Transcript Operations Management at Ford
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
Our Brands and Services No Boundaries
HR Purchasing
Our Business
AOC Australian Operating Committee IT Product Development Sales & Marketing Finance Manufacturing 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
Injuries Accidents Defects Breakdowns Waste 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.
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
Body
Production Sequence
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 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)