Description
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1
THE FORD PRODUCTION SYSTEM
(FPS)
Vinod Jain
Rakesh Kumar
Presented by
About FPS Case
?
In 2002, 17 manufacturing plants across the world received
the Shingo Price for Excellence in Manufacturing,
termed by Business Week as the “Nobel Prize of
Manufacturing”.
?
Three plant of Ford Motor Company (Ford) found a place
?
Ford Assembly Plant, Chicago III
?
Ford Engine Plant, Romeo, Michigan
?
Ford Engine Plant, Chihuahua, Mexico
?
Ford’s eforts to streamline its manufacturing operations
recognized.
?
According to Anne Stevens, V.P., North America Vehicle
Operations, Ford Motor Company,
“the crux of the FPS, is the way people work and the way
machinery is organized, Lean manufacturing is all about people
and the way they use technology to eliminate waste”
2
Ford World Headquarters in
Dearborn, Michigan, USA,
known as the Glass House
!he Ford "ndia Plant
in Chennai, !a#il $adu
Ford Assembly Pla!"
C#$%a&o III
Ford E&$e Pla!"
Romeo" M$%#$&a
Ford E&$e Pla!"
C#$#'a#'a" Me($%o
About Ford Motors
About Ford Motors
?
1903- Ford Motor Company, American automotive corporation
founded by Henry Ford, with an initial investment of $100,000.
?
Initially produced Cars using the Craft Production System
?
Under CPS cars were produced with same basic chassis and engine but diferent
design according to individual customer preferences & tastes.
?
1903-
?
1908- Introduces the Mass-Production System for the production of
Model-T.
?
Produced cars of uniform quality and features in bulk, and sold them at an
afordable price to customers.
?
Parts were standardized and fxing them became much easier
)
CPS
MPS
About Ford Motors
?
1913- Introduces the Moving Assembly Line concept.
?
Bringing the car assembly line to the stationary worker.
?
Reduced the cycle time of the task from 2.3 minutes to 1.19 minutes.
?
The assembly time for Model-T chassis fell drastically from 12 hours 30
minutes to 5 hours 50 minutes.
?
1914- Designed an Endless Chain-Driven conveyor concept.
?
To move the chassis more quickly from one workstation to another.
?
A man-high line – with all the parts and belts at waist level was introduced.
?
13,000 employees of Ford manufactured 260,720 cars, as against industry
as a whole, which employed 66,350 workers to produce 286,770 cars.
?
By using the assembly line approach, the production of vehicle at Ford
doubled every year during the years 1913 to 1923.
*
About Ford Motors
?
1970- Adopted Advanced Manufacturing Practices such as
CAD/CAM/CAE.
?
To upgrade its product development process.
?
1980- Formed Cross-Functional Teams concept.
?
To develop its Taurus model but did not incorporate the
method as standard operating procedure.
?
1981- Few Executives visited Mazda Plant in Japan to see
the Manufacturing System concepts that was known for
cost minimization and efciency improvement
?
Mazda produced diferent models with minimum switchover time
and little inventory.
?
Mazda built their 323 Model with only 60% of the efort needed to
manufacture Ford’s own comparable model (Escort).
+
About Ford Motors % &ean
M'g
?
Later in 1980s- Ford decided to introduce Lean
Manufacturing Systems
?
Lean manufacturing aimed at bringing together human,
material and mechanical resources at the right time and
place to accomplish a task.
?
It strived to eliminate every kind of waste including
wastage of time, labor, scrap material, defective parts etc.
?
The basic principle of lean manufacturing was to do away
with any task which did not add value to the product.
?
The value, according to the Ford, was defned in terms of
the attributes in a product which customers looked at and
for which they were willing to pay.
,
-
&ean Manu'acturing
(Princi)les
&ean Manu'acturing
(*ene+ts
?
Reduction in Scrap & Setup Time by 90%
?
Reduction in Lead Time by 50%
?
Achievement of 20-inventory turnover year
?
Reduction in Operating Costs
?
Improvement in Productivity (10% - 40%)
?
Improvement in Quality(25% - 75%)
1.
Ford Production S,ste#
-FPS.
?
1995- Employed a company wide re-engineering called Ford
2000. With an objective to develop & implement a new
manufacturing system called Ford Production System
?
“The vision of FPS is a lean, fexible and disciplined common
production system, defned by set of principles and processes that
employs groups of capable and empowered people, learning and
working safely together in the production and delivery of products
consistently exceeds customers Expectations in quality, cost and
Time”
?
The system included, among others JIT production and
logistic system, empowered people, a proper relationship
with supplier and a performance measurement system.
?
An attempt to transform from Mass Production System to
Lean Production System.
11
12
?
P's# Sys!em
?
