Ford TQM

 

La Consolacion Pasig City 1st semester(2016)

A Report on Ford Motor Company

Sumitted to! Mr" Aelito#" $ui%a& 'A Sumitted y ! ames *stropia

 

+aira Mama

#$M ,- F.R' M.#.R C.MPA-/! Background of the company: F.R' F. R' Mo Motor tor Com Compa pany ny is an Am Ameri erica can n mu mult ltina inati tiona onall aut autom oma aer er a ased sed in 'ea 'ear rorn orn&& Micigan& a suur o 'etroit 'etroit"" #e automaer %as ounded y  y 3enry Ford and incorpor incorporated ated on une 16& 1405" Ford is te second largest largest automaer in te "S" and te it7largest it7largest in te %orld ased on annual 8eicle sales in 2010" At te end o 2010& Ford %as te it largest automaer in *urope" Ford is te eigt7raned o8erall American7ased company in te 2010 Fortune 900 list& ased on gloal re8enues in 2004 o :11;"5 illion" #e company manuactures passenger cars& trucs < tractors as %ell as automoti8e parts < accessories" accessori es" #e irst commercial car Model # %as introduce introduced d in 140;" ,n 1415 te company introduced te %orld=s irst mo8ing assemly line or cars < in 141> te company introduced :9 a day %age to impro8e laor producti8ity" y 1425 te company %as producing al o  America=s automoiles" As times passed& te company gre% more < more" ,n te lo% o  time te company=s management style as also canges"

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#$M in Ford Motor Company! #%enty years ago& %en an in8asion o apanese imports treatened te American automoile industry& te Ford Motor Company led a ?uality re8i8al ased on te management pilosopy o @" *d%ards 'eming& %o %as contro8ersial ten and is out o asion no%" #e results o te mo8ement& no%n as #otal $uality Management& %ere stunning at Ford" Ater racing up :5 illion in losses et%een 144 and 14;2& Ford it a series o ome runs& including te aerodynamic #aurus7Sale cars& and y 14;6 ad ecome te most proitale American auto company" Ford motor company tries to use all te application o #$M to ensure te o8erall ?uality o  teir product"

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  ,mplementation 7 Ford #$M system

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#$M is Re8isited ,n 1444& #erry Cenault Boined Ford& a ris management specialist %o along %it Pong u& elped to urter te #$M metodology troug a Consumer 'ri8en SiD Sigma Process" Says 'an 'os today o #$M and Ford& E,t may a8e een ne%s%orty in te 14;0s ut Ford Motor Company #otal $uality Management practices really egan %it 3enry Ford" #at=ss true i #at= i you loo at #oyota oyota=s =s 9S est Practices Practices in te production production o teir 8eicles& 8eicles& a metodology decided upon ater 8isiting 3enry Ford=s assemly lines" @ile #$M at te Ford assemly lines looed good to #oyota& tey ound too muc %aste and %ent on to de8elop teir o%n ?uality process or 9S"

Concept 7 #otal $uality Management

Focus on the custom er Involve manage ment

Measur e quality

Continu ous improve ment

Quality improve ment

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SiD Sigma and Ford=s Future Peraps te ne%est slogan& EFord 3as a etter ,dea& is on its %ay according to Louise Goeser& P o $uality& E,n act& one and a al points o customer satisaction dri8es aout one point more in loyalty and our data so%s tat customers %o are igly satisied satisied remain loyal" pon otaining our ne% Ford dealersip& last year& my usand and , tra8eled to Ford=s ead?uarters in 'earorn Micigan to Edrin te Ford Hool7aid and SiD Sigma %as e8ery%ere rom production production to team teamss to man managem agement ent to cons consume umerr sugg suggesti estions" ons" @eter @eter s%i s%itci tcing ng metodologies rom #$M to SiD Sigma %ill %or or Ford remains to e seen& especially in a toug economy" economy" 3o%e8er& %ay ac %en& as a Crysle Cryslerr dealer& , do remem rememer er Lee ,accoca telling us dealers tat EFord %as ricer and GM %as igger& ut ot needed to ELead& ollo%&& or get out o te %ay" ollo% %ay" Peraps tis is a %ay or Ford Motor Company #ota #otall $uality Management to impro8e to a process suc as SiD Sigma tat %ill in8ol8e e8eryone rom te consumer to top management" As E$uality is o 1 ades to te acground at Ford& don=t e ooled& tey still %ant tat as any automaer& ut troug SiD Sigma practices& tey eel tey=8e got a grand old on te industryIs maret sare"

