Ford to Reduce Overproduction

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Ford making deep cuts in 2006 production – Yahoo! News:

It's sad to see factories shut down, temporarily or permanently, but it's sad that Ford can't sell enough vehicles to merit the production. Boring products (ala Ford Five Hundred) and lack of pickup/SUV sales are leading to this. “Overproduction” is one of the types of waste, as defined by Toyota.

“Mark Fields, Ford's president of the Americas, said the plan reflects the need ‘to match production and inventories with consumer demand.'”

So many times, we focus on “lean manufacturing”, but we really should focus on “lean enterprise” or the health of the entire business. What good would a lean factory be if you had no customer demand??

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Mark Graban is an internationally-recognized consultant, author, and professional speaker who has worked in healthcare, manufacturing, and startups. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. His most recent book is the anthology Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also a Senior Advisor to the technology company KaiNexus. His latest book has been released as an "in-progress" book, titled Measures of Success.

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1 Comment
  1. […] to shut down production of a cargo aircraft. It’s a slightly different lesson than the Ford posting, below. Here, the lead times on A&D items are so ridiculously long (34 months), that Boeing has to […]

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