Operations Management Analysis of Ford Motor Company

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Added on 2023/01/17

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mpany overview –
Ford Motor Company is considered to be one of the largest American automotive company established by
nry Ford in the year 1903.
company serves he customers across the world and headquarter of the company is situated in Dearborn,
higan, United States. The aim of the company is to keep the customers engaged by providing their top
lity automotive products including the luxury vehicles, the automotive parts, the commercial vehicles, the
up trucks along with SUV. Ford has worldwide manufacturing operations such as the United States,
xico, Canada, the United Kingdom, Turkey, Germany, Argentina, South Africa, Australia and Brazil. It also
a cooperative agreement With GAZ , that is a Russian Automaker (Ford.com 2019).
e primary reason behind the success of the company is the staffs, 199000 in number and the well
ntained supply chain as per the records of the year 2018. The company achieved huge success by
ducing 6.6 million vehicles in the year 2017.
other support for the company is the visionary leadership including William Clay Ford Jr., who is the
cutive chairman of the company and Jim Hackett who is the CEO and president of the company. They have
aborated with each others to make the organization increase its revenues upto 160.33 billion US dollars by
year 2018.
e aim of the poster presentation is to elaborate the enterprise resource planning , the key performance
cators, the operations management, the value chain, the supply chain management and the customer
tionship management in the selected organization that is Ford Motors.
nterprise resource planning
n the evolved form of the ERP system, there is a developed form of PDM, SRM, PLM and CRM which has
made the system more effective and efficient.
CM- The supply chain management is a systematic approach in the business which helps to improve the
erformance of the company in the long run.
DM- The product data management is a process of using software for tracking and controlling the data
elated to the particular products. The information which is tracked by this tool is mainly the technical data
f product manufacturing and product developing.
LM- The product life cycle management is the succession of strategies applied by the firm management
ecause the product goes through the life cycle. Through this cycle, the product pricing and advertisement
re expected to be changed because the product succeeds to the next stage.
RM- It is a new type of management system that is entirely focused on the customer relationship
mprovement. CRM is more focused on the market and customers as compared to the ERP
Automotivelogistics.media 2019). .
he aim of the e-business is to enhance the effectiveness and efficiency of the external processes and
ross enterprises. The new approached ERP system of FORD motors helps the company to connect with
l the partners’ suppliers along with others by the web technology. It supports the company to circulate the
ata.
Key performance indicator
The key performance indicator is a measurable value which demonstrates how well an organization is achieving the business objectives. Almost all the
organizations use the KPI at every level for evaluating their success in reaching the targets. The higher –level of KPI means the focus will be on the
overall performance of the business. On the other hand, the lower –levels of KPI means the focus will be on certain departments such as marketing,
sales, support, HR and others. In the Ford Motors the key performance indicators are the financial health of the company, the customers & products,
the operations, the supply chain , community services and its people. Under the customers & products, there are the percent of nameplates
achieving the NCAP or the New Car Assessment Program, the Ford U.S corporate average fuel economy, the Ford U.S Co2 tailpipe emission per vehicle
and many others. The operations cover the worldwide facility energy consumption per vehicle, the global water use per produced vehicle are there
(Corporate.ford.com 2019). The community services of the Ford Motor company such as Fund charitable contribution, volunteer corps are counted.
These indicators help the company to maintain their reputation and standard of service . It also helps the company to retain their loyal customers.
