How FTM Maximizes Container Storage Capacity with A Cost-Efficient and Collaborative Problem-Solving Approach

The team at Ford Thailand Manufacturing (FTM) has recently been tackling exciting challenges that includes the global chip shortages and the implementation of stricter vessels and port rules in Australia.

Amidst unpredictable production plan, the FTM team made a critical decision to maintain their production volume while postponing certain orders for the coming months. This ensured that the assembly process could proceed without interruptions, considering the length of lead time for imported parts to arrive at FTM. However, this decision introduced a new challenge: finding adequate storage space for incoming containers.

Taking the ownership of this issue, the Materials Planning and Logistics (MP&L) team swiftly engaged various departments including Finance, Plant Engineering, Vehicle Manufacturing Engineering (VME), Maintenance, and Customs to form a multifunctional task force. The team tackled the storage challenge by demolishing the legacy passenger car line to make space for the arrival of 26 containers of engine and 19 containers of transmission. This proactive action successfully prevented expenses on demurrage and detention costs of $165,000.

The Supply Chain team also embarked on another mission to find a cost-effective solution for additional parts. While the easiest option was to pay over $164,000 to rent additional space at the port for three months, the team's Lean Mindset and passion for efficiency prompted them to seek for more alternatives.

With help from the Plant Engineering team, they reviewed container yard layout to analyze its feasibility before formulating a plan to optimize the available space. Their proposal involved rearranging the containers to reduce gaps between each line. Additionally, they explored the possibility of rerouting trucks for container loading, further enhancing efficiency. The team also engaged Safety department to conduct a comprehensive assessment.

Thanks to the exceptional collaboration and swift execution of the teams involved, the plan to optimize container storage capacity was successfully implemented within just two weeks. By capitalizing on existing resources and reimagining the layout of the container yard, FTM could accommodate additional 56 containers, exceeding their initial capacity by a significant margin.

The success of this initiative has not only saved the company a substantial rental expense but has also reinforced the power of teamwork and out-of-the-box thinking. Inspired by their achievement, the Plant Engineering team is now focusing on developing a long-term solution to prepare for future container shipments. By proactively designing a new layout for the container yard area, the team is positioning FTM for a continued success, even in the face of evolving challenges.

Vinko Saric, plant manager, Ford Thailand Manufacturing said, “By tackling the obstacle of limited container storage capacity with ‘Own It’ mindset, the team has not only overcome a significant challenge but also set a great example for the ‘Collaborative’ spirit to find creative solutions in the most demanding circumstances, reaffirms their unwavering commitment to customer satisfaction.”??