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TOC Reference Bank - Ford Motor Company
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ORGANIZATIONAL INFORMATION  < back
Company Ford Motor Company Division Electronics Division
Location - United States.
Company Contact   Marc Lorrain, Mgr. Continuous Flow Manufacturing
Source of Reference 

IIR Conference on Theory Of Constraints Management in the Throughput World, January 23-24, 1992

Sales $3,000,000,000
IMPLEMENTATION INFORMATION
Name Ford Motor - Electronics Div.
Location United States
Industry Segment Automotive
Revenue $3,000,000,000
Number of employees 15,000
Implementation Date 1991
Products Radios, Engine Control Modules, Instrument Clusters, Driver Information and Power Train Modules
Systems in use Legacy
WHAT WAS DONE?  
TOC Applications DBR
RESULTS OF IMPLEMENTATION
IMPLEMENTATION RESULTS  
Inventory Decrease Reduced 100 million dollars (50%)
On-time performance
From 89%
To 98%
Percent improvement 10%%
Lead times
From 6.4 days with JIT
To 2.6 days
Percent improvement
Cost efficiency Reduced floor space by 57%
Brief summary Used TOC to improve on major gains made with JIT between 1988 and 1991, reducing lead times by an additional 60-80% and improving on-time to 98%; eliminated need for two expensive plants saving approximately 100 million dollars; reduced quality defects by 50%; improved investment effciency by 20% and on-time delivery by 38%