Putting Out The Fire For Ford’s F-150 Supply Chain

Putting Out The Fire For Ford’s F-150 Supply Chain

A fire at Meridian Magnesium Products of America plant in Eaton Rapids, Mich revealed just how fragile supply chains can be. It stopped production of Ford’s F-150 due to a lack of critical parts from this supplier.

The F-150 is Ford’s most popular and most profitable model.  In addition to Ford, other auto manufacturers have been impacted as well, including BMW, Chrysler, GM, and Mercedes-Benz.

At first, Ford believed the factory fire would stop production for weeks or longer. With Meridian’s help, and the rescue of specialized tooling that wasn’t damaged in the fire, Ford cobbled together a new worldwide supply chain for the affected parts on its F-150.

At the time of the May 18th article from Detroit Free Press, Ford expected to re-start production within a few days.

This post is based on the Detroit Free Press article, From panic to triumph: Behind the scenes of Ford’s epic F-150 restart, by Phoebe Wall Howard, May 18, 2018, and the NPR.org article, Ford Halts Production of F-150s After Fire At Supplier’s Facility, by Camila Domonoske, May 10, 2018. Image source: Iconotec/Glowimages.

Discussion Questions:

1. Why did a fire at one supplier force Ford to temporarily halt Continue reading

Facebook
Google+
http://ominthenews.com/tag/jit">
Twitter
Gucci Designs its Supply Chain

Gucci Designs its Supply Chain

November 16, 2017

Article Title: Gucci’s Surge and the Power of a Responsive Supply Chain

Author of Article: BOF Team

Date of article: October 27, 2017

Source URL: https://www.businessoffashion.com/articles/this-week-in-fashion/guccis-surge-and-the-power-of-a-responsive-supply-chain (Professional BOF membership required to access the article.)

With third-quarter revenue up 28%, Gucci is doing something right. The article describes Gucci’s moves to a more responsive supply chain by focusing on vertical integration of design and production.  Their focus on just-in-time manufacturing is intended to cut lead time from weeks to days.

Discussion Questions
1. How does Gucci create an order winner in the digital age?

Guidance: Review order winners/qualifiers, lean manufacturing and lean supply chains;  Students can then create a table showing order qualifiers relationship to lean manufacturing and lean supply chain concepts that help support the order qualifiers.  A discussion then can then ensue about which order qualifiers can become order winners for Gucci.

2. Can a supply chain be responsive without a just-in-time business model?

Guidance: This is a thought question for students to grapple with via classroom debate.  Suggest having half the class develop a 2 minute presentation arguing that only responsive supply chains require just-in-time and the other half Continue reading

Facebook
Google+
http://ominthenews.com/tag/jit">
Twitter