Concept 7 SiD Sigma A Prolem Sol8ing Metodology

Decrease variation and defect in process

Improved through input and capacity

Reduced cost of poor quality

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Concept7'MA,C

  e   n      e    D

  e   r   u   s   a   e    M

  e   (   y  l  a   n    '

  e  I   v   o   r  p    m

 l   o   r   t  n   o    C

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  s   s   e   c   o   r  p  d   e  l i  a   t  e   d  p   o  l  e   v   e    D   !   e   t  a   t   s  d   e   r i  s   e   d  e   h   t  o   t  d   e   r  a   p    m   o   c &  d   e   t  c   e  l l  o   c  a   t  a    D   !

   m   e  l  #   o   r  p  e   h   t  f  o  e   s   u   a   c  e   h   t  e   n  i   m   r  e   t  e    D   !   a   t  a   d l  a   n   o  i   t i  d   d   a   t  c   e  l l  o   c  d   n   a  e   s   u   a   c l  a  i   t  n   e   t  o   p  e   (  i  n   a   g   r    )   !

  d   e   t  n   a    m  i l  e  e   #  s    m   e  l  #   o   r  p   f i  t l  u   s   e   r  e   h   t  e   r  u   s   a   e    M   !   t  n   e    m   e   g   a   n   a    m   e   g   n   a   h    C   !   s    m   e  l  #   o   r  p  e   h   t  o   t  n   o  i   t  u  l  o   s  p   o  l  e   v   e    D   !

  s   e   g   n   a   h   c  e  l  #   a   r i  s   e   d   n   u  d   n   a  d   e   t   c   e   p   $   e   n   u  o    *   !   d   e   n  i  a   t   s   u   s  s  i  t  n   e    m   e   v   o   r  p    m  i  e   h   t  r  o   t i  n   o    M   !   t  n   e    m   e   v   o   r  p    m  i  s   s   e   c   o   r  p   r  o   f  s   e   c  i   t  c   a   r  p  d   r  a   d   n   a   t   s  t  n   e    m   u   c   o   d  d   n   a  n   g  i  s   e    D   !

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S@.# Analysis

SWOTAnal ys i sFor dMo Mot orComp mpany St r engt h 1.St r ongpo si t i oni nUSmar k et .For di st hes ec ondl ar ges taut omak eri nUS;For dhas gr eatr eput at i oni ni t shomemar k etands t r ongc ommer c i al v ehi c l es al est hatgener at e maxi mum r ev enue. 2 .So un dfi n an c i a lp er f o r ma nc e .Fo r dwa st h eo nl yb i gUSc a rc o mp mp an yt h atd i d n+tn ee d t h ego v er n men me tb ai l o utan dwa st h efi r s tt oge ti n v es t men ts t at u sb ac k .Th efi r m+spr o fit mar gi ni shi ghc ompar edt oc ompet i t or swi t ht hehi ghes tl i qui di t yr at i o. ;

 

