Thanks is highlighted to a growing and ittechnological is shown that revolution, capacity produced, taking a special relevance in the field of automotive. Thanks to a growing technological revolution, optimizationautomobile manufacturing might hide operational is positioned inefficiency. as one of the most innovative industries of the epoch. In this aspect, Ford ©Motorautomobile 2017 CompanyThe Authors. manufacturing is Publishedlocated isat by positionedthe Elsevier top of B.V. worldas one expansionism. of the most in Innovative the present industries work, aof compilation the epoch. andIn this exposure aspect, of Ford the Peer-reviewimplementationMotor Company under processresponsibilityis located of atthe ofthe theautomotive top scie ofntific world committeeindustry expansionism. has of the been Manufacturing In carried the present out Engi through work,neering a Fordcompilation Society Motor International Companyand exposure Conference in Cadiz,of the 2017.startingimplementation point of theprocess development of the automotive of the brand industry in Spain. has In beenaddition, carried a literature out through review Ford has beenMotor carried Company out that in allowsCadiz, starting point of the development of the brand in Spain. In addition, a literature review has been carried out that allows Keywords: Cost Models; ABC; TDABC; Capacity Management; Idle Capacity; Operational Efficiency

1. Introduction * Corresponding author. Tel.: +0-000-000-0000 ; fax: +0-000-000-0000 . * CorrespondingE-mail address: author. [email protected] Tel.: +0-000-000-0000 ; fax: +0-000-000-0000 . TheE-mail cost address: of idle [email protected] capacity is a fundamental information for companies and their management of extreme importance in2351-9789 modern © production 2017 The Authors. systems. Published In general, by Elsevier it is B.V. defined as unused capacity or production potential and can be measured inPeer-review2351-9789 several © underways: 2017 responsibilityThe tons Authors. of production, ofPublished the scie ntificby Elsevieravailable committee B.V. hours of the Manufacturingof manufacturing, Engineering etc. Society The Intemanarnationalgement Conference of the 2017.idle capacity Peer-review* Paulo Afonso. under Tel.: responsibility +351 253 of510 the 761; scie fax:ntific +351 committee 253 604 of 741 the Manufacturing Engineering Society International Conference 2017. E-mail address: [email protected]

2351-9789 © 2017 The Authors. Published by Elsevier B.V. Peer-review under responsibility of the scientific committee of the Manufacturing Engineering Society International Conference 2017. 2351-9789 © 2017 The Authors. Published by Elsevier B.V. Peer-review under responsibility of the scientific committee of the Manufacturing Engineering Society International Conference 2017. 10.1016/j.promfg.2017.09.150

10.1016/j.promfg.2017.09.150 2351-9789 1398 S. González-Crespo et al. / Procedia Manufacturing 13 (2017) 1397–1404 2 S. González-Crespo / Procedia Manufacturing 00 (2017) 000–000 S. González-Crespo / Procedia Manufacturing 00 (2017) 000–000 3 the exposition of the most important features of Ford's initial models () and the evolution and expansion of the main productive processes [1-6].

2. Ford Model T

One of the most representative models of the brand, Model T of Ford Motor Company [1,2], Fig.1, began its commercialization on October 1, 1908, maintaining the manufacture of this model for approximately 19 years. Fig. 2. 999 Racing car model.

In this way, the experience acquired by Ford in the development of its first models, between 1903 and 1907, provides valuable information about the preferences and demands of the market (size, prices, qualities, etc.) with the objective of improving competitiveness against other manufacturers. In turn, this knowledge results in a decrease of incidents in manufacturing and progressive improvements of the product. These improvements applied to the manufacturing processes have their response in a wide range of processes, giving rise to a constant evolution towards the optimization of aspects such as subcontracting, availability of parts and final products, assembly, time control, increased profitability, and sales network.

a) b) 4. Evolution of production system: Mobile assembly chain

Fig. 1. a) Pictography of the Ford T; b) Ford Model T. Due to a significant increase in demand, driven by improvements in manufacturing processes, the first chain assembly line was designed and put into operation in 1913, Fig. 3, resulting in a revolution in existing manufacturing This model was called "The Universal Automobile", and was developed at the Piquett Avenue factory in Detroit. systems. In the beginning, the first car model has a market price of $ 825, a price that would be reduced to $ 260 thanks to technological advances during the manufacturing period. It is estimated that total production of Ford Model T vehicles exceeded 15 million units between 1908 and 1928. These events resulted in the selection of the Ford first model as the automobile of the century among a set of 700 [1,2]. The selection was carried out by a committee of experts made up of 133 members. In this respect, Henry Ford was in turn appointed as entrepreneur of the century. Dick Holzman as president of the committee of experts in the car of the century selection, makes the following statement:

“Retrospectively, the twentieth century can be considered the century of the automobile, a real revolution in technology and quality of life”

It is possible to confirm that Ford Motor Company is one of the main drivers of the technological revolution, from Fig. 3. Mobile assembly line. Fig. 4. Mobile assembly line with supply parts. the point of view of manufacturer and leader of the automotive industry, contributing great advances and positioning the automobile sector in the highest industrial development of the twentieth century. The chain assembly line consisted of a mounting system running along a chain carrying the chassis and the front 3. Beginnings of Ford Motor Company and rear axes as the first set, then the motor-transmission unit was assembled, with radiator, fire panel, gas tank, mudguard, bodywork (different level), headlights, etc, Fig. 4. All this work was done by specialized operators in The establishment of Ford Motor Company took place in 1903, Henry Ford together with 11 investors, and with elementary assembly operations and with the supply of elements of each stages of the chain, with the aim of reducing an initial investment estimated at $ 28,000, begins the manufacture of competition cars with the model 999, Fig. 2. assembly times. This model, used by the racing driver Barney Oldfield, was employed as the image of the company across the United This type of manufacturing reduces assembly time from 12,5 hours/man to 1,5 hours/man. The assembly time of States, thus increasing the popularity of the brand. Among the most outstanding features of the company's first vehicle, the vehicle is reduced in the ratio of 8,3 to 1 with respect to the traditional assembly systems. In this way, a remarkable the maximum speed registered at 130 km/h is shown, setting a new American record. fact can be observed, in 1914 Ford Motor Company with 13.000 employees produced 300.000 units, while the After the 999 racing competition car, the first models coming from the Ford company were model A (1903-1904), remaining 299 manufacturers with 66.350 employees produced 280.000 units. That is, the traditional production is a two-seater model from which 1750 units were manufactured. The Ford A, was replaced by model C in 1904, equal to the fifth part of operators. That is, traditional production is equalized using the fifth part of operators. maintaining a coexistence in the manufacture. These models are replaced by the Ford B model (1905) and later by the The benefits and advantages of production are transformed and incorporated into wage improvements, and in 1914 Ford K model. the 8-hour workday is implemented in a week of 5 working days. The improvement in salaries is set at $ 5 per day, compared to $ 2,34 previously received.