Strategic Information System for Ford Motor Company

This paper discusses the critical success factors, weaknesses, and potential security risks of Ford Motor Company. It also includes a flow chart of the current production system, features of the new production system, and innovative technologies used by the company. The proposal contains a list of financial and non-financial data attributes for each entity in the ER diagram and four users who could be source documents or management reports.

Running head: Strategic information system
Strategic information system
2018

Strategic information system
Table of Contents
Introduction.................................................................................................................................................3
Critical success factors of Ford Motor Company.........................................................................................3
Some information that might be helpful in measuring these objectives.......................................................4
Mission statement.......................................................................................................................................4
Formal organizational chart.........................................................................................................................5
Current system of Ford Motor Company.....................................................................................................6
Specific weaknesses in system....................................................................................................................6
Data flow chart diagram..............................................................................................................................7
Features of the new production and its suitability........................................................................................9
The proposal contains various items..........................................................................................................10
Innovative technologies.........................................................................................................................10
A list of financial and nonfinancial data attributes for each entity in the ER diagram...........................10
Four users which could be source document or management reports....................................................11
Potential security risks and data breaches..............................................................................................12
Conclusion.................................................................................................................................................12
References.................................................................................................................................................14
Bibliography...............................................................................................................................................17
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Strategic information system
Introduction
Strategic information system is mandatory for manufacturing sector. Ford Motor Company has
been taken in the task which is one of the biggest and well known brand in automobile industry.
Ford Motor Company is an American multinational automaker with its headquarter situated in
Dearborn. Michigan. U.S. The company was formed by Henry Ford in 16 June 1903 (Ford,
2018). The critical success factors, potential security risks, data breaches, mission and vision also
have been explained in the paper. An effective organizational chart and flow chart of current
system of Ford Motor Company also have been discussed in the paper. The features of new
system, and why it provides accurate and right information to the customers at Ford Motor
Company also explained in the task. Leadership styles are used by Ford motor Company to
attract and retain maximum number of client globally. The paper outlines that how the company
overcome the rivalries and further, the report also discusses the suitable accounting control
method to meet the desired outcomes and goals. More detailed of the task been detailed below.
Critical success factors of Ford Motor Company
The key critical success factors of Ford motor company has been discussed below.
A good brand image: It is stated that the company has maintained a strong and unique brand
image in the minds of the customers. Therefore, it is one of the significant and dynamic success
factors for Ford motor Company (Kittlaus and Clough, 2008).
Efficient channel of distribution: It is analyzed that cars are sold via third party, there is no
direct and unique consumer contact of Ford Company, that is why the firm relies on good and
effective channel of distribution to gain rivalries benefits in the international market. The
distribution channels of the company are related to strong and dynamic supply chain, thus, it
helps in attaining various competitive benefits (Stone, 2012).
Efficient production: Ford Motor Company uses effective production system to manufacture
ample of vehicles in the competitive market.
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Strategic information system
Unique values: One of the vital key success factors for the company is value. By this Ford
believes in the manufacturing of best and effective serviceable vehicles that will appeal to the
masses and will provide to their comforts.
Primary objectives
The primary objectives for Ford Motor Company are detailed below.
 To improve fuel economy across the product lineup.
 To make people’s lives excellent through mobility and automotive leadership.
 To create effective and dynamic models that will be excellent answers for masses
affordability.
 To provide satisfaction to the customers by catering innovative and new vehicles in
various models.
Some information that might be helpful in measuring these objectives
After the various studies, it is analyzed that Ford Motor Company should keep an eye on the
technology, resources and products of the competitors such as Toyota motor company, Tesla,
and General motors. The prices of the competitor’s products shall be considered by the firm to
fulfill the long term objectives. Managerial initiatives would be taken by the company to conduct
business activities in a hassle free manner. Effective and talented staff must be hired to attain
desired objectives. Ford Motor Company further should formulate, identify and evaluate the
strategies to accomplish desired objectives and goals. Various information and facts shall be
gathered to maximize profitability and revenue.
Mission statement
The mission statement for Ford Motor Company is to provide excellent and attractive automobile
vehicles to the customers across the world by working together as a global and lean enterprise in
the competitive market.
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Strategic information system
Formal organizational chart
Each and every company has maintained and used effective and unique organizational structure
to operate and manage business activities in today’s competitive market. The formal
organizational chart for Ford Motor Company is discussed below.
