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TQM-FORD

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
LOPEZ, QUEZON
ANALYTICAL RUN-THROUGH: A SYSTEMATIC VIEWPOINT OF FORD MOTOR
COMPANY’S TOTAL QUALITY MANAGEMENT
A Written Research
presented to Mr. Walfrando E. Adan,
Instructor in Operations Management and TQM
Polytechnic University of the Philippines
LOPEZ, QUEZON
in partial fulfillment of the requirements in
OPERATIONS MANAGEMENT AND TQM
(BUMA 20093)
Upheld and established by the bonafide students of
Bachelor of Science in Accountancy 2-1
Ardiente, Glayza Mae P.
Capanas, Charish A.
Danes, Ralph Angelo E.
Group 1 Researchers
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Tan, Princess Norie Z.
1
Napoles, Guen Mariedalle R.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
LOPEZ, QUEZON
EMPLOYEE EMPOWERMENT
Ford is a family company in several ways. Their culture is founded on pursuing the
common good and adhering to a set of shared values. Every employee is being given
a sense of belonging as they provide them the opportunity to move around the firm
and follow their aspirations. Every employee is the driving force behind their
development, guided by the company's purpose.
Each year, The Company Employee Resource Groups also organize several events
and activities to include their employees, share product knowledge, and engage the
community. As Total Quality Management (TQM) has its roots in the abovementioned
well-known
company,
it
correspondingly
elevates
Employee
Empowerment to its own signifying quality, excellence, and competence to have an
amiable set of goals and objectives upon the progression of the company's long-term
effectivity, prosperity, and fruition with the corporate world as it mightily prioritizes
Engaging with
employees
Training and
Developing Talents
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Developing Skilled
Trades
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EMPLOYEE
EMPOWERMENT
social responsibility amongst its subordinates.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
LOPEZ, QUEZON
Figure 1. The Foundation of Employee Empowerment in Ford Motor Company
with reference to Total Quality Management (TQM)
The business considers it vital to involve its employees in the areas where it
operates. Ford provides opportunities for thousands of its employees and retirees to
take part in volunteer initiatives each year. They view these initiatives as essential for
both aiding people in need and encouraging and energizing every employee member
to engage in volunteerism and community service. Through these neighborhood
projects, foster cooperation and build a sense of commitment and shared purpose.
The employees will determine the company's future success. Continuous training,
learning, and development are essential components to giving employees insight into
the organizational skill needs, creating learning solutions to meet those needs, and
empowering them to increase performance through skill application. To draw in top
talent and keep them on board, they keep making learning and development
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CUSTOMER RELATIONS
3
opportunities a key component of their brand.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
LOPEZ, QUEZON
Ford Motor Company in Dearborn embraces deeper customer relationships and
introduces Ford+, which is distinguished by the development of close, lifelong
customer relationships, increased investments in disruptive technologies, and the
addition of more EVs. Because client demand is constantly changing, businesses
strive to improve their products and services to satisfy customers and TQM is a
method employed by Ford Company for continuous improvement that supports
satisfying customer expectations.
Customer satisfaction is a significant long-term benefit of Total Quality Management.
TQM attempts to improve performance by identifying the best quality metrics as
meeting customer expectations in terms of marketing, sales, orders, and customer
service and retention. TQM interventions quantify problems and strive for the best
condition. Ford developed the TQM method with a primary focus on customer
requirements. The emphasis was on consumer expectations regarding the services
and products provided. Customers generally want perfect products with no flaws.
Ford claims that customer relationships are the most crucial area in which to invest to
become the world's most trusted company. In order to do so, they implement
Marketing Strategies that increase brand awareness, benchmarking to ensure that
clients receive standard services, provide highly satisfying options, and better
dealerships that are rebuilt to be more attractive and user-friendly. They also
prioritize qualifying leads, nurturing leads, and tracking opportunities to increase
sales. In terms of orders, the company strives to ensure how easily customers can
obtain their services and offers FordPass Rewards, a program that awards 42,000
points when purchasing or leasing a new vehicle, service appointments, and the
purchase of tires or other parts can earn points.
"The true measure of our success as a company is retaining customers' loyalty over
aspects to retaining the customers' loyalty, which is the company's top priority.
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Customers, Employee Involvement, and Customer-driven standards are necessary
4
time" (Elena Ford,2019) Supplier Partnership, Service relationship with Internal
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
LOPEZ, QUEZON
Fig. 2 Systematic Cycle of Customer Relations in Ford Motor Company incorporated with
Total Quality Management (TQM)
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5
PROCESS IMPROVEMENT
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
LOPEZ, QUEZON
The business could begin implementing total quality management principles after
establishing goals and creating a strategy to achieve them. These objectives were
established primarily to improve productivity and streamline processes. And there is
no more effective way to accomplish these goals than implementing total quality
management in company. In his work, Edwards Deming developed fourteen
fundamental management principles that can significantly increase a company's
effectiveness. Total management principles are those that can help the Ford Motor
Company increase both productivity and quality. The fourteen principles are to:

