Overall Supply Chain Essay

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Overall supply chain
Ford changed from mass production to lean manufacturing.
Ford used to have a push system before 1995 then they developed a system called Ford Production System (FPS): Integrated
One Important Part of FPS was Synchronous Material Flow (SMF)
Ford defined as “a process or system that produces a continuous flow of material and products driven by a fixed, sequenced, and leveled vehicle schedule, utilizing flexibility and lean manufacturing concepts.”
One key to SMF was In-Line Vehicle Sequencing (ILVS): using vehicle in-process storage devices and computer software to assure that vehicles were assembled in order sequence
Later on Toyota roughly based their system on the FPS, called Toyota production system (TPS). These 2 systems both focus and assist on things such as lean manufacturing, quality systems, Just-in-time, as well as the continuous improvement practices.

Demand Management
Similarities: Both use pull-based system, which rely on response of customer demand. Also described as just in time approach, as customer demand stimulates production of a vehicle. This allows both companies to manufacture parts and materials without excess use of resources, as the exact amount is manufactured when and where they are needed and allows them to be responsive and flexible when it comes to managing the demand of its customers, as well as avoiding overproduction.
Differences: Ford has a system called the One Ford Global Product Development System (GPDS), it is a product development system for all its product lines. GPDS is used to enhance material flows and reduce inventories and substituting information for inventory. Through the improved processes and communication, the customer demand has increased and forecasting has improved.

Similarities: Ford, Toyota and their suppliers are able to deliver just the right amount of product or inventory at a given time as they work closely all the parties involved. Dealerships work closely with Toyota and Ford to maintain the lowest possible inventories but still have enough cars to satisfy their customers demand. The
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