Ford Motor Company: Quality, People, and Supply Chain Strategies

This report provides a comprehensive analysis of Ford Motor Company's operations, with a specific focus on its supply chain and quality management practices. It begins with an introduction to the company, highlighting its history and core business areas, including the production of automobile...Read More

FORD MOTOR
COMPANY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. MANAGING QUALITY........................................................................................................3
2. MANAGING PEOPLE IN OPERATIONS AND SUPPLY CHAIN.....................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The ford motors company was founded on 16 June 1930. It was an automotive industry
which was manufacturing different models of cars. The company was manufacturing the
products like SUV, commercial vehicles, automobiles, pick up trucks, automotive parts and
luxury vehicles. The company was founded by Henry Ford and the first head office of the
company was opened in Dear born, Michigan, U.S. In the year 2019, the company is having an
organized staff of 199000 employees working in different segments of the company.
The area selected for the essay is the supply chain managements and logistics of the Ford
motors Company. The logistics is the complex ed system of operating the operations in the
organization. The logistics and supply chain managements deals with the operations such as
packaging of goods, import and export of the goods and services, the storage of the
manufactured goods and services are done in supply chain management system.
The theories which we can use in the supply chain management of ford motors are the
theory of constraints, quality management, customer relationship management and required
chain management.
MAIN BODY
1. MANAGING QUALITY
A. TOTAL QUANTITY MANAGEMENT
The ford motors was maintaining a good quality in their various differentiated products. The
organization was known in the market for their innovative and better ideas which any other
competing company was not having in their strategies. The organization was very well know for
their supply chain management system and logistics. The company made a partnership with the
ChemFil which was an division of PPG industries. This helped a lot to the company for making
the production of the units of the cars more effective and better in quality. The company made a
slogan which was “Quality People, Quality Products”/. This meant that the organization was
producing the products for those people who believe more in quality of the products and not the
prices of the products(Mahmoudzadeh Andwari, and et.al., 2017). The company has done
continues improvement by using the Shew hart's PDCA Model. In this model which is also
known as Plan Do Check Act(PDCA) model all the activities started from planning to the actions
taken at the end are described. The Ford Motors Company used this model in their supply chain

management system. In the “Plan”, the ford motors focused on the warehouses on which the
complete model of the cars will be kept. In these warehouses the vehicles of the fords were tested
and if there was any kind of problem in the processing of the product or any technical defect
which may arise problems for the customer in future were figured out by the suppliers. It was the
duty of the suppliers to take a quick action against that defect(Pevovar, and et.al., 2017). The
another step of this process is the “DO” the workers who are working in the operations
department of the ford were provided with the instructions and guidelines which they have to
follow while producing the product. In this the process of production which included the use of
raw materials, technologies which can be used, requirement of machines and labor efforts etc are
taken into care by the operation mangers of the Ford. The next step is the “Check” in which the
vehicles are checked by the supervisor of the operation management team. The producers efforts,
work and their efficiency in the completion of any task or work is evaluated in this process. The
check itself means the checking of the operational activities in the operation management
system. The last is “Act” in which the operation manger gets conformed with all the activities
and tasks given to the employees are completed and the outcome produced from those employees
are ready to export in the market(Messale, and et.al, 2015). The employees of the Ford Motors
were empowered with giving the full employee satisfaction in the roles and work given to them.
The employees of the organization were provided with the best salary, wages and incentives by
which they can fulfill their all needs and wants. There was an performance appraisal system in
which all the employees were getting the promotions in their departments. The organization was
conducting the performance appraisal every year and the after this appraisal system, the
employees were provided with many rewards and promotions. The employees of the
organization were provided with proper training and development by which they were doing the
work in a correct manner in the organization. The employees were of the ford motors were
working in a team which was having a team leader. The leader of the teams of the ford were
managing all the employees by giving them responsibilities, listing to their idea and inventions
and implementing them in practical life. As the Ford Motors was producing the best quality
vehicles, the leader must keep in mind the there is no compromise in the use of best quality raw
materials in the production of the vehicles. The bench marking of the Ford motors included all
the strategies and procedures which were used in the company for their improvement were the
outlook strategy of the company(Mann, J., 2018). In this the company was out looking their past