5
President & CEO
Chairman
Executive V.P
and CFO
Executive
V.P and CTO
Executive V.P of
America
Group V.P and
president of Asia
Pacific
Executive V.P
of Europe

Strategic information system
Current system of Ford Motor Company
Ford Motor company implemented 2000 program in January 1995, which was aim to develop
and enhance a new manufacturing system called the Ford Production system (Rowland, 2018).
The main vision of the Ford production system is a flexible, disciplined and lean common
production system, explained and outlined by a set of rules, policies and processes, which
empowered employees, working safely and learning together, in the delivery and production of
vehicles that constantly exceed customer’s needs and expectations. By initiating FPS, the
company attempted to convert itself from accumulation production system to lean manufacturing
system. By implementing policy operation, process confirmation, visual management and data
and time management, the company would render a more competent, and aligned firm, which
would be continuously boosting and improving an excellent and unique manufacturing
environments in near future. The FPS continuous improvement model is the formation for all
effective and unique manufacturing operations (Boonstra, 2013). The company follows ten step
processes to uplift and enhance the profitability of the firm. The ten step processes include
support process, Kaizen, basic administration, continuous improvement board, results process,
and start up confirmation, star points and standardized work (Rowland, 2018).
Specific weaknesses in system
Due to poor current production system, the company is unable to provide products to the
customers in given time period. There is high and intense competition in the automobile industry
(Koren, 2010). Due to ineffective production system, the company is unable to control and
manage its management system. Ford motor Company has been unable to meet the long term
business requirements and business due to various suppliers and third party issues. Weak
production system also leads ample of issues and challenges in the international market.
By 2003, all the plants of Ford has initiated FPS in their activities and operations. It was
predicted that after the initiation of FPS, the company has attained savings to the tune of $500
million per year (Muller, 2017). Ford Motor Company was in the approach of standardizing
manufacturing activities and operations across all its plants widely. The firm is planned to
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Strategic information system
initiate standard operating process and uniform plan layouts. FPS is a blueprint strategy for today
and for the future.
After the various analysis, it has been analyzed that Ford Motor company shall use value added
production system to maximize value while reducing the waste in all production areas and
processes as well. From dealer to vendor, and from production to product development, VPS can
provide support to the customers by providing innovative and excellent quality of automobile
products to them across the globe. VPS can helps in improving and enhancing the production
process of Ford Motor Company (Bayou and De Korvin, 2008).
Data flow chart diagram
The flow chart of production system for Ford Motor Company has been discussed below.
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Strategic information system
8
Best in the world
Policy development, visual management, aligned capable
organization and process confirmation, T&DM
Safety Quality Delivery Cost People Maintenance Environment
SOS
Zero
Fatali
ty
and
serio
us
injur
y
QOS
Zero
MI
and
CPU
DOS
Lean
mat
erial
flow
and
OTD
COS
Wor
ld
Clas
s
effic
ienc
y
POS
Skille
d and
motiv
ated
peopl
e
MOS
100%
utilizati
on
EOS
Green
techn
ology
Standardized work
Manufacturing engineering, Ford land and information technology
Continuous improvement Governance

Strategic information system
Features of the new production and its suitability
In today’s era, technology is becoming a significant and crucial part of each and every company.
As the same way, technology is a most important factor for Ford motor company to stand over
the rivalries globally (Rahman, Laosirihongthong and Sohal, 2010). The value added production
system is the reduction and prevention of all the activities and processes that do not add real
value to the product and service. It has been analyzed that Ford Motor Company is working
towards the improvement and enhancement of technology and resources in the competitive
market. It is trying to use and build new engines which are already in process (Liker and
Morgan, 2011). The primary features of value added production system have been explained
below.
 Promote and improves fuel efficiency and effectiveness
 Flexibility and managing the stability
 Customer satisfaction
 The engine renders unique feedback, reviews and strong power.
 Enhances and uplift engine torque
 This new system will lead high customer satisfaction in the international market.
It shall be noted that Ford motor company should use value added production system to compete
with rivalries and to attain desired targets and goals. This system makes easy the production
process while minimizing the prices of the cars (Bellgran and Säfsten, 2009). This production
system is suitable for everyone in the organization because this system provides ample of
automobile products and services to the customers across the globe. By implementing this
system, the company is able to provide right and appropriate information and evidence related to
the automobile vehicles to the customers in a large extent. In this way, Value added production
system is suitable for Ford Motor Company to boost and maximize returns and profitability
widely (Connectorsuppliers, 2018).
