2010 ford dscm
TRANSCRIPT
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Presentation
&Distribution supply Chain Managementof Ford Motors
Automobile
Industry
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eamMembers Abha Yadav P57 LeenaSingh P19
AvinashNair P59
Kavita Shetty P16
Smita Kamble C33
Pralhad Walve P56
Group E-AutomotiveIndustry
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Automotive Industry Current Status
Company Sep 2010 Sep 2009 % ChangeMaruti 95,148 71,594 33
Hyundai 31,751 27,803 14
Tata 23,877 18,176 31
Mahindra 16,537 15,296 8GM 8,617 7,654 13
Ford 8,380 3,405 146
Honda 6,164 4,281 44
Mercedes 663 414 60
*Source Top Gear, Times Business, TOI issue 2nd Oct
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The Ford Motor Company
American Multinational Corporation
Headquarters : Dearborn, Michigan, USA
Founded by : Henry Ford
Incorporated on: June 16, 1903 Net income : US$ 2.717 billion.
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Introduction . continued
Ford Motor Company designs, develops,
manufactures, and services cars and trucksworldwide.
It operates in two sectors, Automotive and Financial Services.
Ford Mercury
Lincoln
Volvo
The Financial Services sector offers a variousautomotive financing products to and throughautomotive dealers.
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Ford
Ford also owns a small stake in Mazda inJapan and Aston Martin in the UK.
Ford's former UK subsidiaries Jaguar and
Land Rover were sold to Tata Motors ofIndia in March 2008.
In 2010 Ford sold Volvo to Geely
Automobile.
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Fact File
Henry Ford's methods came to be known
around the world as Fordism by 1914 Ford is currently the second largest
automaker in the U.S.
Fourth-largest in the world based onnumber of vehicles sold annually,directly behind Volkswagen Group.
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Fact File
Ford received more
initial quality surveyawards from J. D.Power andAssociates than
any otherautomaker.
Five of Ford'svehicles ranked atthe top of theircategories
Fourteen vehicles
ranked in the topthree.
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Last Two Decades(Industry Grew more Competitive )
Big Three U.S. automakersGeneralmotors (GM), Ford, and Chrysler
Foreign-based auto manufactures (i.e.,Toyota and Honda)
Facing increasing overcapacity
Advantage in the industry was fast
becoming global
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Ford Motors-SWOT
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Ford Motors-SWOT
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Fords Traditional Supply
chain
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THE FLASHBACK1980s
As Ford Motors grew, so did its supply base
Thousands of Suppliers
Dealing with a large network of suppliers
became cumbersome Criteria governing supplier selection
Purely based on cost
Absolutely no importance given to overall
supply chain costs Complexity of operating such a large supply
chain was never considered
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The Need for a change
Necessity to reduce cycle time
Supply chain costs had to be cut down
Costs incurred in developing & buildingcars had to be reduced dramatically
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The Ford 2000-An Ambitious
Restructuring PlanCreating new possibilities for
reengineering processes within and
between enterprises
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Ford Production System(FPS)
FPS is an integrated system aimed atmaking operational activities More lean
More responsive More efficient
To transform into a more pull based
system FPS SMF ILVS
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FPS-Key Features
Ensured continuous flow of materials
Built an ordered sequence system
Supplied parts only when needed
Significantly reduced buffer stocks
Forecasting became simpler
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Order To Delivery(OTD) OTD Vision
To create a lean, flexible and predictable process whichprovides the consumers the right product at the rightplace at the right time
A Holistic approach to re-engineering Reduce delivery time from 45 days to 15days
Indentify bottlenecks in Marketing Material planning Manufacturing Transportation
Involved dealers in the forecasting process Study of historical buying patterns to fill gaps in demand and
supply
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Launch of Ford Retail
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Launch of Ford RetailNetwork(FRN)
1st July1998,Oklahoma
Under the Ford Investment EnterpriseCompany(FIECO)
Key Objectives To test the best practices in retail
distribution
To drive selected practices throughout the
retail network To create an alternate distribution channel
which would compete against the publiclyowned retail chains
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Core Principles of FRN
Buy out all Ford dealers To ensure that dealers were competing
against the real competition (Toyota, Honda)
A consistent look for all Ford Showrooms consolidated showrooms to create a superior
selling experience Increased number of service outlets near
customer population centers
Increased business opportunity in terms ofspare parts, services, body shop operationsand Ford Credit
E t i M d l
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Enterprise ModelComparison
OrderMgmt
Dealers
Customers
Bill of Material
OutboundLogistics
Plan/SiteOperations
InboundLogistics
Suppliers
Ford Retail Network
Supply chainLeadership
OTD
FPS
FPS
FordBreakthrough Objectives/Key Initiatives
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10/04/10 Ford Supply Chain 31
Inbound logistics Responsive
Synchronous material flow ILVS
Forecasting
Inventory reduction JIT Manufacturing
FPS TPS
Streamlining manufacturing operations
Lean manufacturing
Forecasting
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After Sales Service
Launch of The New Figo March 2010
New fuel efficient petrol engine
Regular service is important
Competitive parts pricing The Figo will carry a two year/1,00,000 km
warranty
The vehicle also comes with two-year Road SideAssistance, a programme that Ford pioneeredin India.
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Roadside Assistance provides
qFree 24-hour service
qTwo years
qNational toll-free numberqProvides on-site assistance for minor repairs
including fuel delivery, jumpstart, vehicleunlocking and towing on flatbed trucks.
qQuick Service bays - cabinet
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