Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Ford motor final presentation


Published on

This is a case study analysis that was done by a group of Management Information Students (from UIC). The case on Ford discussed how it could adopt the business model of Dell to achieve economies of scale.

  • Be the first to comment

Ford motor final presentation

  1. 1. Ford Motor Company:Supply Chain Strategy Adithya Sridhar Praveen Venkatraman Melroy Rodrigues Thanyalat Chaleunsouk Sivasankari Santhanakrishnan
  2. 2. Agenda Ford Motor Company’s Goals Company Background and its Supply Chain Management System Current Problems Direct Model and Virtual Integration Comparison of Ford’s Business v/s Dell’s Business Recommendations
  3. 3. Prime Goals of Ford Motors Increase shareholder Improve customer values responsivenessIncrease revenue/decrease Using IT to improve operating cost customer satisfactionIdentify bottlenecks in the SCM and solve it
  4. 4. Ford Motors Background Ford Motor Company - Headquartered in Dearborn, MI - Second largest industrial corporation in the world Core Business: Design and Manufacture of Automobiles Until 1995, Ford SCM was a Push System - Made To Stock (MTS)
  5. 5. Ford Value Chain
  6. 6. FORD 2000 Ford 2000: A restructuring plan started in 1995- aimed at dramatic cost reduction and increasing overall efficiency Merged international automotive operations into a single global organization Reduced Vehicle Centers (VCs) to only five Teamed up with Chrysler and GM to work on the Automotive Network Exchange (ANX) Reduce the number of suppliers Place IT within the process reengineering organization
  7. 7. FORD 2000 Ford Production System  Aimed at making Ford manufacturing operations leaner, more responsive and efficient  Synchronous Material Flow (SMF): Produced continuous flow of materials and products  In-Line Vehicle Sequencing (ILVS): Used ASRS and computer software in assembling
  8. 8. FORD 2000 Ford Retail Network  Ford Investment Enterprise Company (FIECo): Aimed at an alternate distribution channel to compete with publicly owned retail chains.  Better face-off with real competition (i.e. GM, Toyota, etc.).  Increase service outlets and business not just in new and used vehicles but also in parts and service, body shop operations.
  9. 9. Shift towards a Pull System-Order To Delivery
  10. 10. MTS – OTD Compared
  11. 11. Current Problems No Direct feedback from the customers Managing vast supplier network Not using IT to its full capability Issues in forecasting High OTD time
  12. 12. Ford v/s Dell Dell FordProduct complexity High: 30,000+ parts Low: 300+Product cost and life span High / long term Low / shorter termNo of suppliers / sub- Large (1000+) Multi tiers Small (50) singlesuppliers tierDistributors/ Dealers many None - direct to customers
  13. 13. Dell’s direct business model and virtual integration
  14. 14. How Dell applied VI to theirbusiness In four main areas:  Organization Simplification  Reduce the working capital by outsourcing  Inventory Management  JIT via information management and flow  Build to order, reducing the cost of storing finished goods  Customer service and support  Finer customer segmentation, more tailored solutions  Faster response time  Supplier Collaboration  Information and feed back sharing  Product development, R&D
  15. 15. How VI could work in Ford Dells VI Ford Possibility Organization Simplifying ✗ Inventory Management ✓ Customer Service and Support ✓ Suppliers management ✓
  16. 16. Recommendation 1:Inventory Management Shift the ownership of raw materials to suppliers:  By using EDI with suppliers and the existing advantage of nearby ship points.
  17. 17. Recommendation 2:Customer Service and Support Allow product customization both online and offline Collect customer data from dealers to  Segment customers  Accurately forecast demand by individually work with local dealers Implement a support network where parts can be exchanged and delivered in a short time.
  18. 18. Recommendation 3:Supplier Management Invest in IT for supplier, in order to bring the same level of IT knowledge among suppliers and Ford Sharing design with supplier in order to speed time to market Involve supplier in R&D