Beruflich Dokumente
Kultur Dokumente
SUBMITED TO:-
SIR SHERAZ AHMED
SUBMITED BY:-
MUHAMMAD HASSAN Roll No
1872
DEDICATION
1. Executive Summary…………………………………………………Page:1-2
2. Operational Management………………………………………..Page:3-4
3. Operational Managers……………………………………………..Page:4-5
16
20
c. Process
Analysis………………………………………….Page:20-24
24-28
e. Product Development…............................................Page:
28-31
32
g. Business Re engineering………………………………...Page:33-
35
8. Supply Chain Management………………………………………..Page:35-
36
36
41
42
42-47
48
10. Conclusions………………………………………….……………..….Page:48-
49
50
12. References……………………………………………………..….…..Page: 50
Executive Summary
Ford Motor Company (Ford) has been a leader in the auto industry,
however, over the past few decades has continued to lose market
company who must reduce cost, get fresh capital, and quickly develop
and produce, new efficient and economic autos, and in the near future
The global auto industry will continue to grow with 80% of the global
auto industry's growth from now until 2013 is expected to come from
new vehicles that consumers consider the new "must have vehicles
Looking to the future Ford will have a stronger global presence in these
Ford will have the knowledge and expertise in efficient and alternative
technology in the auto industry they will think of Ford for this to
government regulations....
Operations Management
As one can see, all these are critical issues to any firm. No longer is
operations management considered subservient to marketing and
finance; rather, it is a legitimate functional area within most
organizations. Also, operations management can no longer focus on
isolated tasks and processes but must be one of the architects of the
firm's overall business model.
Company Perspectives:
Our vision is to become the world's leading consumer company for
automotive products and services. We are a global family with a proud
heritage passionately committed to providing personal mobility for
people around the world.
Key Dates:
1903: Henry Ford sets up shop in a converted wagon factory.
1908: Ford's Model T is introduced.
1922: Lincoln Motor Company is acquired.
1945: Henry Ford II is appointed company president.
1963: Ford Mustang is released.
1985: Ford Taurus is introduced.
1989: Jaguar Cars Ltd. is acquired.
1999: Swedish automaker Volvo is acquired in a $6.45 billion deal.
2001: The Company takes a $2.1 billion charge to cover the cost of
replacing Firestone tires on its vehicles; William Clay Ford, Jr., is named
CEO.
Company History:
Introduction to field
Background
Background (General Facts) Ford Motors is one of three leading
automotive manufacturing companies in the United States. Based in
Michigan in 1903 by Henry ford and grew to reach revenue of $150
billion and more than 370,000 employees by 1996. In the 1970's, the
automobile market for the major auto makers - General Motors (GM),
Ford, and Chrysler- was crunched by competition from foreign
manufactures such as Toyota and Honda. In 1999, Ford acquired the
Swedish Volvo model in an attempt to compete in the foreign market
and expand to other regions. Furthermore, Ford launched a full
organization re-engineering business process plan called "Ford 2000"
aiming at reestablishing the company's infrastructure. The process
meant reduction in their Vehicle Centers (VCs) to only five covering the
operations that spanned 200 countries. It also meant cutting
redundancies and requiring Information Technology (IT) to be the
driving force and the link between Ford centers worldwide.
Ford's IT infrastructure
In the path towards service cost reduction and bringing more business
through the web, Ford worked closely with its competitors in the U.S.
market GM and Chrysler to establish what came to be known as
"Automotive Network Exchange" (ANX) certificate. The protocols
aimed at providing a unified communications standard through the
Internet to enable suppliers to provide common technology for all
manufacturers. Moreover, Ford focused on making information on its
web site more accessible and useful by deploying a team to manage
the process of adding and updating information based on an analysis
of how humans deal with information. One final aspect of Fords
endeavor was to try to build a model through its infrastructure that
benefited from the model implemented by Dell computers to improve
their supply chain and delivery process. The direct model would not
work well for automotives as it would with computers, as a result Ford
worked on its retailing network remodeling and identifying what would
eventually give it the extra edge in delivery time.
• Supply chain errors and delays can severely affect the progress
of the business and the market value of the corporation Analysis
Infrastructure Upgrade
Since the inception of the Internet in the 1960's, much effort has been
made in standardizing how computers connect to it. In 1982, the
International Organization for Standards (ISO) realized that during that
period many ad hoc networking systems were already using the TCP/IP
protocol for communications and thus adapted it as a standard in its
model for the Internet network. The main driver for IP convergence, at
that period, was the growth in data traffic through wide area networks
(WANs) established by local companies. Furthermore, in 1991, the
Internet was open for commercial use, and that demanded a reduction
in the total cost of operating the network to cope with 1 million
Internet hosts that materialized in only 1-year time.
