5–10-page report (single spaced, 12 pt. font, 1” margins), including a cover page and tables/figures. The focus of the project report is to describe as fully as possible the initiative by the compan

Ford Motor Company

P415 Body Side Inners With Missing Components

Company Overview

Ford Motor Company is a multinational automotive manufacturer headquartered in Dearborn, Michigan. According to statistica.com, in 2022 Ford employed 173,000 employees and had a revenue of $158 billion. The project the group is proposing to analyze was conducted at Woodhaven Stamping Plant in Woodhaven, Michigan. The plant employs 470 employees and stamps outer inner body assemblies for Ford Assembly Plants across the United States.

Project Description

The team identified that body side inners with missing components were received by Kansas City Assembly Plant (KCAP) in January of 2014. F-150 trucks were built with body side inners with missing components, resulting in additional manpower to repair the trucks. Also, there were additional costs incurred due to containing and sorting through material to ensure that all the body side inners had all of the components. 

Ford created a team to apply the Six Sigma methodology to identify and resolve the missing components problem. The scope of this project was to organize the body side inner market area and develop a material process flow system that ensured that all of the body side inners are shipped as finished assemblies. The team was able to complete the project in July 2014 resulting in zero body side inners being shipped with missing components.

About the interviewer –

We had the opportunity to conduct an interview with Mcgee, who served as the project supervisor. Mcgee is a highly experienced professional with 22 years of tenure at Ford Automotive Company. He holds the position of Master Black Belt & Ford Production System Manager. Mcgee's educational background includes a bachelor’s degree in business administration, specializing in Management, with a minor in Lean Sigma and Computer Information Systems.

Interview Questions with answers

1. What were the business drivers/reasons for pursuing the project?

In a meeting at the Kansas City assembly plant, a stoppage occurred during the production of vehicles due to missing components on an item. The absence of these components resulted from a machine not being able to process the materials, which was attributed to a setup issue in the area. The rationale behind addressing this problem was the significant financial impact it had on Ford, as the F150 facility is a major source of revenue. Every minute of downtime incurred costs the company a substantial amount. Moreover, as the top producer of vehicles, shutting down the primary production plant is highly expensive and undesirable. The repercussions extend beyond the city and also affect dearborn trucks. This issue had occurred more than 15 times prior, causing a financial loss of approximately half a million dollars on each end.

1. Describe the implementation team and rationale used for team membership.

The project was driven by a cross-functional team consisting of subject matter experts from various categories. The team identified the main forklift drivers, which included the slowest forklift driver and the fastest forklift driver. This allowed for comparison of best of best (BoB) and worst of worst (WoW) scenarios. The slowest driver's tardiness was examined to understand the reasons behind it, which included hesitation and too much due care. While the fastest driver's speed was attributed to disregarding safety measures and placing materials wherever they wanted at a sacrifice for speed. This analysis helped uncover the root cause of the problem. In addition to the drivers, the team included a strategist and a carpenter. The remaining team members were assembly line workers. By leveraging the knowledge and input of the two extreme drivers, the team established a plan for success and defined the desired output for the project.

1. Describe the major steps taken to complete this project.

During a meeting with the leadership team, he collaborated with them to establish key success metrics. Drawing up a plan was required to ensure that things went smoothly. To ensure the project's completion within a specific timeframe, he proposed a unique incentive: he requested the assistance of a carpenter and offered a reward of downtime and donuts for the team if they were able to accomplish all tasks within four hours. The carpenter's role was to reorganize the area, creating a streamlined flow with clearly marked signs to eliminate any possibility of errors in the visual factories. This restructuring garnered the necessary support, which included providing hourly wages to the team members involved. The hourly wages for the individuals working in the plant amounted to $30 per hour, with additional double-time pay of $60 on Sundays. By strategically scheduling four hours of downtime on a Sunday, the project manager ensured that the production lines could be properly taken care of without impacting the overall budget or regular production schedule. Consequently, the project's implementation only utilized four hours instead of the typical eight, resulting in minimal disruption while achieving the desired outcomes.

1. During the steps of this project what were some unanticipated challenges/problems?

The project began with a well-defined road map, meticulously organizing all aspects according to a timeline and ensuring a smooth start within the designated time frame. The team did not want to upset the plan further and ensure that downtime was limited. The initial focus was on determining the first steps to be taken, proceeding systematically and adhering to a carefully devised plan to address any potential issues that could disrupt production on the lines. Particularly, great caution was exercised when dealing with the automated guided vehicles, as their independent operation was crucial to the system's functioning. The team examined the existing line times and strategically implemented changes that effectively alleviated congestion throughout the entire plant, leading to notable improvements in four other production lines. The project's success was measured by its significant impact on overall production, and in accordance with the principles of six sigma, a comprehensive three-year cost analysis was conducted to evaluate its financial benefits. The project itself also resulted in improving the surrounding lines making other processes to be improved. The positive outcomes were not limited to the plant, as the project also enhanced processes on the dock and paved the way for subsequent projects, resulting in additional cost savings.

