Ford's CEO Jim Farley Transforms EV Production with Gemba Method
Ford's CEO Jim Farley is transforming the company's production processes for electric vehicles (EVs). He uses a practical management approach, Gemba, learned from his time at Toyota, to make informed decisions and save costs. A recent comparison of the Mustang Mach-E and Tesla's Model 3 has highlighted the potential of this method.
Farley's Gemba walks involve personally inspecting production processes. A recent inspection revealed that the wiring harness for the Mach-E is 70 pounds heavier and $200 more expensive than the Model 3's. This discovery led Farley to change long-standing processes, even if it caused some disruption among employees.
Ford is reinventing its production methods for the EV era. Farley's approach is inspired by competitors like Tesla and BYD. He aims to simplify construction, as seen in the Model 3, which uses a third of the fasteners found in the Mach-E. This simplification not only reduces costs but also makes the vehicles more cost-effective and easier to maintain.
Ford's adoption of Gemba under Jim Farley's leadership is driving change in the company's production processes. By learning from competitors and personally inspecting production, Farley is prioritizing the future of the company over personal interests. The goal is to create more cost-effective and efficient electric vehicles, as demonstrated by the comparison with the Tesla Model 3.
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