There are various information system options available for Ford Motor Company that has been
elaborated below.
EDI: It is one of the vital technologies in today’s competitive world used by Ford Motor
Company to beat the rivalries. It is exchange of data from one computer system to another by
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Strategic information system
standardized message formatting, without any interference of human intervention. EDI helps in
allowing the firm to share or exchange documents electronically instead of manually. By
implementing this technology, Ford Motor Company could able to exchange the accurate and
reliable data and information among the clients (Saaty, 2008).
MRP: This advanced technology is also derived by the company to run the business activities
smoothly and effectively. Material requirements planning may be defined as a process and
system for handling and calculating the components and materials needed to manufacture a
vehicle and product. The analysis, identification, controlling, monitoring and evaluation are
included in the material requirements planning system (Torbacki, 2008).
MRPII: Manufacturing resource planning is explained as a method or tool for effective and
dynamic planning of all vital resources of a Ford Motor Company. MRPII is a computer based
production planning and inventory system that helps in making unique and dynamic decisions
within the organization.
The proposal contains various items
Innovative technologies
The main aim of Ford Motor Company is to render $4 billion in engineering ineffectiveness and
further this approach would go a long and effective way in attaining desired objectives and goals.
It is further shared engines, parts and structures vehicles. The firm is trying to make a marketing
plan for achieving desired objectives and goals (Zhao, 2009). By using advanced and innovative
technology, the firm would able to introduce and promote the new behaviors and guidelines for
the customers in a large extent. It is stated that advanced and innovative technology will be used
by the company to handle and control over the threats, challenges and risks of the customers and
onion as well. The company can also use Just in time production system to carry out the business
functions and operations widely. Along with this, the firm further uses CSS and JAVA
technology while conducting business (Wee and Wu, 2009).
A list of financial and nonfinancial data attributes for each entity in the ER diagram
A list of financial and non-financial data aspects for each and every activity in the ER diagram
have been discussed below.
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Strategic information system
(Source:https://www.omicsonline.org/open-access/reducing-complexity-in-an-accounting-
system-by-using-the-rea-datamodel-to-design-a-relational-database-2168-9601-1000237.php?
aid=89582)
Four users which could be source document or management reports
The success and growth of each and every company depends on the loyal and trustworthy
customers. The four users which needs to be considered by the company have been discussed
below.
Audit: No Company can survive and expand its business without conducting audit in a hassle
free manner. Audit is essential to detect fraud and errors and to identify the wrongful activities at
the workplace. Audit is done by Ford Motor Company to stay in the rivalries market.
Access over controls: There must be proper and effective control and management in the
organization to fulfill the needs, preferences and choices of the customers. It will also help to
track and record the wrongful and fraudulent actions within the organization.
Allocation of task: The allocation of task helps in making unique and dynamic decisions within
the organization. By assigning the task and delegating the authorities among the employees, Ford
Motor Company can make a big brand image and position in the global market.
Approval authority: There must be a proper arrangement of managers and leaders who will be
highly skilled and qualified for aiming to reduce misconduct and fraudulent activities and
functions within the organization. It will further help to achieve long term mission and vision.
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Strategic information system
Potential security risks and data breaches
Ford motor company faces ample of security risks due to ineffective and poor management.
Some of the potential risks and challenges of Ford Motor Company are given below.
No software code is 100%bug free: It is one of the major potential risks existed in the firm.
Vehicles already carry approx 100 million lines of code. This is in itself showcases massive
attack surface for cybercriminals (Lab, 2017).
Connection security issue: The current poor state of security on interconnected cars generates a
tempting target for cyber criminals. It is one of biggest potential risks or challenges in the global
market (Ingram, 2018).
Unauthorized vehicle entry: It is noted that the company could fail to identify and analyze
authentic vehicle entry. Unauthorized vehicles entry shall be stopped by the firm to attain desired
objectives (Narendra, 2012).
Data breaches
It is analyzed that data breaches is a major threat for the firm in the international market. The
data breaches issue occurs within applications and software. A data breach is a situation where
there is a wrongful flows of confidential information which be misused for various objectives
(Schmidt and Ellis, 2018).
Standardized documentation shall be done by Ford motor Company to adopt new production
system at the workplace (Alonso et al, 2012). Along with this, separation of duties and physical
audit shall be used to strive with competitors in the international market (Ingram, 2018).
