supplying ford - sae international · figure 14: ford motor company – north american plant...
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Supplying Ford
SupplierBusiness
2013 Edition
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Supplying Ford
© 2012 IHS Global Limited 3
CONTENTS
OVERVIEW ....................................................................................................................................... 6
Introduction .............................................................................................................................. 6 Overall sales .............................................................................................................................. 6 Financials .................................................................................................................................. 7
PRODUCT AND PLATFORM STRATEGY ........................................................................................ 8
Strategy overview ...................................................................................................................... 8 Major model programmes ......................................................................................................... 9 Platform strategy ..................................................................................................................... 14 Major platforms ....................................................................................................................... 15 Component sharing................................................................................................................. 20 Volume planning ..................................................................................................................... 22
PRODUCTION STRATEGY ............................................................................................................ 23
Production strategy overview .................................................................................................. 23 Manufacturing network............................................................................................................ 24 NORTH AMERICA ................................................................................................................... 26 EUROPE ................................................................................................................................. 28 CHINA .................................................................................................................................... 30 INDIA ...................................................................................................................................... 31 ASEAN .................................................................................................................................... 32 SOUTH AMERICA ................................................................................................................... 33 RUSSIA................................................................................................................................... 34 AUSTRALIA ............................................................................................................................ 35 SOUTH AFRICA ...................................................................................................................... 36 Internal supply network ........................................................................................................... 40 Modularisation strategy ........................................................................................................... 41 Supplier parks ......................................................................................................................... 42 Cluster of reference ................................................................................................................. 43 Strategies for manufacturing efficiency .................................................................................... 47
PURCHASING STRATEGY ............................................................................................................. 48
Purchasing strategy overview .................................................................................................. 48 Levels of vertical integration and outsourcing .......................................................................... 48 Purchasing organisation .......................................................................................................... 49 Purchasing offices ................................................................................................................... 50 Key offices .............................................................................................................................. 51 Key purchasing personnel ....................................................................................................... 52 Purchasing spending ............................................................................................................... 53
SUPPLIER SELECTION ................................................................................................................. 55
Supply base development ....................................................................................................... 55 Major and strategic suppliers .................................................................................................. 56 Supplier selection criteria ........................................................................................................ 64 Working with Ford ................................................................................................................... 65
GLOBAL SOURCING ..................................................................................................................... 66
Policy and plans ...................................................................................................................... 66 NORTH AMERICA ................................................................................................................... 67 EUROPE ................................................................................................................................. 68 ASIA PACIFIC ......................................................................................................................... 69 SOUTH AMERICA ................................................................................................................... 70
PRICING POLICY ........................................................................................................................... 71
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Supplying Ford
© 2012 IHS Global Limited 4
Price reduction plans and practices......................................................................................... 71 Payment terms ........................................................................................................................ 72 Cost-reduction programmes ................................................................................................... 73 Raw material price management ............................................................................................. 74
QUALITY MANAGEMENT .............................................................................................................. 76
Quality level............................................................................................................................. 76 Quality management systems .................................................................................................. 76 Integration into product development ...................................................................................... 77 Management of sub-suppliers ................................................................................................. 78 Supplier awards ...................................................................................................................... 79
TECHNOLOGY ............................................................................................................................... 82
Technological positioning ........................................................................................................ 82 Areas of focus ......................................................................................................................... 82 R&D spending ......................................................................................................................... 83 R&D organisation .................................................................................................................... 84 Access to supplier technology................................................................................................. 88 Approach to alternative fuels, electrification and fuel cells ....................................................... 89 Special vehicle development ................................................................................................... 90
INTERVIEW .................................................................................................................................... 92
Alan E. Draper, vice-president, Purchasing, Ford of Europe .................................................... 92
OEM-SUPPLIER SURVEY RESULTS ............................................................................................. 97
Introduction to the SuRe Index ................................................................................................ 97 Methodology ........................................................................................................................... 97 Executive summary ................................................................................................................. 97 Profit potential ...................................................................................................................... 100 Organization .......................................................................................................................... 101 Trust ..................................................................................................................................... 102 Pursuit of excellence ............................................................................................................. 103 Outlook ................................................................................................................................. 104
SWOT ANALYSIS - SUPPLYING FORD ....................................................................................... 106
GLOBAL FOOTPRINT .................................................................................................................. 107
FORWARD MODEL PROGRAMME ............................................................................................. 112
MAJOR SUPPLIERS – FORD ....................................................................................................... 119
LIST OF FIGURES AND TABLES Figure 1: Global light vehicle sales, 2006-2011 [Source: IHS Automotive] .......................................... 6 Figure 2: Declining European Mondeo sales (2000–2018) ................................................................ 12 Figure 3: Ford Annual Global platform usage - 2012 and 2017 ........................................................ 20 Figure 4: Ford employees celebrate production of the company's 350 millionth vehicle at the new Ford Thailand Manufacturing plant .................................................................................................. 25 Figure 5: List of Ford Operations Worldwide (Oct 2012) ................................................................... 36 Figure 6: Tony Brown accepting the MMSDC Corporation of the Year award .................................. 53 Figure 7: Ford’s description on ‘creating a sustainable supply chain through our aligned business framework’ ...................................................................................................................................... 56 Figure 8: Focus Suppliers Add Jobs to Support Global Launch ....................................................... 67 Figure 9: Dr. Werner Struth, Member of the Board of Management at Robert Bosch GmbH receiving the World Excellence Award from (left to right) Tony Brown, group vice-president Global Purchasing, Alan Mulally, president and CEO, and Raj Nair, group vice-president, Product Development .......... 79 Figure 10: The 2013 Shelby GT500 Cobra ....................................................................................... 91
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Supplying Ford
© 2012 IHS Global Limited 5
Figure 11: SuRe Index 2010-2011 ................................................................................................... 98 Figure 12: Ford Motor Company - Global plant locations ............................................................... 107 Figure 13: Ford Motor Company – North American plant locations ................................................ 108 Figure 14: Ford Motor Company – North American plant locations ................................................ 109 Figure 15: Ford - Forward Model Programme - by Global Nameplate ............................................ 114
Table 1: Ford financial data overview [Source: Ford Motor Company, Reuters, Moody's, Fitch, S&P] 6
Table 2: Declining European Mondeo sales (2000–2018) ................................................................. 12
Table 3: WSW Suppliers to all three models - Ford Fusion (MY2012), Escape (2012), Focus (2010) . 57
Table 4: Ford’s plant locations with production forecast for 2012 [Source: IHS Automotive] .......... 110
Table 5: Ford Global Sourcing Footprint [Source: IHS Automotive] ................................................ 111
Table 6: Major suppliers to Ford .................................................................................................... 119