Ford Valencia cuts costs on V-Chain e-collaboration project

Ford Valencia, the company’s largest and most flexible production plant, is reporting success so far with the eur1m European V-Chain project to streamline operations between its production plant, key suppliers and logistics operator. DMR Consulting in Spain, which is running the project, predicts an average return on investment of “less than one year” for the participants. And that’s on an average of eur40,000, according to Tomas Comcha, automation technology manager for DMR. The project, which also involves the University of Valencia, Ford’s plant in Almussafes, Spain and its top-tier European suppliers, completed Phase One, with 10 suppliers on its industrial park linked into production, at the end of March. Phase Two of the roll out to suppliers is due to go live in June, with the rest following later this summer. Ford Valencia manufactures the Ka, Focus and Fiesta, as well as the Mazda 2, so requires considerable production and supply chain flexibility if it’s to cut costs and get more responsive. But with a considerable supply chain, and suppliers having disparate enterprise systems, the project has been about providing a layer of real-time information sharing, using Vitria’s:BusinessWare technology. The goal is to manage and control sequencing of parts and assemblies to line-side – optimising in near real-time and taking into account in-bound logistics – against changes and events. Effectively, it’s integrating Ford’s proprietary production and planning systems with those of its suppliers using web technologies. DMR’s Comcha says: “Suppliers’ applications can access the web portal and see demand evolving – long term, mid term and short term. The can see cars being manufactured, stocks, expediting notices, exceptions as they occur.” The system uses SMS messages and email alerts and includes workflow to ensure action. It has also been designed to cater for several levels of sophistication, according to supplier capabilities. “Only a few are completely integrated, 15—20%,” says Comcha. “But this will increase.” He says the Vitria system is successfully providing for business-to-business web links, file integration and connectors for suppliers’ commercial ERP systems. “Vitria:BusinessWare has been an important element of our solution during the pilot phase of the V-Chain project,” says Roque Alonso, manager of material and logistic planning at Ford Valencia. “I am optimistic that the solution will … optimise the flow of information between us and our suppliers.”