two years financial strategies and investment policies they have made in a financial year. The
chief executives and chairmen were providing letters to the share holders and stakeholder in
which the financial statements of the company were mentioned. The proper introduction of the
company which included the mission, vision, core values and key facts has to be explained to the
employees and the customers of the Ford Motors(Choi, J.H. and et.al., 2017). The operational
strategies which will be implemented in the organization were explained to the employees brief.
Many kind of analysis such as SWOT, Product and Service Analysis, PESTEL Analysis etc have
to be made by relating the factors which influences the Ford Motors organizational activities.
The just-in-time (JIT) of Ford manufacturing company was to meet the needs, demands and
expectations of the customers in the business environment of the company in which the
employees will focus more on maintaining the good quality of the products of the Ford motors.
The supply chain of the ford motors and the dealers work satisfaction must must maintained in
the organization(Chang, H.J., Hyundai Mobis Co Ltd, 2017). The employees of the company
will work in such way that the customers also understands their pressure to make the quality
products. In these cases the customers also adjusts with the products given by the company and
they do not compliment about the small mistakes made by the company in the manufacturing of
the vehicles. The customers fully cooperates in the initiative taken by the company in the saving
of the environment by producing the quality and those products which can be recycled in the
environment. The Ford Motors has established a company wide commitment to this Just-In-Time
process in which the company required a commitment before the customer will be able to
proceed too far down the road. The organization will be having a cross purpose with the other
automotive companies in which the they have to maintain their position in the market. The
knowledge of TQM tools are very much essential in managing the quality of the products of the
company(Rockett, and et.al, 2017). The TQM tools includes the histograms and scattered
diagrams which shows the level of increase and decrease in the quality of the products which
effected their sales in the market. These graphical representations shows the changes made in the
organization year by year. The downfall in the market shares and the profits earned by the
organization can be clearly shown in these graphical representations. The cause and effect
diagram shows the measures taken by the company in improving the quality of the products and
services and the result of those measures which were taken by the customers and employees in
the form of feedback and suggestions for the improvement are shown in this diagram(Maskew,

and et.al., 2019). The Pareto Chart which shows both bar diagrams and line diagrams in the
graph which is measured to see the downfalls and progress made in the company during a
financial year. The Process control chart is helpful in showing the manufacturing process and
production process of the products of the Ford Motors. This shows us that the employees are
using all the resources and technologies
completely in the company or not.
B. ISO 9000 STANDARD SERIES PRINCIPLES
The ISO 9000STANDARD SERIES have 7 principles which effected the business of the ford
motors:
I Principle – Customer Focus
In this the Ford Motors measured those tools which attracted more and more customers towards
the products of the company. The company focused on the customers who were having good
purchasing power i.e., the are ready to pay the high amount in the purchase of their vehicles.
The4 reason behind this was that the good quality products are high in cost as compared with
other substitute products in the market. If the cost of the raw material will be high, then the price
of the products will also be high(Gueler, and et.al., 2018).
II Principle – Leadership
In this the Ford Motors believed in the leadership theories and concepts. The organization itself
became a leading company by offering the best quality products to their customers.
III Principle – Engagement of People
The engagement of both employees and customers was high in the organization. The employees
were highly engaged in their work because they were given the chance in which they can give
their ideas and suggestions for the improvement in the company. The customers were also highly
engaged in the activities and initiatives taken by the company. The reason behind this was the
company was producing those goods which were not harming the environment(Gallagher, and
et.al., 2015).
IV Principle – Process Approach
The processed approach was taken in the organization to obtain the maximum output which will
bring the desired result for the company. The vision and mission of the company must be
fulfilled by process approach.
V Principle – Improvement

The ford motors needs to focus on ten business expansion in the Europe. The company needs to
create the demand of their products in the Europe. The company needs to match their product
offerings with the needs and demands of the customers of Europe. This will help them in
achieving more success in the world.
VI Principle – Evidence Based Decision Making
The company was making the evidence based decision from the very beginning of their business.
The products produced by them were already having unique features and they were produced by
keeping the customer demand, market situations and environmental conditions in the mind(Ford,
M., 2015).
VII Principle – Relationship Management
The company was having very strong relationships with the suppliers, dealers, contractors and
service providers who were working for the company. The operation management system and
the supply chain management of the company were doing their best in their jobs.
2. MANAGING PEOPLE IN OPERATIONS AND SUPPLY CHAIN
The employees working in the operations and supply chain are managed by the operation
manager and the supply chain manager. The employees of the Fords Motors were provided with
many benefits by the organization which helped them to remain motivated towards their work.
The employees were receiving all those facilities which were fulfilling their basic requirements
and giving them a good life.
A. HIRING – WHICH APPROACH IS APPLIED IN HIRING THE EMPLOYEES
The Ford Motors was using the simulation and bibliographical approach for hiring the employees
in the company. In this the recruiters were checking the story and the past experience of the
candidates applied for the particular job. The segments in which the candidate has worked and
their specialties which can be benefit the company in their future were hired in the Ford Motors.
The another approach used by the recruiters in the company was the simulation approach in
which the candidates leadership quality and the their skills were evaluated. The candidates
attitude, way of speaking, their personality and the actions taken by them on the given situations
are evaluated by the recruiters. The job is offered to them on the basis of their performances in
the test taken by recruiters while conducting the interview(Stringham, and et.al., 2015).

