Operations Management at Ford

Report
Operations Management
at 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 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
Services
Brands
Our Brands and Services
No Boundaries
Our Business
AOC
Australian Operating Committee
HR
Purchasing
IT
Finance
Product
Development
Manufacturing
Sales &
Marketing
FCSD
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?
How Does FPS work?
The concept of zero
FPS uses 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
Injuries
Accidents
Defects
Breakdowns
Waste
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.
Just In Time
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
Total cost of Falcon Pie chart
2.2% Warranty
4.4% Freight
6.5% Product
Development
11.2% Marketing
13.5% Labour
62.2% Materials
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
Final
Trim
PDA/QA
Materials, Planning and
Logistics
Each car contains approximately 3000 parts
Materials, Planning and
Logistics
Externally Sequenced Parts (ESP)
• High complexity, High cost parts
5 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

similar documents