Telecommunications companies like AT&T understood the potential
and worked on standardizing the network offering voice services over
IP networks that managed the separation between voice and data
transmission.
At the same time, Ford had launched its plan to update its
infrastructure, and seized the opportunity brought by the global
movement of integrating the voice, fax transmission network with data
transmission and expanded its WAN to include its offices in Europe and
elsewhere. The financial benefits also came from the fact that Ford
adapted the TCP/IP protocol from the beginning and made sure that all
its technical infrastructure upgrades adhere to the standards. This
made the transition of its system to the Internet as cost effective as it
could be.
Web Technologies
Knowledge Management
While there are many definitions for knowledge, each company might
adapt its own based on how it analysis data and information to acquire
knowledge. The University of Kentucky, for example, defines
knowledge as "a vital organization resource. It is the raw material,
work-in process, and finished good of decision-making. Distinct types
of knowledge used by decision makers include information,
procedures, and heuristics, among others.
Ford was excited about the traffic it was receiving on the Web site and
everyone was publishing all the material they have on desk on the
Intranet. Nevertheless, there was a growing concern about the
usability and usefulness of the material people were adding. As a
result, Ford created a "Knowledge Domain Team" to build complete
information in nine areas that were identified as vital to the business.
The process Ford took was based on surveys and specialists input in
how people perceive information, and what is considered vital and
what is distracting in the structure of Ford's website. The aim behind
the initiative was to reduce the time individuals spent in searching for
information through proper indexing of the website content, and
making sure that what was important could be accessed in due time,
and what is trivial did not overwhelm the researcher with thousands of
results.
As a result of the tire debacle and several other product recalls, Ford
was ranked last in the industry in terms of quality according to J.D.
Power & Associates. In 2001, the company posted a loss of $5.45
billion. Nasser was ousted in late that year, leaving William Clay Ford,
Jr., at the helm. The task set before him was monumental; he faced
faltering employee morale, major quality issues, sluggish sales, and
intense price wars.
The company forged ahead in 2002 cutting its losses to $559 million.
Market share continued to fall, however, hovering at 21 percent versus
the 25 percent it held in 1998. In response, Ford sold some non-core
assets and ramped up new product development, launching the Ford
Focus C-MAX in Europe, the Jaguar XJ, the Volvo S40, a new Ford F-150,
the Ford Freestar, and the Mercury Monterey in 2003. Ford anticipated
launching 40 new products in 2004 including the new Mustang and the
Escape Hybrid, the first gasoline/electric SUV. Overall, the company
planned to have 150 new products in the marketplace by mid-decade.
• Design
• Technology
• Safety
• Environment
• Quality
Design
Technology
Ford's technology and manufacturing advances have reduced injuries,
improved vehicle quality and brought vehicles to market more quickly.
Safety
Vehicle safety is integral to our heritage. Ford is pioneering new
frontiers in safety with
Environment
We are committed to delivering a more sustainable planet through
best-in-class fuel efficiency.
Quality
The Ford Focus Electric, which debuts in late 2011, will bring enhanced
recharging flexibility with a 120V convenience cord to allow users to
recharge the all-electric vehicle at remote locations; the convenience
cord will serve as a backup to an optional 240V home charging station.
Focus Electric is one of five new electric vehicles Ford will deliver over
the next three years in North America and Europe; it will be built at the
Ford Michigan Assembly Plant.
When plugged in, the vehicle’s onboard charger converts the AC power
from the electric grid to DC power to charge the liquid-cooled battery
pack. A full recharge is expected to take six to eight hours with a 240V
charge station or more than 12 hours with a 120V convenience cord
set. When fully charged, Focus Electric is expected to deliver up to 100
miles of gas-free driving – more than enough for most U.S. commuters,
who average 40 miles per day.
The plug handle uses a matte-finished blue rubber that allows for a
comfortable, non-slip grip and the plug head is shielded with a glossy
white hard plastic to protect the electronics. The Ford Blue Oval
trademark helps make the device immediately recognizable.
Ford supplier partner Yazaki conducted extensive and durability tests
on Focus Electric’s cord set connector, including an insertion/extraction
study of 10,000 cycles to assess the durability of the interaction
between the handle and plug. For every thousand insertions, testers
dunked the plug into a sandy salt water solution to add grit to the
connectors and they repeatedly dropped the handle and rolled over it
with a car tire to test its durability. Testers also subjected the cord set
connector to ambient extreme temperature increases.
