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Page 1Ford ConfidentialAgenda1.What is GPDS?2.What are the key events in GPDS?3.What is the GPDS process for local parts?4.Where is there more GPDS information?Page 2Ford Confidential1.What is GPDS?Page 3Ford ConfidentialProgram AGlobal Product Development System ScopeProgram StartAnnual ProcessPeopleGlobal Core EngineeringProcessGPDSDesignDesignEngineeringEngineeringParts&Parts&ServiceServicePurchasingPurchasingManufacturingManufacturingPlanningPlanningSuppliersSuppliersMarketingMarketingGPDS is a closed-loop Product Creation system.GPDS is a full enterprise effortTechnologyC3PNG (CATIA v5)Program BProgram CMassProduction 2MassProduction 2MassProduction 2Program StartProgram StartPage 4Ford ConfidentialKey ConceptsGrasp theSituationPlanPlanPlanCheckCheckCheckDoDoDoActActActContinuous ImprovementContinuous ImprovementCORRECTIONWAITINGINVENTORYMOTIONOVER PRODUCTIONSEVENSEVENMAJOR MAJOR WASTESWASTESWaste EliminationWaste EliminationOVERProcessingCONVEYANCEtime#of detection events in FMEAFPDSGPDSLatitude to incorporate countermeasuresFront LoadingFront LoadingPage 5Ford ConfidentialQuality Process:Kano Model for Customer SatisfactionCustomerSatisfactionDegree oftechnical achievementxYExcitement Quality(Surprise&Delight)3Performance Quality2Basic Quality1Page 6Ford Confidential2.What are key events in GPDS?Page 7Ford ConfidentialMilestones&GatewaysTargets&SourcingFC5 Surface Hard FreezeM1 Data JudgmentFinal Data JudgmentProduct Concept&PackageProgram StartMassProduction 2MassProduction 1Program Target Compatibility CheckpointProgram ApprovalLaunchReadinessFinal Engineering ConfirmationProgram Target ConfirmationFC3 Concept DecisionProgram Strategic ConfirmationLogical Decision Making ProcessPage 8Ford Confidential Program StartTargets&SourcingFC5 Surface Hard FreezeM1 Data JudgmentFinal Data JudgmentProduct Concept&PackageProgram StartMassProduction 2MassProduction 1Program Strategic ConfirmationProgram Target Compatibility CheckpointProgram ApprovalLaunchReadinessFinal Engineering ConfirmationProgram Target ConfirmationMain Objectives:1.Start the Program Team Bill of Material(BOM)and Targets&Sourcing processes 2.Establish a robust prime Program strategy3.Foster a high level of part/architecture reuse and commonality Key Decisions:Key Platform and Powertrain system and Electrical architecture Program MissionInitial Marketing strategyAssembly Plant AlternativesFC3 Concept DecisionFord ConfidentialPage 9Ford Confidential Program Strategic ConfirmationTargets&SourcingFC5 Surface Hard FreezeM1 Data JudgmentFinal Data JudgmentProduct Concept&PackageProgram StartMassProduction 2MassProduction 1Program Strategic ConfirmationProgram Target Compatibility CheckpointProgram ApprovalLaunchReadinessFinal Engineering ConfirmationProgram Target ConfirmationMain Objectives:1.Program strategic targets/guidelines set 2.Compatibility of Affordable Business Structure(ABS)with Marketing,Finance&Quality3.Functional targets,hardware selection and timing confirmed4.Workplan and resource availability to achieve successful delivery to are approved Key Decisions:Key Body,Chassis and Electrical systems FC3 Concept DecisionFord ConfidentialPage 10Ford Confidential Program Target Compatibility Checkpoint Program Target Compatibility CheckpointTargets&SourcingFC5 Surface Hard FreezeM1 Data JudgmentFinal Data JudgmentProduct Concept&PackageProgram StartMassProduction 2MassProduction 1Program Strategic ConfirmationProgram Target Compatibility CheckpointProgram ApprovalLaunchReadinessFinal Engineering ConfirmationProgram Target ConfirmationMain Objectives:1.All Attribute targets including Quality,Cost,Weight&Function aligned and balanced 2.Complete system selection completed to align targets and confirm Bill of Process(BOP)3.Supplier Agreement Letters on-track per Key Commodity Plan Supplier On-Board dates4.Ensure completion of Product Concept,Package,Targets&SourcingKey Decisions:All remaining key commodity systemsFC3 Concept