Establish a loyalty of purpose for enhancing goods/services

Implement a new operation philosophy Stop relying on inspection to ensure
quality Cease awarding contracts on price alone, instead cut total costs by
awarding business to a single supplier

Continuously enhance production, service and quality

Start 'on-job' training

Adopt and integrate best leadership practices

Eliminate fear

Remove employer-employee barriers Remove slogans, targets and work
Remove number quotas for employees and also number goals for executives

Eliminate obstacles that do not allow appreciation for workmanship

Cease yearly rating or merit system and formulate a program to train

Educate the entire workforce (Hashmi 2015)
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
6
pressures for employees
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
LOPEZ, QUEZON
By the 1990s, Ford Motor Company aimed to produce better products, a stable
work environment for its employees, effective management, and profitability. "Quality
is job one" changed into "Quality People, Quality Products" during this process. Paint
processes were developed through this collaboration with paint supplier ChemFil to
guarantee that a high-quality product that satisfies customer needs results in
business potential. As ChemFil implemented the preparation process, TQM was at
the forefront of their painting design, and Ford management and employees were
made aware of all the steps involved in applying paint to a high-quality result. A few
years later, Ford Chief Engineer Art Hyde says that the design and engineering
analysis process goes beyond the executed Six Sigma. The design and engineering
analysis process makes it possible for problems that previously may not have
surfaced until launch, to be caught and corrected in the virtual world through DMAIC
process.
Dan Dobbs, a Six Sigma Master Black Belt, stated that the company's Quality
Operating system (QOS) is essential for locating and fixing issues within the
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manufacturing facilities. The DMAIC process, define, measure, analyze, improve, and
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
LOPEZ, QUEZON
control, has built an overall strategy for consistency in Ford teams' Six Sigma
implementation for 2010 product launches. Cross-functional teams of engineers,
plant management, and production experts implement Six Sigma and QOS in each
plant. All proficient problem solvers with Six Sigma training.
Figure 3. DMAIC process, this figure shows a data-driven improvement cycle. The
DMAIC improvement cycle is the core tool used to drive Six Sigma projects. Six
Sigma has been defined as a collection of strategies and instruments based on
statistics that can improve processes.
References
Ford Motor Company (2022). Integrated Sustainability and Financial Report 2022.
https://corporate.ford.com/social-impact/sustainability.html
King, R.J. (2021). Ford Embraces Closer Customer Relationships, Moves Away from
Transactional Business Model. DBusiness Magazine.
https://www.dbusiness.com/daily-news/ford-embraces-closer-customer-relationshipsmoves-away-from-transactional-business-model/
Priddle, A. (2019). Here are 5 Things Ford is doing to Improve your Customer
Experience. Motor Trend.
https://www.motortrend.com/news/ford-improve-customer-experience/
Deaborn, M. (2019). Ford sharpens focus on Customer Experience; Expanded
Investment, Programs save Time and Money, Reward Loyalty. Ford Media Center.
https://media.ford.com/content/fordmedia/fna/us/en/news/2019/05/02/ford-sharpensfocus-on-customer-experience.html
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https://phdessay.com/total-quality-management-in-ford-motor-company/
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Total Quality Management in Ford Motor Company. (2017, March 19). Retrieved from
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
LOPEZ, QUEZON
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TQM Concept in Ford Motors Company. (2015, November 23). Retrieved July 11,
2022, from https://www.essaytown.com/subjects/paper/tqm-concept-ford-motorscompany/7752851
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