Optimizing Product Creation Across The Ford Enterprise. Nancy Gioia Ford Motor Company

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Optimizing Product Creation Across The Ford Enterprise Nancy Gioia Ford Motor Company

Agenda Brief Overview of Ford Motor Company Automotive Industry Trends Aligning Process, Tools and Technology Summary

Ford Motor Company Highlights Global Automotive Company Manufacture and Distribute Automobiles in 200 Markets Across Six Continents Employ more than 327,000 People Worldwide Company Consists of Eight Core and Affiliated Automotive Brands Automotive Core and Affiliate Brands Premier Automotive Group

Our Products

Automotive Industry Trends

Industry Trends Cost Pressures COST PRESSURES FROM EXCESS CAPACITY AND INTENSE COMPETITION HAS RESULTED IN REAL NET PRICING (AT CONSTANT CONTENT) TRENDING DOWNWARDS 120 110 U.S. Index of Net Industry Pricing Adjusted for Overall Inflation 100 1982 = 100 90 80 Real prices for constant contented vehicles: Fell less than 1% per year through 1998 and Has fallen 3% per year during the last 4 years 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 Source: U.S. Department of Commerce, Bureau of Economic Analysis & U.S. Department of Labor, Bureau of Labor Statistics

Industry Trends Initial Quality Historical Trend J.D. POWER INITIAL QUALITY STUDY 200 150 176 167 154 147 133 133 119 PP100 100 50 0 1998 1999 2000 2001 2002 2003 2004 Industry Average

Industry Trends Industry Level Total TGW/1000 and % High Satisfaction with Overall Vehicle Quality Total TGW/1000 4000 3500 3000 2500 2000 % High Satisfaction with Overall Vehicle Quality Total TGW/1000 78 76 74 72 70 68 % High Satisfaction with Overall Vehicle Quality 1500 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 66 Model Year

Industry Trends 20 Consumer Reports Number of Recommended Models 15 10 5 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 OEM1 OEM1 OEM2 Domestic OEM s Asian1 Asian2 Asian3 Asian4 Asian5 Asian OEM s

Industry Trends 55 50 Consumer Reports Number of Recommended Models 45 40 Domestic OEM s 35 30 25 20 Asian OEM s 15 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Industry Trends USA Market Light Vehicle Offerings The Atomization of the U.S. Light Vehicle Market USA Light Vehicle Offerings 300 250 200 150 100 50 249 208 198 198 181 151 136 119 93 72 39 53 0 33 274 1947 1950 1953 1956 1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 Number of Nameplates

Industry Trends

Automotive Market Fundamentals Deliver more Product.at Less Cost.with Increased Customer Valued Content.with Greater Levels of Product Quality.with Increased Profit Margins.Achieved at Less Volumes Per Nameplate.in Less Time.In a Market of Rapidly Expanding Nameplates and Product Offerings

Aligning Process, Tools and Technology

Lean Product Creation Principles Understand & Deliver Customer Defined Value Front-Load Cross Functional Solutions Create Levelled Flow and Eliminate Waste Leverage Re-use and Commonality Develop & Reward Technical Excellence Practice Go-to-the-Source Engineering Build In Learning & Continuous Improvement Integrate Suppliers into the Enterprise Align Tools and Technologies with the Process

Align Tools and Technologies with the Process CAD / CAM / CAE and PLM (C3P) are a Key Set of Methods and Tools in Our Product Creation Portfolio C3P-Next Generation (C3P-NG) is: Process-Driven Methods and Tools to Enable our Product Creation Process, resulting in: Reduction of Overall Product Development Cycle Time Increased Productivity within and Across Vehicle Systems and Functional Organizations Improved Accessibility and Integration of the Total Digital Vehicle (Product, Process, Resource) within Ford, Across our Global Brands, and Supply Base Common Product Life Cycle Management, Including CAD / CAM / CAE / PIM Methods / Tools Across the Global Brands

C3P- Next Generation Overview Service Theme Development Package Development Plant / Assembly Digital Product / Process CAx Product Structure Digital BOM / BOP Product Engineering Product / Process Simulation Functional Simulation Virtual Build Supplier Integration

