Ford's global manufacturing strategy
Some one in class asked about the Ford Escort (how many countries were involved in its production?). I can't seem to find the precise number of countries that manufactured components for building the Ford Escort. But I do know that the Ford is present in 11 countries. But the reach of their supplier chain goes beyond this. I found a number of interesting articles that speak about Ford's global strategy (production platforms). See below.
http://www.ilo.org/public/english/dialogue/sector/techmeet/tmte2000/tmter5.htm
"Ford is trying to reduce the number of platforms used worldwide from 32 to 16; the number of engine architectures from 30 to 14; and the number of gearbox families from 22 to 15; while it is seeking to increase the share of identical parts in all models of the Ford group from 21 per cent to 50 per cent. This global architecture programme will include all brands of the Ford group such as Ford, Mercury, Jaguar, Mazda, Lincoln and Volvo. The intention is to reduce the number of parts to be assembled as well as the complexity of the parts, which should also improve quality.
With globalization of supplies, Ford Werke AG in Cologne aims to buy at the lowest prices worldwide, no longer giving special consideration to local or long-term suppliers. New parts that are needed will be bid out to old and new partners alike. Bigger volumes are planned to increase the productivity of the suppliers and benefit both partners. Because of worldwide logistics and the large volumes, some components might have to be produced by more than one supplier. The company considers including several partners on the supply side in the development of parts and components; these will gain the special status of Ford full-service suppliers and will be involved at an early stage in the design and production of new models.
As a result of this single-sourcing policy and the shift to supply modules instead of a number of parts, the number of direct suppliers is continuously decreasing, for example, from 700 companies directly supplying parts for the Ford Escort, to 210 for its successor, the Ford Focus, to be further reduced to 100 for the successor to the Ford Fiesta. Ford hopes that the majority of these suppliers will be full-service suppliers"
Also see
http://www.geocities.com/michaelmolhotmailcom/Research/FordMondeocaseV3.PDF
JANUARY 23, 2003
CHINA JOURNAL
By Dexter Roberts
Falling for China's "Golden Illusion"?
Ford, along with most other big carmakers, sees a vast mass market about to bloom. That promise, however, has more often been a pitfall
http://www.businessweek.com/bwdaily/dnflash/jan2003/nf20030123_9711.htm
http://mph-online.com/web/news/0044
http://www.ilo.org/public/english/dialogue/sector/techmeet/tmte2000/tmter5.htm
"Ford is trying to reduce the number of platforms used worldwide from 32 to 16; the number of engine architectures from 30 to 14; and the number of gearbox families from 22 to 15; while it is seeking to increase the share of identical parts in all models of the Ford group from 21 per cent to 50 per cent. This global architecture programme will include all brands of the Ford group such as Ford, Mercury, Jaguar, Mazda, Lincoln and Volvo. The intention is to reduce the number of parts to be assembled as well as the complexity of the parts, which should also improve quality.
With globalization of supplies, Ford Werke AG in Cologne aims to buy at the lowest prices worldwide, no longer giving special consideration to local or long-term suppliers. New parts that are needed will be bid out to old and new partners alike. Bigger volumes are planned to increase the productivity of the suppliers and benefit both partners. Because of worldwide logistics and the large volumes, some components might have to be produced by more than one supplier. The company considers including several partners on the supply side in the development of parts and components; these will gain the special status of Ford full-service suppliers and will be involved at an early stage in the design and production of new models.
As a result of this single-sourcing policy and the shift to supply modules instead of a number of parts, the number of direct suppliers is continuously decreasing, for example, from 700 companies directly supplying parts for the Ford Escort, to 210 for its successor, the Ford Focus, to be further reduced to 100 for the successor to the Ford Fiesta. Ford hopes that the majority of these suppliers will be full-service suppliers"
Also see
http://www.geocities.com/michaelmolhotmailcom/Research/FordMondeocaseV3.PDF
JANUARY 23, 2003
CHINA JOURNAL
By Dexter Roberts
Falling for China's "Golden Illusion"?
Ford, along with most other big carmakers, sees a vast mass market about to bloom. That promise, however, has more often been a pitfall
http://www.businessweek.com/bwdaily/dnflash/jan2003/nf20030123_9711.htm
http://mph-online.com/web/news/0044
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