Operations Management Strategies at Ford Motor Company: A Case Study

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MANAGING QUALITY AND MANAGING PEOPLE

Table of Contents
INTRODUCTION............................................................................................................................. 2
INTRODUCTION TO THE COMPANY AND CHOSEN TOPIC..........................................................3
CORRESPONDING THEORIES/CONCEPTS FOR MANAGING QUALITY.........................................4
CORRESPONDING THEORIES/CONCEPTS FOR MANAGING PEOPLE IN OPERATION AND SUPPLY
CHAIN........................................................................................................................................ 7
TRIPLE BOTTOM LINE THEORY...................................................................................................9
RECOMMENDATIONS.............................................................................................................. 11
CONCLUSION............................................................................................................................... 12
REFERENCES.................................................................................................................................13

INTRODUCTION
Operations management plays an important role in the growth and development of the
organization (Boakye et al., 2017). It is helpful in enhancing the production capacity by which
the organization can increase its sales ratio. There are different approaches and methods used
by the organization in order to manage operations management. Logistics, as well as supply
chain management, plays an essential role in the development of the organization. It is helpful
in managing the inventory of the organization.
This assignment will be discussing the different approaches and methods which can be used by
the organization to manage the operations management and supply chain (Gilley et al., 2015).
Managing people in operations and supply chain is really important for the success of the
organization. The management of the organization is responsible for managing the people in
the organization. The accurate management of the people will be helpful in managing business
operations and other actions successfully. Accurate strategies and decisions will be helpful in
improving the present conditions of the business. As the level of completion is increasing day by
day the organization needs to manage the different and effective strategies to compete with
the other competitors (Hayes, 2018).

INTRODUCTION TO THE COMPANY AND CHOSEN TOPIC
This assignment is choosing Ford Motor Company in order to understand the need for accurate
operations management in the success of the business (Hitt et al., 2016). It will be helpful in
gaining the depth knowledge about Logistics as well as supply chain management which plays
an important role in the progress and growth of Ford Motor Company. Management of people
is really important for managing business activities successfully. Managing quality of the
products is really important for managing the brand image of the organization in the industry.
Ford Motor Company is a multinational automaker that is popular for its services. The
headquarter of the company is situated in Dearborn, Michigan, a suburb of Detroit. It is a public
limited company which provides services in many countries (Jiménez-Jiménez et al., 2015).
Mainly the company deals in Automobiles, Automotive parts, Commercial vehicles, and pickup
trucks. There are approximately 20,000 employees are working in the organization who are
capable to handle the different types of situations of the business. The operating and net
income of the company is US$5.612 billion and US$4.759 billion respectively. Accurate
operations management will be helpful in managing the business effectively. The quality of
services and products need to be managed by the company it will be helpful in gaining loyalty
and trust of the customers. The management of the organization needs to provide proper
training to their employees so that they can attain the organizational goals successfully (Kerzner
and Kerzner, 2017).

CORRESPONDING THEORIES/CONCEPTS FOR MANAGING QUALITY
There are different theories adopted by the management of Ford Motor Company in order to
manage the quality of products and services. These theories and concepts are really helpful in
managing the business (Kolk, 2016). Total quality management and just in time theories are
adopted by the Ford in order to manage the quality of the services.
TOTAL QUALITY MANAGEMENT
Total quality management is an effective approach which is really helpful in managing high
standards of services and peoples who are working in the organization. It is known as the most
effective approach to manage the business for continuous improvement. It is really helpful in
making accurate decisions for the organization so that the company can attain its goals
successfully.
Figure- Total quality management
Source- Kolk, 2016

Ford Motor Company is using this approach in order to manage the quality of the services by
involving the employees in the business activities. The ford can use the TQM method in order to
increase the production capacity of the organization (Mahadevan, 2015). TQM is really helpful
in improving the current quality of services which is produced by Ford. It has been identified
that the quality of services and products of ford has been enhanced after adopted the TQM
method of operations management. It is also helpful in managing the supply chain of the
organization. The operation manager of Ford believes that TQM is the most effective method
by which they can complete their goals and enhance the productivity of the organization
(Mahmoud et al., 2015). It has been analyzed that the profit ratio of the organization has been
increased after adopting TQM method.
The main elements of TQM method:
 Improving on a continual bias
 Proper communication
 Effective decision making
 A strategic and systematic approach
 Process-centered
 Involvement of employees
 Systematic integration
JUST IN TIME
It is one of the most effective approaches which are adopted by the operation manager of Ford.
This method is helpful in completing the tasks and targets in time. This will be helpful in
managing the services before the deadlines. This is helpful in reducing the extra process which
takes a lot of time and money of the company (Mailwan, 2014). The management of the
company can complete the tasks and targets appropriately by using the just in time approach.
Ford is using this approach to manage the quality of their services so that they can gain the
trust of the employees. The target and tasks can be completed before the deadlines which are
helpful in attaining the desired goals of the organization successfully. This is an effective

