Toyota vs Ford

MM UGM

TOYOTA VS FORD

PRODUCTION SYSTEM Operation Management Assignment

Hendra Panca – Batch 55 – International Class

Hendra Panca Batch 55 – International Class

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Contents 1. Abstract ................................................................................................................................................. 3

2. Introduction .......................................................................................................................................... 3

2.1. Toyota ........................................................................................................................................... 3

2.2. Ford ............................................................................................................................................... 5

3. Development ......................................................................................................................................... 6

3.1. Toyota Development .................................................................................................................... 6

3.2. Ford Development ........................................................................................................................ 7

4. Background Theory ............................................................................................................................... 8

4.1. Production line .............................................................................................................................. 9

4.1.1. Ford Assembly Line ............................................................................................................... 9

4.1.2. JIT (Just-In-Time) ................................................................................................................. 10

5. Production System .............................................................................................................................. 11

5.1. Toyota Production System .......................................................................................................... 11

5.1.1. Continuous Improvement ................................................................................................... 11

5.1.2. Respect for People .............................................................................................................. 12

5.1.3. Standard Work Practice ...................................................................................................... 13

5.2. Ford Production System .............................................................................................................. 15

5.2.1. Ford Total Productive Maintenance (FTPM) ....................................................................... 16

5.2.2. Manufacturing Engineering (ME) ........................................................................................ 17

6. Conclusion ........................................................................................................................................... 18

7. References .......................................................................................................................................... 19


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1. Abstract Western and Eastern Management have been widely used in almost every company in the

world. Both of them have the pro and cons, effects, benefits and the effort to make them as

efficient and effective as possible. Starting by Assembly Line found by Henry Ford in 1908 and

modified and become Toyota Production System by Taiichi Ohno in 1948 until 1975 and becoming

lean manufacturing method, both of them have represented the growth of western and eastern

nation time by time. In the Eastern region Toyota has become as role model and we use Ford

Assembly Line in the western region as role model for manufacturing management. Production

system will mainly affect to the cost per unit and soon determine every company competitive

advantage. As we all know, operation segment of a company incurs the biggest portion of cost.

Company that has the lowest cost will be a company leader in this highly competitive market.

2. Introduction In this paper we will discuss about two automotive companies which are Toyota Company and Ford

Motors Company. Before we go further discussing the main issue of the paper, we should know

who they are.

2.1. Toyota Toyota started its history in 1933 with the company being

a division of Toyoda Automatic Loom Works devoted to the

production of automobiles under the direction of the founder's

son, Kiichiro Toyoda. Travelling to Europe and the United States in

1929 to investigate automobile production and Kiichiro Toyoda

had begun researching gasoline-powered engines in 1930. Toyoda

Automatic Loom Works was encouraged to develop automobile

production by the Japanese government, which needed domestic

vehicle production partly due to the worldwide money shortage and partly due to the war with

China. In 1934, the division produced its first Type A Engine, which was used in the first Model

A1 passenger car in May 1935 and the G1 truck in August 1935. Production of the Model AA

passenger car started in 1936. Early vehicles bear a striking resemblance to the Dodge Power

Wagon and Chevrolet, with some parts actually interchanging with their American originals.

Figure 1. Toyota’s Logo


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Toyota Motor Co. was established as an independent and

separate company in 1937. Although the founding family's name is

Toyoda, the company name was changed in order to signify the

separation of the founders' work life from home life, to simplify the

pronunciation, and to give the company a happy beginning. Toyota is

considered luckier than Toyoda in Japan, where eight is regarded as a

lucky number, and eight is the number of strokes it takes to write

Toyota in katakana. In Chinese, the company and its vehicles are still

referred to by the equivalent characters (simplified Chinese; traditional

Chinese: 豐田; pinyin: fēng tián), with Chinese reading.

The company was dedicated to truck production for the Imperial Japanese Army during

the Pacific War (World War II). Because of severe shortages in Japan, military trucks were kept

as simple as possible. For example, the trucks had only one headlight on the center of the hood.

