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 Page 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 2 Developing Skilled Trades Page 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 Page 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. Page 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) Page 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) Page 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 Page 7 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 Page https://phdessay.com/total-quality-management-in-ford-motor-company/ 8 Total Quality Management in Ford Motor Company. (2017, March 19). Retrieved from POLYTECHNIC UNIVERSITY OF THE PHILIPPINES LOPEZ, QUEZON Page 9 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