B. MOTIVATING : USE EMPLOYEES EMPOWERMENT TOOL FOR MOTIVATING
THE STAFF
 Hack man & Old ham's Core Job Characteristics
The Hack man & Old ham's core job characteristics was used in the ford motors to motivate their
employees to work more harder and effective in the organization. The model consists of the skill
variety according to which the employees were provided task by keeping their knowledge and
skills in the mind. The employees must identify their task and roles in the organization. The task
given to the employees must be significant and achievable. There must be an autonomy in the
organization. The feedback from is filled by every employees of the Ford motors after every
invention by the company.
 Mas low's Self Actualization Theory
According to this theory the employees of the Ford Motors were have develop honest and loyalty
towards the work they are provided to do in the company. The employees were making
themselves comfortable in the working environment and they were having very adjusting nature.
The employees were reliant on their own experience and judgments which made more motivated
towards their work(Yoshimine, N., Mitsubishi Motors Corp, 2016).
 Hertz berg's Motivation Theory
The hertz berg's motivation theory helped a lot in improving the working capacities of the
employees of the organization. The Ford Motors was having very hygienic and clean
environment in their offices which motivated the employees to work with more comfort and they
do not need to worry about the issues related to hygiene. The employees were provided with
clean washroom facility, proper sitting, the office was doing pest control every moths to avoid
the diseases occurring due to mosquitoes and flies. The employees were having full job
satisfaction because they were not facing any health issues or infections while working in the
company The organization was not facing the absenteeism among the employees because of the
clean and hygienic environment of the business(Jarrow, R.A. and Silva, F.B.G., 2015.).
CONCLUSION
The report can be concluded by mentioning the supply chain management and logistics of
the Ford Motors Company in respect of business environment. The company was having
managing quality in which the company was maintain g a good quality of vehicles which were
sold to their customers. The PDCA model helped a lot in describing the activities done in the

supply chain management and operational management of the company. The employees of the
Ford Motors were highly engaged because of the rewards and promotions given to them in the
organization. The bench marking of the company told about then missio9n and vision which they
have to achieve in the organization. The 7 principles of the ISO 9000 standard series were
described in relation with ford motors. The employees working in the operation departments and
supply chain management were managed by the supervisor an the managers. The recruitment
process of the ford included simulation approach and bibliographical approach in which the
candidates abilities to take care of the business were checked. The use of Hack man and Old
ham's theory, Mas low's Theory and Hertz berg's theory were done to motivate the employees
towards their work.
REFERENCES
Books and journals

Mahmoudzadeh Andwari, and et.al., 2017. Hybrid electric vehicle performance with organic
rankine cycle waste heat recovery system.Applied Sciences,7(5), p.437.
Pevovar, and et.al., 2017.Upper vehicle grille. U.S. Patent Application 29/552,328.
Messale, and et.al, 2015.Vehicle exterior. U.S. Patent Application 29/502,661.
Mann, J., 2018.Beijing Jeep: A case study of western business in China. Routledge.
Maskew, and et.al., 2019.Energy storage system for hybrid electric vehicle. U.S. Patent
10,322,627.
Choi, J.H. and et.al., 2017.Front bumper cover for automobiles. U.S. Patent Application
29/555,940.
Chang, H.J., Hyundai Mobis Co Ltd, 2017.Automobile front bumper cover. U.S. Patent
Application 29/569,114.
Rockett, and et.al, 2017.Automated enrollment and activation of telematics equipped vehicles.
U.S. Patent 9,767,697.
Gueler, and et.al., 2018.Vehicle front lower grille. U.S. Patent Application 29/604,351.
Gallagher, and et.al., 2015 United Technologies Corp, 2019.Gas turbine engine airfoil. U.S.
Patent 10,309,414.
Stringham, and et.al., 2015. Overcoming barriers to entry in an established industry: Tesla
Motors.California Management Review57(4), pp.85-103.
Yoshimine, N., Mitsubishi Motors Corp, 2016.Automobile. U.S. Patent Application 29/487,231.

Jarrow, R.A. and Silva, F.B.G., 2015. Risk measures and the impact of asset price
bubbles.Journal of Risk.
Ford, M., 2015.The rise of the robots: Technology and the threat of mass unemployment.
Oneworld publications.