FORD IMPLEMENTS ALL-NEW, NEXT-GENERATION FLEXIBLE VEHICLE ASSEMBLY SYSTEM IN NORTH AMERICA

DEARBORN, MI, Nov. 8, 2002

"Henry Ford put the world on wheels with the moving assembly line, and now the company's new flexible assembly system marks a new level of innovation and leadership in the auto industry," says Roman Krygier, group vice president, Ford Global Manufacturing and Quality. "Not only is the system the next step forward in flexiblity, it’ll also cost far less than competitive systems."

Consider equipment changeovers that once took months being accomplished in days. That's what will happen with Ford Motor Company's new next-generation flexible manufacturing system to be installed in the company's North American assembly operations. Plus, it’ll be much more cost-effective than other systems.

Instead of paying a higher price for flexibility as is usual in the industry, the Ford system will cost 10 to 15 percent less than even traditional, non-flexible systems, with a 50 percent savings in changeover costs. Over the next decade, Ford expects to save $1.5 to $2 billion with this all-new system. The body shop employs an industry-first system of standardized cells or modules, all built from a select group of components. Only product-specific tooling needs to be changed or computers and robots re-programmed to launch new products. Each flexible plant will be capable of producing two different platforms with four different models off each platform. By mid-decade in North America, about half of Ford's body shops, trim and final assembly operations will be flexible. That number rises to 75 percent by the end of the decade. “With increasing market segmentation, Ford’s new flexible assembly system means the company can react more quickly to shifting customer demand,” says Al Ver, vice president, Ford Advanced Manufacturing Engineering. “The company will be able to produce a wider variety of vehicles, change the mix of products and options, and change volumes – all with minimal investment and changeover loss.”

Ford’s new system standardizes the assembly process, which improves productivity through reduced changeover downtime. Standardization helps improve quality through increased repeatability. Plus, improved ease of access results in improved safety and ergonomics for operators and maintenance crews.

Next-Generation Body Shops With Significant Cost-Savings Flexibility in the body shop is the most important component of flexible manufacturing because of the complexity and cost of the operation. Ford’s new flexible body shop system will cost less than both traditional body shops and other flexible systems, which generally are at a premium.

“Ford's new system has standard components that provide greater economies of scale when purchasing equipment, with greater re-use of that equipment,” says Krygier. “With lower investment and changeover costs, Ford expects the new flexible manufacturing system to save the company $1.5 to $2 billion over the next decade.”

The body shop assembly process is divided into a set of 16 distinct standardized modules or cells, with each having a specific function. As few as several hundred components are needed to build all 16 cells. These cells are arranged to create sub-systems, and these sub-systems then make up a body shop. For example, one cell applies sealer or adhesives, two cells are different types of tool trays, three different cells handle welding, while a pallet cell moves the body along the assembly line. To illustrate a sub-system, several of these different functional cells are assembled to perform the bodyside welding process.

“Just like having a set of building blocks, we’ve standardized the process so that only 300 components are needed to create all 16 cells, and these different cells are put together to make up the entire body shop,” says Bill Russo, director, Advanced and Manufacturing Engineering. “That’s why the purchasing and operating efficiencies are so significant.”

Only a portion of the product-specific tooling on vertical trays, horizontal gates or on robot arms, needs to be changed or modified, with the computers and robots re-programmed. Most of the equipment, such as the structure, robots, controls and utilities, will remain to build the next product.

The new body shop will be able to handle two distinct platforms while producing up to four different derivatives off each platform. The lines can be configured to accommodate front-wheel-drive, rear-wheel-drive, unitized body and body-on-frame vehicles.

Flexible Final Assembly Operations and Paint Shops The same type of standardization found in the new body shops also will be employed in final assembly. Final assembly operations will have a standard sequence, with standardized workstations that can be changed or modified quickly and easily to accommodate new vehicle options or features.

As Ford installs new paint shops, they’ll be able to handle a wider range of vehicles in a wider range of sizes. Traditionally cars and trucks have required separate paint shops due to size.

Roll-out of Flexible Manufacturing in Ford North America About half of Ford's body shops, trim and final assembly operations will be flexible by mid-decade, with 75 percent of those operations flexible by the end of the decade. As the company introduces new products with significant changes, it will roll out flexible manufacturing at its North American assembly plants.

2004 Ford F-Series – Norfolk (Va.) Assembly Plant; Kansas City (Mo.) Assembly Plant and the Dearborn (Mi.) Truck Plant 2005 Ford 500 and Ford Freestyle – Chicago (Il.) Assembly Plant Enabling Flexible Manufacturing with Fewer Vehicle Architectures The keys to flexible manufacturing are common vehicle architectures and standardized manufacturing processes that can be changed easily for new products.

Common Architectures: The key enabler for flexible manufacturing is having common vehicle architectures. Vehicles go together the same way, with shared program engineering and shared components. Multiple vehicle segments - cars, SUVs, vans, trucks or crossover vehicles - can be built off the same architecture. Variability in body styles and sizes, chassis sizes and other differences are easily accommodated. Ford is planning to reduce the number of vehicle architectures globally.

Standardized Manufacturing: Standardized manufacturing systems have common assembly processes and components. The standardized system results in economies of scale in equipment purchases, reduced variety and inventory of spare parts and faster launch cycle. The company can shift production and parts to other plants if needed. It’s easier to implement employee training with a standard system. Plus, it'll be easier to apply best practices throughout the company’s assembly operations. “With Ford’s new flexible manufacturing system, more than 80 percent of the tools and facilities will be re-used,” says Russo. “That will have a tremendous impact on cutting our costs and reducing downtime during product changeover.”

Examples of the benefits of standardization can be found on a welding robot. The number of weld gun bodies will be reduced from 262 to 35. The number of configurations of shunts, which carry electrical current between the weld body and the gun tips, will be reduced from 95 to five. This reduces repair time, spare parts and design costs.

“Ford’s manufacturing operations have a strong legacy and a robust future,” says Krygier. “The company’s new flexible assembly system will provide a strong base for the company’s manufacturing strength in the decades to come.“