Summary of Ford Valencia manufacturing system prior JIT implementation:
• Minimum of 15 weeks to reach full production capacity
• Required at least 3,000 parts to be assembled for each car
• Very small outsourcing involve for car components
• All parts from suppliers are delivered on trucks
• Stock must be kept at certain level to assure the continuity of production
• Parts are often damaged during packaging, handling or delivery
• Spent over $6 million for inefficient delivery system (250+ trucks per day)
• 80 per cent automation in overall
• Manual seats and battery placement and this may cause injury for employee
In a dynamic market trends, pre-JIT system clearly is not responsive enough as an answer. There are minor inefficiencies throughout the system which accumulate into serious problem that may cause Ford being less competitive in the market.
• Minimum of 15 weeks to reach full production capacity
• Required at least 3,000 parts to be assembled for each car
• Very small outsourcing involve for car components
• All parts from suppliers are delivered on trucks
• Stock must be kept at certain level to assure the continuity of production
• Parts are often damaged during packaging, handling or delivery
• Spent over $6 million for inefficient delivery system (250+ trucks per day)
• 80 per cent automation in overall
• Manual seats and battery placement and this may cause injury for employee
In a dynamic market trends, pre-JIT system clearly is not responsive enough as an answer. There are minor inefficiencies throughout the system which accumulate into serious problem that may cause Ford being less competitive in the market.