The war ended shortly before a scheduled Allied bombing run on the Toyota factories in Aichi.

Japan then experienced extreme economic difficulty after the Second World War.

Commercial passenger car production started in 1947 with the model SA. The company was on

the brink of bankruptcy by the end of 1949. The company eventually obtained a loan from a

consortium of banks which stipulated an independent sales operation and elimination of

"excess manpower".

In June 1950, the company produced only 300

trucks and was on the verge of going out of business. The

management announced layoffs and wage reductions,

and in response the union went on a strike that lasted

two months. The strike was resolved by an agreement

that included layoffs and pay reductions but also the resignation

of the president at the time, Kiichiro Toyoda. Kiichiro was

succeeded by Taizo Ishida, who was the chief executive of Toyoda Automatic Loom. The first

months of the Korean War resulted in an order of over 5,000 vehicles from the US military, and

the company was revived. Ishida was credited for his focus on investment in equipment. One

example was the construction of the Motomachi Plant in 1959, which gave Toyota a decisive

lead over Nissan at the dawning of the age of motorization.

Figure 3. Toyota AA’s model

Figure 2. Kiichiro Toyoda


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A separate sales company, Toyota Motor Sales Co., was established In 1950, which

lasted until July 1982. In April 1956, the Toyopet dealer chain was established. The following

year, the Crown became the first Japanese car to be exported to the United States and Toyota's

American and Brazilian divisions, Toyota Motor Sales Inc. and Toyota do Brasil S.A., were also

established.

2.2. Ford Ford was launched in a converted factory in 1903

with $28,000 in cash from twelve investors, most notably

John and Horace Dodge, who would later found the Dodge

Brothers Motor Vehicle Company. Henry Ford was 40 years

old when he founded the Ford Motor Company, which

would go on to become one of the largest and most profitable companies in the world, as well

as being one of the few to survive the Great Depression. The largest family-controlled company

in the world, the Ford Motor Company has been in continuous family control for over 100 years.

In 1915, Henry Ford went on a peace mission to Europe aboard a

ship, joining other pacifists in efforts to stop World War I. This led to an

increase in his personal popularity. Ford would subsequently go on to

support the war effort with the Model T becoming the underpinnings for

Allied military vehicles, like the Ford 3-Ton M1918 tank, and the 1916

ambulance. The Ford Motor Company is an American multinational

corporation based in Dearborn, Michigan, a suburb of Detroit. The

company was founded by Henry Ford and incorporated on June 16, 1903. In addition to the

Ford, Lincoln, and Mercury brands, Ford also owns a small stake in Mazda in Japan and Aston

Martin in the UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors

of India in March 2008. In 2010 Ford sold Volvo to Geely Automobile. Ford will discontinue the

Mercury brand at the end of 2010.

Ford introduced methods for large-scale manufacturing of cars and large-scale

management of an industrial workforce using elaborately engineered manufacturing sequences

typified by moving assembly lines. Henry Ford's methods came to be known around the world

as Fordism by 1914.

Figure 4. Ford’s Logo

Figure 5. Henry Ford


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Ford is currently the second largest automaker in the U.S.

and the fourth-largest in the world based on number of vehicles

sold annually, directly behind Volkswagen Group. In 2007, Ford

fell from second to third in US annual vehicle sales for the first

time in 56 years, behind only General Motors and Toyota.

However, Ford occasionally outsells Toyota in shorter periods

(most recently, during the summer months of 2009). By the end of 2009, Ford was the third

largest automaker in Europe (behind Volkswagen and PSA Peugeot Citroën). Ford is the eighth-

ranked overall American-based company in the 2010 Fortune 500 list, based on global revenues

in 2009 of $118.3 billion. In 2008, Ford produced 5.532 million automobiles and employed

about 213,000 employees at around 90 plants and facilities worldwide. During the automotive

crisis, Ford's worldwide unit volume dropped to 4.817 million in 2009. Despite the adverse

conditions, Ford ended 2009 with a net profit of $2.7 billion. Starting in 2007, Ford received

more initial quality survey awards from J. D. Power and Associates than any other automaker.

