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Ford Company Production Planning Report
Ford Company Production Planning Report
Ford Motor Company propelled an Advanced Production Quality Planning (APQP) in December 1994. A cross-useful APQP group framed to survey the current FAO Procedures and target best practices. The 1994 variant of this report was made around then, to be by the AIAG Advanced Production Quality Planning and Control Plan Manual. Since that time, the outer providers to Ford Motor Company, and inner providers inside Ford have utilized the FAO APQP record to screen their very own frameworks concerning APQP. With the experience that has been gained since 1994, it has turned out to be fundamental and conceivable to refresh this manual to reflect current practices and triumphs.
Ford Motor Company practice production portfolio that includes three sub-groups of motors. These include cars, light trucks, and heavy trucks. The lead duration for the planning of any subcategory is twelve months. Therefore, it is necessary to focus on total auto sales in the United States market for the coming twelve months. This report will discuss the production planning of the Ford company by focusing on domestic sales and exports. It will identify how Ford Company may apply a forecast for various application. First, in pre-ordering multiple auto parts to ensure the streamlining of the production process. Secondly, in making proper production investment facilities because it is difficult to set up new equipment without investing such facilities. Setting them up requires time and needs a plan of six to twelve months before the production. Third, for synchronizing strategy of growth to align with the sales trend across various categories of the auto. Finally, for efficient distribution of the final products in the import and export markets.
Production planning involves a structured method of definition and execution of all actions that are critical to ensure the satisfaction of the customers. It is a program that is led by the supplier and requires all systems and subsystem and various manufacturing locations. It includes both internal and external suppliers of auto parts to Ford. Production planning mainly emphasizes on the facilitation of communication between all individuals who have involved production. It ensures timely completion of all necessary production steps on time. The steps should emphasize on quality products that will make customers to like the products in the competitive market.
It is significant to make decisions on production. These decisions require sourcing of information about the products. Production planning requires responsible individuals to come together and share their ideas on how to produce quality products. In Ford company, souring for various information is essential and is done by individuals in charge of production. They contact customers to identify their commitment to operating with the suppliers in the production program. This coordination ensures that all the department involved in production are informed about the production program to understand all the processes of timing the marketing seasons. It enables the suppliers to make sure that all other sub-suppliers are engaged to meet the Vehicle Manufacturing requirements. The decisions on production will be made based on quality history and customers preference data. It makes it easier for the suppliers to meet all the production requirement that will meet the customer’s needs and offer them satisfaction.
The initiation of production plan also focuses on the customer’s inputs requirements. They constitute the criteria for the design and all the production program requirements that are critical for manufacturing motors. Some of the factors to consider in the customer’s input requirements are the design goals, reliability, and quality goals, the timing of the program, and the affordability of the cost targets. The design goals offer a direction on the appropriate design of the motor that is more appealing to the customers. Ford company focus on the aesthetics of color and shape of the motors that attracts most of the customers. The design also determines the cost of production. Reliability and quality goals ensure that the production process satisfies the market trends, and the products are available during the peak duration of market demand.
Ford production plan focus on conducting market research to ensure that the products are reliable. Ensuring reliability needs proper timing. The product will be available in the market at the right time to enable the company to make maximum profit. The cost targets are significant to measure. During production, it is essential to produce products that are affordable to the customers. Ford Company regulate the cost of the products to ensure that the customers can easily access them. The exploitation of the customers is also avoided by some brokers who may want extra profit. The company makes the product’s checklist and give their dealers who show the customers to make them more confident about the prices of the products. This is a marketing plan in production that ensure that the customers are protected against exploitation.
Craftsmanship is one of the elements of the Ford Company production plan. It is an assessment of what the customers see, touch, use, hear, and smell. Craftsmanship affects the design and manufacturing process. Its primary focus is to improve the overall perception of the customers about the value of the products. There are programs that the company initiate to mobilize the employees in the production department to emphasize on the product value. Production framework is undertaken by the company to provide the right direction that will offer satisfaction to the customers. There is an emphasis on satisfying the customer’s senses that has a direct effect on their ability to purchase the products.
