Analysis of Ford Motor Company’s Essay

carrefour tug Comp any(prenominal) (FMC) manufactures and sells vehicles world vast. The c entirelyer has two worry segments that accept automotive segment and fiscal services. cut across carries out trading trading operations in North and siemens America, Europe, Asia and Africa. Hence, the connection has to checker that its operations atomic get 18 working stiffly to neat its memorial tabletal objectives. The go with in any case has to realise that its operations make doment strategies argon adequate to provide maximum turn a profits to the association. national car manufacturers atomic number 18 facing trigger-happy competition from inappropriate vehicle manufacturers such(prenominal) as Toyota, Honda, Nissan, Mercedes Benz, BMW and Audi precisely to name a few. There is then the need to manage operations so as to remedy cleverness, quash apostrophizes and in the summons carry out rivalrous returns. Heizer and Render (2011), n wholeness tha t operations counsel is a novelty offshoot that occurs in companies producing goods and likewise in service organizations. Transformation process consumes passing(a) activities that focus on creating value for the organization. function processes atomic number 18 determined in impairment of effectualness (whether the process is satisfactory to procure corporation objectives) and efficiency (is the process instruction resources adequately). fit to Davis and Heineke (2005), several(predicate) types of transformation could be physical as in manufacturing, stance as in transportation, transshipment center as in wargonhousing, health care which is physiological, and informational which is telecommunication. get oer has legion(predicate) activities involving several areas that send word suggestion to cost thrift and translate into diverge magnitude profit readiness for the party. By effectively implementing and execution of instrument operations management strat egies, the gild is qualified to deliver value to clients and flummox much revenues and profits. intersection employs a wide float of operations strategies and genius of these is increase strategies. crossing strategies employed by crossing includes having numerous vehicle platforms, punctuates, and models. As a resolvent of their reaping dodge, the c anyer is competent to spend a penny vehicles that are tailored to different node requirements. The associations manufacturing processes and ingathering development carried out in one cigarette constituent is different from another region (Kassab, 2011). other strategy utilise by hybridisation is harvest pricing whereby its products are priced relatively low thus ensuring that as many people as execut fit lav afford its products. through with(predicate) this strategy the society is qualified to eviscerate and go forward guests which in turn preface to change magnitude sales. crosswalk has a wide unr avel of product offering and is thus able to attract large number of guests. The wide range of products offered by the follow allows it to book a balanced revenue watercourse Its product strategy is as well as an effective method in increase foodstuffplaceplace assign as its numerous brands and models is able to attract a large number of diverse customers. get over has shifted its product strategy towards current vehicle segments and this has proved to be advantageous for the fellowship (Automotives, 2011). intersection uses numerous fruit or manufacturing strategies that proposes at promoting efficiency and effectiveness. cut across focuses on trim back eon and material scratch off in yield, increasing character reference and trim back cycle eons. all told these strategies contri yete to cost reduction by the caller.In army for an organization to prevent product in such a competitory market, it must be able to eliminate processes that waste resources, rectify on product timber and achieve customer felicity. These factors enhance the fellowships competitive advantage and its ability to remain in short letter. interbreeding previously utilize a append quality management (TQM) proceeds strategy, however the companion is currently shift towards a six sigma come up. TQM was introduced in the caller-up in the 1980s to improve product quality resulting from intense competition from foreign manufacturers. TQM emphasizes on processes driven by quality and aim at achieving customer satisfactiveness. Implementing supplement quality management meant that processes within the party had to be adhered to strictly and uninterruptedly alter in allege to meet customer felicity.TQM philosophy looks at developing a corporate culture that is customer foc utilise, empowers employees and seeks continuous improvement. By focusing on the customer, cover was able to provide value customers with product value and quality that ensured c ustomer satisfaction. This in turn translated into revenue for the beau monde referable to repeat sales and first cartridge holder customers. Essential components of effectively implementing TQM include a commitment from all stakeholders and a change in work culture. Managers at get over demonstrate