WE PRESENT TO YOU

HENRY FORD 1903

Introduction to ford
FORD Motor Company is an American multinational automaker based
in Dearborn, Michigan, a suburb of Detroit.
The automaker was founded by Henry Ford and incorporated on June
16, 1903.
Ford is the second largest automaker in the U.S. and the fifth-largest
in the world based on annual vehicle sales in 2010. At the end of
2010,
Ford was the fifth largest automaker in Europe.

The company manufactures passenger cars, trucks & tractors as well as

automotive parts & accessories.
The first commercial car Model T was introduced in 1908. In 1913 the
company introduced the worlds first moving assembly line for cars & in
1914
The company introduced $5 a day wage to improve labor productivity.
By 1923 the company was producing half of Americas automobiles. As
times passed, the company grew more & more. In the flow of time the
companys management style has also changes.

 In the 1920's Ford acquired Lincoln and Mazda and expanded over
seas - competition increased.
Ford recognized the need for improved quality which lead to TQM.
The new priority is to increase customer satisfaction by listening
and responding.
Ford's vision is to become world's leading consumer company in
automotive products and services.

Fords world Headquarters in USA

also known as the GLASS HOUSE

Fords Research centre in

Germany

Fords Technical centre in

London, United kingdom

Fords India Plant in Chennai, Tamil

Nadu

Organizational Culture at ford

Ford Motor Companys organizational culture influences the firms
drive toward higher performance to achieve its vision of industry
leadership.
Ford uses its organizational culture to maintain a high-performance
workforce. The following are the main characteristics of Fords
organizational culture:
F: Foster Functional and Technical Excellence
O: Own Working Together
R: Role Model - Ford Values

 The main advantage of Fords organizational culture is its support

for unity through teamwork.
A disadvantage is that the firm does not specifically address
flexibility.

Ford Motors Ancient Models

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Market Segments
Market
segment

Market Segment
Sports
Cars

Market Sub
Rally cars
Racing cars

FORD Motor
Economic
vehicles

Cars
Buses
Trucks
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Supply Chain Management at ford

They promote a long term relation with the suppliers.
Ford utilized Six Sigma processes by teaming with Penske Logistics to
streamline and improve supply chain operations. There were three main
goals to the initiative, according to Penskes website:
Centralize Fords logistics network
Improve supplier and carrier performance
Provide real-time accountability for logistics and finances

 Dispatch Centers and Consolidated Shipments

Procedures and logistics techniques
Implementing Accountability
Recognition for Supply Chain Efforts

Suppliers
Flex-N-Gate See burn, Ontario, Canada: door hinges and arms;

NHK Spring, Shiga-ken, Japan: suspension

stabilizer linkages;

Venezuela: mufflers and exhaust systems;

Webasto Roof & Components, Schierling, Germany: sliding

sunroofs;
Summit Plastics, Nanjing, China: instrument panel components;

Autoliv, Valencia, Spain: airbags.

Dee Zee, Des Moines, Iowa: running boards;

Warn Industries, Milwaukie, Oregon: axle assemblies;

U-Shin Europe,Hungary: steering columns;

Valeo Electric and Electronic Systems,, Poland: starter assemblies;

Other major parts suppliers for Ford include Comstar Automotive

Technologies, FCC Adams, Flextronics Automotive, LG Chem and Mahle
Engine Components.

Logistics of ford
Safe and Efficient transportation of parts from the suppliers to the
manufacturing plants and of finished vehicles from the end of the assembly
line to the dealers.

Suppliers

Manufacturers

Dealership

Even though logistics does not play a large part in the vehicle total life cycle,
they are working hard to maximize efficiency and reduce its environmental

Inventory Management at ford

At Ford Motor Company inventory management is definitely not a new
idea, as inventory management has some of its developing origins of
starting at Ford Motor Company itself.
Ongoing analyses of both inventory management and manufacturing
processes have led to innovative management systems.
Henry Ford managed to cut his inventory by forty million dollars by
changing how he obtained materials to produce automobiles.

