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Ford Motor Company’s assembly plants build vehicles in a certain sequence. The planned sequence for the plant’s trim and final assembly area is developed centrally and is sent to the plant several days in advance. In this work we present the study of two cases where the plant changes the planned sequence to cope with production constraints. In one case, a plant pulls ahead two-tone orders that require two passes through the paint shop. This is further complicated by presence in the body shop area of a unidirectional rotating tool that allows efficient build of a sequence “A-B-C” but heavily penalizes a sequence “C-B-A”. The plant changes the original planned sequence in the body shop area to the one that satisfies both pull-ahead and rotating tool requirements. In the other case, a plant runs on lean inventories. Material consumption is tightly controlled down to the hour to match with planned material deliveries.

We describe an optimization model developed by Ford Motor Company to reallocate stamped parts between facilities when business conditions change. How can the business meet new targets when demand starts to exceed existing capacity? Likewise, how can it respond when demand is lower than expected? Sometimes the business can reduce costs by transferring production to a different location or by outsourcing parts. We describe in this paper how mathematical optimization can identify solutions that balance both logistical and outsourcing costs. We explain the algorithm and demonstrate with a small example how it recommends sourcing plans that minimize cost.