You are on page 1of 2

A ford & a Toyota are equally fit for use, but with different design dimensions

for different customer markets that results in significantly different purchase


prices, thus quality of design comes into picture
Dimensions of quality for which a consumer look in manufactured products
(cars):

Performance: operating characteristic of a car: how well a car handles or


its gas mileage
Conformance: the degree to which a product meets pre-established
standards
Serviceability: the ease of getting repairs, the speed of repairs
Aesthetics: how a product feels, looks
Safety: assurance that the customer will not suffer injury of harm from a
car

PROCESS IMPROVEMENT TEAM IN FORD:


Also called quality improvement team; it is cross-business team between
suppliers & their customers. A PIT for customer service includes members from
distribution, packaging, manufacturing, & HR. Key objective is to understand the
process the team is addressing in terms of how all the parts work together. This
process is then measured & evaluated with the goal of improving the process to
make it more efficient & the product/service better.
THE ASSEMBLY LINE AT FORD
160,000 semiautomatic machines are installed at Fords Highland Park Plant. This
assembly is enormously successful. The amount of labour requirement required
to assemble a model T chassis is little less than 30 minutes. The average time of
most tasks is as low as 60 seconds
MEASURING SUPPLY CHAIN PERFORMANCE:

FORD has inventory turns of 36 per year: large amount of inventory is


required to satisfy demand; such inventory turn is because of lean
production & increased emphasis on quality management& supply chain
management: thus managing its supply chain efficiently.
Inventory turns= COGS / Average aggregate value of inventory

Ford carries about 60 days of finished goods supply i.e. for 60 days
inventory is available at any point in time. Days of supply: 60 days

Fords fill rate for its high land park plant at a showroom is 67% meaning
that when the showroom places an order with the ford distribution centre
67% of the time it is filled within one day