Process Analysis
Ford Engine Architectures Are the Building Blocks
At the upper range, Ford’s modular V-8 and V-10 family of engines is
well established. The modular engine family includes the 4.6-liter and
5.4-liter V-8 engines in both single- and dual-overhead-cam versions,
as well as the 6.8-liter V-10.
Ford’s new global I-4 engine, which just launched production, is being
built at four plants globally, on three continents, and serves as a
baseline for successive manufacturing programs.
These are the obvious advantages on the product side. A visit to the
Windsor Engine Plant, which makes V-8 engines and has one of the
new flexible manufacturing installations for cylinder heads,
underscored to Bennett that there are significant advantages on the
people side, as well. When necessary, engine plants can simply change
over production with little or no downtime.
Rather than huge engine plants turning out a million or more units a
year, the new strategy relies on flexible medium-sized production
modules, each running at high capacity to produce approximately
325,000 engines per year. Uptime and productivity are both kept high
under this model, and Ford is able to quickly adapt to changing market
demand. Computer-Controlled Machines Adapt to Demand
Forget the flat screens; Ford designers are using impressive digital
high-definition (HD) screens, known as powerwalls, to view life-size
digital vehicles with extreme detail.
Several screens have been installed in Ford design studios around the
globe, accelerating the globalization of product development at Ford
Motor Company.
Power walls use HD rear-screen projection to enable review and
refinement of full-scale computer-rendered vehicle designs prior to
fabricating physical properties in foam, clay and fiberglass.
The technology also has made the review process more compelling
and detail-oriented. The photo-realistic computer-rendered images
rotate and show driving dynamics in realistic lighting, from any angle
and in lifelike detail. Colors and reflective surface textures in vehicle
interiors can be changed with a click and exterior views are equally
eye-popping with close-ups.
Smarter Research
The new digital technology is not only accelerating the design process
but also the way Ford is conducting market research. During the past
year, Ford's market research group has began moving away from using
physical models when conducting consumer clinics and instead
utilizing the precise, high-quality renderings for consumer reviews.
TQM functions on the premise that the quality of the products and
processes is the responsibility of everyone who is involved with the
creation or consumption of the products or services offered by the
organization. In other words, TQM capitalizes on the involvement of
management, workforce, suppliers, and even customers, in order to
meet or exceed customer expectations. Considering the practices of
TQM as discussed in six empirical studies, Cua, McKone, and Schroeder
(2001) identified the nine common TQM practices as cross-functional
product design, process management, supplier quality management,
customer involvement, information and feedback, committed
leadership, strategic planning, cross-functional training, and employee
involvement.
Today at Ford Motor Company, their most popular slogan is “Ford Has
a Better Idea.” Back in the 1980s when Ford Motor Company total
quality management practices were vast, the slogan of “Quality Is Job
1” made more sense.
Business Re-engineering
Just-in-time (JIT)
Production of Ford latest small car, the Ford KA has been a dramatic
improvement compared to Ford previous product, Fiesta (Kochan,
1997). This is a real example of successful JIT implementation with all
its outsourcing strategies. The production target of 1,100 KA cars per
day has been reached only within 8 weeks since the launch date,
compared to 15 weeks required for Fiesta. Ford found that the initial
bottleneck was caused by material handling, assembly time and
inbound logistic. Some of the components in Fiesta are supplied by
various suppliers and these components had to be made, loaded in the
container and scheduled for delivery before finally delivered by trucks.
This common process is found to be inefficient as every part has to be
continuously handled by human and this causes big risks of damages,
misplaced and imperfection in quality, especially for cosmetically
sensitive and fragile parts such as instrument consoles, electrical
wiring and airbags.
With the new developed JIT system supported with sophisticated aerial
tunnels connecting Ford with its suppliers, production lead times can
be minimised, product quality can be improved, responsiveness
towards customer demands can me boosted and the most important
thing is inventory, space requirements, handling and transportation
cost can be dramatically reduced (Kochan, 1997). Ford is now
connected with more than 50 suppliers in Valencia with specifically
designed aerial tunnels. These tunnels are also very useful to transport
bulky and heavy items such as seats and fuel tank. The brain of this
amazing system is DAD (direct automated delivery) which will
integrate the whole processes virtually as one extended manufacturing
warehouse. DAD will enable a smooth manufacturing process by
applying Ford scheduling system so that all the supplied components
being delivered right on time they are needed. In addition, DAD and its
tunnels enable the integration of manufacturing equipment so that the
component being delivered can be immediately installed with the main
body or other components in Ford factor Summary of Ford Valencia
manufacturing system prior JIT implementation:
• Ford will pay $534 million in cash premiums and issue 274
million shares of Ford common stock to convertible note holders.