i cappr oac h.For d+s ECOnet i ci ni t i at i v ei saneffor tt opr oduc ehi ghl yf uel 3.ECOnet effic i enteng i nesbyi mpr o vi nge x i s t i ngengi nesr at hert hanne wh ybr i deng i nes .The r es ul toft hi si ni t i at i v ei st heFor dFi es t a,c ur r ent l yt hel owes temi t t i ngmas s pr oduc edc ar i nEur op ea ndFor dFo cu sECOn et i ct h atha sbe t t e rf u el c on su mp mp t i o nt ha nT oy o t aPr i u s . 4 .„ ONEFor d+ a ppr o ac h.For dha sd ec i de dt op r o duc es i ng l e,s t r e aml i n edg l o ba ll i n eu p ofi t smo model s .Thec ar mak ernol ongerpr oduc escus t omi z edv ehi c l esf ordi ff er entr egi ons butf oc usondes i gni ngandengi neer i ngt hec art hatfi t sdi ff er entr egi onal t as t esand r egul at i ons .I ts i gni fi cant l ydecr eas escos t sf orFor danddr i v esr ec or dpr ofi t abi l i t y . 5.Si gni fi cantgr owt hi nChi na.For d,al t houghnott hes t r onges tpl a yeri nt heChi nahas ex per i enc edt hes i gni fi cantgr owt hi nt hel ar ges taut omot i v emar k eti nt hewor l df ort he 2012.I tgr ewi t ss al esby46%,ac cor di ngt oFor dpr es sr el eas e. Weak nes s es 1.Hi ghc os ts t r uc t ur e.Al t hough„ OneFor d+ i ni t i at i v el edt os ubs t ant i al c os tr educ t i on, For ds t i l l hasahi ghc os ts t r uc t ur e,c ompar edt oot heraut omobi l esmanuf ac t ur er s . Fo r d+sc os t sar ed r i v e nb yi t sge ne r o usemp l o y e ec o mp mp en s at i o na ndp en s i o np l a ns . 2.Unpr ofi t abl eEur opeoper at i ons .I n2012,For dl os t$1. 75bi l l i oni nEur opeandpl anst o ex per i enc el os sesi nt her egi onunt i l 2015.[ 8] 3 .L owEx p os u r et oAs i a Pa c i fi c :On l y1 5. 8 2% o fFo r d+sv o l u mewa me sde r i v e df r o m As i a Pac i fi csal esi n2011,t hef as t es tgr owi ngs egmentoft hei rbus i nes s( 7. 52% gr o wt hf r om 2010t o2011) Oppor t uni t i es 1.Pos i t i v eat t i t udet owar ds“ gr een”v ehi c l es .Car st hatar eCons umer sar eawar eoft he negat i v ei mpac toff uel i neffic i entc ar st hatemi tl ar gequant i t i esofCO2andnegat i v el y 4

 

tt heenv i r onment .For dhasdev el opedel ec t r i fi c at i ons t r at egyt or educ et hec ar bon affec d i o x i de( CO2 )emi s s i o nsf r om i t sv e hi c l ea ndma mak et he m mo r eeffic i en t . 2.I nc r eas i ngf uel pr i c es .For d+ss t r ongemphas i sonengi neer i ngf uel effic i entv ehi c l es ( For dFi es t aandFor dFoc usECOne t i c )wi t hfl e xi bl ef uel andh ybr i dengi neswi l l pa yoff duet oi nc r eas i ngf uel pr i c esi nt hewor l d. 3.Newemi s s i onst andar ds .Anewwa vef ors t r i c t err egul at i onsonv ehi c l eemi s s i on s t andar dswoul dpos i t i v el yaffec tFor dpos i t i oni naut omot i v ei ndus t r y .For di nv es t sl ar ge a mo mo un t sofmo ne yt op r o du c ef u el e ffic ffic i e nte ng i n esan dr e ap eds o mes me u c c es swi t hi t s f o r dFi e s t aa ndFo r dFo c usECOn et i cmo mo de l s . 4.St r at egi cpar t ner s hi ps .For dhasgr eate xper i enc ei nc r eat i ngs t r at egi cal l i anc esand par t ner s hi pswi t hot heraut omot i v ec ompani es .Duet oc ur r entc ompet i t i v epr es s ur e,al l c ompani esar emor el i k el yt oent eri nt os uc hpar t ner s hi pst odr i v eR&Dc os t sdo wn, accessnewmar ket sandgai nsome menewski l l s. T h r e a t s 1.Dec r eas i ngf uel pr i c es .Someanal y st sf or ec as tt hatf ut ur ef uel pr i c eswi l l dr opduet o e xt r ac t i onofs hal egas .Thi swoul dnegat i v el yaff ec tFor dasi tf oc usonc ompac tf uel effic i enthy br i dandfl ex i bl ef uel c ar st hatar el es sat t r ac t i v ewhent hef uel pr i c ei sl ow. 2.Ri s i ngr awmat er i al pr i c es .Ri s i ngpr i c esf orr awmet al swi l l l i f tt hec os t sf oraut o manuf ac t ur er sandr es ul ti ns queez edpr ofi t sf ort hec ompani es . 3.I nt ens ec ompet i t i on.For df ac esmo mor ei nt ens ec ompet i t i onf r om ot heraut o manuf ac t ur er smo mor et hanev er ,es pec i al l yi nsmal l c ar ss egmentwi t hh ybr i dengi nes . 4.Fl uc t uat i nge xc hanger at es .For d,i nc l udi ngot herl ar ges taut omot i v ec ompani es ,ma y negat i v el ybeaff ec t edbyfluc t uat i nge x changer at esasi tear nsmo mor et hanhal fofi t s 10

