Ford Production System (FPS)
 Several years ago, the term “Blueprint for Sustainability” was
introduced at Ford to describe the actions we are taking to achieve
outstanding fuel economy and reduce greenhouse gas emissions
from our products.
Ford Production System (FPS)
 FPS is a lean, flexible and disciplined common production
system
 Employs groups of capable and empowered people
 Learning and working safely together
 Consistently exceed customers' expectations in quality
 Cost and time
Key Elements of (FPS)
 Effective work groups,
 Zero waste/zero defects,
 Aligning global capacity
 Global market demand,
 Optimizing production
 Total cost to drive performance.
One “Ford” Plan
 F: Foster Functional and Technical Excellence
 O: Own Working Together
 R: Role Model Ford Values
 D: Deliver Results
Ford Operations System
 Hourly employee involvement
 Daily Safety Operating System (SOS) meetings
 Process coach daily
 Management Review
 Communication
 Teamwork
 Measurable
 Qualifying Tools
 Continual Improvement
 Dynamic Process
Strategies to Develop New Product
 Purchasing and product development into one integrated global
team
 Eliminate duplicated efforts
 Accelerate the creation of new vehicles
 Reduce costs
 Enhance quality and improve overall efficiency
Ford Challenges of Operations Management
 Urbanization
 Built and Digital Infrastructure
 Congestion
 Climate Change
 Population
 Social Inequality
Challenges in Ford’s Production Process
In 2010 Ford had to overcome deficits:
 increased material costs
 expensive labors and decreased demands
 Job cuts
 close down some plants
 layoff around 30,000 employees
Ford’s Continued Success Plan
Ford Motor Company continued on our path to deliver profitable growth in
2012 by following our proven
One Ford plan, despite the ongoing challenges in the global market.
Along the way, we achieved several important milestones, including
restoring Ford’s investment grade status and reclaiming the Ford Blue Oval,
resuming regular dividend payments to our shareholders and achieving 14
straight quarters of operating profit.
In a strong North America market, we set full year records for pre-tax profit
and operating margins. In South America, we are in the middle of launching
a new global product lineup. In Europe, we responded to challenging
economic conditions by beginning a transformation plan to aggressively
accelerate our new product rollouts, strengthen our brand and restructure
our manufacturing operations. In Asia Pacific Africa, we are undertaking an
unprecedented investment program to grow our business in what is now
the world’s largest automotive market.
References
 Barlatt, A. Y., Cohn, A., Gusikhin, O., Fradkin, Y., Davidson, R., & Batey, J.
(2012). Ford Motor Company Implements Integrated Planning and Scheduling
in a Complex Automotive Manufacturing Environment. Interfaces, 42(5), 478-
491
 IUGA, M., & KIFOR, C. (2013). LEAN MANUFACTURING: THE WHEN, THE
WHERE, THE WHO. Revista Academiei Fortelor Terestre, 18(4), 404-410
 Rychtyckyj, N. (2007). Machine Translation for Manufacturing: A Case Study at
Ford Motor Company. AI Magazine, 28(3), 31-43.
 McKinlay, A., & Starkey, K. (1994). After Henry: Continuity and Change in Ford
Motor Company. Business History, 36(1), 184-205.
 Seligman, J. (2005). Building a Systems Thinking Culture at Ford Motor
Company. Reflections, 6(4/5), 1-9.
 Liker, J. K., & Morgan, J. (2011). Lean Product Development as a System: A
Case Study of Body and Stamping Development at Ford. Engineering
Management Journal, 23(1), 16-28.
 Wee, H., & Wu, S. (2009). Lean supply chain and its effect on product cost and
quality: a case study on Ford Motor Company. Supply Chain Management-An
International Journal, 14(5), 335-341.

