Fords Flexible Manufacturing at Chicago Assembly Plant - Essay Example

Ford’s flexible manufacturing at Chicago assembly plant Videos Summary Ford began its multi-production in Chicago in 1914, and ten years later, in 1924, it opened the Chicago assembly plant, which started producing its first model Ts. Ford decided to upgrade its Chicago assembly plant to have flexible system for the production of its new models; Ford 500, Mercury Montego and Ford Free Style. Newest flexible machine tooling, and lean manufacturing strategies make it the most sophisticated automobile assembly plant in the world. The plant produces three new vehicles of one platform .To achieve this new philosophy of process standardization and lean manufacturing; a new manufacturing complex, the largest in the automobile industry, was built adjacent to the plant. It houses 12 major suppliers, both tier one and tier two suppliers providing optimal conditions for lean manufacturing and just-in-time inventories. The project has reduced time travel thereby enabling Ford to save on its component inventories. It has enabled restoration of a 6-acre wet land polluted by sludge from nearby steel plants, reduced model change over time, and provides long-term savings. Body shop operations determine flexible manufacturing. It uses industry first system of standardization cells. Most of the tools are reused thus helps in cost cutting and reduces down time during product change over. They have programmable robots for the change over and welding. The shop has geo-stations for producing parts for several vehicles at the same time and ensures accurate positioning of parts. Measuring machines were also installed for precise dimensioning as the units move through the assembly process. At the body shop, vehicles stop at each station. Partial body parts are loaded to the geo-station turntable in the first station as quarter panels are loaded in adjacent station. They are remarried in the next station, the sealer. It then goes to the pre-clamp (clamp-up) area where the body side is married with floor pan. From here it goes to two framers, A and B, to be welded after which it goes to roofing station for layer welds and re-spot areas. The vehicle is now framed. Fully framed vehicle is finally inspected to clear defects and vehicle system inside. The vehicles are put on rollers test for engines, brakes and acceleration. After which they released to the yard. Opinion on changes Renovation for the plant was indeed necessary. It set a benchmark in the automobile industry by setting up first flexible assembly system. This would definitely set competition among players in the industry. Bringing together suppliers under one roof at manufacturing campus has several benefits to both the suppliers and Ford assembly plant. However, it might also affect operations at the suppliers’ plant. For example, automobile assembly plant normally does pay more than part assembly plant and that can prompt employees to cross over to the automobile assembly side. Why Ford changed production from two lines to five lines Automobile industries were undergoing major changes due to advancement in technology ever-changing customers’ needs that could not be satisfied with the old assembly plant. Thus, need to incorporate new technology of flexible manufacturing system. It had plans to produce new vehicles models that would be complex and time consuming to carry out under old system. Ford needed cost cutting initiatives and strategies, which were difficult with the old assembly infrastructures. There was need to reduce high turn over time for model change. As a company Ford had uncontrolled inventories that needed serious changes to enhance savings and for better service deliveries. Finally, production space was getting smaller for high demand of their products and to meet this more products lines were needed. Complexities brought by changes at Chicago assembly plant The upgrades and new installations would require a large workforce to fully operate entire new assembly plant. Flexible system would require tight schedule for just-in-time deliveries. Ford’s philosophy of process standardization and lean manufacturing depends on a successful chain of supply. Suppliers for different components had to go back to basic functions of the components they produce for sequencing purposes that is necessary for lean manufacturing. Nature of parts building in sequence requires close production to the assembly plant. How Ford Changed its Processes Ford upgraded and installed new equipment with controls that precise controls for better quality of the vehicle assembly. It installed new engine line at the assembly plant and new machinery at Chicago stamping plant, which will support sheet metal changes for the vehicles. The company installed key fobs to enhance quality control by allowing operators to ensure proper assembly before the vehicle advances to the next station. Ford incorporated onboard diagnostic system and quality tracking system in the vehicle, which is scanned to ensure quality requirements are met before it is released to the yard. The scanting system provides final safeguard before the vehicle is released. It also built manufacturing complex adjacent to its assembly plant to enhance just-in-time deliveries of inventories. This then saw it by twelve major suppliers; both tier one and tier two under one roof. It revised vehicle carriers by replacing horizontal carriers with vertical ones freeing up space for more parts. Finally, it carried out excessive training for old and new employees to ensure continuous production. How Ford and its suppliers adjusted to changes Sequence building and supplying to plant required closeness of tier one and tier two suppliers. That is why Ford build manufacturing complex. Since Ford requires faster response time, the suppliers had to join ventures with different companies due to suppliers’ limited dedicated resources. How they reduced travel time in their JIT system Ford reduced both the distance and number of suppliers of sheet metals. Distance reduced within 16miles from assembly plant and sheet metals now supplied by two suppliers; one 500 yards away and the second one ford’s unit 16miles away. Ford has doubled the inventory transfer into the plant, they have eliminated warehousing outside and spaces in the plant are now dedicated to value add in terms of actually producing the vehicle Value of Ford’s supply Complex Ford’s supply complex is very valuable for the flexible assembly process. Parts sequencing begins at the supply complex to enhance just-in-time delivery. The supply complex also promotes interaction among the suppliers where one supply supplies to another. How ford dealers managed within new Supply Chain Dealers meet Ford Company around one month to production time to set number of units they would take. As the end of production month approaches, dealers start scheduling for the units for either stocking or for individual customers. This relation enhances better customer service by the dealers. How changes added value to their part of supply chain Use of flexible manufacturing system has enabled value addition to supply chain for both Ford and the dealers. Dealers can now schedule for the number of vehicles they require within stipulated time thus ensuring good customer service. It has eliminated inventory records by the use of just-in-time deliveries. Today’s automobile issues in US Changes in the automobile industry have significant effects on US economy. In today’s economy, automobile manufacturers have formed associations to handle their issues. Such associations include Global Alliances, which have merged with, and in some cases established commercial strategic partnerships with other European and Japanese automobile manufacturers (Business reference services). Modification of manufacturing models and adaption and utilization of technology have helped automobile industry to enhance production and promote product competition. The overall performance of automobile industry in US can be traced to overcapacity and mature markets in developed countries like US. Generally, growth in automobile industry has been stalling for many years. The natural response to slowing growth and increasing productivity is to reduce capacity (Papatheodorou 2013). The natural response to slowing growth and increasing productivity is to reduce capacity, which is not promising under continued consolidation in the industry. References Business Reference Services. “The Automotive Industry.”Modern Global Automobile Industry, Fall 2004. Web. 4 April 2013. Papatheodorou, Yorgos. The Automotive Industry: Economic Impact and Location Issue, 5 Jan.2007. Web. 4 April 2013. Read More