DecisionFord ConfidentialPage 11Ford Confidential Program Target ConfirmationTargets&SourcingFinal Data JudgmentProduct Concept&PackageProgram StartMassProduction 2MassProduction 1Program Strategic ConfirmationProgram Target Compatibility CheckpointProgram ApprovalLaunchReadinessFinal Engineering ConfirmationProgram Target ConfirmationMain Objectives:1.Program targets are set&ABS(Affordable Business Structure)updated 2.Develop market equation Key Decisions:Commercial Program Agreements signed per Key Commodity Plan All Supplier Agreements signedConcurrent Gateways completed:Exterior&Interior Design and Surface Freeze(FC5)&M1 Prototype design readiness(M1DJ)Long Lead Funding for Manufacturing(as required)FC3 Concept DecisionFC5 Surface Hard FreezeM1 Data JudgmentFord ConfidentialPage 12Ford Confidential Program ApprovalTargets&SourcingProduct Concept&PackageProgram StartMassProduction 2MassProduction 1Program Strategic ConfirmationProgram Target Compatibility CheckpointProgram ApprovalLaunchReadinessFinal Engineering ConfirmationProgram Target ConfirmationMain Objectives:1.Approve Program Quality,Cost,Weight and Function objectives2.Approve Funding3.Approve Market Equation 4.Support completion Final Data Judgment&start of mass production preparation activitiesKey Decisions:Affordable Business Structure and Market Equation Product Quality,Cost,Weight and Functional performanceCommercial Program Agreements(CPAs)are completeFC3 Concept DecisionFC5 Surface Hard FreezeM1 Data JudgmentFinal Data JudgmentFord ConfidentialPage 13Ford Confidential Final Engineering ConfirmationTargets&SourcingFinal Data JudgmentProduct Concept&PackageProgram StartMassProduction 2MassProduction 1Program Strategic ConfirmationProgram Target Compatibility CheckpointProgram ApprovalLaunchReadinessFinal Engineering ConfirmationProgram Target ConfirmationMain Objectives:1.Complete and sign-off all design validation to requirements(except limited tunables).Key Decisions:Proceed to launch based on completion of Engineering Risk AssessmentFC3 Concept DecisionFC5 Surface Hard FreezeM1 Data JudgmentPage 14Ford Confidential Launch ReadinessTargets&SourcingFinal Data JudgmentVehicle Basic DesignPowertrain“Unit”DevelopmentProgram StartMassProduction 2MassProduction 1Program Strategic ConfirmationProgram Target Compatibility CheckpointProgram ApprovalLaunchReadinessFinal Engineering ConfirmationProgram Target ConfirmationMain Objectives:1.Manufacturing tools and equipment are ready for home-line production of vehicles2.Cross functional groups(engineering,suppliers,material control,confirm readiness to proceed to Tool Tryout buildKey Decisions:Final decision to proceed to Tool Tryout(TT)Build FC3 Concept DecisionFC5 Surface Hard FreezeM1 Data JudgmentPage 15Ford Confidential/Mass Production 1&2Underbody PhaseTargets&SourcingFinal Data JudgmentProduct Concept&PackageUpperbody PhaseProgram StartMassProduction 2MassProduction 1Program Strategic ConfirmationProgram Target Compatibility CheckpointProgram ApprovalLaunchReadinessFinal Engineering ConfirmationProgram Target ConfirmationMain Objectives:MP1 Produce first customer saleable unit without retrofitMP2 Begin acceleration to full production line rateKey Decisions:All homologation and certification documents are submitted and approved Product Quality exceeds customer expectationsSuppliers,Manufacturing facilities and Assembly Plants have completed Production Validation and are capable to accelerate FC3 Concept DecisionFC5 Surface Hard FreezeM1 Data JudgmentPage 16Ford ConfidentialAPQP&Supplier EngagementSourcingTeam Evaluation#1 Team Evaluation#2 Team Evaluation#3Team Evaluation#4Failure Mode AvoidanceMfg./Capacity PlanningValidation PlanningTesting&ValidationPrototype BuildsToolingTesting&ValidationTooling VerificationLaunchQuality/Capacity VerificationLaunchQuality/Capacity VerificationPlanActual%CompletePage 17Ford Confidential3.What is the GPDS process for local parts?Page 18Ford ConfidentialLocalization Process IntroductionWe had no template