Five of Ford's vehicles ranked at the top of their categories and fourteen vehicles ranked in the

top three.

3. Development

3.1. Toyota Development After Second World War, Eiji Toyoda and Taiichi Ohno

at the Toyota motor company in Japan pioneered the concept

of Toyota Production System. The rise of Japan to its current

economic pre-eminence quickly followed, as other companies

and industries copied this remarkable system. Manufacturers

around the world are now trying to embrace this innovative

system, but they are finding the going rough. The companies

that first mastered this system were all head-quartered in one country-Japan. However, many

Western companies now understand Toyota Production System, and at least one is well along

the path of introducing it. Superimposing this method on the existing mass-production systems

causes great pain and dislocation.

Figure 6. Ford Fusion

Figure 7. Toyota’s office building


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Toyota began to expand in the 1960s with a new research and development facility, a

presence in Thailand was established, the 10 millionth models was produced, a Deming Prize

and partnerships with Hino Motors and Daihatsu were also established. The first Toyota built

outside Japan was in April 1963, at Port Melbourne in Australia. By the end of the decade,

Toyota had established a worldwide presence, as the company had exported its one-millionth

unit.

With high gas prices and a weak US economy in mid 2008, Toyota reported a double-

digit decline in sales for the month of June, similar to figures reported by the Detroit Big Three.

For Toyota, these were attributed mainly to slow sales of its Tundra pickup, as well as shortages

of its fuel-efficient vehicles such as the Prius, Corolla and Yaris. In response, the company has

announced plans to idle its truck plants, while shifting production at other facilities to

manufacture in-demand vehicles.

This essay is an effort to explain the necessary transition from mass production to

revolutionary production called Toyota production System. By focusing on the global auto

industry, this essay explains in simple, concrete terms what the Toyota Production System is,

where it came from , how it really works, and how it can spread to all corners of the globe for

everyone's mutual benefit. The global adaptation, as it inevitably spreads beyond the auto

industry, will change everything in almost every industry-choice of customers, the nature of

work, the fortune of companies, and, ultimately, the fate of nations.

3.2. Ford Development During its early years, the Ford Company

produced a range of vehicles designated, chronologically,

from the Ford Model A (1903) to the Model K and Model

S (Ford's last right-hand steering model) of 1907. The K,

Ford's first six-cylinder model, was known as "the

gentleman's roadster" and "the silent cyclone.

The next year, Henry Ford introduced the Model

T. Earlier models were produced at a rate of only a few a

day at a rented factory on Mack Avenue in Detroit, Michigan, with groups of two or three men

working on each car from components made to order by other companies (what would come to

be called an "assembled car"). The first Model Ts were built at the Piquet Road Manufacturing

Figure 8. Ford A model


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Plant, the first company-owned factory. In its first full year of production, 1909, about 18,000

Model Ts were built. As demand for the car grew, the company moved production to the much

larger Highland Park Plant, and in 1911, the first year of operation there, 69,762 Model Ts were

produced, with 170,211 in 1912. By 1913, the company had developed all of the basic

techniques of the assembly line and mass production. Ford introduced the world's first moving

assembly line that year, which reduced chassis assembly time from 12½ hours in October to 2

hours 40 minutes (and ultimately 1 hour 33 minutes), and boosted annual output to 202,667

units that year. After a Ford ad promised profit-sharing if sales hit 300,000 between August 1914

and August 1915, sales in 1914 reached 308,162 and 501,462 in 1915; by 1920, production

would exceed one million a year.

