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Summary

MASS. LEAN CULTURE. Summary. Mindset: Integrated Localized Suppliers Enterprise Lead Time=37 Hours Time to Change =1 Week est. Rouge 1928 . Invention of Mass Production Complexity “Any Color As long As It’s Black” . Schedule. I.

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Summary

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  1. MASS LEAN CULTURE Summary Mindset: Integrated Localized Suppliers Enterprise Lead Time=37 Hours Time to Change =1 Week est. Rouge 1928 Invention of Mass Production Complexity “Any Color As long As It’s Black” Schedule I Raw Material Supplier for all Rouge Plants To Mass Demand I Rouge Stamping Body Shop I Paint Shop I Final Area Pre-Delivery I No Market Constraint I I Rouge Power Train I I Rouge Trim and Chassis Components

  2. Summary Mindset: Mass Manufacturing Value Stream Lead Time: Power Train Off Shore= 40 Days Power Train NA=0.5-2.0 Days Frame= 6-8 Days Stamping= 6 Days Plant Lead Time=41.1 Hours Order Fulfillment=70 Days Time to Change=90-120 Days Value Added 2-3% Add 98,920sq/ft additional process area for Final Theoretical Mass Plant K.C. Surrogate To All Suppliers Schedule 13.5 Days in Dealership Delivery Pipeline To National Blend Stampings DSP/HTP 23% DSP/TCAP/HTP P-273 60% DSP/KC/NTP/HTP P-221 39.5% I 6 Days I ASRS 5 Hours 1 Hour I Body Shop Paint Shop Final Area I 6 Days 4 Hours in System 4.6 Hours in System I 150 Units Pre Delivery I 900 Units In Yard I 1100 Units in Yard 9 Hours in System Frame Milwaukee, and Belleville Ohio 100% P-273 I 3 Days I Frame Dearborn 100% P-221 Bulls-eye Suppliers Warehouse Engines And Transmissions Domestic and Off-Shore I 0.5-40 Days

  3. MASS LEAN CULTURE = Speculative Order (Dealer) Summary Mindset: Mix Volume Flexibility and Implement Steps to Lean Manufacturing Value Stream Lead Time: Power Train Off Shore=40 Days Power Train NA=0.5-2.0 Days Frame=6-8 Days Stamping=6 Days Plant Lead Time=24.8 Hours Order Fulfillment=6 hours/20 Days Time to Change=90-120 Days Value Added= 6% Heritage Current Plan Prerequisite: Customer Driven “Limited” Build Combinations Bulls-eye Suppliers Transparent Order Pipeline & Scheduling System Stampings DSP/HTP 23% DSP/TCAP/HTP P-273 60% DSP/KC/NTP/HTP P-221 39.5% 13.5 Days in Dealership Delivery Pipeline Reduce Lead Time Reduce Lead Time I 6 Days 380 Units ASRS Marketplace 5 Hours I 1 Hour Body Shop Paint Shop Final Area I 60 units in Pre-Delivery I 80 units in Dispatch Customer Order & Pick-up Center 3.1 Hours in System 9 Hours in System 4.5 Hours in System I 6 Days Frame Milwaukee, and Belleville Ohio 50% Reduce Lead Time I 600 units in yard Future Supplier Module Assembly Supplier Park FIFO Frame Dearborn 50% I Reduce Lead Time Supplier Sequence Center 4 Hours Engines And Transmissions Domestic and Off-Shore I 0.5-40 Days

  4. MASS LEAN CULTURE = Speculative Order (Dealer) Summary Flow Pull Mindset: Lean Manufacturing Value Stream Lead Time: Enterprise=19.5 Hours Plant DTD= 17 Hours Order Fulfillment= 6 Hrs Time to Change =1 Week est. Value Added 6% + ?? Heritage Future 1928 Improved Driving Test Track Spirit of Ford Strategic Delivery Initiative Integrated Supplier Campus Transparent Order Pipeline Scheduling System Supplier Module Assembly Driving School Bulls-eye Suppliers Prerequisite: Customer Driven “Limited” Build Combinations Shipping Marketplace Integrated Internal Supplier ASRS Marketplace 1.5 hours 2 Hrs Body Shop Paint Shop Final Area Dearborn Stamping Pre-Delivery 1 Hour Customer Order & Pick-up Center 3 Hours in System 4.5 Hours in System 7 Hours in System I Integrated Internal Supplier 2 Hrs Dearborn Frame Integrated Internal Supplier 2 Hrs Dearborn Engine/Power Train Strategic Supply Initiative

  5. Draft Proposal Heritage Integrated Lean Matrix Organization External Indicators PRODUCT DEVELOPMENT MENTORS VARIABLE REDUCTION TEAMS Core Team Members NATURAL WORK GROUPS Internal Measurable Process & Procedures PLANT IMPLEMENTATION TEAMS VOGO MENTORS

  6. Plant Infrastructure: Drive the upward spiral – Understand the “dark side” Joint Implementation Disconnects Negotiated Change Planned Intervention Opposition Shared Vision Cynicism Fear Leadership Inaction

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