Integrated Process, Methods and Tools Enabling Process Efficiency C3P-Next Generation Enablers Integrated Product / Process Development PG1 Global Product Creation Process Template Based Vehicle Architectures Cascading through Systems and Components CAD Market Share Top 30 Automotive OEMs by Production General Motors Toyota Motor Corp Ford Motor Co Volkswagen DaimlerChrysler PSA/Peugeot-Citroen Hyundai Group Honda Motor Nissan Motor Co Pro-E VS0 VS1 VS2 VS3 VS4 Renault VS5 SA VS6 Virtual Series Development /Cadds FIAT SpA Euclid 4% Suzuki Motor Co 2% Other PG2 PG7 PG8 PG9 PG10 Mitsubishi Motors Corp 5% BMW UG PG3 Mazda Motor Corp 14% SAIC PG4 First Auto Works AutoVaz PG5 Fuji Heavy Industries PG6 Ltd Ideas Isuzu Motors Ltd 17% RYO Donfeng 12% GM Daewoo Automotive Tech. Program XX0 TATA Motors Ltd AutoGaz Mitsubishi Fuso T&B Corp Proton Program XX1 SsangYong Motor Co. Ltd Volvo Truck Corp MG Rover Group Mahindra & Mahindra Paccar DAF Program XX2 Program XX3 Navistar International Corp 0 0.5 1 Program 2 XXX 3 4 5 6 7 8 Product Creation Process Target Enabler Implementation 23 of the Top 30 Automotive OEMs rely on IBM/DS for their PLM Millions units (2003 production) CATIA 46% Business Process Impact Cycle Time Reduction Reduction in Investment Costs Reduction in Tooling Times and Changes Increased Intra and Inter Program Commonality Cross Business Group Process and Methods Convergence

Aligning Process, People and Virtual Product Creation Deliverables Product Development Process (FPDS) Milestones Sample Platform / Thematic Engineering Final Product/Process Engineering Confirmation Build Production Execution Program Level Level Deliverables And And Gateway Criteria Program Level Level Deliverables And And Gateway Criteria Program Level Level Deliverables And And Gateway Criteria Program Level Level Deliverables And And Gateway Criteria Geometric Creation / Verification Phase Discipline Authoring / Owning Organization Geometry / Data / Test Geometry / Data / Test Verification Deliverables Geometry / Data / Test Geometry / Data / Test Geometry / Data / Test Geometry / Data / Test Geometry / Data / Test 100 % 0 % Virtual Delivery and Verification Framework Verification Requirement

Aligning Process, People and Virtual Product Creation Deliverables Sample Platform / Thematic Engineering Final Product/Process Engineering Confirmation Build Production Execution V1 V2 V3 V4 V5 Vn Virtual Delivery Roadmap Quantifiable Geometric Delivery / Verification Schedule Virtual Delivery Roadmap Quantifiable Geometric Delivery / Verification Schedule Virtual Creation and Verification Work Plan (Deliverables, Timing and Verification Criteria) Organizational Interaction and Delivery Model Process / Tools and Methods Publication Review Process and Cadence

Aligning Process, People and Virtual Product Creation Deliverables Chassis Example PRE <KO> 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 KO SI SC PH PA ST PT PR CP PPE B B B D&R/ BUILD F CSI A C E G C VD CAE CAD D D L P E M F G S L P S F L PT S T A C E U G Process Example M M W Digital Chassis Development D U W X STRUCTURAL CAE J J J NVH CAE K R K K R R RL & DURAB CAE H N H H N NV V A PROGRAM INITIATION G REFINED HARDPOINTS, FRT & REAR SUSP. MODELS P AP0 BUILD B CONCEPT PLATFORM SELECTED H STATISICAL LOAD GENERATION FOR STRESS ANALYSIS (RIGID BODY) R NVH DESIGN TARGETS FOR KEY SYSTEMS C PRELIMINARY VEH. DESIGN SPEC. J CAE RECOMMENDATIONS TO SUPPORT TARGETS S AP1 DESIGN FREEZE D CHASSIS PACKAGE LAYOUTS K NVH ANALYSIS FOR VEHICLE AND SYSTEM TARGETS T AP1 BUILD E F DETAILED PLATFORM RECOMMENDATIONS AP0 DESIGN KICKOFF L M AP0 DESIGN FREEZE VEHICLE & SYSTEM LEVEL TARGET / CROSS-ATTRIBUTE CAE ANALYSIS RESULTS U V ADAMS MODELS CORRELATED TO ACTUAL VEH. TEST PERFORMANCE EMPIRICAL DATA PUBLISHED TO CORL N ANALYTICAL ROAD LOAD PREDICTIONS (FLEXIBLE BODIES) W X CORRELATED FULL VEH. ADAMS MODEL CP LONG LEAD DESIGN FREEZE