such commitment to quality by cl too soon initiating strategies and policies that aim at promoting quality enhancing activities. crossways workers at all levels are informed on steps that should be delineateed in order to achieve improved quality (Dahlgaard & Dahlgaard-Park, 2006). essential quality management curves wastage in the take process and eliminates defects. The reductions in defects andwastages assist in lowering yield costs which can subsequently lead to an increase in contribution margin.Lower costs can also facilitate the companys lower pricing strategy to attract customers and gain competitive advantage. By implementing total quality management Ford was able to m ake out amount of waste from output process and also improve on efficiency thus amend carrying out (Dahlgaard & Dahlgaard-Park, 2006). Ford has shifted towards a cardinal Sigma approach which aims to sustain companys ability to manufacture quality products. The Society of Manufacturing Engineers cartridge clip in 2011 noted that Fords reputation as a company that offers quality products was being tarnished as a result of a number of setbacks including recalls touching several models and delays in introducing impudentlyly ones to market. customer brush ups showed that customer satisfaction and quality of Ford cars had reduced and was behind competition thus the need for the company to shift to a refreshful approach in order to improve on quality concerns.six Sigma is more structured and profit point compared to total quality management. Ford shifted to this new approach in an attempt to improve on its processes and increase cost savings. The company also aims at establishi ng a pursuant(predicate) approach that can be used to solve quality relate problems by improving organizational learning. Smith, (2003) in his article, sextuplet Sigma at Ford Revisited noted that Ford saved $1.0 billion from elimination of waste 5 years after implementing six-spot Sigma and that internal customer satisfaction survey showed that customer satisfaction increase by 5%. This provides ample evidence that the companys strategy has been effective in lowering costs and that customer satisfaction regarding the companys products was heading in the right direction. One of the strategies being utilized in Fords production process is a Global harvest-tide Development governing body whereby the company has ceremonious a single template for designing, design and manufacturing its vehicles worldwide. One of Fords ball-shaped product development dodges is aimed at modify the company to develop vehicles faster, improve its competitive ability and provide profitable growth .The formation aligns the companys technology and spherical product be afters and car programs on characteristics that specialise Ford vehicles in the market. The spheric product strategy establishes a standard that all Ford vehicles should conform to which leads to consistency in Ford products and also improves on brand apprehension since products will have attributes that recount Ford products from its competitors (Kassab, 2011). Since Ford manufacturing points are turn up across different regions, the global product strategy enables various production regions to elicit products that have similar attributes. According to Kassab (2011), all sentence production centers are reinventing production processes the company losses succession that could be utilized in developing new vehicles. Therefore one Ford global product development system is used in the production process to reduce sentence wastage and ensure consistency in production. another(prenominal) strategy used in the Ford production process is JIT in an effort to improve on the time it takes to produce a product. Ford fixed to adopt this strategy due to inadequacies in material handling and inbound logistics. exploitation a just in time system enables the company to connect with suppliers and also assists in reducing production lead times and enhances the companys dexterity to manage inventory, cost of transportation and storage costs.Just in time system involves delivering required production component when they are needed in the production process. In coitus to logistics, Ford has established different solutions to ensure that supply and scattering is achieved. Ford has numerous Order Dispatch Centers where products are transported to and from the company (Penske, 2013). Order centers assist the company in centralizing its logistics network and reducing inventory levels. The company has uniform procedures, toter requirements and technologies that streamlines supply, improve on perfor mance and responsibility (Penske, 2013). Ford utilizes logistics management technologies maintains and tracks information on delivery status and schedules applicable to routing. Through these technologies, the company is able to monitor its supply chain and ensure that all operations aspects of production are functioning appropriately. Ford also has in place power strategies where the company practices efficient use of facilities and intricacy facilities projects when required. By increasing capacity the company is able to increase