Applying
Knowledge Management
to Improve Quality
High Priority given to Quality at
Ford Motor Company
Strategy: Quality is JOB #1
Quality Operating System (QOS)
Performance to Standards
Quality Leadership Initiative (QLI)
Engage all employees
Consumer Driven 6-Sigma
Data driven decision making
2
Leverage Quality Improvement
Programs
Corporate Strategy: Quality is JOB 1
Top Down: Corporate Programs QOS, QLI, 6-Sigma…
Bottom Up: Employee based proven
methods to improve quality…
…apply Knowledge Management
3
Applying KM to Improve Quality
Illustrative examples will be
displayed and discussed during
the presentation
4
Measurable Quality Improvements at
Ford Motor Company
JD Power Initial Quality Study: Ford Motor Company
products had more than 16% improvement 2002-2003
Consumer Reports 2004 – New Car Preview –
19 Ford Motor Company products received
“Recommended Buys”
Warranty Spending is down 18%
from 2002
Consumer Driven 6-Sigma efforts
saved more than $1.3 B since its
inception in 2000
Source: FCN December 15th, 2004, & 2003 Annual Report
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
Ranked #4 by Fortune 500

Manufacture and distribute automobiles
in 200 markets across 6 Continents

2003 Global Revenues: $164 Billion

327,000 Employees

2003 - Celebrated 100th Anniversary
6
Very Brief History of
Best Practice Replication
1994: Formalized
process of replicating
proven practices
1996: Launched
Ford Web Hub;
BPR used the
Web across 53
plants globally.
1995 – Faxing best
practices amongst
vehicle assembly plants
As of 2004: Launched 53
communities of practice.
2,334 Focal Points: Vehicle
Assembly, Plant HR, Paint
Engineering, Ergonomics,
Safety, Plant IT, Finance,
Environmental…
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BPR Principles
Capture only Proven,
High Value Practices
Manage the
Process
Value-Add to
business must be
identified
Business Partners provide
the content and the
people, IT group provides
the enabling tool
8
Selection and Replication of
Proven Practices at Ford
Many
Sources of
Ideas
Task
Lessons
Learned
Site
Visits
6-Sigma
CPIPS
8Ds
Practice
Implemented at
a Ford Facility
FPS
Inspiration
Practice is Proven
AND generates Value
Best Practice Replication with prescribed Roles & Responsibilities
Collect
Approve
& Distribute
Review by
each Location
Adopt/
Don’t Adopt
Decision
Management
Review
of Results
9
Typical BPR
Community of Practice
Senior Leadership
Community
Gatekeeper
Site 1
Focal Point
Knowledge Workers
Site 2
Site 3
Focal Point
Focal Point
Knowledge Workers
Knowledge Workers
etc.
Focal Point
Knowledge Workers
10
Best Practice Replication
9 Step Process
1
DRAFT PRACTICE: Focal Point at
Locations enter Proven Practices:
4
PUSH the KNOWLEDGE: Outlook email
notification to all Community Focal
Points at each Location.
7
FEEDBACK: Focal Point at each
location enters adopt/not adopt
decision.
2
REVIEW DRAFT PRACTICES:
Gatekeeper looks for replicable
practices; Collaborates with SMEs.
5
PRACTICES REVIEWED by
each location team members
for applicability.
8
REPORTS: Progress Reports
available to all
3
APPROVE PRACTICE:
Gatekeeper approves only
replicable high-value practices.
6
ADAPT/ ADOPT/ NOT ADOPT
DECISION made at each
location. “Copy with Pride”
9
PEER RECOGNITION of practice
originators & replicators.
11
BPR Results Summary
Since 1996: Average of
10,000+ replications/yr
2,800+ active high value practices.
53 Communities of Practice
2,334 active Focal Points
Process licensed to Shell Oil,
Nabisco, Kraft Foods, and US Navy
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Contacts
Stan Kwiecien
skwiecie@ford.com
Best Practice Replication Deployment Manager
Sanjay Swarup
sswarup@ford.com
Senior Knowledge Management Specialist
Robyn Valade
rvalade@ford.com
Best Practice Integration Manager
Dar Wolford
dwolford@ford.com
Manager, Venture Transitions and Knowledge Management
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Applying KM to Improve Quality # 1
KM System must capture Knowledge AND
value metrics (Cost Savings, Quality, etc.)
14
Applying KM to Improve Quality # 1
BPR has 168 different types of value
metrics in 6 broad categories
Safety
Delivery
Quality
Cost
Motivation
Environment
15
Applying KM to Improve Quality # 1
Illustrative examples will be
displayed and discussed during
the presentation
16
Applying KM to Improve Quality # 2
KM System must capture
Quality Improvement Practices
from ALL areas of the Enterprise.
17
Applying KM to Improve Quality # 2
Illustrative examples will be
displayed and discussed during
the presentation
18
Applying KM to Improve Quality # 2
All 53 Communities of Practice share quality
improvement practices: Examples



Paint Engineering
Final Assembly
Stamping Operations






Environmental
Ford Financial
Industrial Materials
Human Resources
Lean Manufacturing (Ford Production System)
Energy
19
Applying KM to Improve Quality # 3
Capture the replication and feedback of
Improved Quality Practices
20
Applying KM to Improve Quality # 3
Illustrative examples will be
displayed and discussed during
the presentation
21
Applying KM to Improve Quality # 4
Establish a Robust process to
transfer replicable findings of closed 6-Sigma
projects to the KM System
22
Applying KM to Improve Quality # 4
Illustrative examples will be
displayed and discussed during
the presentation
23
Applying KM to Improve Quality # 5
Leadership MUST provide ongoing
encouragement and support for initiating
AND replicating Quality Improvement
Practices
24
Applying KM to Improve Quality # 5
Sample of Recognition given to Initiators
25
Why use KM to Leverage Quality Efforts?
Quality
Improvement
without KM
Quality
Improvement
with KM
Quality
Local only
Enterprise-wide
Value
Value generated is
local only
Maximize Value
Enterprise-wide
Max effort at one
location
Minimal additional
effort for Enterprisewide replication
Effort
26
High KM activity AND High Quality
Improvement activity = Maximum Value
High
Quality
Improvement
Activity
Medium Value
Maximum Value
Minimum Value
Medium Value
Low
Low
KM activity
High
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Recap:
Applying KM to Improve Quality
1: Capture Knowledge AND Value Metrics
#2: Enable enterprise wide capture of
Quality improvements
#3: Replicate and capture feedback
#4: Robust Process of linking KM and 6-Sigma
#5: Leadership MUST provide ongoing
encouragement and support
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