GRANDHI MALLIKARJUNA GRANDHI MALLIKARJUNA RAORAO

By: P.Mohan RajBy: P.Mohan Raj

Indian Indian EntrepreneurEntrepreneur and and self made billionaireself made billionaire GM RaoGM Rao is the is the Chairman Chairman of The of The GMR GroupGMR Group, India’s leading , India’s leading infrastructure infrastructure companycompany..

INDRODUTION INDRODUTION onon

Indian Billionaire GM Rao of GMR GroupIndian Billionaire GM Rao of GMR Group

Indian Entrepreneur and self made billionaire GM Rao is the Chairman of The GMR Group, India’s leading infrastructure company.GM Rao was born on July 14, year 1950 in Rajam, Andhra Pradesh, India.GM Rao was born on July 14, year 1950 in Rajam, Andhra Pradesh, India.

Career

G M Rao is the Founder Chairman of GMR Group. An engineer turned G M Rao is the Founder Chairman of GMR Group. An engineer turned industrialist, he began his business in 1978, with a single Jute Mill located in industrialist, he began his business in 1978, with a single Jute Mill located in his hometown Rajam, Srikakulam district. Within a few years, he diversified his hometown Rajam, Srikakulam district. Within a few years, he diversified his business interests into Sugar, Ferroalloys, Banking, IT and most his business interests into Sugar, Ferroalloys, Banking, IT and most significantly, Infrastructure.significantly, Infrastructure.

Today, GMR Group is a leading infrastructure development company with Today, GMR Group is a leading infrastructure development company with business verticals in Energy, Roads and Airports.business verticals in Energy, Roads and Airports.

VissionVission

• To build entrepreneurial organisations that To build entrepreneurial organisations that make a difference to society through make a difference to society through creation of value.creation of value.

MissionMission

Why Henry Ford Is ImportantWhy Henry Ford Is Important

He revolutionized He revolutionized production by production by implementing the implementing the moving assembly moving assembly linelineIn doing so he In doing so he made a car for made a car for the masses: the the masses: the Model TModel T

““I will build a motor car for I will build a motor car for the great multitude.  It will the great multitude.  It will be so low in price that no be so low in price that no man making a good salary man making a good salary will be unable to own one – will be unable to own one – and enjoy with his family and enjoy with his family the blessings of hours of the blessings of hours of pleasure in God’s greatest pleasure in God’s greatest open spaces.” open spaces.” 

--Henry Ford upon founding --Henry Ford upon founding Ford Motor Company c. Ford Motor Company c. 19031903

BackgroundBackground

Born July 30, 1863Born July 30, 1863

Loved tinkering with Loved tinkering with things as a kidthings as a kid

Idol was Thomas Idol was Thomas EdisonEdison

Did not go to collegeDid not go to college

Married Clara Bryant Married Clara Bryant in 1888in 1888

Died April 7, 1947Died April 7, 1947

Ford Motor CompanyFord Motor Company

Founded June 17, 1903Founded June 17, 1903Founded in Dearborn, Founded in Dearborn, MichiganMichiganWas Henry Ford’s third Was Henry Ford’s third companycompanyCurrent President/CEO is Alan Current President/CEO is Alan MulallyMulallyCurrent Chairman is William Current Chairman is William Clay Ford, Jr., Henry Ford’s Clay Ford, Jr., Henry Ford’s great-grandsongreat-grandsonIn 2007, sold 2.4 million cars In 2007, sold 2.4 million cars Started making the Model T in Started making the Model T in 19081908First moving assembly line First moving assembly line was at Highland Park was at Highland Park Assembly Plant (1913)Assembly Plant (1913)

Assembly Line BasicsAssembly Line BasicsBasic principle: the work moves Basic principle: the work moves and the workers stay putand the workers stay putIt is based on a division of labor It is based on a division of labor and specialization: many people and specialization: many people work on a product and each work on a product and each person does a small task at a person does a small task at a stationstationParts must be standardized Parts must be standardized (interchangeable)(interchangeable)When a product reaches the end When a product reaches the end of the line it has gone through of the line it has gone through every station and is now a finished every station and is now a finished productproductThis is an old idea: perhaps used This is an old idea: perhaps used by Egyptians building pyramids, by Egyptians building pyramids, famous example of “pin factory” in famous example of “pin factory” in Adam Smith’s Adam Smith’s The Wealth of The Wealth of Nations Nations (published 1776)(published 1776)

Moving Assembly Line (Idea)Moving Assembly Line (Idea)

Ford’s innovation was not the Ford’s innovation was not the assembly line, but the assembly line, but the MOVING assembly lineMOVING assembly lineIdea of the moving assembly Idea of the moving assembly line is typically credited to a line is typically credited to a trip Ford employees made to trip Ford employees made to the Swift meatpacking plant in the Swift meatpacking plant in Chicago, where they saw pigs Chicago, where they saw pigs being conveyed through a being conveyed through a “disassembly” line of stations“disassembly” line of stations

““Why don’t we assemble motors Why don’t we assemble motors like they kill hogs in Chicago?” like they kill hogs in Chicago?” 

