FerrariLatoya JessamyBrian ZhuVlad Pasculescu

History Decision Making

Started out as a small factory in the 1940s, which made machine tools.

The original Ferrari factory was in Modena. Enzo Ferrari started with a small factory in Maranello, but the factory eventually expanded into what it is today.

Ferrari road cars = money to race cars

599 GTB Fiorano• Price tag: $260,000

• V12 engine

• 6-speed gearbox

• 0-62mph in 3.7 seconds

• 0-124mph in 11 seconds

• Curb weight: 3722 lbs

• TS: over 205mph

Maranello Factory• All building and testing of

cars is done on site

• 45 buildings

• 250,000 sq. ft

• 3,000 employees

• Video 6:50

Foundry Ferrari's inventory contains

a lot of raw metal

All metal is cast as custom aluminum alloys

Errors are melted down and recast

Each cast is a one-use, sand/resin mold

Metal is melted electrically, using what a house uses in a year.

Foundry Inventory surplus is required

The forecast of faulty inventory is lower− Ex: metal per car is not the same as metal cast

Line Balancing: the casting is relatively quick; cast every 10 minutes, 1 day to set, 5 hours to finish

Body Works• Chassis and body panels

are aluminum

• Chassis is hand-welded and robotically finished• 180 strategic rivets

• Robotic probe ensures quality• 800 point check

Engine Works Engines average 800 parts

799 parts are cast and placed hand.

Skylights and inside trees provide a comfortable, stable and optimal environment.

Engine Works Line Balancing: 800 parts in at least 2 stations

Specific construction process = long production time

Linear Programming: instead of maximizing number of engines, produce more new engines.

Assembly Body and engine come together

Line Balancing: 32 stops/stations− Cannot have workers double on stations

Transportation: all parts are built on location, so they only move between buildings.

Interior• Handcrafted

• Cowhides are used for:• Upholstery, dashboard & trim

• Precision is important in cutting the leather• Computer controlled laser system• Computer glided laser is used to cutting• 30 hours• Video: 36.20

Testing• Tested on the race track

• Traction Control System (Safety test)

• Road test• Suspension, handling & gear system• Gear switches are tested to make sure gearbox

doesn’t lock

• Car is pushed to its limits by professional drivers

Waiting List Queuing: Ferrari takes 2 months to make a car

− 2 year waiting list

Linear Programming: other, older cars are available more immediately, but they are not produced at a high rate anymore.

Summary Transportation:

All operations are in Maranello, materials are the only things brought in

Decision Making: Expand from Modena to Maranello’s factory

Line Balancing: 32 stations in final assembly to complete a car in 2 months

Queuing: 2 months for a car to be made after a 2 year waiting list

Inventory: Most of the inventory, especially metal, is recycled and

recast

Sourceshttp://www.youtube.com/watch?

v=PFYeP6AXCA4

http://www.ferrari.com/english/about_ferrari/ferrari_today/the_factory/pages/the_factory.aspx