 

pr ofi t sout s i det heUS.Thepr ofi t sma ma ybel owerdueappr ec i at i ngdol l aragai ns tot her c ur r enc i es . Maret Segments

Rally Cars

Market

Market ,ports Car ,egme nt

Ford Motor

Market ,u# ,egme Racing Cars nt Cars

-conomic .ehicles

Buses  /rucks

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Maret Segmentation approaces7

0eographic ,egmentation 1ford aims to gra# the market mark et of 23 as 4ell as India& China& Malaysia

Demographic ,egmentation 1F)RD F)C2, aims for young people& ladies and average income consumer

"hysiographic ,egmentation 1F)RD FI-,/' comes at reasona#le price

Behavioral ,egmentation 14ith the #enet for safety and fuel e5ciency

"roduct design 6 continuous improvement: Product design is one o te most important tings or a company to a8e satisied customers" Ford motor company al%ays tries to pro8ide te est ?uality product to teir customers" #ey al%ays come up %it someting ne% < ad8anced" For eDample7 uel eiciency& ig speed& attracti8e loo& ad8anced saety system& entertainment acilities etc" *8ery car goes troug multi7le8el o inspection eore going to te maret"

"ro#lem solving: Ford Motor Company Company is currently using te ;' prolem sol8ing tool" tool" ,t is a disciplined %ay to sol8e a prolem"

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#e Ford Motor Company de8eloped te ;' (; 'isciplines) Prolem Sol8ing Process& and  pulised it in teir 14; manual& J#eam .riented Prolem Sol8ing (#.PS)"J ,n te mid740s& mid740 s& Ford added an additional discipline& '0! Plan" #e process is no% FordIs gloal standard& and is called Gloal ;'" Ford created te ;' Process to elp teams deal %it ?uality control and saety issuesK de8elop custom cus tomie ied& d& per perma manen nentt sol solut ution ionss to pro prole lems msKK an and d pre pre8en 8entt pro prole lems ms r rom om rec recur urrin ring" g" Altoug Alt oug  te ;' Proc Process ess %as init initiall ially y appl applied ied in te man manuac uacturi turing& ng& engi engineer neering& ing& and aerospace industriesK itIs useul and rele8ant in any industry" Steps in applying tis metod are7 1" 2" 5" >"

Plan ui uilld t te te team 'esc 'e scri rie e t tee pro prol lem em ,mple ,m pleme ment nt a temp tempora orary ry iD

9" 6" " ;" 4"

,dentiy and *lim ,dentiy *liminat inatee te te Root Root Cau Cause se eri riy y te te sol solut utio ion n ,mple ,m pleme ment nt a perm permane anent nt solut solutio ion n Pre8ent Pre 8ent te Pro Prolem lem rom Rec Recurri urring ng Cele Ce ler rat atee team team succ succes esss