These innovations were hard on employees, and

turnover of workers was very high, while increased

productivity actually reduced labor demand. Turnover meant

delays and extra costs of training, and use of slow workers. In

January 1914, Ford solved the employee turnover problem by

doubling pay to $5 a day, cutting shifts from nine hours to an

eight hour day for a 5 day work week (which also increased

sales; a line worker could buy a T with less than four months'

pay), and instituting hiring practices that identified the best

workers, including disabled people considered unemployable

by other firms. Employee turnover plunged, productivity soared, and with it, the cost per vehicle

plummeted. Ford cut prices again and again and invented the system of franchised dealers who

were loyal to his brand name. Wall Street had criticized Ford's generous labor practices when he

began paying workers enough to buy the products they made.

4. Background Theory To understand further about Toyota and Ford production system we will discuss the production line

background theory which includes Ford assembly line and JIT by Toyota.

Figure 9. Assembly line


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4.1. Production line Production line is a repetitive manufacturing

process in which each product passes through the same

sequence of operations, and the machines and other

equipment are laid-out in the order they are used. Line

production is dedicated to the needs of a single or small

group of products and (unlike in batch production) the

process does not have to be stopped and restarted for

each new product.

A production line can also defined as a set of sequential operations established in a

factory whereby materials are put through a refining process to produce an end-product that is

suitable for onward consumption; or components are assembled to make a finished article.

Typically, raw materials such as metal ores or agricultural products require a sequence

of treatments to render them useful. For metal, the processes include crushing, smelting and

further refining. For plants, the useful material has to be separated from husks or contaminants

and then treated for onward sale.

4.1.1. Ford Assembly Line

Assembly line found by Henry Ford is

a process in which parts are grouping

sequentially using optimally planned logistic

to create a finished product. This method has

shortens lead time compare to handicraft-

type methods. Assembly line used in mass

production, reducing labor hours required

to produce a single vehicle and increasing

production number and part.

This invention was creating low price vehicle and affecting the opening of huge

potential market. Mass production also turn economies of scale to be exploited,

bootstrapping quality of growth and at last made Ford famous and set an example for

other industries.

Figure 10. Ford’s Production Line method

Figure 11. Ford’s assembly line production


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4.1.2. JIT (Just-In-Time)

Just-In-Time is an approach of continuous

and forced problem via focus on throughput and

reduced inventory. Just-In-Time is an inventory

strategy or production system to minimize inventory

and at last reducing carrying cost or even zero. Just-

In-Time also called Pull system, resulting in material

being produced only when requested and moved to

where it is needed just as it is needed. JIT invented by

Japanese named Taiichi Ohno in 1948. JIT operation leaves suppliers and consumer

open to large supply demands. Ohno saw this as a feature analogue with water level in

river. When the water level is low, then we can see stone or other things that impede

your flow. So when the inventory level kept as low as possible, we will see which part of

production flow was interrupted. It can force every supplier to improve their quality.

Toyota production system uses Just-In-Time as one of its principles. Ohno added

JIT to former style of Production System which is Assembly Line invented by Ford. Ford

assembly line is better than handicraft method, but the combination of Ford Assembly

Line with JIT made production system more efficient. This strategy uses not only in

automobile industry but in every management system such as distribution channels,

electronic manufacturers, or even marketing to boost up sales. Nowadays JIT has been

used in a lot of things. Companies realize that reduction cost is very important to get

more profit-margin or to lower it price level.

Main benefits of JIT are:

Reduced setup time and The flow of goods from warehouse to shelves improves

Employees with multiple skills are used more efficiently

Production scheduling and work hour consistency synchronized with demand

Increased emphasis on supplier relationships

Supplies come in at regular intervals throughout the production day

Figure 12. Just-In-Time


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5. Production System

5.1. Toyota Production System Toyota Motor’s Eiji Toyoda and Taiichi

Ohno are given credit for the Toyota Production

System (TPS). This system built on two main

principles: “Just in Time” and “Jidoka”. The three

main core components of TPS are continuous

improvement, respect for people, and standard

work practice.

5.1.1. Continuous Improvement

A Continuous Improvement Process (CIP) is an ongoing effort to improve

products, services, or processes. These efforts can seek "incremental" improvement

over time or "breakthrough" improvement all at once. Delivery (customer valued)

processes are constantly evaluated and improved in the light of their efficiency,

effectiveness and flexibility.

