Ford's New Chief Executive Has History of Turnaround Stories and the primary one is Jim Hackett turning around Steelcase, an office furniture maker, by making the company "think more about furniture’s full role in a working environment, bringing in sociologists and anthropologists to help designers understand how people work." Ford needs a fundamental rethink, not trend following. A re-read of The Machine that Changed the World describing Toyota's development of just in time production techniques is suggested. The book ends with the vision of making product just in time to the customer's want. The industry currently is content to carry inventory where a sixty day supply of a model is considered tight and a ninety day supply loose. This was true in 1990 when the book was written as it is today. Apparently the industry has not done anything about reducing to just in time car production and delivery to the customer problem, not even Toyota the example in the book, not even to thirty days tight and sixty days loose progress one might have expected.
Mark Fields put forth plans for EV and self driving cars which is all well and good when added to a machine that makes and sells just in time, but Ford wasn't as suggested by the abandoned Mexican plant dedicated to making small cars. Trump's jawboning shook up management enough for them to rethink the project despite the sunken costs and thereby saved Ford from a loser investment, loser where overbuilding unwanted product is a profit killer. Mexico was a volume increasing investment that a 'World Changing Machine' of just in time product making and delivery would have signaled not to make.
Automakers, not just Ford or even Tesla, need to improve on just in time production and selling so that they are consistent in sales, profitability and treatment of their workforce. Ideally some assembly plants which could make trucks, SUVs and or sedans with very little change over time to smooth over changes in the market. Its the core problem that needs solving, especially for the majors with annual U.S. sales having reached a 17 million optimum level.
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