LREPORT

On
Ford Motor Company

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF

BACHELOR OF TECHNOLOGY
IN
MECHANICAL ENGINEERING
Saurabh Kumar 11601295
Rohit Kumar 11603820
Praveen kr. Verma 11601022
Vamsi Krishna 11506957
N.S.V Jagadeep 11505569
P. Damodar 11505208

DEPARTMENT OF MECHANICAL ENGINEERING

LOVELY PROFESSIONAL UNIVERSITY, PHAGWARA, PUNJAB (INDIA)-144411

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Table of Contents
1. Introduction……………………………………………………3
Company profile……………………………………………….……………………3
1.1 Products and services…………………….……………………….…………...4
1.2 Manufacturing process of Ford………………………………………………..5
2. TQM(Total Quality Management) in Ford…………………6
 Product design & continuous improvement……………………………….…6
 Problem solving………………………………………………………………7
3. Ford Motor Company Operations and Management…..…8
 10 strategic decisions……………………………………………...8
 Design of goods and services……………………………………..9
 Quality management………………………………………………..9
 Process and Capacity Design……………………………………..9
 Location Strategy……………………………………………………9
 Layout Design and Strategy……………………………………….9
 Job Design and Human Resources……………………………….9
 Supply Chain Management………………………………………...9
 Inventory Management……………………………………………10
 Scheduling………………………………………………………….10
 Maintenance……………………………………………………….10
4. CONCLUSION……………………………………………...11

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1. INTRODUCTION COMPANY PROFILE

The Ford Motor Company (commonly referred to simply as "Ford") is

an American multinational automaker headquartered in Dearborn, Michigan, a suburb
of Detroit automobiles and commercial vehicles under the Ford brand and most luxury
cars under. It was founded by Henry Ford and incorporated on June 16, 1903. The
company sells the Lincoln brand. Ford also owns Brazilian SUV manufacturer, Troller,
and Australian performance car manufacturer FPV. In the past, it has also produced
tractors and automotive components. Ford owns an 8% stake in Aston Martin of the
United Kingdom, and a 49% stake in Jiangling of China. It also has a number of joint-
ventures, one in China (Changan Ford), one in Taiwan (Ford Lio Ho), one in Thailand
(AutoAlliance Thailand), one in Turkey (Ford Otosan), and one in Russia (Ford Sollers).
It is listed on the New York Stock Exchange and is controlled by the Ford family,
although they have minority ownership (but majority of the voting power).

Ford introduced methods for large-scale manufacturing of cars and large-scale

management of an industrial workforce using elaborately engineered manufacturing
sequences typified by moving assembly lines; by 1914, these methods were known
around the world as Fordism. Ford's former UK subsidiaries Jaguar and Land Rover,
acquired in 1989 and 2000 respectively, were sold to Tata Motors in March 2008. Ford
owned the Swedish automaker Volvo from 1999 to 2010. In 2011, Ford discontinued
the Mercury brand, under which it had marketed entry-level luxury cars in the United
States, Canada, Mexico, and the Middle East since 1938.

During the financial crisis at the beginning of the 21st century, it was close to bankruptcy,
but it has since returned to profitability.

Ford is the second-largest U.S.-based automaker (preceded by General Motors) and

the fifth-largest in the world (behind Toyota, VW, Hyundai-Kia and General Motors)
based on 2015 vehicle production. At the end of 2010, Ford was the fifth largest
automaker in Europe. Ford is the eighth-ranked overall American-based company in the
2010 Fortune 500 list, based on global revenues in 2009 of $118.3 billion. In 2008, Ford
produced 5.532 million automobiles and employed about 213,000 employees at around
90 plants and facilities worldwide.

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1.1 PRODUCTS AND SERVICES
Ford Motor Company sells a broad range of automobiles under the Ford marque
worldwide, and an additional range of luxury automobiles under the Lincoln marque in the
United States. The company has sold vehicles under a number of other marques during its
history. The Mercury brand was introduced by Ford in 1939, continuing in production
until 2011 when poor sales led to its discontinuation. In 1958, Ford introduced
the Edsel brand, but poor sales led to its discontinuation in 1960. In 1985,
the Merkur brand was introduced in the United States to market products produced by
Ford of Europe; it was discontinued in 1989.