Mass /rod'%!$o re0'$res
mass %os'm/!$o1
?
2$!# /re%$s$o e0'$/me!"
lar&e 'mbers o3 $de!$%al
/ar!s %o'ld be /rod'%ed a!
lo4 %os! ad 4$!# a small
4or5 3or%e1
?
P'll Sys!em
?
T#$s sys!em $s &eerally
5o4 as 6IT sys!em" 4#$%#
$ 3a%! $s a $m/or!a! /$llar
o3 7ea Prod'%!$o Sys!em1
?
T#e slo&a o3 7ea
Prod'%!$o $s /&ess is best0
FPS1 MPS to &PS
Ford Production S,ste#
?
Under FPS, the manufacturing process of Ford focused
on 11 critical areas:
?
Environment Management
?
Ford Total Productive Maintenance (FTPM)
?
Safety & Health Assessment Review Process (SHARP)
?
Work Groups
?
Training
?
Leadership
?
Quality
?
Synchronous Material Flow (SMF)
?
In-Station Process Control (ISPC)
?
Manufacturing Engineering &
?
Industrial Material Flow
18
Ford Production S,ste#
?
Key elements of the system include efective work groups,
zero waste/zero defects, aligning global capacity with global
market demand, optimizing production throughput and
using total cost to drive performance.
?
Each principle has a set of guidelines or “measurables”
that help us to meet or exceed objectives.
?
The measurables are deployed and tracked for every
manufacturing location using the SQDCPME Scorecard,
which keeps focus on the vital components of a sustainable
business: Safety, Quality, Delivery, Cost, People,
Maintenance and Environment.
1)
FPS ( 23a#)le o' S4DCPM2
Scorecard
1*
Production S,ste# 'or
Future
?
2003-all the plants of Ford had adopted FPS in their
operations.
?
It was estimated that after the implementation of FPS, Ford
had achieved savings to the tune of $500 mn per year.
?
By mid-2003, Ford was in the process of standardizing
manufacturing operations across all its plants globally.
?
The company planned to implement standard operating
procedures and uniform plant layouts.
?
Ford aimed to source material from the same suppliers for
all its plants and use similar machinery.
1+
1,
Ford in 5678
&ist o' largest Auto#obiles Co#)anies b, 9e:enue
1
2
8
)
+
*
1-
!hank ;ou
doc_431380322.pptx
asdf
1
THE FORD PRODUCTION SYSTEM
(FPS)
Vinod Jain
Rakesh Kumar
Presented by
About FPS Case
?
In 2002, 17 manufacturing plants across the world received
the Shingo Price for Excellence in Manufacturing,
termed by Business Week as the “Nobel Prize of
Manufacturing”.
?
Three plant of Ford Motor Company (Ford) found a place
?
Ford Assembly Plant, Chicago III
?
Ford Engine Plant, Romeo, Michigan
?
Ford Engine Plant, Chihuahua, Mexico
?
Ford’s eforts to streamline its manufacturing operations
recognized.
?
According to Anne Stevens, V.P., North America Vehicle
Operations, Ford Motor Company,
“the crux of the FPS, is the way people work and the way
machinery is organized, Lean manufacturing is all about people
and the way they use technology to eliminate waste”
2
Ford World Headquarters in
Dearborn, Michigan, USA,
known as the Glass House
!he Ford "ndia Plant
in Chennai, !a#il $adu
Ford Assembly Pla!"
C#$%a&o III
Ford E&$e Pla!"
Romeo" M$%#$&a
Ford E&$e Pla!"
C#$#'a#'a" Me($%o
About Ford Motors
About Ford Motors
?
1903- Ford Motor Company, American automotive corporation
founded by Henry Ford, with an initial investment of $100,000.
?
Initially produced Cars using the Craft Production System
?
Under CPS cars were produced with same basic chassis and engine but diferent
design according to individual customer preferences & tastes.
?
1903-
?
1908- Introduces the Mass-Production System for the production of
Model-T.
?
Produced cars of uniform quality and features in bulk, and sold them at an
afordable price to customers.
?
Parts were standardized and fxing them became much easier
)
CPS
MPS
About Ford Motors
?
1913- Introduces the Moving Assembly Line concept.
?
Bringing the car assembly line to the stationary worker.
?
Reduced the cycle time of the task from 2.3 minutes to 1.19 minutes.
?
The assembly time for Model-T chassis fell drastically from 12 hours 30
minutes to 5 hours 50 minutes.
?
1914- Designed an Endless Chain-Driven conveyor concept.
?
To move the chassis more quickly from one workstation to another.
?
A man-high line – with all the parts and belts at waist level was introduced.
?
