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Lean supply chain and its effect on product cost and quality: a case study on Ford Motor Company
H.M. Wee Simon Wu

Presented by: Ali Akber Kapadia Roll No. : 08

Introduction
Purpose: The paper aims to summarize some solid suggestions and comprehensive ideas for those industries planning to implement lean production Approach: The methodology used is the case based approach (CBA), which described lean supply chain (LSC) through value stream mapping (VSM) using a case study from the Ford Motor Company Findings: Using VSM case study to demonstrate LSC, all the measurable indices helpful for cost reduction, quality enhancement and lead time reduction are shown

Toyota: The Journey

2008: Toyota replaced GM & became No. 1

1994: Toyota replaced Chrysler & became No. 3 20th Century: General Motors How did Toyota achieve its success? (GM), Ford & Chrysler If the implement of TPS is the key to Toyotas dominated the success, why have its competitors struggled global market despite adopting similar principles?

2003: Toyota replaced Ford & became No. 2

Lean Supply Chain

Lean means a series of activities or solutions to eliminate waste, reduce non-value added (NVA) operations, and improve the value added (VA)

Value Stream Mapping

VSM is a visual representation of production, material and information flow which:
Provides a complete visual flow to support decision making. Highlights and exposes the wastes. Demonstrates the close linkage between information and material flow. Develops a plan to eliminate waste and continuous improvement.

VSM Implementation Cycle

Value Stream Mapping: Performance Indicators

FTT (first time through): Percentage of units that complete a process and meet quality guidelines at the first time. BTS (build to schedule): It reveals how well a plant executes plans DTD (dock to dock time): Time between unloading raw materials and releasing finished goods for shipment. OEE (overall equipment effectiveness): OEE is a measure of the availability, performance efficiency and quality rate of a piece of equipment. Value Rate: The percent of all value added time

Current State Map

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Solution
Re-balance works to identify surplus manpower from NVA reduction Set up JIT kanban for directly parts supply from suppliers. For example, the supplier directly supplies generators to line side based on JIT kanban Set up error proofing devices and visual aids to promote the quality of first time through (FTT) Practice frequently TPM (total productive maintenance) and apply quick change over to improve performance for aging equipment to improve OEE.

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Future State Map

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Results

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Thank You