-- C. Harold Wills, Chief -- C. Harold Wills, Chief Engineering Assistant, Ford Engineering Assistant, Ford Motor Company, 1912Motor Company, 1912

Moving Assembly Line Moving Assembly Line ImplementationImplementation

First moving assembly First moving assembly line at Ford Motor Co. line at Ford Motor Co. produced magneto coilsproduced magneto coilsLater, entire vehicles Later, entire vehicles were assembled at were assembled at Highland Park plant, Highland Park plant, beginning in 1913beginning in 1913Moving assembly line Moving assembly line was so efficient that was so efficient that Ford could only use type Ford could only use type of paint (one that would of paint (one that would dry fast enough), which dry fast enough), which only came in blackonly came in black

Assembly Line EfficiencyAssembly Line Efficiency

One man hour with One man hour with moving assembly line moving assembly line equaled four man hours equaled four man hours without moving without moving assembly lineassembly lineThough it had 1,500 Though it had 1,500 parts, one Model T parts, one Model T could be assembled could be assembled every three minutesevery three minutesMade it possible for Made it possible for Ford to make lots of Ford to make lots of cars much more cars much more cheaplycheaply

Model T FactsModel T Facts

Predated the moving Predated the moving assembly line at Fordassembly line at Ford

First introduced First introduced September 27, 1908September 27, 1908

Was $850 when Was $850 when introducedintroduced

Was produced until 1927Was produced until 1927

Was the bestselling car Was the bestselling car for 20 yearsfor 20 years

Nicknamed the “Tin Nicknamed the “Tin Lizzie”Lizzie”

Model T Cost: Pre- and Post-Model T Cost: Pre- and Post-Moving Assembly LineMoving Assembly Line

1908-$8501908-$850

1913-$850 (pre-)1913-$850 (pre-)

1915-$440 (post-)1915-$440 (post-)

1916-$3601916-$360

1924-$2901924-$290

A Ford worker could A Ford worker could buy a Model T with buy a Model T with four months of wagefour months of wage

Model T InnovationsModel T Innovations

Had the steering Had the steering wheel on the leftwheel on the left

Engine and Engine and transmission were transmission were entirely enclosedentirely enclosed

Cylinders were in a Cylinders were in a blockblock

Suspension use two Suspension use two semi-elliptic springssemi-elliptic springs

Model T FeaturesModel T Features

Had a topHad a top

Had a windshieldHad a windshield

Had a speedometerHad a speedometer

Had headlampsHad headlamps

Had a generator for Had a generator for the headlampsthe headlamps

Engine was front Engine was front mountedmounted

Model T Features (cont.)Model T Features (cont.)Had a 2.9L engineHad a 2.9L engineEngine had 4 Engine had 4 cylinderscylindersHad 20 horsepowerHad 20 horsepowerTank held 10 gallonsTank held 10 gallonsHad rear wheel driveHad rear wheel driveTop speed was 40-45 Top speed was 40-45 miles/hourmiles/hourGot 13-21 Got 13-21 miles/gallonmiles/gallonRan on gas or ethanolRan on gas or ethanol

FordismFordism

Henry Ford’s success Henry Ford’s success implementing the moving implementing the moving assembly line at Ford assembly line at Ford Motor Co. became a Motor Co. became a model for production model for production generally.generally.

This style of production This style of production became known as became known as “Fordism” and spread “Fordism” and spread throughout different throughout different industries and the world.industries and the world.

Significance of the AutomobileSignificance of the Automobile

By making the “horseless carriage” By making the “horseless carriage” available to the average person, Henry available to the average person, Henry Ford transformed American society Ford transformed American society (arguably) more than any other person (arguably) more than any other person in the 20in the 20thth century century

80% of all U.S. households own at 80% of all U.S. households own at least one car and 30% own at least 2least one car and 30% own at least 2

80% of all U.S. vacations are by car80% of all U.S. vacations are by car

Americans drive 2.66 trillion miles per Americans drive 2.66 trillion miles per yearyear

Also, makes suburbanization, fast Also, makes suburbanization, fast food, and strip shopping malls possiblefood, and strip shopping malls possible

Represents freedom and individuality – Represents freedom and individuality – core American valuescore American values

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