The shares of Ford common stock to be issued have been
included in Ford’s calculation of diluted earnings per share since
the beginning of 2010
and every market shivered with terror in the wake of a global financial
meltdown that many feared may rival the financial collapse during the
packages had taken its toll on the auto industry. The Big Three were
accept the offer while Ford decided to go it alone. Ford’s position may
have been arrogant. It may have been fool hearted. It may have
been a strategy used to wrestle away some of the power held by the
and made painful concessions to ensure its future. At the same time
profit in the first quarter of the 2010. This is the highest profits seen
Ford has bucked the conventional and has hired a group of smooth
Uninterrupted connections
Pushing the "Telephone" button on the steering wheel will
automatically transfer a current telephone call to the SYNC system
without having to hang up and call again.
Entertainment
Multilingual intelligence
SYNC is fluent in American English, French, and Spanish.
Applications
911 Assist
The 911 Assist† application places a direct call to a local 911
emergency operator in the event of a serious accident with an air bag
deployment. Before initiating the emergency 911 call, SYNC will
provide a 10-second window to allow the driver or passenger to decide
whether to cancel the call. If not manually cancelled within the 10-
second window, SYNC will place the emergency call. A pre-recorded
message will play when the call is answered, and occupants in the
vehicle will then be able to communicate directly with the 911 operator
AppLink
AppLink allows BlackBerry, iPhone, and Android based phones to run
approved applications using the car's steering wheel buttons,
radiohead, and/or voice commands. The first set of announced
applications included Pandora, Stitcher (podcast aggregator), and
OpenBeak (twitter reader). AppLink will work only on Generation II
SYNC (Model Year 2011 and later). Traffic, Directions and Information is
a application that provides the user with traffic alerts, turn-by-turn
directions and information about topic such as weather, sports, news
and 411 business search. Ford announced on May 27, 2009 that the
Traffic, Directions and Information application would be free for three
years to the original owner of 2010 model year SYNC equipped
vehicles.The information for Traffic Alerts and Turn-By-Turn Directions
are provided by Microsoft subsidiary INRIX.
Garmin Nav
The Garmin Nav application provides capabilities including destination
routing and locating points of interest.
LogMeIn
The LogMeIn application allows the user to remotely access an office
computer using a data connection provided by Sprint. The user can
open applications on the remote computer, make updates and print
documents using a Ford-certified, Bluetooth enabled keyboard and
printer.
Tool Link
Tool Link is an application that enables a user to take physical
inventory of objects present in the truck bed using radio-frequency
identification (RFID) tags. A user attaches RFID tags to an object,
allowing the SYNC system to detect the object's presence or absence
and noting the object's status on the in-dash computer display.
Users can create "job lists" of objects to verify that tools needed for a
certain job are present in the truck before heading to a job site. At the
end of the job, the system can inventory items in the truck to ensure
that no tools are left on the job site.
Branding
Ford earned $4.7 billion in the year’s first six months, its largest first-
half profit since 1998, and posted its fifth straight profitable quarter.
Excluding some items, profit was 68 cents a share, topping the 41-cent
average estimate of 12 analysts compiled by Bloomberg. The second-
largest U.S. automaker earned $2.26 billion a year earlier, helped by
an accounting gain.
19 General Motors Co., Ford and Honda will pick up most of Toyota's
lost sales,
Conclusions
Ford is an example of how traditional organizations can mature to
adapt what is current and maximizes the business value. The process
that Ford went through necessitated the continuous support from
management. In addition, it depended on alignment between those
involved as a key for success. The correlation was not restricted to
internal staff; it extended to cover competitors to reach mutual
benefits, to work with suppliers to maintain similar grounds and
adequate infrastructure, and to create training programs to educate all
on the vision and organization's objectives.
Ford technical progress came at a time where the Internet was yet to
reach its full potential. The introduction of Fiber-optic cables in the late
90's and the substantial increase in bandwidth would have helped Ford
and cut on the cost in endured connecting its own offices.
Furthermore, the ISP services that provided hosting servers were
limited to only few players, which explained why Ford preferred to
manage its own web server and maintain the overhead of the 24 hours
uptime and backup.
From this case study, I understood the level of commitment large firms
have to maintaining their position in the market. These companies
know the revolving nature of business in the sense of how easy it is to
fall back if they did not keep up with the change. The Ford process also
shows the need for quick and resourceful thinking when faced with
situations that might seem to be unfavorable. The way Ford ventured
into the foreign market by acquiring local manufacturers was a
strategic decision that did not only enabled Ford to merge with
different technologies, but it also saved it the additional cost of
establishing production centers in Japan and Europe.
Recommendations
References
www.ford.com
www.google.com
www.oppapers.com
www.easymba.com
www.wikipedia.com