The Ford Production System

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Case Details:

Case Code : OPER040
Case Length : 15 Pages
Period : 1991 - 2004
Organization : Ford Motor Company
Pub Date : 2004
Teaching Note :Not Available
Countries : USA
Industry : Automobile

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Ford Production System

In January 1995, Ford employed a company-wide re-engineering initiative called Ford 2000. One of the major objectives of Ford 2000 program was to develop and implement a new manufacturing system called the Ford Production System (FPS). According to Ford's website, "The vision of FPS is a lean, flexible and disciplined common production system, defined by a set of principles and processes, that employs groups of capable and empowered people, learning and working safely together, in the production and delivery of products that consistently exceed customers' expectations in quality, cost and time." FPS was an attempt by Ford to transform itself from mass production system to lean manufacturing system...

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Lean Manufacturing in Practice

Lean manufacturing aimed at bringing together human, material and mechanical resources at the right time and place to accomplish a task. It strived to eliminate every kind of waste including wastage of time, labor, scrap material, defective parts, etc. There were several instances in which the company achieved massive productivity improvements through lean manufacturing techniques...

Production Sytems of the Future

By 2003, all the plants of Ford had adopted FPS in their operations. It was estimated that after the implementation of FPS, Ford had achieved savings to the tune of $500 mn per year.

The personnel at the plants also received web-based training while best practices were identified and shared between the plants. By mid-2003, Ford was in the process of standardizing manufacturing operations across all its plants globally. The company planned to implement standard operating procedures and uniform plant layouts...


Exhibit I: The 2002 Shingo Prize Winners
Exhibit II: Ford - Innovative Methods of Manufacturing
Exhibit III: Assembling Process of Model T
Exhibit IV: Some Elements of FPS
Exhibit V: About Lean Manufacturing

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