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Powersim Solutions Case Study: Ford Motor Company

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Executive Summary

Back when automobiles were invented, Ford Motor Company could be sure that any locomotive that they make would find a buyer. Today, vehicles are manufactured according to customer demands. The case study speaks about the work flow at Ford and how it helps in improving efficiency. Prior to the last bi-annual review, Ford had received a proposal regarding improvement of its supplier-to-assembly-line processes. However, Ford couldn't test it because the process required them to renovate a factory and shut down production. The company required decision supporting tools to help in evaluation of the situation. This research project also used models and simulations of factory workings to test the proposed 'In-Line Vehicle Sequencing'. Powerism showed that the proposal would stabilize manufacturing processes because the delivery of the components could be done in a predictable manner. It also brought to light the benefits of lower inventory owing to suppliers' shortened delivery and production cycles. The ripple effects of changes in production on the entire enterprise were also shown. In this paper, multiple options were tested to avoid over simplification of the problem. Finally, Ford decided to implement the proposal. It can now forecast its production needs accurately. This helped Ford save $800,000 at a single plant in the first year. It expects to cut production costs by $200 million plus over the next ten years.

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