Operations Managementat Ford

Welcome to

Broadmeadows

Welcome to Ford

• Australia’s largest and most established car maker

• Designs Develops and Manufactures in Australia

• Over 5000 employees based mainly in B/M and Geelong

• Global team in excess of 350,000

• Home of the award winning BA Falcon and Territory

• Active in over 38 countries.

• Worldwide sales of $189 billion.

• Assets over $338 billion.

• Celebrating 80 years in Australia this year.

• The Falcon is the only car designed & built in Australia

• Ford Credit – our own financial institution that delivers profit.

Ford Motor CompanyFord Motor Company

Over 7 km of production line 522 cars built per day (1 every 47 seconds). 18 Hectares of under roof area. Over 65 nationalities represented throughout the plant.

2004 Wheels Car of the Year

No Boundaries

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Our Brands and Services

Our BusinessOur Business

AOCAustralian Operating Committee

HR IT

Purchasing

Product Development

ManufacturingFinance FCSD

Sales & Marketing

Ford Credit

What is the Ford Production system?

The Ford Production System is designed to have a lean, flexible and disciplined common production system….employing groups of capable and empowered people to work safely in delivering products that consistently

meet and exceed customers expectations in quality, cost & time.A program / process designed to help Ford become the leading global

automotive manufacturer.It aims to have ZERO waste, injuries, accidents, defects and breakdowns and

is targeted to assist the improvement process at the shop floor level.It is also designed to reduce the time line from order to delivery.

It is not just aimed at production but covers all aspects of the Company - design & development, order & delivery, supply & management.

Eliminating waste is the primary goal.

Why Introduce FPS?

InjuriesAccidentsDefects

BreakdownsWaste

FPS uses theConcept of Zero

InjuriesAccidentsDefects

BreakdownsWaste

FPS uses theConcept of Zero

How Does FPS work?The concept of zero

Why do we need to aim for Zero?

Here are some examples of what life would be like if 99.9% was good enough•1 hour of unsafe drinking water every month• 32,000 missed heartbeats per person every year• 20,000 incorrect drug prescriptions filled every year• 500 incorrect surgical procedures performed every week• 50 newborn babies dropped at birth by doctors every day• 1 unsafe plane landing at Tullamarine Airport every day• 22,000 cheques deducted from the wrong bank account each hour

If we accept 99.9% as good enough we will

never achieve our best.Although we may never

realistically achieve 100% we must continually strive

to look for ways to improve.

Advantages of Just In Time

• Measurable reduction in inventory costs• Reduction in lead times for model / engineering changes.• Quick response to quality concerns.• Produce products on demand.• Systems are more flexible to suit scheduling model mix.• Storage Space.• Cleaner• Safer environment.• Encourages teamwork• Smoother model changes

Just In Time

2.2% Warranty

4.4% Freight

6.5% Product

11.2% Marketing

13.5% Labour

62.2% Materials

Development

Total cost of Falcon Pie chart

Just In Time

Disadvantages of Just in Time

Effected by stoppages from suppliers in shorter time.

No safety buffer (Just in Case).

More deliveries in the plant (Traffic)

Dependant on communication between Ford and suppliers (computers).

Training for all new employees is required.

Some people who not follow or support the Kan ban process.

Special cause eg breakdowns, strikes, accidents or defective stock from supplier

Production Sequence

Body Paint Trim

Final PDA/QA

Materials, Planning and Logistics

Each car contains approximately 3000 parts

Materials, Planning and Logistics

Externally Sequenced Parts (ESP)• High complexity, High cost parts5 suppliers• Venture – Bumpers, Instrument Panels, Consoles,

BSPM’s, Door Trims.• Air International – Steering Columns, Seats• Dana - IRS• Sumitomo – CDU’s• Plexicor – Carpets, Spoilers

Materials, Planning and Logistics

Internally sequenced parts (ISP)

• Grills

• Rocker Moulds