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Quality Management Techniques at Ford Motor Company

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by

Grant Currie

on 28 April 2014

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Transcript of Quality Management Techniques at Ford Motor Company

Ford Facts
Ford Facts (cont)
Ford introduced the assembly line to the automobile industry in 1913

In the 1920's Ford acquired Lincoln and Mazda and expanded over seas - competition increased

$3.3 billion in loses from 1979 to 1982 due to increased rivalry and foreign competitors

Ford recognized the need for improved quality which lead to starting 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
Six Sigma
Strategic weapon accepted by the organization

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
Fords Cause and Effect Diagram
Quality Management Techniques at Ford Motor Company
Table of Contents
Ford Motor Company Facts/Background

Six Sigma

Cause and Effect Diagrams

Benchmarking

Training Processes

Customer Satisfaction and Feedback

Future Goals
By: Grant Currie
Holly Peterson
Jessy Moser

Benchmarking
Training Processes
Customer Satisfaction
and Feedback
Future Goals
Henry Ford had a passion for designing and building combustible motors

Race cars won multiple races

Ford Motor Company was created in 1903 by Henry Ford and his partner

$28,000 in capital investments

On June 16, 1903 Ford sold first vehicle

Since 1911, Ford has been using lean management to eliminate waste
Started using in 1990's due to Mazda's accounts payable business section

Mazda had 11 employees working on their accounts payable, while Ford had 350 employees.

Mazda's philosophy: "faith in the supplier’s parts, then they could trust the supplier’s invoicing as well"

Ford end up reducing that work staff by 80% percent saving time and money.
Six Sigma Training: Green belts, Black belts, and Master Black belt

Ford's new "simulated factories"

One-on-One Training Sessions

Ford has a 3 part quality index system:
1) Quality leadership initiative
2) Quality operating system
3) Consumer driven six sigma

New and improved F-150 due to customer feedback
-Improved gas mileage
-Second-row flippable seats
-Hands free communication system
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

Questions?
Full transcript