“ISSUES ON QUALITY AT FORD”

Submitted under requirements of Semester II

SUBMITTED TO: - SUBMITTED BY:-

Dr. SUMEET SINGH JASIAL AADIL KAKAR (42)

PRIYANKA GAUR (56)
GUNEET CHITKARA (49)
DEVIKA (48)
INTRODUCTION TO TOTAL QUALITY MANAGEMENT

Total Quality Management is a management approach that originated in

the 1950s and has steadily become more popular since the early 1980s.
Total Quality is a description of the culture, attitude and organization of a
company that strives to provide customers with products and services that
satisfy their needs. The culture requires quality in all aspects of the
company’s operations, with processes being done right the first time and
defects and waste eradicated from operations.

Total Quality Management, TQM, is a method by which management and

employees can become involved in the continuous improvement of the
production of goods and services. It is a combination of quality and
management tools aimed at increasing business and reducing losses due
to wasteful practices.

CONTINUOUS IMPROVEMENT BY TQM

TQM is mainly concerned with continuous improvement in all work,

from high level strategic planning and decision-making, to detailed
execution of work elements on the shop floor. It stems from the belief
that mistakes can be avoided and defects can be prevented. It leads to
continuously improving results, in all aspects of work, as a result of
continuously improving capabilities, people, processes, technology and
machine capabilities.

Continuous improvement must deal not only with improving results, but
also more importantly with improving capabilities to produce better
results in the future. The five major areas of focus for capability
improvement are demand generation, supply generation, technology,
operations and people capability.

A central principle of TQM is that people may make mistakes, but most
of them are caused, or at least permitted, by faulty systems and processes.
This means that the root cause of such mistakes can be identified and
eliminated, and changing the process can prevent repetition.
THE OBJECTIVE OF TOTAL QUALITY MANAGEMENT

Total Quality Management (TQM) is an organizational process that

actively involves every function and every employee in satisfying
customer’s needs, both internal and external. TQM works by
continuously improving all aspect of work through structured control,
improvement and planning activities that are carried out in concern with
guiding ideology that focuses on Quality and Customer Satisfaction as
the top priorities. There have been many arguments that TQM succeeds
only by incorporating a concern about quality for the customers
throughout the organization. The truth of this statement and those facts
that disagree with this statement will be look into and discuss in more
detail to achieve the success of TQM. TQM recognizes that the Customer
is at the center of every activity. The customer may be external or
internal. The key is to determine the gap between what the customer
needs and what the system delivers. Once the gap is recognized, it would
be systematically reduced and results in never-ending improvement in
customer satisfaction at every level. TQM depends on and creates a
culture in an organization, which involves everybody in quality
improvement. Everyone in the company can affect quality but must first
realize this factor and have the techniques and tools, which are
appropriate for improving quality. TQM system considers the rewards
and recognition to be critical to a company's programme, particularly
when greater involvement of staff is required. Positive reinforcement
through recognition and rewards is essential to maintain achievement and
continuous improvement through participative problem-solving projects.

THE QUALITY DELIVERY PROCESS

TQM is not just the awareness of quality for the customers. It demands
the implementation of a new system. Finally, the main objective of TQM
may put the customer at the center of every activity and consider the
process as customer driven, but all other factors, which do not involve the
customers, have to be taken into consideration for the successful
implementation of TQM.
 DEMING’S 14 PRINCIPLES

W. Edwards Deming is famous for developing 14 points of Management

and Quality to push American Manufacturing during the initial exodus of
business to Japan and China. Often called the father of the Quality
Movement, these 14 points set the road map for Quality Management in
1986, challenging American Manufacturers to look at business in a new
way. These 14 points are still relevant today and must be considered by
all small business to ensure continued success. Over the next series of
posts we will be highlighting a selection of the points and detailing how
they connect to small manufacturing today.

1. Create constancy of purpose for improving products and services.

2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead,
minimize total cost by working with a single supplier.
5. Improve constantly and forever every process for planning,
production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical goals
for management.
12. Remove barriers that rob people of pride of workmanship, and
eliminate the annual rating or merit system.
13. Institute a vigorous program of education and self-improvement for
everyone.
14. Put everybody in the company to work accomplishing the
transformation.
FORD MOTOR COMPANY
ABOUT THE COMPANY
Ford Motor Company entered the business world on June 16, 1903,
by Henry Ford and 11 business associates signed the company's
articles of incorporation, with $28,000 in cash. Henry Ford's insisted
that the company's future lay in the production of affordable cars for
a mass market. In 1908, the first model of ford (model T) was
introduced, since then company has evolved as one of the best
manufacturing concern globally in all segments.

Today company has 8 vehicle brands namely Ford, Lincoln, Mercury,

Mazda, Volvo, Jaguar, Land Rover, Aston Martin, which operates in
round about 90 countries all over the world.
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 2018 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. n 2008, Ford
produced 5.532 million automobiles and employed about 213,000
employees at around 90 plants and facilities worldwide.
The company went public in 1956 but the Ford family, through special
Class B shares, still retain 40 percent voting rights
TQM AT FORD MOTOR COMPANY

Today at Ford Motor Company, their most popular slogan is “Ford Has a
Better Idea.” Back in the 1980s when Ford Motor Company total quality
management practices were vast, the slogan of “Quality Is Job 1” made
more sense.

In a conversation with Dan Dobbs, a Six Sigma Master Black Belt at

Ford, it was noted that TQM may have worked in the 1980s, but Six
Sigma is the project management methodology of choice these days.

When TQM, a process improvement methodology based on a customer

satisfaction quality-driven process with guidelines set by management
was first utilized, it started through a joint venture.