or standardized approach to developing&launching high local content new vehicle programs.Each program was“inventing”how best to work with Joint Venture partnersThere was no documentation:Explain expectations to Joint Venture partnersCapture learningsDrive continuous improvement Page 19Ford ConfidentialLocalization Process Development Goals 1.Fully concurrent GPDS development&launch capability2.High levels of part design commonality agreed up-front to optimize QCWFT.Key enabler is clarification of GPDS“gives&gets”for the Joint Ventures.a)Targets&Sourcingb)Engineering&DV3.Develop the Localization template using input from program teams(Transit,Mondeo,Focus,Fiesta,EcoSport&Ranger)a)Build on Lessons Learnedb)Help present global teams deliver with less waste&re-invention4.Association program contractual agreements(Technical Licensing Agreements,Engineering Service Agreements,etc.)need to be standardized compatible with GPDS process logicFord ConfidentialPage 20Ford ConfidentialLocalization Template“Is”What it is-Process template(s)used to guide the development and launch of high local content new vehicle program at non-mainstream production facilities.The initial template is for production facilities that are not fully within the Ford Enterprise.A process to assure quality,cost,and speed is delivered to global emerging markets within GPDS logic.For example,to determine the who,what,how,and when for local part verification.A process proposal consistent with GPDS targets&sourcing process and the Global Concurrent launch effort for a Major All New Vehicle.The initial template proposal is for China Joint Ventures.Subsequently,templates for other localization situations will be developed(e.g.KD,minor markets,etc.).Page 21Ford ConfidentialLocalization Template“Is Not”What it is not-A process that would encourage reduced BOP or BOD commonality by making more visible the opportunity to have unique DV.A timing overlay that adds a stagger to the VPP based on regionally unique designs.Timing for all size product and manufacturing programs.All the detailed methods and tools required to execute the process.These methods and tools will have to be created by responsible functions.Totally finished.We expect to collect comments&concerns with the template during this visit.Approval is scheduled for October 2009 in support the next release of GPDS.Page 22Ford ConfidentialKey Assumptions 1.LEA is responsible for Engineering Sign-off.2.The Ford Regional PD Office is responsible to ensure:a)Local suppliers understand LEA design directionb)All issues are identified and resolved with the LEA3.Local JV has primary buying and manufacturing authority.4.Timing will vary for programs with smaller scalability.5.Shipping time(typically 6 wks)needs to be assessed based on National logistics.6.Design Transfer Agreements protecting Intellectual Property rights for Ford and for our suppliers consistent with Corporate guidelines are in place.Page 23Ford ConfidentialKey Challenges 1.Increasing global design commonality with optimized cost and minimum duplicate regional Design Verification&Validation(DV).Reinforce single central LEA authority over local content design direction,change control and resulting unique DV.Ensure the“right”information is used to make the“right”decisions.Clarity of roles&responsibilities and process/methods/tools for developing&verifying local content is needed.DV&quality implications of“B3”locally unique designs considered in the Key Commodity Plan decisions that are at the heart of the Targets and Sourcing process.Page 24Ford ConfidentialKey Challenges 2.Managing logistics to maximize concurrent development and launch.Logistics for local content DV to enable the LEA to Sign-Off the vehicle to be produced by the JV.Parts and/or vehiclesTest and/or build countDie practices and logistics vary regionally and geographically.SourcingPCF(Part Checking Fixture)disciplines and Buy-offHome Line TryoutPage 25Ford ConfidentialIn-Process Issues1.Present template status leads