Knowledge (XXG)

Pay on production

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the equipment and facilities. The external equipment supplier is then paid a fixed price for every product item which is assembled or produced on their equipment. The general idea of PoP is similar to using a rented car. The car is always owned and maintained by the car rental company but used or driven by the customer. The customer pays the car rental company for using the car, e.g. per every driven kilometre. However, in the assembly line case the contract is not just for a few days, rather both partners plan to keep the agreement for as long as the product is produced on the equipment, though it can be terminated before this. It means PoP is not therefore so much a production system, more of a financial model.
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years old, is laid out in such a way that many new production developments just can't be introduced. For example, component suppliers can't deliver straight to the assembly line nor is there room for more flexible U-shaped assembly areas. Parts have to be delivered to a separate ‘supermarket’ type warehouse where kits of required parts are boxed and made up for use on the lines. For the Cologne factory the main assembly lines and some of the cells, for example where engines are fitted to the body, are owned and maintained by several equipment suppliers.
1058: 42:) doesn't invest in the production equipment for parts or components but instead procures these parts from a supplier who organises production on his equipment. An example from vehicle manufacturing might be the assembly of wheels and tyres. The OEM might decide not to invest in a wheel assembly line but instead obtain from a supplier or logistics service provider delivery of these items 401: 1068: 46:
as these are needed at the OEM's assembly line: sometimes five with steel rim followed by four with light-alloy rim and a compact spare tire and so on. This is a longstanding and common methodology where the production and supply of many items and services are outsourced to other providers, typically
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Most of the costs incurred by the OEM in PoP are variable costs such as labour and materials, though there is also in this case an additional variable cost for the equipment for every car produced. The fixed cost of the production equipment is borne the external equipment suppliers. For the OEM it
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Within the beginning of the 21st century, the Ford Motor Company's goal was to focus and concentrate on designing new cars. There were no surplus funds available for investment in the modern manufacturing equipment needed at the Cologne plant. Indeed, for the equipment suppliers their participation
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With PoP one important thing is different. The very equipment on which the OEM produces or assembles the final product, in the OEM factory, is supplied by, but still remains owned by, and is also maintained by, the equipment supplier. But it is still the OEM's personnel who assemble the products on
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companies, they are not always able to easily obtain sufficient investment capital, nor are they able to receive money from global financial markets. However the assembly lines and cells can't be sold or built without the supplier's permission and, most importantly, the equipment supplier, who has
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assembly line in 2002, and was soon recognised as the most productive in the world measured by working hours used to assemble a car. The new Fiesta was started on this line at 2008 and the high productivity remained (i.e. til 2010). This is despite the Cologne factory, because the buildings are 90
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Because the use of the practice by Ford in Cologne was so successful its use and adoption was tried at other Ford assembly plants. Perhaps not unsurprisingly, Ford has not been successful in their attempts to expand this Ford Cologne-based system elsewhere.
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In: Meier, Horst (Hrsg.): Dienstleistungsorientierte Geschäftsmodelle im Maschinen- und Anlagenbau : vom Basisangebot bis zum Betreibermodell. Berlin: Springer, 2004. -
