Ford Reduces Costs with Global Standards (Detroit Free Press)

Producing vehicles in the same way in plants worldwide will reduce cost and boost productivity.

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Ford Motors’ plan for a single manufacturing operating system globally will reduce manufacturing investment costs by 8% and increase the vehicles it can produce in each facility by 25%, the Detroit Free Press reports. The company is set to add 9 plants in Asia in its largest expansion in 50 years. It plans to add 400,000 units of production to its U.S. plants in order to meet demand.

To achieve greater economies of scale and better utilization in its factories globally, Ford plans to decrease its number of vehicle families and increase the number of factories with body shops capable of producing many different models. One blueprint for all plants also will allow Ford to use common processes for materials, delivery and maintenance.

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