Ford Motors: Operations, Logistics, and Supply Chain Management Report

This essay provides an in-depth analysis of Ford Motors' operations, logistics, and supply chain management, with a focus on the company's activities in the United Kingdom. The essay explores two primary issues: the logistics mix and new product development processes. It details the development of the Ford BLINK model, highlighting the use of Quality Function Deployment, Target Costing, Design for Manufacturability/Assembly, and Failure Modes and Effect Analysis. The essay also examines the application of logistics mix elements, including inventory management, transportation, and the adoption of lean production and Six Sigma approaches. Furthermore, it discusses the Triple Bottom Line framework, emphasizing the importance of social, financial, and environmental considerations in business operations. The essay compares Ford's practices with those of Toyota, offering insights into lean manufacturing and waste reduction strategies. Finally, the essay concludes by offering recommendations to address the challenges and enhance the overall efficiency and effectiveness of Ford's operations.

Understanding Operations,
Logistics and Supply Chain
Management

Contents
REFERENCES................................................................................................................................7

Essay- Understanding Operations, Logistics and Supply Chain Management
Operation management is considered as the field of management that creates, operates,
monitors and control overall procedure of production in the company. The area is also helps in
improving existing processes with the support of latest technology and recent market trends. The
main concern of this concept is to identify and adopt new techniques that are supportive in
attaining higher efficiency at the time of executing operational work within the company (Banks
and Stanton, 2016). Supply chain management refers to the procedure of flow of goods and
services that starts including things from initiation point till its consumption. The overall
activities of supply chain management includes carrying and shipping of products and services,
storage of raw materials as well as overall work in progress of inventories. While, Logistics is
considered as the overall procedure of planning, monitoring and managing whole supplying
process of commodities as well as service from initial point in such a manner that satisfies needs
and requirements of customers. The current project is based on Ford Motors, a Multinational
American company which has its major operations in United Kingdom. The company was
introduced in the year 1903 by Henry Ford and mainly deals in automotive and commercial
vehicle to its customers worldwide. This will basically provide in depth description on two main
issues which are faced by Ford Motors at the time of executing their operational activities. These
issues are associated with Logistic mix and new product development and its whole process. In
the last section of project, solutions for stated problems and recommendation towards the same
will going to be executed.
In the following project, Ford Motors is taken as main company on which overall
discussion will going to be made in effective manner. It is a renowned company in automobile
which sells commercial vehicles, luxury cars and other automobiles across the world. It is the
second largest among US automaker. Even though the company belongs to US but stills its
majority of operational activities are taking place in United Kingdom, Canada, Brazil, Australia,
Mexico, Turkey, India, South Africa Argentina and Germany. Operational activities of Ford
Motors are managed by around 199000 numbers of employees who are capable who works hard
to meet need and requirement of customers in appropriate manner worldwide.
The two main topics are chosen for the current report. The first one is new product or
services development and its process (Christopher and Peck, 2012). The second topic is logistics
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mix which includes networks, management of inventory, transportation and management of
capacity.
It has been analysed that the company is having some sort of issues in its sales as it is not
increasing within UK and other regions. In order to influence sales performance and revenue, it
is essential for the company to bring innovations in its product range and services for attracting
customers in positive manner. This will also support company in raising its profitability ratio as
they are offering products to customers as per their requirements. Here, detailed information will
going to be addressed on new product development and process adopted by Ford Motors for
developing effective product or service for customers and gaining competitive edge (Clegg and
et. al., 2013). Moreover, logistic mix is seen as the important part of supply chain management
that includes various sorts of elements such as transportation, networks, inventory and capacity
management. In this, various phases of logistics mix through which Ford Motors goes through
will going to be discussed in detailed manner.
New Product Development: It is termed as procedure of designing and creating new
product according to the customer’s requirement. Introduction of new product is helpful for the
company in gaining competitive edge as with every new launch they are able to influence
interest of customers towards them and if these customers accepts new product then it works as
the supportive strategy for company. This is also helpful in enhancing brand name of company
and also supports them in leading position within the industry. In context of Ford Motors, the
company is planning to introduce new model in its car range. This new model is consisting of
higher security features. In this model, developer has designed car in such a manner that provides
access to car to only five people who could operate and manage things by connecting car with
the connector or mobile phones (Earley, 2015). It also includes fingerprint sensors at the door
handle that could scan and take action after identifying unauthorised fingerprints. Name of this
model is finalised as Ford BLINK. This newly featured car is helpful in reducing number of theft
attempts as if any unauthorised person tries to open door of this model then their hand will be
locked at door handle with electrified wire. In order to develop this model, the company have
make use of advanced technology and innovative techniques. Here, the company has also used
Product development toolkit model for developing effective product as per customer’s
requirements. This model is consisting of various stages. All of these stages are described below
in effective manner.