Continuous improvement under TPS means building and organizational culture

and instilling in its people a value system stressing that process can be improved –

indeed, that improvement is an integral part of every employee’s job.

Some successful implementations use the approach known as Kaizen (the

translation of kai (change) zen (good) is “improvement”. This method became famous

by the book of Masaaki Imai “Kaizen: The Key to Japan's Competitive Success.”

The core principle of CIP is the (self) reflection of processes. (feedback)

The purpose of CIP is the identification, reduction, and elimination of suboptimal

processes. (efficiency)

The emphasis of CIP is on incremental, continuous steps rather than giant leaps.

(evolution)

Key features of Kaizen:

Improvements are based on many, small changes rather than the radical changes

that might arise from Research and Development.

Figure 13. Toyota Way diagram


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As the ideas come from the workers themselves, they are less likely to be

radically different, and therefore easier to implement

Small improvements are less likely to require major capital investment than major

process changes

The ideas come from the talents of the existing workforce, as opposed to using

R&D, consultants or equipment – any of which could be very expensive

All employees should continually be seeking ways to improve their own

performance

Help to encourage workers to take ownership for their work, and can help

reinforce team working, thereby improving worker motivation

The elements above are the more tactical elements of CIP. The more strategic

elements include deciding how to increase the value of the delivery process output to

the customer (effectiveness) and how much flexibility is valuable in the process to

meet changing needs.

5.1.2. Respect for People

Toyota’s way of respecting their people are not the same as many other

companies. The best managers at Toyota will show their respect to their colleagues

and staffs as follows:

Managers begin by asking employees what the problem is with the way their work

is currently being done. Next they challenge the employees' answer and enter into

a dialogue about what the real problem is. (It's rarely the problem showing on the

surface.)

Then they ask what is causing this problem and enter into another dialogue about

its root causes. (True dialogue requires the employees to gather evidence on the

gemba – the place where value is being created - for joint evaluation.)

Then they ask what should be done about the problem and ask employees why

they have proposed one solution instead of another. (This generally requires

considering a range of solutions and collecting more evidence.)

Then they ask how they – manager and employees – will know when the problem

has been solved, and engage one more time in dialogue on the best indicator.


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Finally, after agreement is reached on the most appropriate measure of success,

the employees set out to implement the solution.

Toyota’s managers do not just say, "Great job!" as a morale booster, instead, the

managers challenge the employees every step of the way, asking for more thought,

more facts, and more discussion, when the employees just want to implement their

favored solution to show their respect for them.

5.1.3. Standard Work Practice

Standard work practice at Toyota includes these underlying principles:

Work is completely specified to content, sequence, timing, and outcome.

Internal and external customer-supplier connections are direct, specifying

personnel, methods, timing, and quantity.

Product and service flows are to be simple and direct. Goods and services are

directed to a specific person or machine.

Improvements in the system must be made in accordance with the “scientific

method”, at the lowest possible level in the organization.

TPS requires that activities, connection, and flows include built-in test to

automatically signal problems. Any gap between what is expected and what occurs

becomes immediately evident. The education and training of Toyota’s employees and

the responsiveness of the system to problems make the seemingly rigid system

flexible and adaptable to changing circumstances. The result is ongoing improvements

in reliability, flexibility, safety, and efficiency.

Another principles use in TPS is Shojinka means varying the number of workers

to demand changes, and Soikufu means creative thinking or inventive ideas. To realize

these four concepts, Toyota has established the following systems and methods as

diagram shown below:


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Methods Objectives

Kanban System Maintain Just-in-time production

Production Smoothing Adapt to demand changes

Shortening of set-up time Reducing the production lead time

Standardization Attain line balancing

Machine layout and the multi-function worker

Flexible work force

Improvement activities by small groups and the suggestion system

Reduce the work force and increase the worker's morale

Visual control system Achieve the Jidoka concept

Functional Management system Promote company-wide quality control

Kanban organized as card control system in order to maintain Just-In-Time.

