New Generation Automotive Manufacturing

(Honda Flexi Factory)

By –
Ishan Kakkar (2019MBA-13)
Netesh Kumar Singh (2019MBA-20)

QCFI – AURORA – 2020 Indian Institute of Information Technology & Management, Gwalior
Traditional Manufacturing
Fixed-Factory is the type of factory associated with the idealized (American) style of mass
production.

Dedicated machinery Model changes Major investment

for a single model infrequent cost for new model

Tedious and tough Capacity balancing

Longer shutdown
redeployment of across plants is
period
human resources difficult

Geographical
limitations and many more ……

QCFI – AURORA – 2020 Indian Institute of Information Technology & Management, Gwalior
The Flexi-Factory Concept
“A flexi-factory is a factory capable of changing the product it makes, with relative ease, at low cost and great rapidity:
whether changing production volumes, changing models or changing the nature of the products made.”

Factory
Metamorphosis

Rapid Model Mixed Model

Changeover Production

Within minutes the factory can switch from making one model
to starting with an entirely different model.
Zero Factory Shutdown
Minimal Production Loss
Batch Production of a model
Strict adherence to planned production schedules
Part vendors have to respond rapidly with any change in
planned schedule (which may be as less as 2 hours)

QCFI – AURORA – 2020 Indian Institute of Information Technology & Management, Gwalior
The Flexi-Factory Characteristics
As per the Honda Perspective characteristics of their flexi-factory are:

1. Manufacturing more than one model simultaneously.

2. Minimal retooling requirement since introduction of new models are frequent and required changes are
rapid.

3. Product change adaptability over a long term.

4. Employee flexibility is essential for labor fluidity to accommodate shits in model mix.

5. Balance of Models required to maintain market flexibility.

6. Operated as a network to balance their capacities. (Ex. Shifting production in a region)

QCFI – AURORA – 2020 Indian Institute of Information Technology & Management, Gwalior
The Flexi-Factory Limitations
Complex
change of
existing The Current Challenges
model mix
Replacement
High level of
of older With increasing demand, there is also an
planning and
initial costing
model with
newer
increase in the demand of level of
customization by the customers.
Limitations
Changing Though a FMS has been critical for Honda’s
Requires
highly skilled
from one
product type
success for the past 20 years, now radical
technicians
to another changes in designs, automobile technology
Coping with and move towards an entire electric fleet is
downward
output shift posing a demand for high initial investment

QCFI – AURORA – 2020 Indian Institute of Information Technology & Management, Gwalior
The Agile-Factory Solution

Agile manufacturing as the ability to successfully market low-cost, high-quality products with
short lead times (and in varying volumes) that provide enhanced customer value through
customization

Why Agile Manufacturing is Better and efficient?

(Depends upon whether the change is predicted)

Agility refers to the ability to respond quickly to customer needs and market changes while still controlling costs and
quality.
• Enriching the customer
• Cooperating to enhance competitiveness
• Organizing to master change and uncertainty.
• Leveraging the impact of people and information

QCFI – AURORA – 2020 Indian Institute of Information Technology & Management, Gwalior
Welcome to the future of Agile Manufacturing

QCFI – AURORA – 2020 Indian Institute of Information Technology & Management, Gwalior
 3D Printing : Revolutionizing the Automotive Industry
RAPID TOOLING WITH ADDITIVE
FROM SMALL TO BIG: FAST CUSTOMIZATION VIA 3D
MANUFACTURING CUTS THE STEPS, CUTS THE
FLEXIBLE, OPTIMIZED DESIGN PRINTING
TIME

VALIDATION AND ADVANCED REAL WORLD FUNCTIONAL TESTING:

MEASUREMENT ON DEMAND DISCOVERING WHAT WORKS

Ford Case : Ford is a 3D printing early adopter, having produced over 500,000 parts via 3D printing to date. Ford has reduced
the time and cost of producing prototypes from 4-5 months and $500,000 to a “matter days a few thousand dollars.” In the short-
term, these cost savings are Ford’s most likely focus area given that 3D printing is still more costly at scale than traditional
manufacturing. 3D printing also promises to make customized automobile parts cost-effective.
Similar to prototyping, customized parts require relatively higher amounts of tooling and configuration per part than large scale
manufacturing because work is completed on one part at a time. However, customized instrument panels and limited-edition
components are cost-effective with 3D printing.

According to Frost & Sullivan, by 2030, 3D printing in the automobile industry will be only 10% more costly than traditional
manufacturing processes. Source: https://digital.hbs.edu/platform-rctom/submission/printing-the-future-ford-motor-companys-new-production-process/

QCFI – AURORA – 2020 Indian Institute of Information Technology & Management, Gwalior
Ford Case : Early Adopter of 3D Printing

QCFI – AURORA – 2020 Indian Institute of Information Technology & Management, Gwalior
 Thank You

QCFI – AURORA – 2020 Indian Institute of Information Technology & Management, Gwalior