Ford’s Global One Manufacturing System Drives Efficiencies, Increases Capabilities and Lowers Total Cost of Production

Ford’s Global One Manufacturing System Drives Efficiencies, Increases Capabilities and Lowers Total Cost of Production

• Ford is deploying a single manufacturing operating system that will drive improved efficiencies, better capacity utilization

• As part of increasing plant flexibility, Ford will be able to produce 25 percent more vehicle derivatives per plant by 2015

• Ford will increase investment efficiency 8 percent a year by using standard processes and virtual tools

TRAVERSE CITY, Mich., Aug. 6, 2012 – Ford Motor Company is supporting its biggest global expansion in 50 years by rolling out a single manufacturing operating system that will drive improved efficiencies, increase capacity utilization and make the company an industry leader in lowest total cost production.

“The global One Ford plan is making it possible for us to deploy One Manufacturing, a single Ford production system that will pay tremendous dividends through standard processes, greater flexibility and improved investment efficiency,” said John Fleming, Ford executive vice president, Global Manufacturing, at the Center for Automotive Research Management Briefing Seminars today.

Ford is adding capacity around the world, including a broad expansion in Asia Pacific Africa (APA), where the company is adding nine new plants. The facilities will increase APA’s capacity to produce 2.9 million vehicles a year, part of a global plan to meet Ford’s goal of selling 8 million vehicles a year by mid-decade.

As Ford brings on new facilities, it is expanding the use of common manufacturing processes and standard systems for tracking material, delivery, maintenance and environmental costs so that new and existing plants are aligned in how they operate. Ford is also making broader use of virtual tools that reduce the cost of new plants and improve the efficiencies of new model changeovers.

“It is critical that all of our assembly operations, wherever they are located, speak the same language when it comes to producing high-quality vehicles in a safe and efficient way,” said Fleming.

Ford’s One Manufacturing system includes:

• Improved flexibility: Last year, 55 percent of Ford’s operations had flexible body shops, a figure that will increase to 65 percent in 2012. As the company launches new plants, each one will have a flexible body shop. Also, the number of vehicle derivatives that can be assembled at a single factory is increasing. By 2015, Ford will be able to produce 25 percent more derivatives per plant from 2011. Some new plants in APA will be capable of producing six and seven vehicles from a single facility
• Process/quality improvement: Ford is expanding the use of virtual tools that simulate how cars are assembled. By studying the best way for operators to install a seat, for example, Ford can design assembly lines that reduce injuries and accidents while improving quality. Since 2006, Ford has reduced the number of manufacturing build issues when a vehicle is first produced by more than 90 percent
• Investment efficiency: Virtual tools have already reduced the investment it takes to assemble a vehicle by more than 20 percent since 2009. In addition, the company has reduced the investment to produce a vehicle derivative by 60 percent. Going forward, expanding the use of virtual tools and standard processes will reduce total vehicle investment by 8 percent a year
• Capacity utilization: As Ford launches new plants, it is also reducing the number of platforms that vehicles are developed from. When combined with improved flexibility and more efficiencies, Ford will be able to take advantage of global economies of scale and significantly improve capacity utilization. By 2016, Ford’s global capacity utilization on a two-shift basis will increase 27 percent compared to 2011