Essay on Ford Motor Co. Case Report

2308 Words Jan 18th, 2012 10 Pages
r [Type the company name] | Ford Motor Company: Supply Chain Strategy | [Type the document subtitle] |


Table of Contents

Page 3. Executive Summary

Page 4. Identification Issues

Page 5. Identification Issues, Environmental and Root Cause Analysis

Page 6. Alternatives

Page 7. Recommendation, Implementation, Control

Page 8. Conclusions, References

Executive Summary
This case report addresses the challenges to implement virtual integration in Ford Motor Company, one of the largest automobile manufacturing companies in the world. It focuses on the viability of implementing a supply chain strategy following Dell’s “Direct Business model”

Dell’s direct business model used information and
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So far this production system created a lead time of 65 days from the time a customer placed an order until the product was delivered, making the overall supply chain inefficient.

Environmental and Root Cause Analysis

Ford, as any other corporation is looking to achieve the ultimate goal; increase profit margins. The OTD and FPS initiatives established an aggressive goal to reduce lead times from over forty five days to fifteen days. To do this, it is necessary to improve the flow of information throughout the supplier network and reduce manufacturing time. The challenges faced include the unavailability of accurate demand information, poor supplier communication at every level, lack of interaction between product development and purchasing, and resistance to change within the organization.

Ford’s current OTD time requires production to guess the real demands. Consumer demand is therefore met through a push rather than a pull manufacturing process. To move to a pull system and to improve demand forecasting, Ford must implement a process that will provide earlier demand notification to the supplier network. They must also be able to immediately link the actual orders to the manufacturing schedule at any of their almost two hundred manufacturing locations.

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