Manufacturing reviews of the products is essential in the production plan. For the suppliers of auto parts, the reviews about the designs are provided critical information that they use to select the right quality of auto parts to supply. The production department organizes for regular meetings with the suppliers to give them the correct information on the highly demanded materials. The program teams hold design review in Ford company and inform the suppliers on the right quality of auto parts with the highest market demand (“Supply Chain Event Management by FORD of Europe,” n.d.). The teams are also involved in inspecting all the parts supplied by various suppliers. Design reviews utilize data-driven verification and not reporting exercise. Also, the reports offer an effective method to avoid problems and misunderstandings that may arise during production. They provide progress monitoring mechanism that can assist in resolving issues on production.
Production planning of Ford Company also involves a design verification plan. This is a document that consists of all the engineering evaluations list. It also includes all the tests needed for the establishment of the design that fits application in the environment of interest. The quality assurance department is responsible for verification of all the motor designs that the engineers may propose for the company. They ensure that the production of such motors meets the quality standards that will attract more customers in the market. Production of the new motors should also achieve the marketing goals of the company. The cost of production of the latest designs should not exceed the budget of the company. Once the design is verified, the engineers should set a timeline that targets peak marketing seasons. The company will be able to market such a new model to compete with other products in the market.
Facilities, tools, and gauges are other additional, modern, refurbished, and relocated resources that the company use in planning its production. It is necessary for planning for the production of quality products based on the customers’ quality level specifications. This element consists of several expectations in production planning. It includes but not limited to, planning, statistical and acceptance criteria, lean manufacturing factors, equipment qualification, and corrective measures that are used in the delivery process. Some of the key elements that facilitate tools and gauges include team feasibility commitment, drawings and specifications, design failure mode and effects analysis, system measurement evaluation, the flow of manufacturing process, and process failure mode and effects analysis. Team feasibility entails the ability of the team to coordinate during the production process. Team coordination ensures that the production teams in Ford Company offer innovative product which is superior in the market.
Drawings and specifications are essential elements that will assist the engineers in manufacturing the right quality that satisfies the needs of the customers. They include all the expected customer’s specifications that are unique in the market. In Ford company, customer specification is primary, and the engineers use all the reports on customer specification in drawing the motor designs that are unique in the market. The Design Failure Mode and Effect Analysis is vital in the production plan. It helps to identify all the faults that are in the previous production and enable advancement in the production process. The ability to identify the failures assist the production team in improving the quality of the products to suit the customers. The manufacturing process flow is an essential element that is essential for monitoring the manufacturing process. All the manufacturing cost is estimated through this element, and the cost of production can be moderated to ensure maximum profit. Process failure mode and the effect analysis offers an opportunity to identify every fault that is included in the production process. The production manager can plan on how to mitigate the possible risks that may be involved in the process.
Ford Company also emphasize on the use of information technology to facilitate its production plan and various business operation within the company. Information technology used in the production plan to align the supply chain.it is deployed for dramatical enhancement and flow of different materials necessary for production. In the supply chain, there was a general understanding that data innovation likewise could be conveyed to significantly improve material streams. It could also diminish inventories, substituting data for stock, as the articulation went. Therefore, the arrangement of Ford 2000, for gathering the point on reengineering ventures, having a decent store network the executive’s frameworks and client relationship the board frameworks can help the organization all the more near providers and clients which can simple to decrease the expense on request to conveyance framework and passage creation framework. As that time Internet transformation unfurled in parallel, Ford Motor Company made new potential outcomes for reengineering forms inside and between enterprises by utilizing the Internet. Production was increased following the latest technology.
On 1 July 1998, Ford Motor Company propelled the first of its Ford Retail Network adventures in Tulsa, Oklahoma, under the recently shaped Ford Investment Enterprises Company. The standard of Ford Retail Network was offering shoppers with the most elevated amount of treatment and make an encounter they would need to return to over and over. The showrooms would be solidified to concentrate assets on making a predominant selling knowledge, while the number of administration outlets would emphasize on effective leadership which offers benefits to the clients. At that point, Ford can reduce the expense of promoting its products and focus more on utilizing the Internet to give support to the customers. It can help to get enough information about customer perception of the products and guide the producers on how to satisfy their clients.
Under Porter (1985), he respected the determination of a defendable position inside the industry as the final product of a critical competitive examination. He contended that effective, gainful organizations, for the most part, contend for either low expenses or by separating their items to meet specific client needs. Even though these two critical choices are fundamentally unrelated, he included a third classification of firms as specialty players that serve a particular market or item portion. Doorman’s three conventional systems are cost administration, separation, and core interest.