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Quality Function Deployment is seen an strong tool used for product development. Ford
Motors have conducted market research to determine customers requirement and then decided to
introduce Ford BLINK, a hi-tech security featured car that is consist of sensors and technology.
The main feature of this car is to provide security to owner from theft or other unauthorised
activity with the support of technology (Ganescu, 2012). It simply does not allow unauthorised
people to open handle lock of this car and also lock their hand by electrified wire. Target costing
is considered as the strategy which is helpful in analysing market situation and then decide final
price of product in order to attain their sales volume. Manager of Ford Motors have approached
fixed price for this newly developed car. The car is mainly introduced for middle class and upper
middle class people who are seeking for security higher security in their car. The company have
also developed effective cost sheet that includes financial information associated with overheads,
material cost, scrap, manufacturing cost, promotional cost, fixed cost and many others. Design
for Manufacturability/Assembly basically seen as main principles which are taken into
consideration by company so that they can maximise their manufacturing units. The process is
helpful in minimising manufacturing cost with the optimum utilisation of its raw materials. In
context of Ford Motors, its Unit manager emphasises on assembling all raw material of car such
as alarms, sensors etc. at single place that is helpful in reducing transportation as well as
manufacturing cost (Mangan, Lalwani and Lalwani, 2016). Here, the manager also looks forward
towards different macro environmental factors which might influence new product development
in positive and negative both manners. Ford Motors mainly uses software in order to carry out
assembly of newly launched car. Failure Modes and Effect Analysis (FMEA) is an effective
method opted by Ford Motors for analysing issues associated with the product and its reliability.
The method also alerts company about non effective areas and improvement required zones so
that appropriate action can be taken towards the same timely manner (Jacobs, Chase and
Lummus, 2014). The main concern of manager of this company is to identify actual problem
related to designing and developing new car named as Ford BLINK. Here, Artificial intelligence
is opted by Ford Motors in order to insert advanced security features in their car. Along with this,
it can be said that usage of this analysis is helpful for company in identifying major chances of
failure at the time poof introducing their product at marketplace. Control Plan is seen as the set
of actions that is mandatory to analyse each and every feature of product development in order to
control its non working zones. Here, with reference to Ford Motors, its manager have developed
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effective control plan in written format (Kumar, 2017). The main motive of Company at the time
of developing this plan is to ensure that high quality product with excellent features should be
delivered to customers so that they can easily reach their satisfaction level.
Logistics Mix: Logistics mix refers to an important part of SCM (Supply chain
management) which is comprised of various components. These elements are inventory
management, transportation, material handling, customers services, production planning, forecast
demand, after sales activities, distribution, packaging etc. With reference to the Ford motors, the
company prefers to involve only those suppliers who owns capability of delivering high quality
raw material to the company at right time. This supports them in managing quality of their
products and services (Mangan, Lalwani and Lalwani, 2016). Also, they prefers to hire direct
distributors who can easily influence customers by spreading awareness about its features and
benefits in order to make them purchase this newly launched car. This is helpful in influencing
sales of Ford Motors in positive manner. Products of Ford Motors are transported to its
customers with best feasible medium such as road, air, sea ports etc. Also, the company uses
advanced technological equipments such as sensors, alarms and electrified wire in order to add
on advanced feature in its new car. While considering inventory section of Ford Motors, its
managerial team basically takes use of lean production and six sigma approach in order to
manage their manufacturing unit in effective manner. Usage of these approach helps the
company in producing maximum level of manufacturing with higher quality. Lean production
technique is mainly opted for reducing cost associated with designing, development and
production of car. It also supports in eliminating wasteful activities that hampers production
speed and quality of new product. With reference to Ford Motors, it can be said that its managers
adopts this strategy in order to discard all of those activities which is not adding value to the
overall product (Rebolledo-Mendez and et. al., 2014). For instance, the manager here emphasises
on eliminating holding back of stock, faulty components etc. Moreover, the major concern of
using Ford Motors, it has been analysed that the company gives preferences to needs and
requirement of customers so that what so ever new product they are planning to develop is
designed as per the requirements of customers only. This also allows customers to accept the
new product in quicker as it is developed according to their requirements only.
Different companies uses Lean production in different manner. This is opted by them
according to the situation and errors of the industry. This can be well understood with the help of
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example taken from another popular company of auto mobile sector that is supportive in
managing its inventory in effective manner (Ziebart and Rover, 2014). For instance: Manager of
Toyota Production uses lean manufacturing that is helpful for them in identifying and exploring
waste processes in the company that is affecting their sales performance. After identifying these
wastes they prefers to develop different strategies for the same so that it could be addressed in
effective manner. Adoption of lean manufacturing helps this company in dealing with seven kind
of waste such as overproduction, transporting, waiting, defects, unnecessary inventory,
inappropriate processing and non required motions etc. Usage of lean production helps this
company out in dealing waste so that management could effectively manage production
effectively within the company.
