ODETTE 2017 Ford Otosan
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Ford Otosan – MPL 4.0 Smart SupplyODETTE Chain 2017 Projects Recai Işıktaş – Logistics Manager RECAI ISIKTAS – LOGISTICS MANAGER AGENDA 2 Turkish Automotive Industry Ford Otosan Overview Ford Otosan MP&L 2016 Innovation Projects Packaging Test Center Smart Weighing System Ford Otosan Digital Vision Connected Supply Chain and RFID EUROPEAN & TURKISH AUTOMOTIVE INDUSTRY 3 Production Trend of Turkey (*Total Auto Industry) 24,000 8.0% 23,000 2009 Global 7.0% Crisis 22,000 6.0% 21,000 5.0% 20,000 4.0% 19,000 3.0% 18,000 2.0% 17,000 16,000 1.0% 15,000 0.0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 X 1000 Europe Turkish Production Share TURKISH AUTOMOTIVE INDUSTRY 4 FO Yeniköy 1,600,000 Turkey & Ford Otosan Production Plant opened in 30% 2009 2014 Global FO started to 1,400,000 Crisis export Transit Connect to US 25% 1,200,000 20% 1,000,000 2001 Crisis in FO Gölcük Turkey Plant 800,000 opened in 15% 2001 600,000 10% 400,000 5% 200,000 0 0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 OTHER FO RATIO 5 COMPANY PROFILE 6 Key Indicators 2016 Revenues $6.1 billion Export Revenues $3.8 billion EBITDA $519 million Ford Motor Co. Koç Group Profit Before Tax $321 million Ford Otosan 41% 41% Net Profit $317 million ROE 30.2% EBITDA margin 8.6% Free Float Annual Production Capacity 415,000 18% Gölcük (Transit & Custom) 290,000 Yeniköy (Courier) 110,000 Paid-in Capital: TL 350,910,000 İnönü (Cargo) 15,000 Total Employees 10,261 Blue Collar 7,561 White Collar 2,700 PLANTS AND FACILITIES 7 Industrial Center of Turkey: Marmara Region Gölcük Plant - 2001 Black Sea İstanbul PDC Yeniköy Plant - 2014 ●İstanbul ●Kocaeli Honda Hyundai Sea of Marmara Toyota Kocaeli Plant ●Sakarya İnönü Plant - 1982 ●Bursa Renault Tofaş-Fiat Inonu Plant Sancaktepe Parts Distribution Center- 1998 ●Eskisehir Sancaktepe Engineering Center- 2015 KEY PLAYER IN FORD MOTOR COMPANY 8 Robust sales Highest commercial vehicle market share of Ford in Europe Güçlü satış Among Ford’s top 5 markets in Europe (Britain, Ireland, performanceperformansı Hungary, Turkey, Finland) Lead manufacturing plant of Ford Transit globally Leading Single source of Ford Transit Custom & Tourneo Custom manufacturing En büyük ticari araç Single source of Ford Transit Courier & Tourneo Courier hub üretim merkezi One of the two production centers globally for Ford Cargo heavy trucks Global hub for Cargo heavy trucks and related powertrains Engineering and Ar-Ge ve Global support for Light Commercial Vehicle Development mühendislikR&D power gücü Global support for Diesel Powertrain Engineering FORD OTOSAN AT A GLANCE 9 First Turkish passenger car Anadol (1966) Pioneer of Turkish Turkey’s first domestic diesel engine Erk (1986) automotive Turkey’s first private R&D center in automotive (1961) First export of Turkish automotive to the US (2009) Strong value Turkey’s export leader nd contribution Turkey’s 2 largest industrial enterprise Highest employment in Turkish automotive Market leader in Turkish commercial vehicle industry with 30% Leadership Liderlik veand ölçek share avantajlarıscale Widest product range in Turkish automotive Highest installed production capacity in Turkish automotive 22% of Turkey’s total 62% of Turkey’s total 65% of Turkey’s total automotive production commercial vehicle production commercial vehicle exports PRODUCTS, CAPACITY AND PRODUCTION 10 Production at 2014 Production at 2015 Production at 2016 Production Plan of 2017 244.000 units 334.000 units 333.000 units 359.000 units TURKEY’S EXPORT CHAMPION 11 Export breakdown (units) Turkey’s CV exports Germany 18% Ford Otosan UK 31% 65% W. Europe 13% 2016 2016 E. Europe 9% Other 5% France 8% Belgium 3% Italy 7% Spain 6% FORD IS EUROPE’S BEST-SELLING CV BRAND 12 Ford’s European CV Market Share #1 #1 #3 #1 #6 #7 #7 12.6% 13.2% 14.0% 10.0% 11.5% 8.6% 8.5% 2011 2012 2013 2014 2015 2016 2017 Jan YoY growth Ford Otosan’s share in in Ford’s CV sales Ford Europe’s Transit Sales 13 FORD OTOSAN’S 2016 MP&L INNOVATION PROJECTS PACKAGING TEST CENTER SMART WEIGHING SYSTEM 1) PACKAGING TEST CENTER 14 1) PACKAGING TEST CENTER- SAMPLE PACKAGING TEST 15 Vibration and Road Simulation Tests This test method is used for determining the ability of packaging to withstand the vibration during transport and the dynamic compression forces resulting from stacking in the vehicle. Data could be collected from desired road profile according to customer usage conditions and simulated on equipment. 1) PACKAGING TEST CENTER- SAMPLE PACKAGING TEST 16 Compression Test This test method is used for determining the ability of packaging to withstand the damages occurring during handlings. It also gives the results about the packaging strength and loading capacities. Wooden Pallet Compression Test Carton Box Compression Test 1) PACKAGING TEST CENTER- SAMPLE PACKAGING TEST 17 Enviromental Conditional Simulation Test This test method is used for determining the ability of packaging to withstand under specific enviromental condition such as extreme temperature, humidity, sun effect etc. Wooden Pallet Enviromental Conditioning Carton Box Enviromental Conditioning 1) PACKAGING TEST CENTER- SAMPLE PACKAGING TEST 18 Drop Test This test method is used for determining the ability of packaging to withstand impacts caused by dropping or throwing. 