1. What lean/six sigma practices/techniques were implemented during the project?

One of the key techniques employed during the project was the implementation of the 5S methodology at Ford Motor Company. This approach ensured that every item within the company had a designated tag and was appropriately placed in its designated area. Additionally, a process flow walk was conducted, wherein the process was critically examined to identify areas of failure related to manpower and material. Notably, this evaluation was performed in reverse order, from the end of the process to the beginning (Y to X). As a result of this analysis, certain gaps were identified, with the most significant one being the coexistence of mixed, launch, irregular, and reject materials in a single location. Consequently, drivers faced difficulties in distinguishing between good and bad materials. To address this issue, the implementation team utilized the 5S methodology by marking lines on the floor and rerouting the Automated Guided Vehicles (AGVs) to alleviate congestion and enhance organization within the facility. This also ensured that the right materials were used.

1. How were these steps implemented- specifics?

The project implementation involved several specific steps to improve the efficiency of the process. On Sunday, the team focused on painting the lines, organizing the materials, and rerouting the Automated Guided Vehicles (AGVs). The following day, a call system was implemented to promptly notify plant managers if anything was out of place. Notifications were sent via pagers from the corporate website, ensuring that any deviations in the visual factory or movement of items when not intended were immediately addressed. This monitoring phase lasted for two weeks without any issues, ensuring that no defective materials were shipped, and everything remained meticulously organized. The first-time through rate improved, providing operators in the drive room with peace of mind. The project spanned 180 days and involved the complete rearrangement of the material setup, establishment of specialized material locations, and implementation of a tagging process. All materials underwent validation in the AGV before reaching the dock, and daily audits were conducted. The high-low driver would place the material on the AGV, which had four sections on the train. Once all four sections were filled, the AGV would be released to the dock. The overall process was reorganized to ensure that the high-low driver selected the appropriate materials, placed them on the AGVs, rearranged as necessary, and even painted the lines to enhance efficiency.

1. How soon were improved results observed from the start date of this project?

The project's outcome was evident as congestion was swiftly alleviated. The results were immediate as congestion was relieved and operators were more focused on awareness. The implementation brought about a well-structured environment, enabling the previously slowest high low driver to improve and become more efficient. The driver's initial deceleration was not due to incompetence but rather a heightened sense of caution to avoid causing harm or errors. Meanwhile, the faster high low drivers adjusted their pace as there was no longer a need to rush or bend the rules to accomplish tasks. Strict tagging process was put in place and meticulously organized. Forklift drivers dropped all the right materials on AGVs and a lean synchronous process was put in place. The project successfully balanced the drivers' speeds, leading to improved overall performance and adherence to safety protocols.

1. Were there any milestones put in place? What were they?

In order to successfully complete the project within the designated time frame of 180 days, the implementation team focused on identifying and resolving material flow issues throughout the plant. One specific area of concern was the 9 line plant, which housed the fastest running press known as the "Schuler". It was so fast that AGVs would get released too quickly compared to other lines. However, the release of automated guided vehicles (AGVs) in this area often led to congestion and delays in the aisle way. To address this, measures were taken to alleviate the congestion and optimize the performance of the AGVs. As a result, materials were able to reach the dock more efficiently, eliminating any rejections or issues at the assembly plants. This improvement in material flow not only facilitated the timely closure of the project but also ensured smoother operations and enhanced productivity overall.

1. How was data collected? How was this data used?

The AGVs were deployed according to the planned schedule, ensuring smooth and timely delivery of materials to the dock. This resulted in a continuous flow of materials on the production line without any interruptions or downtime. Notably, the project's positive impact was immediately observed as the number of rejects and scrap significantly decreased. Additionally, the implementation of AGVs prevented the accumulation of defective materials in the work area and prevented the release of any faulty components to the assembly plants. Overall, the AGV implementation achieved its objectives, enhancing efficiency, reducing waste, and ensuring the delivery of high-quality products.

1. How did you communicate progress and results to stakeholders and the wider organization?

Part of daily quality meetings and status was reported including rejects/scrap rates. Daily reports were generated to provide updates on the ongoing status of the production line, encompassing factors such as progress, shipment details, the quality of materials, and any instances of rejects or scrap. These reports were diligently communicated to the vice president and directors on a regular basis, ensuring they were well-informed about the operations and performance of the line. Due to the nature of the problem which resulted in stop-ship, the highest levels of management had interest in the project and had daily reports presented to them.

1. How did you ensure that the implemented solutions were sustainable in the long run?

To ensure verification and progress tracking, a daily audit system was implemented. The team responsible for the project had a designated verification sheet that they followed consistently. At regular hourly intervals, the team counted all the tags being utilized on the production line. To prevent wastage, line workers were not allowed to print additional tags that would go unused. This approach aimed to maintain accuracy and efficiency in the tagging process, reducing unnecessary resource consumption.

1. If you had to do the project again what would you change or do differently?

Nothing to change, they had a good overall work commitment, and the team was organized. Everyone needs to understand the objective and goals of the project as people are hard to motivate. The only thing he would change differently is to make sure everyone on the team is assigned to a task.

1. Were there any unforeseen issues or problems when the project was executed or did you find anything that wasn’t to expected outcomes?

They were able to replicate the project on other lines at woodhaven. Saw opportunities on other lines as well with UAW becoming meticulously organized. Process verification was understood and the project received positive attention - Mentioned that this project propelled his career.

1. Did any of the lessons learned from this project get applied to other assembly plants or programs?

Yes, one several other lines in the plant. Enforced being organized and cyclical - placing material where they need to be and the most important tool was 5S.