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-mployee engagement: #eir employees are also teir customers& and tey can e strong amassadors or teir   products" ,n Micigan& Miciga n& inormation sessions session s called EGo Furter *mployee *mplo yee *8ents are eld to gi8e gi 8e em emplo ploye yees es t tee opp oppor ortun tunity ity to 8ie 8ie% %& le learn arn ao aout ut and tes testt dr dri8e i8e ye yet7t t7to7 o7e7r e7rel eleas eased ed 8eicles" #is lets te employees see o% our products are meeting te needs o customers& %ile pro8iding actual inormation aout te 8eicles" #eir employees can ten promote te 8eicles to teir riends and amilies& %ic& in turn& can increase sales and elp to strengten te Ford rand" .ur *mployee Resource Resource Groups also conduct a numer o e8ents and initiati8es eac year to engage our employees& pro8ide product insigts and reac out to te community" #e company elie8es it=s important important to engage teir people %itin te communit communities ies in %ic tey operate" *ac year& Ford oer %ays or tousands o teir employees and retirees to  participate in 8olunteer programs" #ey see tese programs as not only critical to elping tose in need& ut pi8otal to inspiring and energiing our employees around 8olunteerism and 1>

 

community ser8ice" #roug tese community initiati8es& tey support team%or and uild a sense o sared purpose and commitment"

"rocess design:

,n te process design Ford aces many callenges" Suc as7 Moder Mod ern n au autom tomot oti8e i8e 8e 8eicl icles es use a la larg rgee num numer er o sta stamp mped ed se seet et me metal tal par parts ts in te teir  ir  construction" nderstanding te dynamic ea8ior o seet metals during transer rom one die station to anoter ecomes an urgent tas in te tooling design pase to acie8e optimum transer motion& a8oid ig cost e?uipment damage and impro8e o8erall production uptime"

#o get a etter understanding o tis critical process and to impro8e te producti8ity o te tooling design and stamping process& Ford looed or eDternal input to complement its o%n internal eDperience and eDpertise"

Solution to tese prolems are7 3a8ing %ored on many pre8ious proBects togeter& Ford selected Altair Product 'esign to assist in tis process" #e ne%ly de8eloped Altair 3yper 'ie 'ynamics (3'')& a uni?ue tool to analye seet metal transer and dynamic ea8ior& %as implemented %itin FordIs design  process" y introducing leDile ody lan representations and a 8irtual model o te stamping press line& Altair Product 'esign and Ford users could easily conduct a panel transer dynamic analysis& 8isualiing te in7motion lan delections& accelerations& and resultant orces"

#o ully understand te compleD nature o te stamping process& Altair Product 'esign created a reduced model representing a single press station along %it se8eral types o real  parts to e simulated in order o rder to 8alidate te 8irtual 8irtu al press model and impro8e te roustness o te solution"

Result o tis metod is7

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#e implementation o te igly customied sot%are and ne%ly ormulated design process in partnersip %it Altair Product 'esign ad a numer o positi8e results or Ford! Ford engineers could successully predict dynamic panel transer ea8ior (displacement& orces& stresses& etc" aster and crucially more accurately tan %as pre8iously possile" Material  ea8ior could e  e predicted %it greater accuracy acc uracy tus a8oiding intererence during durin g panel transer and reducing part or die damage"

Ser8ices o Ford motor company! Ford motor company oers so many ser8ices to customers to promote teir Product" 3ere are ser8ices!

Ford o7ers automotive nance through Ford Motor Credit Company: Ford Motor Credit Company LLC! Ford Credit& is te inancial ser8ices arm o Ford Motor  Com Co mpa pany ny&& an and d is e ead ad?u ?uar arte tere red d in 'e 'ear aro orn rn&& Mi Mic cig igan an"" ,t ,tss u usi sine ness ss ac acti ti8i 8iti ties es ar aree concentrated concentra ted primarily in te area o automoil automoilee loans in support o its parent company" #e #e company oers consumer loans and leases to car uyers& as %ell as usiness loans and lines o cr credi editt to dea deale lers rsip ipss se sell lling ing Fo Ford rd Mo Motor tor Com Compa pany ny pro produc ducts" ts" # #ee i irm rm als also o is issue suess commercial paper and oter det instruments on FordIs eal" Ford Credit also o%ns Lincoln Automoti8e Financial Ser8ices& te arm tat inances Lincoln 8eicles" FordIs FoMoCo parts di8ision sells atermaret parts under te Motorcrat rand name" ,t as spun o its parts di8ision under te name isteon"

"roduct sale related services:     

,nterest7ree payment options aced y Ford Credit and 100 transerrale 3onored y Ford 'ealers trougout te "S" and Canada Genuine Parts and Certiied Ford #ecnicians 2>7our roadside assistance and rental 8eicle eneits

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-$tended services plan options: #ere are dierent le8els o co8erage to coose rom& so you can e conident tereIs a plan tat %ill meet your needs

"

Ford insurance: Ford Credit oers industry7leading auto insurance designed speciically or your 8eicle1& including!      