Conclusion
It concludes from the above mentioned study that information system is most significant assets
for Ford motor Company to expand and flourish the business internationally. Without unique and
effective production system, the company could fail to fulfill the needs and preferences of the
potential customers. The above analysis discusses the significance and features of current
production system of Ford Motor Company. The organizational structure, success factors,
potential risks and data breaches also have been briefly discussed in the report. A new business
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Strategic information system
system is proposed by Ford Motor Company to maximize profitability and minimize cost in the
global market. The advanced and innovative technologies that adopted by the firm also have
been described in the task. It is recommended that Ford Motor Company shall focus on the
leadership and HRM to build a global image in the eyes of the customers in a large extent.
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Strategic information system
References
Alonso, E., Sherman, A.M., Wallington, T.J., Everson, M.P., Field, F.R., Roth, R. and Kirchain,
R.E., 2012. Evaluating rare earth element availability: A case with revolutionary demand from
clean technologies. Environmental science & technology, 46(6), pp.3406-3414.
Bayou, M.E. and De Korvin, A., 2008. Measuring the leanness of manufacturing systems—a
case study of Ford Motor Company and General Motors. Journal of Engineering and Technology
Management, 25(4), pp.287-304.
Bellgran, M. and Säfsten, E.K., 2009. Production development: design and operation of
production systems. Springer Science & Business Media.
Boonstra, A., 2013. How do top managers support strategic information system projects and why
do they sometimes withhold this support?. International Journal of Project Management, 31(4),
pp.498-512.
Connectorsuppliers.2018. The importance of value added services and manufacturing [Online].
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manufacturing/ [Accessed as on 26th September 2018].
Ford.2018. Our Company[Online]. Available from https://corporate.ford.com/company.html
[Accessed as on 26th September 2018].
Ingram.D.2018. What are the seven internal control procedure in accounting[Online]. Available
from https://smallbusiness.chron.com/seven-internal-control-procedures-accounting-76070.html
[Accessed as on 27th September 2018].
Kittlaus, H.B. and Clough, P.N., 2008. Software product management and pricing: Key success
factors for software organizations. Springer Science & Business Media.
Koren, Y., 2010. The global manufacturing revolution: product-process-business integration
and reconfigurable systems (Vol. 80). John Wiley & Sons.
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Strategic information system
Lab.K.2017. Threat predications for automotive in 2018[Online]. Available from
https://securelist.com/ksb-threat-predictions-for-automotive-in-2018/83179/ [Accessed as on 27th
September 2018].
Liker, J.K. and Morgan, J., 2011. Lean product development as a system: a case study of body
and stamping development at Ford. Engineering Management Journal, 23(1), pp.16-28.
Muller.J.2017. Ford’s board presses fields on future strategy, but the problem is what’s (not) in
showrooms today [Online]. Available from
https://www.forbes.com/sites/joannmuller/2017/05/10/fords-board-presses-fields-on-future-
strategy-but-the-problem-is-whats-not-in-showrooms-today/#69cc07691d78 [Accessed as on 26th
September 2018].
Narendra, K.S. ed., 2012. Applications of adaptive control. Elsevier.
Rahman, S., Laosirihongthong, T. and Sohal, A.S., 2010. Impact of lean strategy on operational
performance: a study of Thai manufacturing companies. Journal of manufacturing technology
management, 21(7), pp.839-852.
Rowland.C.2018. Ford Motor Company SWOT analysis [Online]. Available from
http://panmore.com/ford-motor-company-swot-analysis [Accessed as on 26th September 2018
Saaty, T.L., 2008. Decision making with the analytic hierarchy process. International journal of
services sciences, 1(1), pp.83-98.
Schmidt, C. and Ellis, J., 2018. Manufacturing. In Enterprise Cloud Computing for Non-
Engineers (pp. 77-86). Auerbach Publications.
Stone, K.B., 2012. Four decades of lean: a systematic literature review. International Journal of
Lean Six Sigma, 3(2), pp.112-132.
Torbacki, W., 2008. SaaS–direction of technology development in ERP/MRP systems. Archives
of Materials Science, 58, p.58.
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Strategic information system
Wee, H.M. and Wu, S., 2009. Lean supply chain and its effect on product cost and quality: a case
study on Ford Motor Company. Supply Chain Management: An International Journal, 14(5),
pp.335-341.
Zhao, H. ed., 2009. Advanced direct injection combustion engine technologies and development:
diesel engines (Vol. 2). Elsevier.
