Fords Hybrid SUV Team

Races to Finish

Fords Hybrid SUV Team Races to

Finish
Group 2
Members
A.K.M Nasimul Hoda
Student ID: 133 74 001

Zayn Ahmed
Student ID: 1417 4023

Irin Sultana
Student ID: 132 74 032
Cyrus
Student ID: 133 74 007

Faculty:

Mahbub Alam
MGT701, Spring 2014
BRAC University

Scope of Presentation
Ford Motor Company as an
Organization
Background of the Case Study
Project Management
Case Discussion
Findings & Recommendation
Conclusion
Q&A

Introduction
Ford Motor Limited, established in 1903 is one of the oldest
automobile manufacturers.
Ford Motor Limited has plants and operations in 90 countries
worldwide, and is renown for its global supply chain
management,
strategic
management
and
production
capabilities.
Ford generated $118.3billion in revenues in 2009, Ford
produced 5.532million automobiles and employed about
213,000 employees in 2008.
Ford has been advertising for a couple of years to launch a
new, environmentally friend, balanced hybrid SUV- ESCAPE
in the automobile history. The Project is expected come into
light by 2004. The management has focused on successful
launching of the car by effective management of innovative
ideas, skills, expertise & resources.

Ford
was
founde
d by
HENRY
FORD
on June
16,
1903

Fords Brief History

1903 Ford Motor Company founded in
Michigan
1908 Model T introduced
1913 first moving automobile assembly line
in the world
1956 Fords stocks go on sale (10.2 million
shares sold the first day)
1987 beginning of the acquisitions of other
brands
1988 Ford Motor Company reached the peak

Mission of
the FORD

To become the world's

leading consumer
company for
automotive products
and services.

The head Quarter

of FORD Motor
Company situated
in Dearborn ,
Michigan

Different Model of Ford SUV

Overview of Ford Escape

Hybrid SUV

Muscular V-6 engine

Yet, sip 36 miles per gallon
Emissions miniscule
Two motors: One gas; One electric
An array of computers to determine
which motor can drive the wheels
most efficiently
Perfect balance between power &
acceleration and mileage & emission

Background of the Case

Study
i. Ford Motor Ltd. had initiated a project to launch
a Hybrid SUV, Escape in the Fall of 2004.
ii. The project was the most technically advanced
automobile that Ford had ever attempted to
manufacturer.
iii. The Escape Hybrid SUV project was to be the
symbol
& embody of the new vision and
objectives of Ford Motor Ltd, an environmental
and social conscious organization.

Problem Statement
In Spring 2003, the Head of Product Development
realized that the project was behind schedule and
would miss the launch date at the current rate of
progression.
The current project team though qualified had
little or no launch experience.
Nine new technologies were incorporated into the
product and the complex global supply chain
system, challenged the project team to convert
prototype into main stream production

Project Management
Realizing the problem to the successful and smooth launch of
the project, Head of Product Development hired another
project manager, Mary Ann Wright for the Hybrid SUV project.

Project Management
Organization Structure
CEO Bill
Ford
Head Of
Product
Development
Phil
Martens
Mary Ann
Wright

Prabhakar
Patil

Project Team

The project team was a hybrid itself.

Cross functional team, scientist and engineers worked

together in this project. First time in the history of Ford.

Two project managers for the Escape Hybrid SUV Project.

Patil, a qualified scientist, in charge of innovation &

technology of the project.

Mary Ann Wright, with legendary record for supply chain

management and project launch management.

Challenges & Risks Of the

Project
Q1: What are
the challenges
for a project
manager of
such a high
visibility high
risk project?

Answer with explanation

The attention and hype generated for this project added a lot of pressure, on
top of the technological challenges of the project.
The Escape Hybrid SUV was to be a pioneer project for Ford, driving into the
Hybrid segment.
The Chairman had touted about the project for a long time aligned with its
new vision and objectives. This generated huge expectation.
Technology risk was involved as nine new technologies were incorporated into
the product.
The integration global suppliers induced operational risk.
The product design was very complex and possessed great challenge to put
into main stream production without any flaws.
The lack of launch experience of the project team was a big challenge
Lastly, the organization itself had little experience in the hybrid segment.

Balance between Innovation

and Efficiency
Q.2 Is having two
managers for a
single project
effective?

Answer with explanation

Two project managers for one particular project

can lead to mismanagement and conflicts among
project managers

Patel, with his scientific expertise, developed a

product with the perfect balance between power
speed, and low fuel consumption.

Whereas, Mary Ann Wright, with her disciplinary

record and launch experience, was the right
person to make sure, every stage of the project
was being completed and the team were focused
to complete the project on time.

New product launch with

PDCA Cycle
Management
Mary Ann

Patil
Patil

Quality of the team &

project
Q.3
Would our
group
have liked
to be a
part of
this team?

Answer with explanation

The Escape Hybrid SUV project was a
initiative by one of the most reputed
and
well
known
automobile
manufacturers in the world.
The project aimed to revolutionize the
automobile industry.
The social and environmental impact
of the project was appealing.
The success of such a high visibility
project would cement the reputation
of the project team. Enhance the
career of the project team members.

Findings

Ford built 17,000 Escape Hybrids in the second half of

2004, four times more than originally planned.

The Ford Escape Hybrid SUV won the North American

truck of the year award in 2005.

According, to EPA the Ford Escape Hybrid is said give

75% more efficiency.

The second generation Ford Escape Hybrid came out in

2009.

But in 2012, Ford discontinued the Escape Hybrid

Model for third generation Escape with plug in hybrid
features.

Recommendations

The process of project life cycle management was

very evident in this case study.
The planning and control parameters of a project
was effectively deployed in this project.
Management By Objectives steps were taken to
ensure timely review and proper progress of the
project.
This case study demonstrates the different Project
Management measures that can be taken to increase
the chance of success of a project.
The importance of management measures as a tool
to success.

Conclusion
Most challenging project in the
automobile industry at that time.
Fords Strategic plan was completely
aligned with this project.
Gnaat Chart schedule was a key
management technique used to
identify the need for another
manager to finish the project on

Continuation
The importance of Project Life Cycle
and project planning activities was
demonstrated in this project
Management By Objective (MBO)
system & Project Evaluation system
was effectively utilized
All the key project management
techniques and tools combined with
adequate resources made the project
a success.

Questions???