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In: Meier, Horst (Ed.): Dienstleistungsorientierte Geschäftsmodelle im Maschinen- und Anlagenbau : vom Basisangebot bis zum Betreibermodell. Berlin: Springer, 2004. -
111:(continuous improvement process) both in the equipment maintenance and collaborative future line design improvements. CIP improvements in production stay with the OEM 91:
means that PoP allows it to run its own production, but without incurring the high fixed capital cost of the equipment, and of course this cost is absent from any
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to obtain better cost, quality and delivery performance than can be achieved in house, and also enable the OEM to better focus on core activities.
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Rechtin, Mark: Ford dumps pay-on-production plan : Tool suppliers balk at hefty expense. In: Automotive News (2002-09-30),
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Pay-on-Production-Modelle : ein neuer Weg zur Cashflow-basierten Finanzierung von Fertigungs- und Transportsystemen.
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For the equipment supplier bearing the equipment capital cost can often be a financial problem, because, where these are
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continuous contact with the lines and cells, is much closer to its customers so enabling ongoing
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balance sheet, not even included as a footnote, nor is it factor in assessment by financial
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Pay on Production : langfristige Partnerschaft mit Verantwortungstransfer.
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Pay on Production : langfristige Partnerschaft mit Verantwortungstransfer.
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Most build-operate-transfer systems work in a way that the final manufacturer (
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Berichte aus dem Weltwirtschaftlichen Colloquium der Universität Bremen
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Berichte aus dem Weltwirtschaftlichen Colloquium der Universität Bremen
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Ford Motor Co. 657:AutoAlliance International 598:Special Vehicle Operations 1052: 766:Getrag Ford Transmissions 397: 943:M-Sport World Rally Team 826:Michigan Central Station 593:Premier Automotive Group 224:, checked at 2010-01-29. 136:, checked at 2011-01-31. 987:Dodge v. Ford Motor Co. 820:Detroit Corktown campus 588:New Holland Agriculture 190:, checked at 2011-01-31 1093:Build–operate–transfer 71:History and Background 24:build-operate-transfer 911:William Clay Ford Jr. 665:AutoAlliance Thailand 914:(Executive Chairman) 603:Special Vehicle Team 428:Changan Ford (China) 831:Roosevelt Warehouse 199:Mast, Wolfgang F.: 150:Mast, Wolfgang F.: 22:(PoP) is a special 815:World Headquarters 742:Changan Ford Mazda 729:(Argentina/Brazil) 641:Joint ventures and 261:Ford Motor Company 56:Ford Motor Company 1080: 1079: 1039:Pay on production 801: 800: 636: 635: 561:Hertz Corporation 395: 394: 20:Pay on production 1100: 1070: 1069: 1060: 1059: 958:World Rally Team 923: 915: 907: 794: 786: 778: 770: 762: 754: 746: 738: 730: 722: 703: 699:Jiangling Motors 695: 687: 674: 661: 647: 413: 403: 388: 380: 372: 364: 356: 348: 340: 332: 324: 316: 274: 254: 247: 240: 231: 225: 218: 212: 197: 191: 176: 145:Betriebs Berater 83: 82: 78: 44:just in sequence 1108: 1107: 1103: 1102: 1101: 1099: 1098: 1097: 1083: 1082: 1081: 1076: 1048: 969: 931: 927:List of leaders 921: 913: 905: 879: 865:Proving grounds 807: 797: 792: 784: 776: 768: 760: 752: 744: 736: 728: 720: 706: 701: 693: 685: 672: 659: 642: 632: 571:Daimler Company 514: 510:Southern Africa 404: 391: 386: 378: 370: 362: 354: 346: 338: 330: 322: 314: 300: 269: 263: 258: 228: 219: 215: 198: 194: 177: 173: 169: 121: 97:rating agencies 84: 80: 76: 74: 73: 36: 17: 12: 11: 5: 1106: 1104: 1096: 1095: 1085: 1084: 1078: 1077: 1075: 1074: 1064: 1053: 1050: 1049: 1047: 1046: 1041: 1036: 1031: 1029:Kinetic Design 1026: 1021: 1018:Ford v Ferrari 1014: 1007: 1002: 997: 990: 983: 977: 975: 974:Related topics 971: 970: 968: 967: 966: 965: 955: 950: 945: 939: 937: 933: 932: 930: 929: 924: 916: 908: 900: 895: 889: 887: 881: 880: 878: 877: 872: 867: 862: 857: 856: 855: 845: 840: 835: 834: 833: 828: 817: 811: 809: 806:Facilities and 803: 802: 799: 798: 796: 795: 787: 785:(South Africa) 779: 771: 763: 755: 747: 739: 731: 723: 714: 712: 708: 707: 705: 704: 696: 688: 680: 675: 667: 662: 653: 651: 644: 638: 637: 634: 633: 631: 630: 625: 620: 615: 610: 605: 600: 595: 590: 585: 580: 575: 574: 573: 563: 558: 553: 548: 543: 541:Ford Aerospace 538: 533: 528: 522: 520: 516: 515: 513: 512: 507: 502: 497: 492: 491: 490: 488:United Kingdom 485: 480: 475: 470: 465: 455: 450: 445: 440: 435: 430: 425: 419: 417: 410: 406: 405: 398: 396: 393: 392: 390: 389: 381: 373: 365: 357: 349: 341: 333: 325: 317: 308: 306: 302: 301: 299: 298: 293: 292: 291: 280: 278: 271: 265: 264: 259: 257: 256: 249: 242: 234: 227: 226: 213: 192: 170: 168: 165: 164: 163: 162:p. 15-29. 