Ford Motor Company

  • 2.
    Ford Production System(FPS)  Several years ago, the term “Blueprint for Sustainability” was introduced at Ford to describe the actions we are taking to achieve outstanding fuel economy and reduce greenhouse gas emissions from our products.
  • 3.
    Ford Production System(FPS)  FPS is a lean, flexible and disciplined common production system  Employs groups of capable and empowered people  Learning and working safely together  Consistently exceed customers' expectations in quality  Cost and time
  • 4.
    Key Elements of(FPS)  Effective work groups,  Zero waste/zero defects,  Aligning global capacity  Global market demand,  Optimizing production  Total cost to drive performance.
  • 5.
    One “Ford” Plan F: Foster Functional and Technical Excellence  O: Own Working Together  R: Role Model Ford Values  D: Deliver Results
  • 6.
    Ford Operations System Hourly employee involvement  Daily Safety Operating System (SOS) meetings  Process coach daily  Management Review  Communication  Teamwork  Measurable  Qualifying Tools  Continual Improvement  Dynamic Process
  • 7.
    Strategies to DevelopNew Product  Purchasing and product development into one integrated global team  Eliminate duplicated efforts  Accelerate the creation of new vehicles  Reduce costs  Enhance quality and improve overall efficiency
  • 8.
    Ford Challenges ofOperations Management  Urbanization  Built and Digital Infrastructure  Congestion  Climate Change  Population  Social Inequality
  • 9.
    Challenges in Ford’sProduction Process In 2010 Ford had to overcome deficits:  increased material costs  expensive labors and decreased demands  Job cuts  close down some plants  layoff around 30,000 employees
  • 10.
    Ford’s Continued SuccessPlan Ford Motor Company continued on our path to deliver profitable growth in 2012 by following our proven One Ford plan, despite the ongoing challenges in the global market. Along the way, we achieved several important milestones, including restoring Ford’s investment grade status and reclaiming the Ford Blue Oval, resuming regular dividend payments to our shareholders and achieving 14 straight quarters of operating profit. In a strong North America market, we set full year records for pre-tax profit and operating margins. In South America, we are in the middle of launching a new global product lineup. In Europe, we responded to challenging economic conditions by beginning a transformation plan to aggressively accelerate our new product rollouts, strengthen our brand and restructure our manufacturing operations. In Asia Pacific Africa, we are undertaking an unprecedented investment program to grow our business in what is now the world’s largest automotive market.
  • 11.
    References  Barlatt, A.Y., Cohn, A., Gusikhin, O., Fradkin, Y., Davidson, R., & Batey, J. (2012). Ford Motor Company Implements Integrated Planning and Scheduling in a Complex Automotive Manufacturing Environment. Interfaces, 42(5), 478- 491  IUGA, M., & KIFOR, C. (2013). LEAN MANUFACTURING: THE WHEN, THE WHERE, THE WHO. Revista Academiei Fortelor Terestre, 18(4), 404-410  Rychtyckyj, N. (2007). Machine Translation for Manufacturing: A Case Study at Ford Motor Company. AI Magazine, 28(3), 31-43.  McKinlay, A., & Starkey, K. (1994). After Henry: Continuity and Change in Ford Motor Company. Business History, 36(1), 184-205.  Seligman, J. (2005). Building a Systems Thinking Culture at Ford Motor Company. Reflections, 6(4/5), 1-9.  Liker, J. K., & Morgan, J. (2011). Lean Product Development as a System: A Case Study of Body and Stamping Development at Ford. Engineering Management Journal, 23(1), 16-28.  Wee, H., & Wu, S. (2009). Lean supply chain and its effect on product cost and quality: a case study on Ford Motor Company. Supply Chain Management-An International Journal, 14(5), 335-341.

Editor's Notes

  • #9 As one of the world’s leading automobile manufacturers, Ford Motor Company reported proximately 5.7 million conveyance sales globally in 2011, including a 16.5% market share in the Amalgamated States. Availing to drive the company forward is a massive network of suppliers stretching across the globe. According to Ford’s 2011-12 Sustainability Report, its automotive supply chain includes 130,000 types of components, 4,400 manufacturing sites and 1 million people in more than 60 countries. “The breadth, depth and interconnectedness of the automotive supply chain make it arduous to efficaciously manage business and sustainability issues,” the company states. As a component of its efforts to engender a lean supply chain, Ford utilized Six Sigma processes by teaming with Penske Logistics to streamline and amend supply chain operations. There were three main goals to the initiative, according to Penske’s website: ◦Centralize Ford’s logistics network ◦Improve supplier and carrier performance ◦Provide authentic-time accountability for logistics and finances
  • #10 Today at Ford Motor Company, their most popular slogan is “Ford Has a More preponderant Conception.” Back in the 1980s when Ford Motor Company total quality management practices were prodigious, the slogan of “Quality Is Job 1” made more sense. In a conversation with Dan Dobbs, a Six Sigma Master Ebony Belt at Ford, it was noted that TQM may have worked in the 1980s, but Six Sigma is the project management methodology of cull these days. When TQM, a process amelioration methodology predicated on a customer gratification quality-driven process with guidelines set by management was first utilized, it commenced through a joint venture. Through a partnership with ChemFil, a division of PPG Industries, Ford wanted to engender more preponderant quality products, a stable work environment for the workforce, efficacious management, and profitability; all by the 1990s, “Quality is Job 1” became “Quality People, Quality Products.”