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Strategic information system
Bibliography
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of a Strategic Resource. Elsevier Health Sciences.
Alonso, E., Sherman, A.M., Wallington, T.J., Everson, M.P., Field, F.R., Roth, R. and Kirchain,
R.E., 2012. Evaluating rare earth element availability: A case with revolutionary demand from
clean technologies. Environmental science & technology, 46(6), pp.3406-3414.
Bayou, M.E. and De Korvin, A., 2008. Measuring the leanness of manufacturing systems—a
case study of Ford Motor Company and General Motors. Journal of Engineering and Technology
Management, 25(4), pp.287-304.
Bellgran, M. and Säfsten, E.K., 2009. Production development: design and operation of
production systems. Springer Science & Business Media.
Boonstra, A., 2013. How do top managers support strategic information system projects and why
do they sometimes withhold this support?. International Journal of Project Management, 31(4),
pp.498-512.
Cheng, J.J. and Timilsina, G.R., 2011. Status and barriers of advanced biofuel technologies: a
review. Renewable Energy, 36(12), pp.3541-3549.
Connectorsuppliers.2018. The importance of value added services and manufacturing [Online].
Available from https://www.connectorsupplier.com/importance-value-added-services-
manufacturing/ [Accessed as on 26th September 2018].
Ford.2018. Our Company[Online]. Available from https://corporate.ford.com/company.html
[Accessed as on 26th September 2018].
Ingram.D.2018. What are the seven internal control procedure in accounting[Online]. Available
from https://smallbusiness.chron.com/seven-internal-control-procedures-accounting-76070.html
[Accessed as on 27th September 2018].
Kittlaus, H.B. and Clough, P.N., 2008. Software product management and pricing: Key success
factors for software organizations. Springer Science & Business Media.
17

Strategic information system
Koren, Y., 2010. The global manufacturing revolution: product-process-business integration
and reconfigurable systems (Vol. 80). John Wiley & Sons.
Krutz, R.L. and Vines, R.D., 2010. Cloud security: A comprehensive guide to secure cloud
computing. Wiley Publishing.
Lab.K.2017. Threat predications for automotive in 2018[Online]. Available from
https://securelist.com/ksb-threat-predictions-for-automotive-in-2018/83179/ [Accessed as on 27th
September 2018].
Liker, J.K. and Morgan, J., 2011. Lean product development as a system: a case study of body
and stamping development at Ford. Engineering Management Journal, 23(1), pp.16-28.
Muller.J.2017. Ford’s board presses fields on future strategy, but the problem is what’s (not) in
showrooms today [Online]. Available from
https://www.forbes.com/sites/joannmuller/2017/05/10/fords-board-presses-fields-on-future-
strategy-but-the-problem-is-whats-not-in-showrooms-today/#69cc07691d78 [Accessed as on 26th
September 2018].
Narendra, K.S. ed., 2012. Applications of adaptive control. Elsevier.
Rahman, S., Laosirihongthong, T. and Sohal, A.S., 2010. Impact of lean strategy on operational
performance: a study of Thai manufacturing companies. Journal of manufacturing technology
management, 21(7), pp.839-852.
Rowland.C.2018. Ford Motor Company SWOT analysis [Online]. Available from
http://panmore.com/ford-motor-company-swot-analysis [Accessed as on 26th September 2018
Saaty, T.L., 2008. Decision making with the analytic hierarchy process. International journal of
services sciences, 1(1), pp.83-98.
Salvendy, G., 2012. Handbook of human factors and ergonomics. John Wiley & Sons.
Schmidt, C. and Ellis, J., 2018. Manufacturing. In Enterprise Cloud Computing for Non-
Engineers (pp. 77-86). Auerbach Publications.
18

Strategic information system
Stone, K.B., 2012. Four decades of lean: a systematic literature review. International Journal of
Lean Six Sigma, 3(2), pp.112-132.
Torbacki, W., 2008. SaaS–direction of technology development in ERP/MRP systems. Archives
of Materials Science, 58, p.58.
Wee, H.M. and Wu, S., 2009. Lean supply chain and its effect on product cost and quality: a case
study on Ford Motor Company. Supply Chain Management: An International Journal, 14(5),
pp.335-341.
Zhao, H. ed., 2009. Advanced direct injection combustion engine technologies and development:
diesel engines (Vol. 2). Elsevier.
19