Ford acquired the British sports car maker Aston Martin in 1989, later selling it on March
12, 2007, although retaining an 8% stake. Ford purchased Volvo Cars of Sweden in
1999,[90] selling it to Zhejiang Geely Holding Group in 2010. In November 2008, it
reduced its 33.4% controlling interest in Mazda of Japan to a 13.4% non-controlling
interest. On November 18, 2010, Ford reduced their stake further to just 3%, citing the
reduction of ownership would allow greater flexibility to pursue growth in emerging
markets. Ford and Mazda remain strategic partners through exchanges of technological
information and joint ventures, including an American joint venture plant in Flat Rock,
Michigan called Auto Alliance. Ford sold the United Kingdom-based Jaguar and Land
Rover companies and brands to Tata Motors of India in March 2008. In 2015, Ford sold
its remaining 3% stake in Mazda
 Trucks
 Buses
 Tractors
 Motorsport

1.2 MANUFACTURING PROCESS OF FORD

I. Concept
II. Development
III. Design
a. Use of existing parts
b. Use of existing production lines
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 c. Use of existing tooling
d. Development of new tooling
e. Cost analysis
f. Model making
g. Prototyping
h. Testing
i. Marketing development
j. Through zzz. Redevelopment/redesign/retesting, ad
nauseum.
IV. Parts sourcing and manufacture
V. Subassembly production
VI. First piece production
VII. Approval for production

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 2. TQM IN FORD
Background of the company
Ford Motor Company is an American automaker & the world’s fifth largest automaker
based on worldwide vehicle sales. The company was founded by Henry on June 16, 1903.
The company manufactures passenger cars, trucks, & tractors as well as automotive parts
& accessories. The first commercial car Model T was introduced in 1908. In 1913 the
company introduced the world’s first moving assembly line for cars & in 1914 the
company introduced $5 a day wage to improve labour productivity. By 1923 the company
was producing half of America’s automobiles. As times passed, the company grew more
and more. In flow of time the company’s management style has also changes.
The company is currently the world’s 5th biggest manufacturer of automobiles which
require a huge amount of production. On the other hand the customer demand is
continually changing. So, in order to fulfil customer’s continuous demand the company is
following TQM.

2.1 TQM IN FORD COMPANY

Twenty years ago when an invasion of Japanese imports threatened the American
automobile industry, the Ford Motor Company led a quality revival based on the
management philosophy of W.Edwards Deming, who was controversial then and
is out of fashion now.
The results of movement, known as Total Quality Management, were stunning at
Ford, After racking up $3 billion loses between 1979 and 1982, Ford hit a series
of home runs, including the aerodynamic Taurus-Sable cars, and by 1986 had
become the most profitable American auto company.
Ford Motor Company tries to use all the application of TQM to ensure the overall
quality of their product

 Product design & continuous improvement:

Product design is one of the most important things for a company to have
satisfied customers. Ford motor company always tries to provide the best
quality product to their customers. They always come up with something
new & advanced. For example – fuel efficiency, high speed ,attractive

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 look, advanced safety, entertainment facilities etc. Every car goes through
multi-level of inspection before going to the market.

 Problem solving:
Ford Company is currently using the 8D problem solving tool. It is a
disciplined way to solve the problem.
The Ford Company developed the 8D (8 Discipline) problem solving
process, and published in it their 1987 manual. “Team Oriented Problem
Solving (TOPS).” In the mid-90s, Ford added an additional discipline, D0:
plan. The process is now Ford’s global standard, and is called global 8D.
Ford created the 8D process to help team deal with quality
control and safety issues; develop, customized, permanent solution to
problems; and prevent problems from recurring. Although the 8D process
was initially applied in the manufacturing engineering, and aerospace
industries; it’s useful and relevant in any industry.
Steps in applying this method are:-
 Plan
 Build the team
 Describe the problem
 Implement a temporary fix
 Identify and Eliminate the Root Cause
 Verify the solution
 Implement a permanent solution
 Prevent the problem from Recurring
 Celebrate team success

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 3. Ford Motor Company Operations Management
In 2008, Ford Motor Company’s operations management (OM) was reformed along
with massive changes throughout the organization. Under the One Ford plan of then
CEO Alan Mulally,Ford’s operations management became more effective in
addressing the 10 strategic decision areas. As one of the biggest firms in the global
automotive industry, Ford maintains operations management strategies that deal with
a variety of business conditions based on different market contexts. As such, in the 10
strategic decisions of operations management, Ford must ensure flexibility along with
consistency throughout its global organization.