approach by which the organization can maintain healthy relations with the suppliers. Apart
from this, it is also beneficial for total quality control of the organization (McMenamin, 2018).
The main of Ford Motor Company to adopt this approach:
 Waste elimination
 For managing long term relations with suppliers
 Continuous improvement
 Total quality control
 Continues improvement
Figure- Just in time
Source- Moin, 2014
These operations management theories can be really helpful in enhancing the productivity of
the organization. With the help of these theories and approaches, the management can

enhance the quality of services (Prahlad et al., 2016). Managing quality and managing people
can be easy with the help of using these approaches.
CORRESPONDING THEORIES/CONCEPTS FOR MANAGING PEOPLE IN
OPERATION AND SUPPLY CHAIN
Managing people accurately is one of the most essential actions for the operations
management of the organization. The accurate management of the employees and other
stakeholders will be helpful in attaining the organizational goals successfully (Ramanathan,
2018). There are different theories and concepts are adopted by the company to manage the
people in the organization and supply chain.
Ford is using Six-sigma approach for maintaining the performance of their employees. This is an
effective approach to managing the supply chain and inventory of the organization. This is an
effective approach by which the management can identify all the activities of the organization
and improve it accordingly (Sanders and Ganeshan, 2015). Ford is using different methods and
concepts of operations management which can be helpful in attaining the organizational goals
successfully.
Figure- Six Sigma Approach
Source- Sanders and Ganeshan, 2015

This approach is helpful in analyzing the accurate conditions of the organization and improves
the quality of services so that they can provide satisfactory services to the customers. It is an
effective measure which is used for measuring the quality of the products and services (Song
and Parola, 2015). It has been analyzed that the six sigma approach is really helpful in
enhancing the productivity of the ford.
There are different methods and approaches have been adopted by the organization which is
helpful in managing the people who are working. The management of the people is really
essential to managing a healthy working environment at the workplace (Spring et al., 2017).
Apart from this, the management of Ford has the responsibility to select an accurate candidate
for accurate palace so that they can handle the pressure of work.
KAIZEN MODEL
This is an effective model which is mainly used by the organization to manage the business
operations and other activities accurately. It is an effective tool which is used for measuring the
continuous improvement of the organization (Wu, 2016). It is linked with lean manufacturing
and lean production. Apart from this, it mainly involves four stages like a plan, do, check, and
act.
Ford is using this model in order to enhance the capacity and improve the current working
conditions of their company. This model is also helpful in improving the performance of the
employees who are working in the organization (Hammer and Pivo, 2017).

Figure- Kaizen Model
Source- Hammer and Pivo, 2017
The operational management is a really essential part of the business which is helpful in
enhancing the productivity of the company (Ozanne et al., 2016). Adopting different theories
and approaches will be really helpful in enhancing the productivity of the organization. Kaizen
model, Six-sigma, TQM and just in time all the methods are really helpful in enhancing the
productivity of the organization. Ford is adopting these models for evaluating their
performance and enhancing the quality of services and performance of the employees as well.
TRIPLE BOTTOM LINE THEORY
Triple bottom line theory is an effective and broader framework which is mainly used for three
parts social, environmental, and financial. Ford has adopted the Triple bottom line theory for
evaluating the overall performance of the organization (Wu et al., 2018). This is also helpful in
analyzing the business value of the organization.
Figure- Triple bottom line theory
Source- Shnayder et al., 2015

This theory mainly consists of three elements profit, people, and the planet. This is an
accounting framework with a broader perspective which is helpful in developing greater
business value. Ford can enhance their business value and brand image in the market by using
triple bottom line theory (Allen et al., 2018). Apart from this, this is also helpful in evaluating
the financial condition of Ford by which the company can analyze its current profit ratio. The
impact of internal and external factors can be evaluated with the help of this theory.
Importance of triple bottom line theory is presented below:
 This theory is helpful in analyzing the economic, financial and environmental condition
of the business organization.
 The performance of the employees of Ford Motor Company can be measured by this
theory (Boakye et al., 2017).
 Ford can prepare a proper development plan for the organization.
 It can be helpful for developing a proper budget by which the company can manage the
profit and loss accurately.

RECOMMENDATIONS
Operations management plays an essential role in the growth of the organization. It is helpful in
designing developing and controlling the overall production process. It is recommended to the
management of Ford that they should adopt the operational management theories like TQM,
Six-Sigma, Just in Time (Ozanne et al., 2016). These theories will be helpful in enhancing the
productivity of the organization. It is also suggested that the management should hire capable
employees who can manage the different situations of the business. The proper hiring of the
employees will be helpful in improving the working culture of the organization which will be
helpful in improving the brand image of the organization in the industry.
It is also recommended to the management of the organization that they should use the
effective strategies and plans in order to improvise the present conditions of the business.
Apart from this, Ford can enhance their present conditions by effective management and
leadership theories and approaches (Spring et al., 2017). Ford is mainly aimed to improve the
financial conditions of the business which can be improved with the help of using triple bottom
line theory. It is suggested to the management of Ford to use the TBL theory to manage their
financial conditions. A financial budget needs to be maintained by the organization by which
they can complete their targets and tasks easily.