Customer relationship Management
The Ford Motor company pays high salaries to the customer relationship managers in order to maintain and strengthen the customer relationships
The objective of the company is to acquire and retain the right customer having reduced the rate of customer defection . It also focuses on increasing
the longevity of the customer relationship. The CRM programs are fueled by the statistical analysis system or the (SAS). The SAS supports high
customer satisfaction, it is easy in the data mining, it supports a variety of functions having included the reporting and the customer life –cycle
analysis. The customer relationship management of Ford also aims at building the loyalty with proactive marketing too (Cisco.com 2019). The Ford
Motors company has their own CRM matrix. They divide the CRM in four broad areas such as ordering , supporting , marketing and selling. The sub-
divided management strategies are as follows:
The campaign management
The customer targeting
The campaign delivery
The campaign analysis
Lead management and contact management
Opportunity management
Online case management
The business intelligence
The custom reports
Operations management
Through the past years, there have been huge changes in the automotive industry through the past few years. The market competition has changed
because of the spread of the multi-brand dealership. The Ford Motors focuses on the customer demands for their operational processes (Slack,
Brandon-Jones and Johnston 2013). The Ford sustainability report has found out that in the automotive industry, the customers want the real-time
availability of the products, a trusted expertise and personal relationship to guide them, an excellent support from the seller with products on
affordable prices. The operational objectives of the company are speed, quality, costs, flexibility and dependability. In order to fulfill the objective of
speed, they deliver the products faster t the customers. In order to maintain the superiority of their quality, they conduct the Total Quality
management (Rctom.hbs.org 2019). They manage the business expenses for reducing the utility costs and balancing the other expenses. The
workplace and product flexibility are maintained to broaden their vision and gain the competitive advantage in the market.
Supply chain management -
The supply chain is a network of the facilities and the distribution options which helps to improve the company having made the product or the
service delivered to the end users . There are few basis steps of the supply chain of an automotive organization such as planning, sourcing for the
supplies, manufacturing of the product , delivering the product and returning the product. In the supply chain of the Ford Moto company, firstly, the
raw materials re gathered from trusted suppliers from various parts of the world. When all the components are gathered in the warehouse of the
company, manufacturing take place. After the products get manufactured, these are distributed to the retailers for reaching the end users or the
customers. The supplier base of Ford is found to have long –term relationships with few of the suppliers who provide the company with complete
vehicle subsystems (Supplychaindive.com 2019). The purchasing department of Ford is free of the product development area. The purchasing has a
huge dominance on the purchase design and the price negotiations. They manage their supply chain by building stronger relationships with the
customer and the suppliers . It also aims at shard commitment and the supplier capabilities along with collaborating through the automotive industry.
Value Chain
The Ford Motors company believes that they should create value for reducing the carbon footprint. They consider sustainability criteria in a holistic
way for product designing. This is because the decisions can have far –reaching impacts on the product life cycle. They depend on the parts , the
materials along with the components from the suppliers and collaborate o encourage social standards and high environmental standards . As far as
the logistics of Ford is concerned, it focuses on the delivery of the inbound freight along with transporting the finished vehicles to dealership in an
efficient manner (Epa.gov 2019). The manufacturing of Ford vehicles is done investing on the world-class facilities. They drive innovation and
excellence too.
Recommendations
The company should concentrate on the capacity design. It will support the products goals . The company should introduce assembly line method
which will subsequently maximize the capacity of the product.
The strategic decision areas should be focused too for ensuring the strategic benefits. The company must concentrate on the production facilities
along with the dealership location strategy.
The prior goal of the company should be to extend the resource efficiency by using the automation and robotics.
References
References
Automotivelogistics.media (2019). Ford and SAP: putting all parts under one roof - Automotive Logistics. [online] Automotive Logistics. Available at: https://automotivelogistics.media/intelligence/putting-all-parts-under-one-roof
[Accessed 12 May 2019].
Cisco.com (2019). [online] Cisco.com. Available at: https://www.cisco.com/c/dam/en_us/about/ac79/docs/wp/Ford_CS_1116.pdf [Accessed 12 May 2019].
Corporate.ford.com (2019). [online] Corporate.ford.com. Available at: https://corporate.ford.com/microsites/sustainability-report-2017-18/doc/sr17-performance-data.pdf [Accessed 12 May 2019].
Epa.gov (2019). Ford Supply Chain Case Study | US EPA. [online] US EPA. Available at: https://www.epa.gov/climateleadership/ford-supply-chain-case-study [Accessed 12 May 2019].
Ford.com (2019). Ford – New Cars, Trucks, SUVs, Crossovers & Hybrids | Vehicles Built Just for You | Ford.com. [online] Ford Motor Company. Available at: https://www.ford.com/ [Accessed 12 May 2019].
Rctom.hbs.org (2019). Ford Motor Company – Technology and Operations Management. [online