Ford's material planning and logistics engineers faced a challenge at the Livonia (Michigan) Transmission Plant. Cardboard fibers from overseas shipping containers were creating quality concerns in a plant that required a super-clean operation. An interim solution – repacking parts shipped in cardboard into reusable containers at a logistics supplier's plant – solved the immediate problem but was costly and inefficient.
The logistics team began a 6-Sigma project in cooperation with the Georgia Institute of Technology. This project was part of a unique Ford–Georgia Tech collaborative research program on sustainability and strategic decision making for product/process design and manufacturing operations. Georgia Tech completed a triple-bottom-line analysis, evaluating several options for shipping high-volume parts that mate four-wheel-drive capability to a vehicle's transmission. The analysis considered costs, ergonomics and a life cycle assessment using the ECO indicator 99 methodology, which helps to quantify environmental impacts such as wastes, emissions, energy use and raw materials. The results of the analysis helped the team to choose an innovative solution that met their design goals.
The team proposed to ship components from China to the Livonia plant in a specially designed polypropylene shipping container that would then be recycled into automotive components such as splash shields. The container design improved ergonomics by disassembling for easier unloading and improved part density by 25 percent, which translates to a 20 percent (projected) reduction in shipping costs. The first full production shipment of 4,800 transmission components using the new packaging system was safely received in May 2007. The corrugated plastic containers will be recycled via the secondary market into multiple vehicle components. The team hopes to eventually replace the conventional polypropylene with bioplastic.
- Cost improvement: 20 percent
- Environmental improvement: 7 percent
Based on Georgia Institute of Technology assessment
This project is part of a larger initiative to look at cradle-to-cradle logistics options. Other projects in collaboration with Georgia Tech and the University of Michigan include identifying additional components that could be shipped in this kind of packaging and designing that packaging.