1) PACKAGING TEST CENTER 19 Advantages of Packaging Testing . Validation processes of features identified by specifications, global regulations and contracts . Design validation and design development processes in packaging development . Data input for meeting Safety and Quality standards . Addressing the issues occur during transportation . Identify cost reduction oppurtunities for packaging products 20 2) SMART WEIGHING SYSTEM 21 Where in Use? Smart Weighing System implemented at Ford Otosan Part Export Distribution Center where we consolidate parts from 132 different Turkish suppliers and ship them to Ford North America, Ford Sollers Russia , Ford South America, JMC China. Purpose of the Project Safety of Life at Sea (SOLAS) Secure Supply Chain & C--TPAT (Customs-Trade Partnership Against Terrorism) Prevent quantity claims (missing, wrong or more part shipments) Customer Satisfaction Daily 950 shipping unit controlled with Smart Weighing System 2) SMART WEIGHING SYSTEM 22 Weight Barcode Label • Part packaging info • Part weight info • Packaging weight info Label Reading Process with RF System OK NOK • Part no (Master Label) • Customer code (Master Label) • Quantity (Master Label) • Weight Barcode Label OPTIMIZATION QUARANTINE 23 FORD OTOSAN’S DIGITAL VISION DIGITAL VISION LINKED TO FORD OTOSAN STRATEGIES Ford Otosan Strategic Vision Be the most preferred company by aiming at for perfection in human resources processes and People so deliver an ideal working environment for all people Be the most preferred brand across a Brand full line of products by meeting the needs and expectations of customers Be the number one automotive brand in Customer customer satisfaction for sales and after-sales products Provide innovative products and Innovation services by keeping creativity at a high level across the business Grow organically and inorganically by developing new products and new Growth markets DIGITAL VISION FOR 2020+ Ford Otosan Digital Vision Connected Ford Otosan uses big data analytics Dealerships are fully digitized Customer/Dealer to understand customer needs and with digital sales tools and direct offer customized products link to the Otosan CRM Brand Forecasting All data and knowledge is is based on big data analytics centrally available and leveraged with analytics capabilities Customer Connected Vehicle Ford Otosan is running the largest fleet of connected trucks in Turkey with profitable fast growing business providing services to truck owners and ecosystem partners Growth Ford Otosan captures new development contracts from Ford and externals because of high efficient in its PD organization Ford Otosan gets awarded additional manufacturing contracts from Ford Connected Innovation due to the high manufacturing efficiency driven by data-based efficiency Manufacturing and quality programs and automation Connected There is automated real-time end-2-end data flow along the supply chain People Supply Chain Connected Ford Otosan has established a “Digital workspace” with employees working Employee and in innovative offices, remotely from home or mobile, supported by digital tools Organization CONNECTED SUPPLY CHAIN CONNECTED SUPPLY CHAIN 1A ) SUPPLIER STOCK AND PRODUCTION PLAN TRANSPARENCY 28 Goal; to build a cloud platform to integrate the systems of both suppliers’ and Ford Otosan’s stock level and production plan. Ford Otosan CMMS Stock PVS Extend the digitalization to suppliers Decrease the production loss based Real Time Planning and Intransit Shipment Traceability on the supplier Carrier Carrier Stock Real time planning & shipment, backlog and critical parts tracking. Increase the flexibilty : Reaction time Supplier descrease Stock Operational time saving (SCM, Logistic, Supplier PP team) Supplier Integration with Vehicle Tracking System CONNECTED SUPPLY CHAıN 1B) INBOUND LOGISTICS VEHICLE TRACKING AND MANAGEMENT 30 Systematical follow up GPS Rapid and insant information Position Info Traceability Control/ GPS Early warning Check Time Secure Supply Chain Points Info Vehicle Tracking System ASN Maps Content Time Loading Window Plan CONNECTED SUPPLY CHAıN 1C&D) REAL TIME STOCK MANAGEMENT & TRACKING OF CONTAINERS32 Racks with RFID Tag Forks with RFID Antenna CONNECTED SUPPLY CHAıN 1E) JIS DELIVERY 34 Current Material Flow (non sequenced) Ford Otosan Supplier Network • Short term program fluctuations • Higher inventory level at plant and suppliers • Inefficient stock areas Ford Otosan Assembly Line Sequencing Material Flow • 3 days production sequence fixed • Lower inventory level at plants X • More efficient stock areas Ford Otosan Assembly Line • 3 days production sequence fixed • Lower inventory level at plants • More efficient storage areas Thank You... “The one who manages Logistics better will be one step ahead of the other.” .