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Supply Chain Optimization using Lean Manufacturing - Strategies, Methodologies and Requirements -
FISITA2008/F2008-10-009

Authors

Sauer, Gerhard* - Ford Motor Company, Germany

Abstract

Keywords: Lean manufacturing, Supply chain, Value chain, Supplier development, Automotive industry

Ford of Europe is consequently implementing lean manufacturing methodologies in its own plants which in the meanwhile resulted into a leading automotive industry position concerning productivity. Yet, a focus purely on internal value chains is not enough. The analysis of holistic value chains including supplier processes and downstream supply chains is necessary. The holistic value chain optimization as practiced by Ford of Europe has set itself the target to identify and implement improvement opportunities based on the deployment of lean manufacturing methodologies. Furthermore supplier development is supported in order to achieve sustainable implementation of lean manufacturing principles. In doing so it is differentiated between Macro- and Micro-Level investigations.

In order to assure an accurate and sustainable implementation of lean manufacturing concepts, an integrated strategy is required and the adherence to each individual step from start to finish is essential. As part of supply chain optimizations, Ford of Europe currently focuses primarily on Micro-level investigations and mainly operates on stability of lean manufacturing systems.

The value chain optimization on the Micro-level is based on a clearly defined and standardized methodology. Based on a detailed process flow analysis the calculation of lean maesurables is conducted followed by cycle time analysis and activity sampling carried out in parallel. The resulting data is the foundation for the current state value stream map. Leveraging the expertise of the Ford lean specialists and involving supplier representatives, the current state value stream map is the baseline to identify improvement opportunities and develop the future state value stream map. The implementation of the future state value stream is supported by a detailed action plan including timing. All proposed actions are assessed versus their technical feasibility as well as commercial implications.

Despite the solid lean manufacturing methodologies based on many years of experience and continuous improvement a successful and sustainable supply chain optimization is highly dependant on a number of non technical aspects including senior management and social partner (i.e. union) involvement, holistic approach, data transparency, implementation focus and partnership.

On the long term, true competitive advantages based on supply chain improvements are only possible given a cooperative OEM-supplier optimization of the complete value chain deploying lean manufacturing methodologies.

The paper will present the theoretical framework and actual application of supply chain optimization as practiced within Ford of Europe including tools, processes examples.

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