*Dperienced& Certiied Ford #ecnicians Guaranteed %ormansip or as long as you o%n your Ford Genuine Ford Parts Fast& accurate claims ser8ice 'iscounts %en you comine auto %it ome or rental insurance :100 o collision deductile %en repairs are made at participating dealer7o%ned  ody sops2

Ford motor company al%ays gi8es most priority to teir customer"#ey %ant to estalis al%ays tat are customers really satisied %it teir product and ser8ices"

1

 

 /QM 4heel in services: #ere are some %ays tat %e can estalis our customer  satisaction" #ese components are related %it customer satisaction" *mployee in8ol8ement! Ford motor company al%ays maes sure tat employees are really in8ol8ed %it ser8ices" *mployees are committed to ser8e teir est" Continuous impro8ement! ,n ser8ice sector continuous impro8ement is most important ting" #ere migt e some lacing in ser8ice ut Ford rapidly select tose lacing and try to impro8e tose sites" Ser8ice design! ,t=s anoter most crucial tas to ensure est ser8ices" Ford Companydesigns teir ser8ices %it igly satisactory options" Purcasing! #o pro8ide est ser8ice purcasing is really important" Company tries to mae sure o% easily customer can get teir ser8ices" encmaring! encmaring is really important or ot manuacturing and ser8ices" Ford as to mae sure te standard ser8ices to customers compare to oter reno%ned motor company lie #oyota& 3yundai and so on" #ese are actors tat company as to mae sure or customer satisaction"

1;

 

Ford Current Strategies



Ford as a strategy on ne% ey design



Ford is eginning to use Solar energy to po%er teir manuacturing plants



Gloal *lectriication strategy



Ford Fo rd a ass a 8er 8ery y str strong ong mar maret etin ing g str strat ategy egy as t tey ey ma mare rett all o te teir ir 8e 8eicl icles es dierently



Ford is maing more yrid 8eicles troug te increase use o rene%ale and recyclale materials



Ford is de8eloping natural7ier composites as a potential sustitute or te glass iers traditionally used in plastic car parts to mae tem stronger %ile reducing 8eicle %eigt

14

 

Ford Future Strategy



Reduce manuacturing eDpenses y 19720  ,ntrodu ,ntroduce ce ne% small uel eicien e icientt 8eicles  *nter Latin American and Asian maret %it yrid 8eicles  'e8elop aordale electric car or S maret  ,ncrease maret sare  Manuacturing o ne% small uel7eicient 8eicle  *ntering te Latin American and Asian maret %it yrids : 20  illion  ,mplementatio ,mplementation n o electric car in te S maret : 15 illon  #otal Cost N : >0 illion 20

 

Recomendation 1" Pass Gener General al Motors Motors and ecome ecome te iges igestt 2" ecom ecomee industry industry leade leaderr in te te Cinese Cinese maret maret 5" ,ncr ,ncrease ease total total sales sales in *uropean *uropean Au Auto to ,ndustr ,ndustry y >" Continue using auto dealers dealers or distriut distriution ion and sales and ocus in impro8ing eiciencies %it suppliers" 9" Create more strategic and and structural structural ,# alignment %itin te organiation" organiation" ,n8ol8es increasing te communication et%een ,# and te  usiness&& interconn  usiness interconnecting ecting usiness usiness and ,# planning and aligning aligning organiational structure to support te recommended canges"

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Grading Sheet

3ard Copy

50 D OOOOO N OOOOO  

Po%er Point

29 D OOOOO N OOOOO  

C'

10 D OOOOO N OOOOO  

Presentation Skill (35%)

ames *stropia

59 D OOOOO N OOOOO

+aira& Mama

59 D OOOOO N OOOOO  

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