Through a partnership with ChemFil, a division of PPG Industries, Ford

wanted to produce better quality products, a stable work environment for
the workforce, effective management, and profitability; all by the 1990s,
“Quality is Job 1” became “Quality People, Quality Products.”

Through this partnership with paint supplier ChemFil, paint process were
developed to ensure that a “quality product that meets customer’s needs
translates into financial success,” according to an insider press release
obtained from the Ford Media Room. TQM was forefront in their
painting design as the process of preparation (based on customer quality
standards) was implemented by ChemFil with Ford management and
workers informed of all steps needed to follow the application of paint to
a quality outcome.
 ADVANTAGES OF TQM IN FORD

The major thrust of Total Quality Management (TQM) is to achieve

productivity and process efficiency by identifying and eliminating
problems in work processes and systems. TQM addresses key problem
areas such as mistakes in work processes, redundant processes,
unnecessary tasks, and duplicate efforts. TQM interventions also help
with predicting and pre-empting such mistakes and unproductive
activities.

Improving process efficiency brings about many benefits to the

organizations in terms of costs and time.

The major benefits of TQM in terms of cost savings include:

 elimination of non-confirmation and repetitive work

 elimination of waste costs and reject products
 elimination of repairs and reworks
 reduced warranty and customer support costs
 process efficiency leading to improved profit per product or
service
 fiscal discipline through elimination of unnecessary steps and
wasteful expenditure

TQM frees up management time from redressing problems and directs

management time and effort to:

 increase production
 extend the range of products
 improve existing products
 ISSUES FACED BY FORD

1. CUSTOMER SATISFACTION

A major long-term benefit of Total Quality Management relates to

customer satisfaction. TQM aims at improving quality, and identifies the
best measure of quality as matching customer expectations in terms of
service, product, and experience. TQM interventions quantify problems
and aim to achieve the best state defined in terms of such customer
expectations.

Some examples of the application of Total Quality Management to

improve customer satisfaction include:

 Reduction of waiting time by changing the method of

appointment scheduling or client handling
 Making changes to the delivery process so that the product
reaches the customer faster

2. COMPETITIVE ADVANTAGE

The application of Total Quality Management brings forth all-round

benefits and makes the organization more competitive. In the new
business environment marked by demolition of barriers and free flow of
information and products, organizations retain their competitive
advantage by reducing prices, improving existing products and
innovating new products. TQM is a business strategy that allows
organizations to achieve all this and much more.

Total Quality Management demolishes the myth that increased quality

results in increased costs and decreased productivity. TQM proves that
quality is actually the key to decreased costs, and better productivity and
positions quality as a critical component of strategic business advantage
3. EMPLOYEE ENGAGEMENT

Their employees are also their customers, and they can be strong
ambassadors for their products. In Michigan, information sessions called
“Go Further Employee Events” are held to give employees the
opportunity to view, learn about and test drive yet-to-be-released
vehicles. This lets the employees see how our products are meeting the
needs of customers, while providing factual information about the
vehicles. Their employees can then promote the vehicles to their friends
and families, which, in turn, can increase sales and help to strengthen the
Ford brand.
Our Employee Resource Groups also conduct a number of events and
initiatives each year to engage our employees, provide product insights
and reach out to the community.

The company believes it’s important to engage their people within the
communities in which they operate. Each year, Ford offer ways for
thousands of their employees and retirees to participate in volunteer
programs. They see these programs as not only critical to helping those in
need, but pivotal to inspiring and energizing our employees around
volunteerism and community service. Through these community
initiatives, they support teamwork and build a sense of shared purpose
and commitment.

4. PROCESS DESIGN

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

In the process design Ford faces many challenges. Such as-

Modern automotive vehicles use a large number of stamped sheet metal
parts in their construction. Understanding the dynamic behavior of sheet
metals during transfer from one die station to another becomes an urgent
task in the tooling design phase to achieve optimum transfer motion,
avoid high cost equipment damage and improve overall production
uptime.
To get a better understanding of this critical process and to improve the
productivity of the tooling design and stamping process, Ford looked for
external input to complement its own internal experience and expertise.

To solve this problem Ford selected Altair Product Design to assist in this
process. The newly developed Altair Hyper Die Dynamics (HDD), a
unique tool to analyze sheet metal transfer and dynamic behavior, was
implemented within Ford's design process. By introducing flexible body
blank representations and a virtual model of the stamping press line,
Altair Product Design and Ford users could easily conduct a panel
transfer dynamic analysis, visualizing the in-motion blank deflections,
accelerations, and resultant forces.

To fully understand the complex nature of the stamping process, Altair

Product Design created a reduced model representing a single press
station along with several types of real parts to be simulated in order to
validate the virtual press model and improve the robustness of the
solution.
.
Result of this method is that the implementation of the highly customized
software and newly formulated design process in partnership with Altair
Product Design had a number of positive results for Ford: Ford engineers
could successfully predict dynamic panel transfer behavior (displacement,
forces, stresses, etc. faster and crucially more accurately than was
previously possible. Material behavior could be predicted with greater
accuracy thus avoiding interference during panel transfer and reducing
part or die damage.
PROBLEM SOLVING TOOL

Ford Motor Company is currently using the 8D problem solving tool. It

is a disciplined way to solve a problem.
The Ford Motor Company developed the 8D (8 Disciplines)
Problem Solving Process, and published it in their 1987 manual, "Team
Oriented Problem Solving (TOPS).
The process is now Ford's global standard, and is called Global 8D.
Ford created the 8D Process to help teams deal with quality control and
safety issues; develop customized, permanent solutions 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-

1. Plan
2. Build the team
3. Describe the problem
4. Implement a temporary fix
5. Identify and Eliminate the Root Cause
6. Verify the solution
7. Implement a permanent solution
8. Prevent the Problem from Recurring
9. Celebrate team success