 Ford purchased mines and melting operations to better control

the source and supply of material to produce cars
Ford Dealerships, for example, work closely with Ford Motor
Company to maintain the lowest possible inventories but still
have enough cars to satisfy their customers demand.

Quality Control at ford

Formerly, quality control was seen as a final inspection process that
sought to discover defects only after the vehicle was built. In contrast,
today quality is seen as a process built right into the design of the
vehicle as well as the assembly process. In this way assembly operators
can stop the conveyor if workers find a defect. Corrections can then be
made, or supplies checked to determine whether an entire batch of
components is bad. Vehicle recalls are costly and manufacturers do
everything possible to ensure the integrity of their product before it is
shipped to the customer.

The Ford Production System

Market Share of Ford Motors

o21% Stakes in (Japan)
o15% Stakes in (United Kingdom)
o49% Stakes in (China)
Joint Ventures
o 2 in China
o1 in Thailand
o1 in turkey
o1 in Russia

Products, Sales and Revenue

Sells broad range of automobiles

under different brand names.

Strong growth in sales all over the

world.

14 straight quarters of operating

profit in 2012

Tough competition from other

brands like GM and Chrysler.

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Supplier Relationships
oGlobal product-creation process
oProcess and part stability
oReal-time performance data
oAccess to senior Ford managers
o Improving order fulfilment
oEngaging suppliers in discussions

Six Sigma of ford

Focus on customer satisfaction issues.
DMAIC projects must save at least $250,000 and reduce defects by
70%.
"Six Sigma is transforming the corporation from looking at variation from
something that's going to get you in trouble to something that's going to
give you an opportunity to improve" - Mike Stock

Ford Motor Company started their Consumer Driven Six Sigma initiative
in 2000. Today, Six Sigma permeates all business units and brands. It is
important to note that Six Sigma is not a stand alone initiative at Ford
but is an essential piece of a three-part quality management system:
Quality Leadership Initiative
Quality Operating System
Consumer Driven Six Sigma

Implementation - Ford TQM system

SWOT Analysis

Strength Analysis

1. Strong position in US market. Ford is the second largest automaker in

US; Ford has great reputation in its home market and strong commercial
vehicle sales that generate maximum revenue.
2. Sound financial performance. Ford was the only big US car company
that didnt need the government bailout and was the first to get
investment status back. The firms profit margin is high compared to
competitors with the highest liquidity ratio.
3. ECOnetic approach. FordsECOnetic initiative is an effort to produce
highly fuel- efficient engines by improving existing engines rather than
new hybrid engines. The result of this initiative is the Ford Fiesta,
currently the lowest emitting mass-produced car in Europe and Ford
Focus ECOnetic that has better fuel consumption than Toyota Prius.

Strength Analysis
4. ONE Ford approach. Ford has decided to produce single,
streamlined global lineup of its models. The carmaker no longer
produces customized vehicles for different regions but focus on
designing and engineering the car that fits different regional tastes and
regulations. It significantly decreases costs for Ford and drives record
profitability.
5. Significant growth in China. Ford, although not the strongest player in
the China has experienced the significant growth in the largest
automotive market in the world for the 2012. It grew its sales by 46%,
according to Ford press release.

Future Goals
Continue to improve quality by using Six Sigma management
Reduce warranty spending by eliminating defects
Listening and implementing customer wants and needs
Continue supplier partnering relations
Gain more loyal customers to increase sales and maximize profits

Recommendation
1. Pass General Motors and become the highest
2. Become industry leader in the Chinese market
3. Increase total sales in European Auto Industry
4. Continue using auto dealers for distribution and sales and focus in
improving efficiencies with suppliers.
5. Create more strategic and structural IT alignment within the
organization. Involves increasing the communication between IT
and the business, interconnecting business and IT planning and
aligning organizational structure to support the recommended
changes.

Thank you....