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Ford Supply Chain

Delfia Wagiri

on 24 March 2011

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Transcript of Ford

Ford Motor Company : Supply Chain Strategy Production and Operations Management Teri Takai
Director of Supply Chain Systems “How should the company use emerging information technologies and ideas from new high-tech industries to change the way it interacted with the supplier?”
A B Ford needed to redesign its supply chain and other activities using “Virtual Integration” like Dell to face changing environment of supply chain due to the development of information technology. There were some "challenges" to adopt Dell’s Virtual Integration since Ford and Dell are two different type of industry and Ford network business was more complicated than Dell. COMPANY &
BACKGROUND Founded by Henry Ford on June 16, 1903
Based in Dearborn, Michigan, U.S.
Second largest industrial corporation in the world.
Revenues of more than $144 billion
About 370,000 employees.
Core business was to design and manufacture of automobiles for sale on consumer market.
Produced more than 260 million vehicles.
Last Two Decades Japanese Automaker SUPPLIERS Ford has a large supplier base.
Suppliers were picked based on cost.
Overall supply chain costs and the complicated network of suppliers were overlooked. EXISTING SUPPLY BASE Several thousand supplier "Tier one" suppliers Suppliers of individual components Suppliers for entire vehicle sub-systems Cost-based criteria Quality-based criteria Support to Suppliers PURCHASING ACTIVITY Independent Linked with
product development FORD PRODUCTION SYSTEM Aimed at making Ford manufacturing leaner, more responsive, and more efficient.
Pull-based system
Synchronized production
Continuous flow
Stability throughout the process Synchronous Material Flow
A process or system that produces a continuous flow of material and products driven by a fixed, sequenced, and leveled vehicle schedule , utilizing flexibility and lean manufacturing concepts
In-Line Vehicle Sequencing (ILVS)
Order To Delivery Reduce to 15 days the time from a customer’s order to delivery of the finished product-a significant reduction versus the present performance of 45 – 65 days. To create a lean, flexible and predictable process that harmonized the efforts of all Ford’s components to enable it to provide consumers with the right products in the right place at the right time
Ford Retail Network Thank You!!!
:) Modeled after the Toyota Production System
- Makes sure that the right part is in the right sequence
- Allows Ford to know when parts will be needed in advance
Full transcript