First you identify the probability of a bad event, then you identify the potential losses and mitigation strategies. Then you compare the potential loss against the cost of different mitigation options compared with probability.
E.g. If you have one supplier the probability of a disaster is a lot higher than if have two or more and the impact is greater. But if the worst case scenario (we used to call it “smoking hole” as in there is nothing left of the data center but a smoking hole in the ground) means you lose X profits for 6 months then that’s what you compare to the cost of having multiple suppliers. I’m sure the suppliers have given Ford their smoking hole recovery plans. The added risk is if the recovery estimates are wrong and instead of 6 months it takes 18 months.
Sometimes it’s worth the risk depending on how much can be saved, even though it looks terrible while it’s happening. Similar to me and extended warranties. I don’t buy them and I’m probably $15K ahead over the last 10 vehicles. Even if I had to spend $8K tomorrow I’m still $7k ahead, but most people would freak out that they had to pay $8K out of pocket even if they’re saving money overall.
Indeed, would love to hear your thoughts on risk management for this issue.
it’s like the chassis supply issue a few years ago, it’s not always possible/desirable to have a second supplier - that’s the cost of threat mitigation.
Also like having extra production plants than needed- keeps union threats in check.
Loads of examples where Ford takes immediate savings and hopes for no problems….
On aluminium supply,
No doubt that Ford is working with its supplier to do whatever it needs to get alternate supply of aluminium until the plant resumes production. Will be interesting if this is total loss or partial supply.
could also be a great opportunity to work down inventory provided that the stock matches what customers want.
Going into winter, SD fleet sales become more important, so watching thst too.
They're not moving SD production to Canada, they are just adding more capacity. Right? It would allow Ford to sell Super Duty's in Canada tariff free and export to other countries that aren't wanting to work with the US.
Let’s see what the real impact is. We know there is mitigation and it’s possible they saved more the last 10 years than they lose over the next 6 months. Even though you’re right about Ford’s general risk management decisions.
AK
Thanks for prompt response. I will give it a shot at dealer as truck driven daily and this condition -no dash or interior lights on door opening has been an on/off thing for probably 2 months...only in last 2 opr 3 weeks has it been continual. And ordered the Solar on Ebay..61 bucks due Monday!
Ok, to loop this back to the topic, Ford chose to go with aluminum bodies on F Trucks more than
ten years ago but the big issue was the vulnerability of going with just one supplier. While that
plan enabled long lock in of discounted costs, it now sees Ford in a huge pickle where it’s main
profit earning vehicles will be severely impacted for at least a six month period.
So the issue of outsourcing is there, a bigger concern appears to be Ford’s lack of risk management,
the one supplier goes down and it immediately impacts production.
Dealer may not replace it, depends on how they test it and their requirements. Worth a shot though. I try to throw mine on the charger every couple of months just to top it off.
I would still get a Solar CCA tester. They’re not expensive and that’s the definitive test.
As for the idle it’s probably for emissions- lighting the cats as quickly as possible.
Guys,
Thank you all for your time in responding.
I have a Schumacher SC 1308 charger that also allows you to test battery voltage as well as alternator out put.
I had it on charge last night for about 7 hrs. Battery was disconnected from truck. Hooked it back up this AM and the minute I hooked ground, lights came on. went through the drill-flash headlights 5 times, pump brakes 3 times and everything was good. Open door and dash and interior lights come on as they should. Drove about 5 miles this AM and then just tested battery voltage as well as alternator performance..first time I ever used those features.
Battery voltage came out as 12.3 and that reading falls in 12.2-12.7 and manual says that falls in "Needs Charging". As for the run test for alternator, came out at 14.3 which according to charger any reading between 13.4 and 14.6 confirms "proper operation"
So while I still have warranty protection -60% coverage - I'm going to take it back to dealer to replace battery. Also to take advantage of your collective knowledge, when I start truck-regardless if engine is hot or cold, it fast idles at about 1250., then after 2or 3 minutes it will drop to 750 and then eventually it idles at 500. This does not seem right to me-can see a cold start, but not a warm start.
Any thoughts.
Thx again for your prior comments.