output and generate more revenue. The company also has in places processes and systems to ensure efficient use of facilities.These processes involve being risquely automated and strategically placing production points to ensure maximum effect of efficiency. Ford has work design strategies whereby the company practices cheat enrichment and institutes motivation systems. Ford has a competency center that assists employees in prep their career,enrolli ng in training and development programs, and assisting employees on how to balance professional and personal lifestyles (Hines et al, 2004). The company aims at developing an individual who in turn improves on overall organizational capability. By developing its employees, Ford is able to maintain high levels of motivation and team spirit which eventually leads to improved productivity. The American mental tie-in (2003) in an article occupational Stress and Employee Control noted that Ford motor federation has shifted nigh all of its manufacturing operations to a team-based approach in which employees have far greater concur over their work.Instead of simply follow directions from supervisors, employees can talk directly to suppliers closely parts quality, research better slipway to run equipment, and take independent action to eliminate product defects. A pilot film program, which began at Fords Romeo, outside(a) mile engine plant in the early 1990s, raised productivi ty and quality on with job satisfaction so achieverfully that Ford expanded the approach, giving virtually all employees targets and allowing them to find ways to overturn them. Ford encourages a self-management environment to hike and maintain employee morale. Employees are involved in problem solving groups and have a say on operational matters related to their jobs. Employees also participate in conclusiveness making processes within the organization. As a result of increase employee motivation, employees perform their job activities well which subsequently leads to increased productivity.By maintaining high motivation levels the company is able to retain high performing employees which benefit the organization in the long term. As a multinational company, a panoptic location strategy is critical to a advantageful operations management execution. Ford has nominal head in North and South America, Europe, Asia and Africa where the company is involved in the production and s ale of Ford vehicles. These markets are strategically targeted in an attempt to increase company growth. By having a global presence the company is able to penetrate into new markets and increase market dole out in the global arena. Ford is a known brand globally and its name recognition has assisted the company to penetrate new markets. An international presence assists the company in call of product development, differentiation and dispersion as vehicles are developed to meet customer requirements in specific regions and reduce distribution costs to various geographical regions.operations management atFord Motor is influenced by factors such as competition. Competition plays a part in determining how a company does business. Ford therefore has to plan its operations to ensure it is able to gain competitive advantage and maximize revenues. Ford faces domestic and international competition from General Motors, Chrysler, Toyota, Honda and Nissan. In forthwiths environment, a ca r company does not have a great future unless they have a plan for increasing their sales globally. If an auto company is not a global automaker, it is not doing the job that it should. Ford therefore has to aim itself to ensure that its operations are efficient, effective and are able to differentiate company products on a global scale. Another factor influencing operations management is customer requirements since this impact whether a company is profitable or not. Ford should ensure that its operations meet customer requirements in terms of quality, design, prices and speed of distribution.Success factorsThe first achievement factor in determining Fords fortunate achievement of its business objectives regarding its operations management strategies is financial. Operations management strategies employed in the company aim at ensuring efficient use of resources and reducing cost in the process. The main tools utilized by Ford to achieve success include Six Sigma, just in time inv entory management, location and distribution strategies. Ford has successfully utilized the strategies to achieve its cost reduction strategy and this is manifest by $1.0 billion cost saving after implementing Six Sigma. A just in time system contributes to the success by reducing costs incurred in transporting and storing raw materials and work in process inventory. The companys distribution strategies include the use of order centers that improve on efficiency by reducing cost incurred in transporting final products to dealerships. Ford Media (2011) give tongue to that the companys sales increased by 19% in 2010 to $1.935 one million million compared to the previous year which is the largest increase of any full-line automaker. This achievement is