13,000 employees of Ford manufactured 260,720 cars, as against industry
as a whole, which employed 66,350 workers to produce 286,770 cars.
?
By using the assembly line approach, the production of vehicle at Ford
doubled every year during the years 1913 to 1923.
*
About Ford Motors
?
1970- Adopted Advanced Manufacturing Practices such as
CAD/CAM/CAE.
?
To upgrade its product development process.
?
1980- Formed Cross-Functional Teams concept.
?
To develop its Taurus model but did not incorporate the
method as standard operating procedure.
?
1981- Few Executives visited Mazda Plant in Japan to see
the Manufacturing System concepts that was known for
cost minimization and efciency improvement
?
Mazda produced diferent models with minimum switchover time
and little inventory.
?
Mazda built their 323 Model with only 60% of the efort needed to
manufacture Ford’s own comparable model (Escort).
+
About Ford Motors % &ean
M'g
?
Later in 1980s- Ford decided to introduce Lean
Manufacturing Systems
?
Lean manufacturing aimed at bringing together human,
material and mechanical resources at the right time and
place to accomplish a task.
?
It strived to eliminate every kind of waste including
wastage of time, labor, scrap material, defective parts etc.
?
The basic principle of lean manufacturing was to do away
with any task which did not add value to the product.
?
The value, according to the Ford, was defned in terms of
the attributes in a product which customers looked at and
for which they were willing to pay.
,
-
&ean Manu'acturing
(Princi)les
&ean Manu'acturing
(*ene+ts
?
Reduction in Scrap & Setup Time by 90%
?
Reduction in Lead Time by 50%
?
Achievement of 20-inventory turnover year
?
Reduction in Operating Costs
?
Improvement in Productivity (10% - 40%)
?
Improvement in Quality(25% - 75%)
1.
Ford Production S,ste#
-FPS.
?
1995- Employed a company wide re-engineering called Ford
2000. With an objective to develop & implement a new
manufacturing system called Ford Production System
?
“The vision of FPS is a lean, fexible and disciplined common
production system, defned by set of principles and processes that
employs groups of capable and empowered people, learning and
working safely together in the production and delivery of products
consistently exceeds customers Expectations in quality, cost and
Time”
?
The system included, among others JIT production and
logistic system, empowered people, a proper relationship
with supplier and a performance measurement system.
?
An attempt to transform from Mass Production System to
Lean Production System.
11
12
?
P's# Sys!em
?
Mass /rod'%!$o re0'$res
mass %os'm/!$o1
?
2$!# /re%$s$o e0'$/me!"
lar&e 'mbers o3 $de!$%al
/ar!s %o'ld be /rod'%ed a!
lo4 %os! ad 4$!# a small
4or5 3or%e1
?
P'll Sys!em
?
T#$s sys!em $s &eerally
5o4 as 6IT sys!em" 4#$%#
$ 3a%! $s a $m/or!a! /$llar
o3 7ea Prod'%!$o Sys!em1
?
T#e slo&a o3 7ea
Prod'%!$o $s /&ess is best0
FPS1 MPS to &PS
Ford Production S,ste#
?
Under FPS, the manufacturing process of Ford focused
on 11 critical areas:
?
Environment Management
?
Ford Total Productive Maintenance (FTPM)
?
Safety & Health Assessment Review Process (SHARP)
?
Work Groups
?
Training
?
Leadership
?
Quality
?
Synchronous Material Flow (SMF)
?
In-Station Process Control (ISPC)
?
Manufacturing Engineering &
?
Industrial Material Flow
18
Ford Production S,ste#
?
Key elements of the system include efective work groups,
zero waste/zero defects, aligning global capacity with global
market demand, optimizing production throughput and
using total cost to drive performance.
?
Each principle has a set of guidelines or “measurables”
that help us to meet or exceed objectives.
?
The measurables are deployed and tracked for every
manufacturing location using the SQDCPME Scorecard,
which keeps focus on the vital components of a sustainable
business: Safety, Quality, Delivery, Cost, People,
Maintenance and Environment.
1)
FPS ( 23a#)le o' S4DCPM2
Scorecard
1*
Production S,ste# 'or
Future
?
2003-all the plants of Ford had adopted FPS in their
operations.
?
It was estimated that after the implementation of FPS, Ford
had achieved savings to the tune of $500 mn per year.
?
By mid-2003, Ford was in the process of standardizing
manufacturing operations across all its plants globally.
?
The company planned to implement standard operating
procedures and uniform plant layouts.
?
Ford aimed to source material from the same suppliers for
all its plants and use similar machinery.
1+
1,
Ford in 5678
&ist o' largest Auto#obiles Co#)anies b, 9e:enue
1
2
8
)
+
*
1-
!hank ;ou
doc_431380322.pptx