Yellow = input variable Include/exclude from DM Decision Map Red = output Decision Variable Map with some Limit Blue = output variable Yellow = input variable Include/exclude from DM Red = output Variable with some Limit Blue = output variable Aligning Process, People and Virtual Product Creation Deliverables Chassis Example PRE <KO> 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 KO SI SC PH PA ST PT PR CP PPE B B B Methods and Tools Integration D&R/ BUILD CSI A C E G C E G A C E G Catia V5 VD CAE M M Standalone Embedded CAD D D D Analysis Engineering Tools Tools Class Class A Surface A Surface (ICEM, ALIAS) STRUCTURAL CAE Teamcenter J J J Various Tools NVH CAE K R K K RL & DURAB H CAE H N H N A B C D E F F L P F Template Based PROGRAM INITIATION G REFINED HARDPOINTS, FRT & REAR Construction Models SUSP. MODELS Models (IDEAS, ADAMS Pre) STATISICAL LOAD GENERATION FOR STRESS CONCEPT PLATFORM Key Points Stage SELECTED 1 H ANALYSIS (RIGID BODY) PRELIMINARY Numerous VEH. Integrated DESIGN SPEC. Data Data Repositories J CAE RECOMMENDATIONS TO SUPPORT TARGETS Data Stored in Multiple Formats CHASSIS PACKAGE Embedded LAYOUTS Functional K NVH ANALYSIS FOR VEHICLE AND SYSTEM Architecture TARGETS Data Asynchronous Architecture Development DETAILED PLATFORM Simulation L AP0 DESIGN FREEZE Development RECOMMENDATIONS No Association or Collaboration Handling VEHICLE & SYSTEM LEVEL TARGET / CROSS-ATTRIBUTE AP0 DESIGN KICKOFF M CAE ANALYSIS RESULTS N S F L LPT Integrated Process, Technology, and and People Ride Packaging M NV ANALYTICAL ROAD LOAD PREDICTIONS (FLEXIBLE BODIES) Associative Body Associative Body Modeling Modeling P S Package 3D Package R R (IDEAS, PDGS) CATIA C3PNG S U Data Collectors W T U TCe TDMs Hardpoints Properties V P R S T U V W X W Metaphase X Chassis System Integration Chassis System Integration AP0 BUILD Vehicle Dynamics Vehicle Dynamics ADAMS/Chassis ADAMS/Chassis (ADAMS Pre) (ADAMS Pre) NVH DESIGN TARGETS FOR KEY SYSTEMS Road Loads Road Loads AP1 DESIGN FREEZE AP1 BUILD MSC.Nastran ADAMS MODELS CORRELATED MSC.Nastran TO ACTUAL VEH. TEST PERFORMANCE Part Sizing Part Sizing EMPIRICAL DATA PUBLISHED TO CORL CORRELATED FULL VEH. ADAMS/Insight ADAMS MODEL CP LONG LEAD DESIGN FREEZE Robust Design Robust Design ADAMS/Chassis ADAMS/Chassis MSC.Nastran MSC.Nastran ADAMS/Chassis MSC.Nastran MSC.Nastran ADAMS/Insight ADAMS/Chassis

Yellow = input variable Include/exclude from DM Decision Map Red = output Variable with some Limit Blue = output variable Aligning Process, People and Virtual Product Creation Deliverables Chassis Example Central Hardpoints and Parameters Management Drives Drives CAD CAD Design Design Templates Catia V5 Embedded Engineering Tools Teamcenter Class A Surface 3D Package Template Based Construction Models TCe Hardpoints Properties Chassis System Integration Vehicle Dynamics ADAMS/Chassis (ADAMS Pre) Drives Drives Analysis Templates ADAMS/Chassis MSC.Nastran ADAMS/Chassis MSC.Nastran Integrated Data Embedded Functional Simulation Handling Ride Packaging CATIA C3PNG Architecture Development Associative Body Modeling In In Context Simulation Robust Design Road Loads Part Sizing MSC.Nastran ADAMS/Insight ADAMS/Chassis (ADAMS Pre)

Aligning Process, People and Virtual Product Creation Deliverables Chassis Example STEP 2 STEP 3 STEP 4 STEP 1 Integrated Data End State Process Driven Integrated Virtual Chassis Development Imbedded Functional Analysis

Summary Intense Competition in the Automate Industry will Continue Common Vehicle Architectures, Processes, Coupled with Reuse are Essential to Achieve Speed, Quality and Cost Objectives People, Process and Technology must be Integrated to Maximize Product Creation Efficiency Execute Flawlessly Process Driven Methods must Deliver the Product and Process Geometry to a Verification Cadence Required to Eliminate Physical Prototypes and Tools

Great Products More Products Faster

Thank You