In the motor business, Ford Motor Company can meet its plan of action, cost initiative in various ways. The cost administration is tied in with being the most reduced cost maker in the business. For a company to increase its upper hand in production, it must perform all the necessary activities of minimizing the process of production. To least the expense, there are numerous procedures and philosophy that the company can utilize. Among the mainstream and fruitful strategies used by active companies worldwide include improving quality, profitability, and bringing down expense. Ford uses the six approaches in its production planning. These include Total Quality Management (TQM), Benchmarking Competitors, Just-in-Time (JIT), Supply Chain Management (SCM), Total Productive Maintenance (TPM), and MRP arrangements. At the point when Ford Motor Company built up the data framework, it is simpler to accomplish this plan of action. Ford is utilizing data framework to improve the relationship to clients and providers. Portage build up the Ford Production System can assist it with improving Supply Chain Management framework to be at the top in production. And furthermore, the Order to the Delivery framework can lessen the time, which means Ford can accomplish its production activities in after a short period.
According to Porter (2019), the supply chain model is an efficient method for breaking down all the company’s exercises and assessing how they collaborate. Such an examination is essential to recognize all the possible ways of improving production. For Porter, the supply chain can be comprised of five necessary qualities. These include counting inbound coordination, tasks, outbound coordination, advertising and deals, and administration. They are crucial to ensure that the production plan matches the company market demand.
The supply chain of the Ford Motor Company is not similar to different producers in the vehicle business. Notwithstanding, when Ford Motor Company created a data framework, it helped Ford to improve its worth chain. In one of the help exercises, Ford, through its data framework and Production System, improved the relationship of providers. The primary purpose was to help the company to diminish the expense of purchasing material. Additionally, it could also assist the company and its providers to wipe out waste and consequently, lower costs of production. It was significant because the company could be able to perform various production activities because of the vast network.
The following are some of the movement for data framework to improve production in the company. Passage through the data framework is vital for the organization of various market plans for the products. Ford Retail Network is essential in ensuring that the company engages in fruitful business. It helps in the estimation of customer input and what purchaser required, which can help Ford simpler to plan a productive present-day structure improvement in production (Porter, 2019). The company has started fitting plan models after open interest in various markets to help the company in the expansion of its production. This technique has demonstrated exceedingly fruitful in later money related periods.
Advertising is additionally a significant part of the company product promotion strategy. By utilizing the Ford Retail Network framework, Ford has been cooperating with vendors to gather more data to make advertising systems that help support deals. This is demonstrated to be an essential reason for the customers’ apparent quality preference. The advertisement also assists the managers in collecting the views of the customers about their products. The company can make improvements in production through the analysis of the statements.
The company has collaborated with Caterpillar Logistics and SAP to improve warehousing and its Daily Parts Advantage to arrange for getting spare parts to their sellers. Their expectation in joining forces with Cat Logistics was to protect a cooperate with skill in the car inventory network, establishing a framework for the improvement of another data framework. The objective was to acquire start to finish permeability of administration parts, increase the speed of time to showcase, enhance inventories at every area, and perform their tasks maximumly to meet the customer needs during production.
Alongside Cat Logistics and SAP, Ford is likewise utilizing other platforms that support Customers relationship management (CRM). It improves the company’s current client relationship database and gives a ground-breaking base to data investigation, information mining. These aspects are essential in the production process. The company will be able to handle various information about the company and analyze them to facilitate production.
In summary, the production plan of Ford Company focusses on maximizing the profit through quality production of goods. The company production subgroups are essential for laying out a practical approach that assists the production manager to mobilize the employees to produce products that are superior in the market. The company applies various strategies to improve its production. The use of current information technology is one of the essential strategies that the company employs to enhance its production operations.
Porter, M. G. (2019). Supply Chain Integration: Does Organizational Culture Matter? Operations and Supply Chain Management: An International Journal, 49-59. doi:10.31387/oscm0360222
Supply Chain Event Management by FORD of Europe. (n.d.). Strategies and Tactics in Supply Chain Event Management, 331-335. doi:10.1007/978-3-540-73766-7_21