The document discusses Ford's Production System (FPS) which aims to employ lean and flexible production methods to consistently meet or exceed customer expectations for quality, cost and time. Key elements of FPS include effective work groups, zero waste, aligning capacity with demand, and optimizing production costs. FPS is part of Ford's overall strategy, called the One Ford Plan, to foster excellence, teamwork, and deliver results. The document also outlines some challenges Ford has faced such as increased costs, decreased demand, and restructuring efforts in response.
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Ford Production System (FPS) Overview
1.
2. Ford Production System (FPS)
Several years ago, the term “Blueprint for Sustainability” was
introduced at Ford to describe the actions we are taking to achieve
outstanding fuel economy and reduce greenhouse gas emissions
from our products.
3. Ford Production System (FPS)
FPS is a lean, flexible and disciplined common production
system
Employs groups of capable and empowered people
Learning and working safely together
Consistently exceed customers' expectations in quality
Cost and time
4. Key Elements of (FPS)
Effective work groups,
Zero waste/zero defects,
Aligning global capacity
Global market demand,
Optimizing production
Total cost to drive performance.
5. One “Ford” Plan
F: Foster Functional and Technical Excellence
O: Own Working Together
R: Role Model Ford Values
D: Deliver Results
6. Ford Operations System
Hourly employee involvement
Daily Safety Operating System (SOS) meetings
Process coach daily
Management Review
Communication
Teamwork
Measurable
Qualifying Tools
Continual Improvement
Dynamic Process
7. Strategies to Develop New Product
Purchasing and product development into one integrated global
team
Eliminate duplicated efforts
Accelerate the creation of new vehicles
Reduce costs
Enhance quality and improve overall efficiency
8. Ford Challenges of Operations Management
Urbanization
Built and Digital Infrastructure
Congestion
Climate Change
Population
Social Inequality
9. Challenges in Ford’s Production Process
In 2010 Ford had to overcome deficits:
increased material costs
expensive labors and decreased demands
Job cuts
close down some plants
layoff around 30,000 employees
10. Ford’s Continued Success Plan
Ford Motor Company continued on our path to deliver profitable growth in
2012 by following our proven
One Ford plan, despite the ongoing challenges in the global market.
Along the way, we achieved several important milestones, including
restoring Ford’s investment grade status and reclaiming the Ford Blue Oval,
resuming regular dividend payments to our shareholders and achieving 14
straight quarters of operating profit.
In a strong North America market, we set full year records for pre-tax profit
and operating margins. In South America, we are in the middle of launching
a new global product lineup. In Europe, we responded to challenging
economic conditions by beginning a transformation plan to aggressively
accelerate our new product rollouts, strengthen our brand and restructure
our manufacturing operations. In Asia Pacific Africa, we are undertaking an
unprecedented investment program to grow our business in what is now
the world’s largest automotive market.
11. References
Barlatt, A. Y., Cohn, A., Gusikhin, O., Fradkin, Y., Davidson, R., & Batey, J.
(2012). Ford Motor Company Implements Integrated Planning and Scheduling
in a Complex Automotive Manufacturing Environment. Interfaces, 42(5), 478-
491
IUGA, M., & KIFOR, C. (2013). LEAN MANUFACTURING: THE WHEN, THE
WHERE, THE WHO. Revista Academiei Fortelor Terestre, 18(4), 404-410
Rychtyckyj, N. (2007). Machine Translation for Manufacturing: A Case Study at
Ford Motor Company. AI Magazine, 28(3), 31-43.
McKinlay, A., & Starkey, K. (1994). After Henry: Continuity and Change in Ford
Motor Company. Business History, 36(1), 184-205.
Seligman, J. (2005). Building a Systems Thinking Culture at Ford Motor
Company. Reflections, 6(4/5), 1-9.
Liker, J. K., & Morgan, J. (2011). Lean Product Development as a System: A
Case Study of Body and Stamping Development at Ford. Engineering
Management Journal, 23(1), 16-28.
Wee, H., & Wu, S. (2009). Lean supply chain and its effect on product cost and
quality: a case study on Ford Motor Company. Supply Chain Management-An
International Journal, 14(5), 335-341.
Notas del editor
As one of the world’s leading automobile manufacturers, Ford Motor Company reported proximately 5.7 million conveyance sales globally in 2011, including a 16.5% market share in the Amalgamated States. Availing to drive the company forward is a massive network of suppliers stretching across the globe.
According to Ford’s 2011-12 Sustainability Report, its automotive supply chain includes 130,000 types of components, 4,400 manufacturing sites and 1 million people in more than 60 countries. “The breadth, depth and interconnectedness of the automotive supply chain make it arduous to efficaciously manage business and sustainability issues,” the company states.
As a component of its efforts to engender a lean supply chain, Ford utilized Six Sigma processes by teaming with Penske Logistics to streamline and amend supply chain operations. There were three main goals to the initiative, according to Penske’s website:
◦Centralize Ford’s logistics network
◦Improve supplier and carrier performance
◦Provide authentic-time accountability for logistics and finances
Today at Ford Motor Company, their most popular slogan is “Ford Has a More preponderant Conception.” Back in the 1980s when Ford Motor Company total quality management practices were prodigious, the slogan of “Quality Is Job 1” made more sense.
In a conversation with Dan Dobbs, a Six Sigma Master Ebony Belt at Ford, it was noted that TQM may have worked in the 1980s, but Six Sigma is the project management methodology of cull these days.
When TQM, a process amelioration methodology predicated on a customer gratification quality-driven process with guidelines set by management was first utilized, it commenced through a joint venture.
Through a partnership with ChemFil, a division of PPG Industries, Ford wanted to engender more preponderant quality products, a stable work environment for the workforce, efficacious management, and profitability; all by the 1990s, “Quality is Job 1” became “Quality People, Quality Products.”