Ford To Cut Material Costs [Archive] - Ford Inside News Community

: Ford To Cut Material Costs

11-06-2008, 04:11 PM
Using a company called Endeca. Interesting.

11-11-2008, 07:38 PM
I wonder if Mullaly implemented this system (or at least saw the benefits of it) while at Boeing.

11-12-2008, 03:40 PM
Mulally brought with him a strong manufacturing backgorund and has been instrumental in adopting the Toyota way for Boeing. He is a strong asset to Ford.

11-12-2008, 07:16 PM
I hope this new plan doesn't cut quality in anyway.

11-13-2008, 10:26 AM
There are quite a few "cultural" and technological differences between tha way things were (and perhaps still are) done at Boeing and how things are done at Ford.

First big example is the "reduction in force" (RIFting) of the white collar workforce. Mullaly showed up just as Ford was rolling out one the largest RIFting efforts ever (end of 2006, beginning 2007). Millions of dollars were earmarked to "entice" white collar workers to retire, retire early or "take the money and run". This shocked Mullaly, because nothing like this was ever done at Boeing, even when the aerospace industry hit hard time. The rumor was he said, "Never again !". So far, this has been case.

From a technology standpoint, Boeing pioneered 3D CAD and "assembling the product on the computer" back in the 1980-90s. Ford had only started this process some time after 2000. A few years ago, they still had a mishmash of different CAD programs, including a smattering of PDGS, a 2D CAD package Ford wrote itself in the 1960-70s.

In some ways, I see this announcement as a failure of the IT organization to provide anything like this functionality previously.

IT definitely needs to feel Mullaly hand directly. 5-6 years ago, IT spent millions of dollars and many months (years?) on designing and building a new computerized purchasing system. It was rolled out at great cost and consternation to many suppliers. After over a year, a study was done on why some organizations were still using the old system and what features were needed for V2. When all the numbers were crunched, the cost of fixing the new system was significantly larger than simply abandoning it and returning to the old one.