Kanban can also detect irregular process in system and help to achieve continuous

improvement. Kanban system is supported by Reduction Set-up time, Standardization of

jobs, improvement activities and Autonomation.

TPS is based on a “pull” manufacturing system. Teruyuki Minou, Senior

Managing Director, said that under a 'push' system, there is little opportunity for

workers to gain wisdom because they just produce according to the instructions they

are given. In contrast, a 'pull' system asks the worker to use his or her head to come up

with a manufacturing process where he or she alone must decide what needs to be

made and how quickly it needs to be made." In TPS, “T” also means “Thinking”. Pull

system characteristics are using local decision making, emphasizing on smooth flows,

and cooperative problem solving.

In the end, Toyota Production System gives positive impact and effect in

reducing cost, shortening lead time, increasing efficiency level in production. Toyota

Production System is not only a method but also a spirit. Applying this method without

comprehending the meaning and purpose beyond will not give the maximum impact.

Toyota Production System has been used in many industries, implemented in many

factories, from the east even to the west companies.

Table 1. TPS Principle


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5.2. Ford Production System

“We know from the changes that have already been brought about that far greater

changes are to come, and that therefore we are not performing a single operation as well as it

ought to be performed.” – Henry Ford.

An assembly line production system is a manufacturing process in which parts (usually

interchangeable parts) are added to a product in a sequential manner using optimally planned

logistics to create a finished product much faster than with handcrafting-type methods. The

assembly line developed by Ford Motor Company between 1908 and 1915 made assembly lines

famous in the following decade through the social ramifications of mass production, such as the

affordability of the Ford Model “T” and the introduction of high wages for Ford workers.

Henry Ford was the first to master the assembly line and was able to improve other

aspects of industry by doing so (such as reducing labor hours required to produce a single

vehicle, and increased production numbers and parts). However, the various preconditions for

the development at Ford stretched far back into the 19th century, from the gradual realization

of the dream of interchangeability, to the concept of reinventing workflow and job descriptions

using analytical methods (the most famous example being scientific management).

Ford was the first company to build large factories around the assembly line concept.

Mass production via assembly lines is widely considered to be the catalyst which initiated the

modern consumer culture by making possible low unit cost for manufactured goods. It is often

said that Ford's production system was ingenious because it turned Ford's own workers into

new customers. Put another way, Ford innovated its way to a lower price point and by doing so

turned a huge potential market into a reality. Not only did this mean that Ford enjoyed much

larger demand, but the resulting larger demand also allowed further economies of scale to be

exploited, further depressing unit price, which tapped yet another portion of the demand

curve. This bootstrapping quality of growth made Ford famous and set an example for other

industries.

In a factory for a complex product, rather than one assembly line, there may be many

auxiliary assembly lines feeding sub-assemblies (i.e. car engines or seats) to a backbone "main"

assembly line. A diagram of a typical mass-production factory looks more like the skeleton of a

fish than a single line.


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The Ford Production System is a method manufacturing which standardized process

with operational elements and procedures that govern the way manufacturing and business is

run. It is also the method that must be used to transform Ford from Mass Production to Lean

Manufacturing. It is about cultural change and most importantly, engaging the work force. There

are eleven elements in FPS which are:

Safety and Health Assessment Review Process (SHARP)

Environmental, Leadership, Work Groups, Training, In Station Process Control (ISPC)

Ford Total Productive Maintenance (FTPM)

Manufacturing Engineering (ME)

Synchronous Material Flow (SMF)

Industrial Material Flow (IMF)

Quality Operating System (QOS).

These elements are the DNA of the system; the plants go through an annual validation

process where they are scored on their adherence to and their advancement in the process.

Energy is interwoven into the process and is a part of the validation and the scoring. It is directly

and indirectly included in a number of the elements but the two elements that have the

strongest impact on energy are the FTPM and ME elements.

