Just in Time in Ford

1833 Words Mar 27th, 2011 8 Pages
Lukman Susanto (2003)

EXECUTIVE SUMMARY

In this paper, we are examining the implementation of Just-In-Time methodology in Ford for its latest small car KA; possibly one of the most interesting manufacturing revolution where companies involved in the production are integrated not only in their business processes moreover in their physical plants. The concept has been successfully developed and implemented in Valencia, Spain and is due to be adopted in other Ford production plants. The case study clearly shows how companies can work together in a harmonic and synchronised system meeting probably the most idealistic manufacturing principles (JIT) to produce the best quality product within the shortest time frame with minimum/no wastage
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This element heavily emphasis the needs of customer involvement in product development and delivery (Bowen, 1998). Customer may also be included in development team to direct them to the right manufacturing plan.
Employee empowerment: Empowering employees mean dividing problem solving and decision making responsibilities from management level to its individual team directly related with the task. With careful planning and adequate team work, this element will increase quality, productivity and flexibility of the manufacturing process (Bowen, 1998).
Vendor/supplier integration: Undoubtedly, specialised suppliers will normally produce a better product since they can concentrate in a particular thing. By outsourcing to those suppliers, a company will be able to put all its time and resources in its core function which in turn will improve the quality of the final products (Ramarapu, 1995).

FORD KA IN JUST IN TIME

Production of Ford latest small car, the Ford KA has been a dramatic improvement compared to Ford previous product, Fiesta (Kochan, 1997). This is a real example of successful JIT implementation with all its outsourcing strategies. The production target of 1,100 KA cars per day has been reached only within 8 weeks since the launch date, compared to 15 weeks required for Fiesta. Ford found that the initial bottleneck was caused by material handling, assembly time

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