to JV launch 5 months after lead region(comparable to B515).VOME and SBU are engaged in improving concurrency.2.Value of building&testing VP prototypes with local content at the JV may vary from program.Best practice needs further evaluation.Present assumption follows EcoSport program plan 3.Standard global PCF and tool buy-off processes are needed.Global Core process proposal for PCFs reflectedGlobal SBU Core to be engaged to reduce durationsPage 26Ford ConfidentialIn-Process Issues4.Need for unique Powertrain contracts for Association programs requires study.Presently assume covered in vehicle agreements5.Need for Long Distance drive of VP unit in JV market prior to.All alternative approaches need to be considered 6.Sourcing for Minor(non-long lead)parts needs further discussion with JV.Key question is balance of design maturity and leadtime7.Applicability of localization template developed for China to India,South Africa and others needs study.To be studied before next GPDS release in December 2009Page 27Ford ConfidentialHigh-Level Localization Template Example for JVHigh-Level Localization Template Example for JV(666 program)05.516.527344437PSPTCCLRPSC3GPDS v2.2LEA Program617.51223.5Month before PAM-1LS19.5FDJP-RelPTC+4+210VP8FECPECJ1MP1MP1LSJ1LRKey Process Points(thought starters):1.Ford China&APA lead global program input&decisions2.JV supports Ford China&APA primarily for Manufacturing and Purchasing3.Supplier bid process is accommodated for all local parts4.Critical local parts are tested by LEA before lead program;all local parts have DV/PV5.GPDS logic held without having to engage JV in core product developmentJoint Venture(CFMA,JMA)Mfg,Purch.&Quality InputVPPECFECLong Lead Homologation&Critical DVFinal PVGoal is concurrent PSPTCCPSCPAPTCFord APA&ChinaPre InputTargets SourcingDesign&CPA Complete local part designLocal part Design,Development,Verification&LEA approvalTooling Component DV Key Part BidMinor Part BidFord ConfidentialPage 28Ford ConfidentialLocalization Template Walk-ThruPage 29Ford ConfidentialPre-Strategic AlignmentPrelim Eng.Service Agreement(ESA)if requiredMarketing Strategy/Positioning/Consumer Research for the proposed productProduct,Manufacturing and Sourcing Strategic Framework Prelim Technology Licensing Contract(TLC)PSMRThe Senior Leadership of the LEA,Region&the JV need to find alignment on the strategic intent of the program so that the global team efficiently work:Business Customer Product ArchitectureMarket PositioningManufacturingSourcing/Supply BaseHow Pre-works:Identify the key strategic questions,brainstorm the possible solutions for.After the Planning team studies the potential solutions,select the best approach to success and align for.44 months before LEA Job#1Page 30Ford ConfidentialTarget Setting CheckpointsQuality History and High HurtsBenchmarkingBaseline Top-Down TargetsSuggested Suppliers for Key CommoditiesManufacturing Plan for PSCStart SALs(Supplier Agreement Letters)Initiate Supplier Bid ProcessPre-Strategic AlignmentPSPSC6 months for Major ProgramThe Engineering,Finance,Purchasing&Manufacturing teams starts at to recommend program assumptions:System Cost Targets Manufacturing Issues&Quality Issues to be addressedSuggested local suppliers&segmentation for each Key Commodity per the Plan.Benchmarking for System Alternatives(Attachment C)Final Preparation for 44 months before LEA Job#1Page 31Ford ConfidentialGlobal Sourcing Commodity SegmentationSourcing SegmentDesign SourceProduction SourceRemarksB1Global(Supplier)GlobalCan be Regional AffiliatesB2GlobalRegionalLEA supplier DesignB3RegionalRegionalIncreases Design Verification WorkloadDGlobal(Ford)Global or RegionalTends to be Build-to-PrintVision is maximum#of“D”or“B1”category commoditiesPage 32Ford ConfidentialTLC Framework and Principals Dev.And NegotiationConcept ClinicMarket EquationProduct Planning Activity(Prime Alternative)ABSCost and Investment EstimateESA Framework and Principals Dev.And NegotiationProgram Planning-PSPSC7 months for