TOYOTA VS FORD

PRODUCTION SYSTEM
Operation Management Assignment
Hendra Panca – Batch 55 – International Class

MM UGM
Hendra Panca
Batch 55 – International Class

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
Figure 1. Toyota’s Logo 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.

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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
Figure 2. Kiichiro Toyoda
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

Figure 3. Toyota AA’s model 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.

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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
Figure 4. Ford’s Logo 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
Figure 5. Henry Ford
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.

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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. Figure 6. Ford Fusion
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

Figure 7. Toyota’s office building 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.

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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.
Figure 8. Ford A model 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

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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'

Figure 9. Assembly line 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.

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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

Figure 10. Ford’s Production Line method
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 Figure 11. Ford’s assembly line production
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.

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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

Figure 12. Just-In-Time
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

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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
Figure 13. Toyota Way diagram
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.

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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 Flexible work force
worker
Improvement activities by small groups Reduce the work force and increase the worker's
and the suggestion system morale
Visual control system Achieve the Jidoka concept
Functional Management system Promote company-wide quality control

Table 1. TPS Principle

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.

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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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Figure 14. Ford assembly line diagram

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:

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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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7. References
http://www.icmrindia.org/casestudies/catalogue/Operations/The%20Ford%20Production%20System
-Operations%20Management.htm
http://www.toyotageorgetown.com/terms.asp
http://en.wikipedia.org/wiki/Assembly_line
http://en.wikipedia.org/wiki/History_of_Toyota
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
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