Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor — Barclays Global Automotive Conference (November 2018)
21 slides from Ford Mtr Co Del's conference presentation, Nov 14, 2018
Slide 1: Barclays Global Automotive Conference
Barclays Global Automotive Conference Joe Hinrichs Executive Vice President and President, Global Operations, Ford Motor Company
Slide 2: Creating Tomorrow, Together
Creating Tomorrow, Together Our Belief Freedom of movement drives human progress. Our To become the world’s most trusted company, Aspiration designing smart vehicles for a smart world. Passion for Product & Deep Customer Insight Our Plan Winning Propulsion Autonomous Mobility Portfolio Choices Techn
Slide 3: Creating Tomorrow, Together
Creating Tomorrow, Together Our Belief Freedom of movement drives human progress. Our To become the world’s most trusted company, Aspiration designing smart vehicles for a smart world. Passion for Product & Deep Customer Insight Our Plan Winning Propulsion Autonomous Mobility Portfolio Choices Techn
Slide 4: Fitness Redesign Core Initiatives
Fitness Redesign Core Initiatives Customer Speed & Efficiency Simplicity Accountability Centricity Agility Blueprint-enabled Product-driven IT Advertising & sales Hours Per Unit Next-generation Complexity demand org. living the promotion Job #1 = Job Last manufacturing governance management desired
Slide 5: Complexity Management Key Highlights
Complexity Management Key Highlights Optimization Managing vehicle complexity – starting in North America – to protect revenue and more intelligently manage volumes Mission: Playbook Manage Playbook established to sustainably manage complexity complexity, maximize Company-wide application value Road
Slide 6: Profit Maximizing Choices – 2020 Explorer
Profit Maximizing Choices – 2020 Explorer Assessed Profit Vs. The “Cost To Serve” Sufficient Sales Volume Insufficient Sales Volume Vehicle Production Allocated To Most Profitable Markets 6
Slide 7: Standardizing Content And Colors Resulted In Deletion Of Over 100 Exterior Mirrors On 2020 MY Explorer
Standardizing Content And Colors Resulted In Deletion Of Over 100 Exterior Mirrors On 2020 MY Explorer Two actions taken to reduce complexity: Standardized Blind Spot Monitoring 2018 MY 139 mirrors Feature across all trims as part of Ford corporate Co-Pilot 360 offering 114 2018 MY PARTS DELETED Col
Slide 8: Enterprise-wide Benefits
Enterprise-wide Benefits Benefits Examples Faster Customer 2019 Fusion CUSTOMER ORDER TO DELIVERY TIME Order to Delivery REDUCED BY 63% Times Louisville Assembly Plant to build 2020 Escape in batches of Batch Building 60 units enabling LABOR COST AND PART SEQUENCING REDUCTIONS OF $70 / UNIT Engineer
Slide 9: Capital Equipment Reuse Key Highlights
Capital Equipment Reuse Key Highlights Forward model program savings Reuse targets jointly developed by Product Development and Manufacturing for future programs Mission: Flexible architecture Product Development / Manufacturing collaborating on Leverage flexible architecture initiatives to increase
Slide 10: Manufacturing CapEx Reuse Process Delivers Results
Manufacturing CapEx Reuse Process Delivers Results KEY ENABLER EXAMPLES A BILL OF PROCESS B • Adhere to common assembly sequence C • Use carry-over build sequence HARDPOINTS • Maintain facility and equipment hardpoints • Dimension containment LOCATORS / ATTACHMENT STRATEGY • Adhere to carry-over loc
Slide 11: Aggressive Reuse Targets Scaled By Program Type; Metrics Aligned With Financials
Aggressive Reuse Targets Scaled By Program Type; Metrics Aligned With Financials And Tracked Through Launch Reuse Target Level of Program Change Facility & Equipment Tooling Part Racks Minor Vehicle Freshening 100% 80% 90% Major Platform Change 70% 30% 30% 11
Slide 12: Yield Management Key Highlights
Yield Management Key Highlights Yield Management Right VEHICLE, to the right PLACE, for the right CUSTOMER, at the right TIME, at the right PRICE Mission: Incentives Data-driven process to Targeted discounts where they are most effective optimize revenue and content on Allocation and Mix every vehic
Slide 13: Yield Management Allows Us To Better Capture Pockets Of Value
Yield Management Allows Us To Better Capture Pockets Of Value Average contribution High profitability High profitability margin Fast turnover Slow turnover Increase volume 1 and / or take price Where and what do we want to sell? Investigate variable Re-allocate capacity 2 marketing spend 3 if constr
Slide 14: Yield Management Generates Insights By Taking Data Beyond Averages
Yield Management Generates Insights By Taking Data Beyond Averages… Higher Average days to turn Decisions driven by averages results in Average contribution margin one-size-fits-all approaches to go-to-market Inefficient and ineffective Average contribution margin per vehicle Lower Faster Slower Ave
Slide 15: And Leverages Granularity To Uncover Targeted Opportunities
… And Leverages Granularity To Uncover Targeted Opportunities High profitability High profitability Fast turnover Slow turnover Average contribution margin Average contribution Total margin per vehicle Using analytics to “de-average” the data, unlocking insights and enabling us to act with precision
Slide 16: Yield Management In Practice
Yield Management In Practice Higher Over-performing units that have Less demand and pricing power; margin within a increase mix series; reduce mix and allocation Average contribution margin In-demand but lower Faster selling and margin units; higher margin units opportunity to within a series; reduc
Slide 17: Yield Management Framework
Yield Management Framework Overall YIELD MANAGEMENT STRATEGY strategy Leveraging data to become more granular and efficient in how we go to market ALLOCATION / MIX PRICING CONSUMER DEALER INCENTIVES ALIGNMENT Activation Get the right vehicle Optimize list pricing Efficiently deploy incentives Align
Slide 18: Yield Management Ensures Variable Marketing Dollars Work The Hardest
Yield Management Ensures Variable Marketing Dollars Work The Hardest • Bottom-up actions require empowered teams to take “smart risks” to deliver targeted, focused programs DEFENSE • Leverage yield management to achieve Fitness savings targets without impacting volume Tool To • Selectively reduce va
Slide 19: Creating Tomorrow, Together: Benefits of Fitness
Creating Tomorrow, Together Benefits of Fitness Our Freedom of movement drives human progress. Belief • Dramatic improvements in how we design, build and go to Our To become the world’s most trusted company, Aspiration designing smart vehicles for a smart world. market Our Plan for Passion for Produ
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Slide 21: Cautionary Note On Forward-Looking Statements
Cautionary Note On Forward-Looking Statements Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptio
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