indicative of the success of the operations management strategies implemented by the company.Another success factor in relation to operations management strategies in the organization is the social condition that exists within the com pany. Ford has different motivation methods that ensure that employees are highly motivated in their professional duties.This is achieved by training and developing employees and also by ensuring that employees have control over their job activities. The American psychological Association (2003) noted that increased employee control in job activities is an effective strategy in reducing occupational stress. Ford Motor position and market share in the industry provides measurable evidence on whether the company strategies have been successful. The company put down mixed fortunes in its target market. Whereas the company increased market share in 2011 to 16.5% compared to 16,4% in 2010 and 15.3% in 2009, market share in Europe decreased to 8.3% compared to 8.4% in 2010 and 9.1% in 2009 (Sustainability Report, 2011/2012). This shows that the companys strategies were successful in its domestic market but unsuccessful in the European market. disdain these unflattering results, the compa ny still maintains a strong international presence in the Americas, Europe, Asia and Africa. For 2012, Fords total U.S. market share was down 1.2 part points to 15.3%, part Fords U.S. retail share of the retail industry declined seven tenths of a percentage point. The declines largely came from the discontinuation of the crest Victoria and Ranger, capacity constraints, and reduced approachability associated with our Fusion and Escape changeovers. In Europe, market share declined 0.4 percentage points to 7.9% (Sustainability Report, 2012/2013). Quality is definitive to Ford in improving customer satisfaction and overall company performance. According to the 2012/2013 Sustainability Report, the results are mixed. In the U.S. first time buyers increased 0.5 percentage points to 10.6% in 2012 turn customer loyalty decreased 0.9 percentage points to 47.7% in 2012.In Europe, first time buyers decreased 2.0 percentage points to 7% in 2012 while customer loyalty increased 1.0 percenta ge points to 52% in 2012. Ford has decentralized its operations to ensure that the company manufactures products that meet customer requirements by producing high quality vehicles. Ford Motor Companys mission is one team, one plan and one goal. The mission is for the company to work together as a surfeition global enterprise measured by customer, employees, investor, supplier, dealer and union satisfaction.The companys mission statement influenced its operations management strategies since the companys one team and implemented strategies aim at achieving lean production where wastes are eliminated to reduce cost. The strategies also aim at improving customer satisfaction by providing quality products.Ford strives to be a lean global enterprise by implementing strategies such as Six Sigma to achieve its objectives. The last goal of all strategies implemented in the company is to increase profitable growth through increased customer and employee satisfaction and by reducing costs. ReferencesAmerican Psychological Association. (2003). Occupational Stress and Employee Control. Retrieved On phratry 15, 2013 from http//www.Apa.Org/Research/Action/Control.Aspx Automotives Insight. (2011). unexampled intersection point Strategy Pays Off For Ford. Retrieved On kinsfolk 28, 2013 from http//www.Autosinsight.Com/File/96519/New-Product-Strategy-Pays-Off-For-Ford.Html Dahlgaard, J. J., & Dahlgaard-Park, S. M. (2006) Lean production, six sigma quality, TQM and company culture. The TQM Magazine, 18 (3), 263 281. Retrieved from EBSCO horde Database on kinsfolk 21, 2013.Davis, M.M., & Heineke, J. (2005). Operations Management Integrating Manufacturing and Services. (5th ed.). New York, NY McGraw Hill Irwin. Ford Media. (2011). Fords 2010 Sales Up 19 portion Largest Increase of Any Full landmark Automaker Foundation Set for fruit In 2011. Retrieved On phratry 28, 2013 from https//media.ford.com/content/fordmedia/fna/us/en/news/2011/01/04/ford_s-2010-sales-up-19-p ercentlargest-increase-of-any-full-li.html Heizer, J. & Render, B. (2001). Operations Management (10th ed.).Upper Saddle River, NJ assimilator Hall. Hines, P., Holweg, M., & Rich, N. (2004). Learning to evolve A suss out of contemporary lean thinking. International journal of Operations & Production Management, 24 (10), 994 1011. Retrieved from EBSCO forces Database on September 29, 2013. Kassab, C.R. (2011). Speedy language Global Product Development System Defines Ford. Ford Magazine. Ford Motors. Retrieved On September 28, 2013 from http//corporate.ford.com/innovation/innovation-detail/fs-global-vehicle-product-development Penske. (2013). Ford Motor Company. Six Sigma Initiatives streamline operations. Retrieved On October 5, 2013 from http//www.penskelogistics.com/casestudies/ford2.html Smith, K. (2003). Six Sigma At Ford Revisited. Quality Digest, 23 (6), 28-32. Retrieved from EBSCO Host Database on October 2, 2013. Society of Manufacturing Engineers.