Quality-based Business Model for Determining Non-product Investment: A Case Study from a Ford Automotive Engine Plant
Engineering Management Journal
American Society for Engineering Management
Place of Publication
This article presents an innovative approach for determining non-product investment in the maintenance of manufacturing facilities using quality-based statistical principles. Degradation of process capability (Cpk) over time with respect to key part specifications is analyzed using a regression model to predict the need for investment. While the preferred approach is to track process capability at all stations in a production line, this becomes prohibitively expensive and impractical in many industries, including engine manufacturing plants. By modeling the trend in Cpk values from only the end of the production line, using subject matter experts (SMEs) when necessary, one can still identify production stations/areas of weakness in a manufacturing facility with reasonable effectiveness. We propose such a method to help plant managers prioritize their limited maintenance resources. The methodology is validated using a case study from an automotive engine plant of Ford Motor Company. It is being disseminated as a "best practice" to other manufacturing facilities at Ford.
automotive industry, non-product investment, business model, innovation
Civil and Environmental Engineering | Mechanical Engineering
Bimal Nepal, Ratna Babu Chinnam, John Petricya, Colin Chisolm, Eric Brush, Mark Hearn, and Michael Meixner (2007).
Quality-based Business Model for Determining Non-product Investment: A Case Study from a Ford Automotive Engine Plant. Engineering Management Journal.19 (3), 41-56. United States: American Society for Engineering Management.