5.2.1. Ford Total Productive Maintenance (FTPM)

FTPM is the element that governs the maintenance of the equipment and processes in

the plant. An effective maintenance program is the key to continued energy efficiency and

optimum equipment performance. Some examples of the effects of poor maintenance are:

Figure 14. Ford assembly line diagram


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Dirty filters increasing fan load

Poor relamping program decrease watts/lumens thus increasing electric usage.

Air Leaks increase electric usage

Faulty steam traps and steam leaks increase fuel consumption.

Fouled inlet filters on air compressors increases electricity consumption.

High inlet temperatures increases air dryer loads

Fouled condensers increase chiller and air conditioner loading.

Inoperable/ poorly calibrated controls reduce the effectiveness of an Energy

Management system.

FTPM is the method used to insure that the preventative maintenance system is in

place and that the maintenance is getting done. We use a Total Equipment Maintenance

(TEM) computerized maintenance system to track and schedule maintenance. Plants are

measured not only to their adherence in the use of the system but also to the

completion of the inspections and work orders.

There is also a specific requirement in several of the TPM sections and procedures

that requires adherence to a Leak Tag Program that includes compressed air and steam.

So a system has been put in place that maintains the equipment efficiency and reduces

energy.

5.2.2. Manufacturing Engineering (ME)

The Manufacturing Engineering element includes energy in The Reliability and

Maintainability (R&M) section as part of the Total Cost Requirement; In the Project Review

process where every new project has to include the effect on energy usage; and as a stand

alone section, Energy Management Efficiency Program.

Energy Management Efficiency Program of the FPS ME element evaluates compliance to

the energy management procedures and reviews specific actions to increase energy

efficiency for the facility. The following is an excerpt from the validation manual that

shows some of the questions asked:

Does the facility report monthly energy and utility usage data on a quarterly basis

to Ford Land, in a hard-copy report or electronically using the Energy Utilities and

Waste Metrics (EUWM) Web Site?


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Does the facility report TVM (Total Value Management) Energy Data on a weekly

basis to Ford Land electronically using the TVM Energy Program Excel datasheet?

Does the facility report monthly energy and utility usage data on a quarterly basis

to Ford Land, in a hard-copy report or electronically using the Energy Utilities and

Waste Metrics (EUWM) Web Site?

Does the facility report TVM Energy Data on a weekly basis to Ford Land

electronically using the TVM Energy Program Excel datasheet?

Plant Energy Requirements:

o TVM-1 Has the plant reduced non-production electrical demand between

shifts to 50% of normal production levels and to 25% during weekend and

holiday periods?

o TVM-2 Has the plant reduced non-production compressed air demand to

25% of normal production levels?

o TVM-3 Has the plant reduced paint humidity in solvent based paint booths

to 50% during heating season?

6. Conclusion Toyota and Ford are the perfect representative of the western and eastern way of thinking until

some years ago. Both companies have their own way of production. Toyota has the Toyota Production

System (TPS) which represents very much of the Japan culture while Ford has Ford Production System

(FPS) which represents people in the United States in general.

Both have their own advantages and disadvantages, especially collaborating with local culture

where the company operates. The most important thing that we learn from this paper is, to improve

ourselves continuously. Improvement is critical, especially in this competitive era. We could learn from

Toyota who has developed very well from the Ford’s assembly line and zero defect production.


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http://en.wikipedia.org/wiki/Ford_Motor_Company

http://en.wikipedia.org/wiki/Ford#See_also

http://en.wikipedia.org/wiki/Production_line

http://en.wikipedia.org/wiki/Toyota_Production_System

Heizer, Jay and Render, Barry. Operation Management. Prentice Hall, 2008

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Kesuksesan di Pabrikan Terbaik Dunia. PT BHUANA ILMU POPULER. 2008

http://www.toyotageorgetown.com/terms.asp

http://en.wikipedia.org/wiki/Assembly_line

http://en.wikipedia.org/wiki/History_of_Toyota

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http://en.wikipedia.org/wiki/Toyota_Production_System

Toyota vs Ford

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