Materials Management Tools

To manage materials across the vehicle life-cycle, Ford has developed a comprehensive set of processes and system tools called Global Materials Management. These processes and tools assist us in communicating materials requirements to suppliers, and in tracking the materials they use in the parts they manufacture. These tools include the Global Material Approval Process (GMAP), which handles all materials processed in Ford's plants; Global Material Integration and Reporting (GMIR), a materials tracking tool for our engineers and suppliers; and the International Material Data System (IMDS), a reporting system used by multiple automakers.

The IMDS was developed by seven auto manufacturers in 1997 to handle the tracking, review and reporting of all vehicle components and service parts from all suppliers. The IMDS, which now has 24 automotive companies as official members, is a Web-based system used internationally by suppliers to report on the substances and materials contained in parts for our vehicles. Ford has cooperated with other automakers to align reporting requirements for restricted substances and analyze the data provided. This helps us to identify substances and materials of concern and target them for elimination.

To further help our suppliers manage their materials and substance data, Ford developed and launched GMIR. Through the GMIR Supplier Portal, Ford lists all the parts that require reporting and suppliers post the materials they use and their certification status. Thus the system allows every supplier to monitor its reporting status and understand which parts are required to be reported. This two-way communication helps clarify a very complex materials management task and saves time and money for Ford and its suppliers. Thanks largely to the GMIR Supplier Portal, in 2008, Ford gathered more materials data from its suppliers than any other automaker. Ford uses the information obtained through GMIR to populate the IMDS. Ford vehicle programs reached an average of 91 percent of parts reported in IMDS in 2008. Based on the data reported, Ford was able to certify that all affected vehicles meet end-of-life directives in the EU and Japan.

For nondimensional materials (such as paint and adhesive) that are directly shipped to Ford plants, Ford launched GMAP – another electronic tool aimed at simplifying the global materials approval process. The GMAP process allows suppliers to use electronic transactions to submit their Material Safety Data Sheets and composition data. Internally, Ford approvers communicate their decisions of approval or rejection electronically. This new process saves time and ensures better-quality data for complying with government regulations and Ford policies.

In addition, Ford has developed systems to track and manage the use of chemicals in response to the REACH chemicals management legislation implemented by the European Union in 2007. REACH stands for Registration, Evaluation, Authorisation and Restriction of Chemical substances. The goal of the REACH legislation is to improve the protection of human health and the environment through better and earlier identification of the intrinsic properties of chemical substances. All manufacturers operating in Europe must provide information on the properties and safe handling of their chemical substances to a central database in Helsinki. In addition, the legislation calls for the progressive substitution of the most dangerous chemicals, once suitable alternatives have been identified. REACH provisions will be phased in over 11 years.

Ford has made great progress in complying with REACH. For example, we created a REACH manager position and formed a REACH task force to manage relevant activities, including conducting REACH inventory studies and generating all required reports for customers and consumers. Based on these studies, we have pre-registered 16 required substances from our own operations in the REACH database. We have also worked extensively with our suppliers to ensure their compliance with REACH thus far. Ford's existing Global Materials Management system will make it much easier for our suppliers to comply with these requirements. In addition, we ensured that all of the substances identified by the REACH legislation as "Substances of Very High Concern" are included in our own Restricted Substances Management Standard. This ensures appropriate reporting from our suppliers. As a result, Ford has the highest supplier response rate in the auto industry; all REACH-affected suppliers have committed to following REACH requirements through Ford's Global Materials Management system.