By comparing usage of lean production method by two different companies belonging to
same industry, it can be said that business association can easily reduce number of errors from
their manufacturing unit. The level of benefit completely depends upon efforts placed by
company in appropriate manner.
Triple Bottom Line
Triple bottom line is considered as the accounting framework that is consist of three
components such as social(people), financial(profit) and environmental(social). The framework
is basically opted by company in order to develop higher value of their company at marketplace
(What Is the Triple Bottom Line, 2019). Business enterprises emphasises on gaining profitability
effectively by considering social as well as environmental factors and delivering effective
products to customers. It can also be said that environmental as well as social are two key
performance areas which is directly placing impact over work performance of company. In
context of Ford Motors, its manager often uses this framework for enhancing their own
knowledge on performance of company. All three components of this framework are described
as below:
People: This element is mainly concerned with employees of company. In context of
Ford Motors, the company provides fair wages to all of its employees in timely manner. They
also ensures that effective working condition is provided to workers so that they can easily
execute their operational activities in effective manner without facing any kind of trouble
(Kumar, 2017).
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Planet: As per this component, manager of Ford Motors emphasises implementing their
business practices in such a manner that does not place harm to society. For this, Ford Motors
emphasises on using maximum renewable resources in rightful manner so that other resources
does not get wasted up while executing operational activities.
Profit: Profit is seen as the important part of every company as they starts their business
with the motive of this only. In context of Ford Motors, it can be said that when this company
executes all work by considering other two factors then directly it gains higher profits in
appropriate manner. This is because, by satisfying requirements of manpower as well as society
the company gets supports which contributes in attainment of their aims and objectives. As a
result, with this they can easily gain maximum benefits in monetary terms.
From the point of Ford it is important that company is required to made improvements in
the way they are offering their services to their customers. The level of customer satisfaction is
the most important key which helps a brand in building a effective position in the market. So,
this company should make attempts that they are bale to make arrangement for providing better
after sales services to their customers (Rebolledo-Mendez and et. al., 2014). The customer
division department of Ford should try that they are able to increase the overall satisfaction level.
There must be a complete transformation in the experience of their customers as compared to
other competitors in the market. The new feature that is higher security with fingerprint censor is
also something innovative which this company has bought in their cars but apart from that
company should make efforts to increase the post purchase experience of their customers, which
will help them in getting a competitive advantage.
As per the above described report, it is concluded that supply chain management is an
effective work of company which also influences their sales performance. The report has also
explored that two main issues that is faced by company are new product development and
logistics mix which affects organisation performance and its sustainability. It can also be said
that if these issues are addressed by company in timely manner then it will help company in
enhancing their sustainability for longer period of time. From the discussion, it has also been
explored that usage of Lean and six sigma approach is also helpful in reducing waste and
enhancing productivity of company in positive manner. Also, these approaches are valuable in
brining innovation in the company that is also supportive in managing quality of product.
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REFERENCES
Books and Journals
Banks, V. A. and Stanton, N. A., 2016. Keep the driver in control: Automating automobiles of
the future. Applied ergonomics. 53. pp.389-395.
Christopher, M. and Peck, H., 2012. Marketing logistics. Routledge.
Clegg, B. and et. al., 2013. Governing inter-organisational R&D supplier collaborations: a study
at Jaguar Land Rover. Production Planning & Control. 24(8-9). pp.818-836.
Earley, S., 2015. Analytics, machine learning, and the internet of things. IT Professional. 17(1).
pp.10-13.
Ganescu, M. C., 2012. Corporate social responsibility, a strategy to create and consolidate
sustainable businesses. Theoretical & Applied Economics. 19(11).
Jacobs, F. R., Chase, R. B. and Lummus, R. R., 2014. Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Kumar, N., 2017. Milestones in Business Ethics. Journal of Industrial Relationship, Corporate
Governance & Management Explorer (e ISSN 2456-9461). 1(1). pp.26-32.
Mangan, J., Lalwani, C. and Lalwani, C. L., 2016. Global logistics and supply chain
management. John Wiley & Sons.
Rebolledo-Mendez, G. and et. al., 2014. Developing a body sensor network to detect emotions
during driving. IEEE transactions on intelligent transportation systems. 15(4). pp.1850-
1854.
Ziebart, W. and Rover, J. L., 2014. The customer expects the latest technology-challenges for a
premium car manufacturer. In Conference on Future Automotive Technology Focus
Elektromobilltät, Veranstaltungsforum Furstenfeld.
Online
What Is the Triple Bottom Line?. 2019. [Online]. Available
Through:<https://sustain.wisconsin.edu/sustainability/triple-bottom-line/>
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