148: 137: 120: 117: 72: 69: 35: 32: 16:Payment method 15: 13: 10: 9: 6: 4: 3: 2: 1105: 1094: 1091: 1090: 1088: 1073: 1065: 1063: 1055: 1054: 1051: 1045: 1042: 1040: 1037: 1035: 1032: 1030: 1027: 1025: 1022: 1020: 1019: 1015: 1013: 1012: 1011:The Ford Show 1008: 1006: 1003: 1001: 998: 996: 995: 991: 989: 988: 984: 982: 979: 978: 976: 972: 964: 961: 960: 959: 956: 954: 951: 949: 946: 944: 941: 940: 938: 934: 928: 925: 920: 917: 912: 909: 904: 901: 899: 896: 894: 891: 890: 888: 886: 882: 876: 873: 871: 870:Transmissions 868: 866: 863: 861: 858: 854: 851: 850: 849: 846: 844: 841: 839: 836: 832: 829: 827: 824: 823: 821: 818: 816: 813: 812: 810: 804: 791: 788: 783: 780: 775: 772: 767: 764: 759: 756: 751: 748: 743: 740: 735: 732: 727: 724: 719: 716: 715: 713: 709: 700: 697: 692: 689: 684: 681: 679: 676: 671: 668: 666: 663: 658: 655: 654: 652: 648: 645: 643:shareholdings 639: 629: 626: 624: 621: 619: 616: 614: 611: 609: 606: 604: 601: 599: 596: 594: 591: 589: 586: 584: 581: 579: 576: 572: 569: 568: 567: 564: 562: 559: 557: 554: 552: 549: 547: 544: 542: 539: 537: 534: 532: 529: 527: 524: 523: 521: 517: 511: 508: 506: 503: 501: 498: 496: 493: 489: 486: 484: 481: 479: 476: 474: 471: 469: 466: 464: 461: 460: 459: 456: 454: 451: 449: 446: 444: 441: 439: 436: 434: 431: 429: 426: 424: 421: 420: 418: 414: 411: 407: 402: 385: 382: 377: 374: 369: 366: 361: 358: 353: 350: 345: 342: 337: 334: 329: 326: 321: 318: 313: 310: 309: 307: 303: 297: 294: 290: 287: 286: 285: 282: 281: 279: 275: 272: 266: 262: 255: 250: 248: 243: 241: 236: 235: 232: 223: 217: 214: 210: 209:3-540-40816-9 206: 202: 196: 193: 189: 185: 181: 175: 172: 166: 161: 160:3-540-40816-9 157: 153: 149: 146: 142: 138: 135: 131: 127: 123: 122: 118: 116: 112: 110: 105: 100: 98: 94: 88: 79: 70: 68: 65: 61: 57: 52: 48: 45: 41: 33: 31: 29: 25: 21: 1038: 1016: 1009: 992: 985: 936:Racing teams 750:Ford Sollers 691:Ford Vietnam 670:Changan Ford 526:Aston Martin 409:Subsidiaries 305:Discontinued 216: 200: 195: 188:Online (PDF) 186:92(2004)11, 183: 179: 174: 151: 144: 140: 134:Online (PDF) 132:92(2004)11, 129: 125: 113: 101: 89: 85: 53: 49: 37: 19: 18: 948:Performance 898:Ford Family 822:properties 683:Ford Otosan 678:Ford Lio Ho 500:Philippines 495:New Zealand 355:(1938–2011) 320:Continental 211:. P. 15-29. 34:Description 1005:Ford Field 1000:Fordlândia 919:Jim Farley 903:Henry Ford 848:Motorcraft 758:Ford Union 726:AutoLatina 583:Land Rover 556:Ford Japan 551:Ford India 505:Quick Lane 268:Divisions/ 167:References 119:Literature 981:Big Three 906:(Founder) 893:Designers 860:Platforms 843:Factories 761:(Belarus) 438:Argentina 433:Australia 387:(1939–65) 379:(1946–61) 371:(1949–76) 363:(1985–89) 344:Frontenac 339:(1917–64) 331:(1956–59) 323:(1956–59) 315:(1960–61) 1087:Category 1062:Category 1034:New Edge 963:Munchi's 875:Vehicles 808:products 793:(Brazil) 777:(France) 753:(Russia) 578:Kwik-Fit 536:Cosworth 62:for the 1072:Commons 1024:History 953:Team RS 838:Engines 790:Troller 774:Matford 745:(China) 737:(49.9%) 718:Argo AI 650:Current 623:Visteon 618:Troller 531:Chariot 483:Romania 473:Ireland 468:Germany 416:Current 376:Monarch 352:Mercury 336:Fordson 296:Lincoln 277:Current 270:marques 93:US GAAP 60:Cologne 885:People 853:Mercon 782:Samcor 711:Former 566:Jaguar 519:Former 478:Italia 463:France 458:Europe 453:Credit 448:Canada 443:Brazil 384:Thames 368:Meteor 360:Merkur 347:(1960) 289:Raptor 222:Online 207:  158:  75:": --> 64:Fiesta 922:(CEO) 769:(50%) 721:(42%) 702:(32%) 694:(60%) 686:(41%) 673:(50%) 660:(50%) 628:Volvo 613:Th!nk 328:Edsel 312:Comet 608:Spin 284:Ford 205:ISBN 156:ISBN 143:In: 77:edit 546:FPV 109:CIP 104:SME 58:in 40:OEM 1089:: 253:e 246:t 239:v 81:]

Index

build-operate-transfer
original equipment manufacturer
OEM
just in sequence
Ford Motor Company
Cologne
Fiesta
US GAAP
rating agencies
SME
CIP
Online (PDF)
ISBN
3-540-40816-9
Online (PDF)
ISBN
3-540-40816-9
Online
v
t
e
Ford Motor Company
Ford
Raptor
Lincoln
Comet
Continental
Edsel
Fordson
Frontenac

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