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Operations Management at Ford Welcome to Broadmeadows.

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Presentation on theme: "Operations Management at Ford Welcome to Broadmeadows."— Presentation transcript:

1 Operations Management at Ford Welcome to Broadmeadows

2 Welcome to Ford Australias 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.

3 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

4 No Boundaries Brands Services Our Brands and Services

5 Our Business AOC Australian Operating Committee HR IT Purchasing Product Development Manufacturing Finance FCSD Sales & Marketing Ford Credit

6 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.

7 Why Introduce FPS?

8 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.

9 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

10 Total cost of Falcon Pie chart

11 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

12 Production Sequence BodyPaintTrim Final PDA/QA

13 Materials, Planning and Logistics Each car contains approximately 3000 parts

14 Materials, Planning and Logistics Externally Sequenced Parts (ESP) High complexity, High cost parts 5 suppliers Venture – Bumpers, Instrument Panels, Consoles, BSPMs, Door Trims. Air International – Steering Columns, Seats Dana - IRS Sumitomo – CDUs Plexicor – Carpets, Spoilers

15 Materials, Planning and Logistics Internally sequenced parts (ISP) Grills Rocker Moulds

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