Major ProgramBased on recommended assumptions,the LEA Chief Program Engineer and the Business,Planning&Marketing Teams decide the optimum global program direction:System Prime Alternative Product Positioning,Product Concept clinic&Market EquationConfirm Program Cost&Profitability Targets Consolidated Program Assumptions Business Agreements(as required)CPE Attachment C Workshops44 months before LEA Job#1Page 33Ford ConfidentialTarget Setting CheckpointManufacturing RequirementsCPE Target Sign-off WorkshopsSourcing Agreement Letters Packages Due(cont.)Supplier Bid Process(cont.)TLC Detailed Dev.Sourcing Agreement Letters SigningSecure Compatibility-PSCPTCCBased on optimum global program direction,and Key Commodity Plan&Senior Management support of the Prime Alternative at start program implementation:Supplier Bid,Agreement Letter process per the Key Commodity Plan Gather Manufacturing Bill of Process facility&design requirementsSign-off compatible System&Supplier TargetsDevelop detailed TLC3 months for Major Program37 months before LEA Job#1Page 34Ford ConfidentialB1,B2&D Suppliers work with design source B3 Part CAD UpdateUP B3 Feasibility Commitment&Tooling PlanUN B3 Part CAD and Tooling PlanUN B3 Part FMEA and DV PlanUN B3 CAE and Virtual VerificationPTCCPTC7 months for Major ProgramStructure&Theme Design -Develop detailed Underbody(UN)designs and secure Theme feasibility with suppliers:UN B3 Suppliers support UN design,complete virtual verification for all requirements and gain LEA approval.All B3 Suppliers provide CAD to LEA as required.UP B3 Suppliers commit to feasibility&gain LEA approval for tooling plan.Other Suppliers work with design source to ensure feasibility and cost efficiency.34 months before LEA Job#1Page 35Ford ConfidentialFeature Content SurveyTheme ClinicMarket EquationABSCost&Invest.EstimateTLC Negotiation and AgreementESA Detailed Dev.Core Program Business -PTCCPTC7 months for Major ProgramUtilize latest engineering detail to confirm program direction and to secure critical agreements:Complete sourcing all suppliers with engineering responsibility UN Commercial Program Agreement signed using verified UN design data per schedule.Theme clinic&Feature Market survey to ensure optimum program direction&support Market Equation update.Update Investment,Cost&Program Agreements as required.Long Lead funding approval.UN Commercial Program Agreements(CPA)SignedSupplier Bid Process(cont.)Sourcing Agreement Letters Signing(cont.)Sourcing Agreement Letters Packages Due(cont.)27 months before LEA Job#1Page 36Ford ConfidentialDesign Completion -PTCPAComplete designs with LEA for&Final Data Judgment:UN B3 suppliers supply parts and analysis for M1 prototype as agreed with LEA.UP B3 Suppliers support UP design,complete virtual verification for all requirements and gain LEA approval.Other Suppliers work with design source to ensure feasibility and cost efficiency.Complete 1st Supplier Engagement Visit.8 months for Major ProgramUN B3 Suppliers support M1 testing as agreed with LEAB3 Part CAD Update(cont.)B1,B2&D Suppliers work with Design Source(cont.)Update CAD to reflect AA1 SurfaceB3 UP Part FMEA and DV PlanUpdate CAD to reflect FC5 SurfaceB3 UP CAE and Virtual Verification27 months before LEA Job#11st Supplier Engagement VisitPage 37Ford ConfidentialCost CheckpointABSCost and Investment EstimateMarket Acceptance ClinicMarket EquationTLC Submission for ApprovalESA Negotiation and AgreementPTCPA8 months for Major ProgramSet Quality,Cost,Weight&Function Objectives and secure funding approval:Sign Supplier Commercial Agreements based on high confidence design maturity Conduct Market Acceptance Clinic and finalize Market Equation.Update Investment and Variable Cost and Finalize Affordable Business StructureComplete Final Program Agreements as required.Set Objectives-All Commercial Program Agreements(CPA)Signed27 months before LEA Job#1Page 38Ford ConfidentialProduction Release Preparation-FDJPAF
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