Ford applies the 10 strategic decisions of operations management with

emphasis on consistency and high productivity. Ford also maintains a
considerable degree of flexibility to address business variations in
different areas around the world.

 Design of Goods and Services:- Ford’s goal in this strategic decision

area of operations management is to achieve global consistency. The One
Ford mission requires such consistency in goods and services. This

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 condition contributes to Ford’s financial efficiency and its ability to
optimize customer satisfaction.
 Quality Management:- The main concern in this strategic decision area
of operations management is the satisfaction of quality expectations. Ford
Motor Company does so through standard quality assurance practices. The
firm also conducts random batch tests on its products to ensure quality.
Quality evaluation also involves data Ford acquires through market
research to identify customers’ quality expectations.

 Process and Capacity Design:- This strategic decision area of

operations management supports production goals. Ford pioneered the
assembly line method, which maximizes production capacity. Also, Ford
continues to improve its capacity by developing new facilities for its
production network and supply chain.

 Location Strategy:- Ford Motor Company’s aim in this strategic

decision area of operations management is to ensure strategic benefits of
its facility locations. The company’s strategy involves regional production
facilities, such as the Ford factories in Germany. On the other hand,
dealership locations are based on market size.

 Layout Design and Strategy:- In this strategic decision area of

operations Management, the objective is to maximize efficiency of
workflows and resources. Ford addresses this objective through
automation of production processes, such as through the use of robotics in
production facilities.

 Job Design and Human Resources:- Ford has the goal of maximizing
human resource effectiveness and efficiency in this strategic decision area
of operations management. Ford has a number of programs to support HR
capacity and employee satisfaction. The company ensures continuous
improvement and personnel development in its strategies.

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  Supply Chain Management:- This strategic decision area of
operations management focuses on streamlining and cost-effectiveness in
the supply chain. Ford’s supply chain is global and involves company-
owned production facilities, as well as third parties. The company-owned
facilities, such as those in the Ford River Rouge Complex in Michigan, are
a result of Ford’s backward vertical integration strategy. This strategy
empowers Ford to control the supply of some of the materials used for
manufacturing its vehicles.

 Inventory Management:- Ford’s inventory management supports just-

in-time manufacturing methods, which require continuous monitoring to
adjust the inventory and minimize its costs. However, in this strategic
decision area of operations management, Ford’s actual inventory
management performance also points to market based inventory decisions.
Different markets present different challenges, such that Ford has varying
inventory management practices in different markets.

 Scheduling:- In this strategic decision area of operations management,

the short-term and intermediate schedules of processes and resources are
considered. Ford addresses these concerns through automated scheduling
in its production facilities, and semi-automated scheduling in its offices,
such as corporate offices and regional offices.

 Maintenance:- The goal in this strategic decision area of operations

management is to maintain adequate business processes to satisfy demand.
Ford addresses this goal through a combination of strategies for HR, IT,
manufacturing and other areas, as well as maintenance teams for facilities
and other assets.

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 4. CONCLUSION
In conclusion Ford motor company is suffered by lack of proper management .The
Ford Company had sell its brands Jaguar and land Rover to Tata motor company on
2008.The company cannot focus its particular area and differentiate product to
compete the competitors. Ford motor company have to apply different marketing
strategies and analysis the product portfolio o know which area of the company is
better and what technique or strategy should be apply for product development. Ford
motor company have to focus the target market by doing product portfolio analysis
achieves good market position.
Ford Motor Company begun with Henry Ford and his revolutionary $5-a-day
minimum wage scheme and an –8-hour workday, by 2006Ford Motor was struggling
to survive. From the advent of the assembly line in 1913, well designed
manufacturing has played a vital role at Ford Motor Company, but by now Ford has
eliminated 40 percent of its workforce by 2008 in an effort to cut manufacturing costs.
Ford has improved its competitive position by driving innovation. Successful
innovation in manufacturing process, product design, marketing approach and
business structure has changed a lot and finally Ford's image has been improved a lot.

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