INTRODUCTION Over the past three decades, Ford has experienced dramatic change in management focus, quality programs,

manufacturing and engineering. Ford decided to move the company forward by going back to basics. An ideal back to basic vision blends a driving vision with a mission and guiding principles that lead to quality by valuing people, teams and processes. This vision incorporates the best practices found over the three-decade period, which enabled Ford to make progress, reduce warranty spending, and achieve savings through quality.

Q1: HOW IMPORTANT WAS LEADERSHIP IN BOTH THE DECLINE AND RENAISSANCE OF QUALITY AT FORD? In automotive industry and especially in a leading company such as Ford Motor, leaders have always played crucial role because the major decisions are made by leaders. These decisions resulted in huge success or failures leading to market lost to the competitors. In the late 1970s at Ford Motor, the primary leadership focus was on mass production with an emphasis on reducing short-term cost. The only concern for quality was to find and fix defective products through inspection. In the supply base, they had several suppliers for one particular component and lowest price bidder supplier was the most welcome one. These cost lowering based leadership strategies and later on at late 1990s, diversity in management and leaving behind the Demings philosophy led Ford Motor to its decline phase. When at the first few years of 1980s, oil crisis in the Middle East caused Ford Motor to lose 43 percent of its net worth; leaders of Ford faced the new competition created by Japanese car manufacturers with an emphasis on quality and fuel-efficient cars. Accordingly, The Ford Motors renaissance began when the senior management team started to establish a mission, values, and guiding principles such as Quality Comes First by guidance of Deming. Ford leaders inspired their employees by creating an environment in which

employees became the key to success not technology or profit, then quality became the main focus of everyone. They reduced variability and redesigned manufacturing and business processes which increased quality and productivity. They established quality operating systems to improve the customers satisfaction. Preventing the problems in design became the main manufacturing focus. Ford leaders decided to eliminate multiple suppliers and established collaborative partnership. Later on, ISO 9000 and Six Sigma with an emphasis on lean manufacturing tools were implemented. At the end, achieving totally improved quality and productivity, higher internal and external customer satisfaction and a higher market share by Ford after their decline period shows that how important was the leadership role both in the decline and renaissance of quality at Ford Motors.

Q2: WHAT DOES THIS CASE SUGGEST ABOUT SUCCESSION PLANNING AND THE NEED TO UNDERSTAND THE PAST IN PLANNING FOR THE FUTURE? Succession planning is a process for identifying and developing the organizational members who have the potential to fill key organizational positions. Succession planning requires a sharp focus on organization's vision and the future the organization aspires to create. From the case, it appeared that Ford need to plan for succession planning for vital position. In the later era of following Competitive Quality era, since Deming had passed away and many managers has retired, the focus of the company when the leadership (the CEO changed). Ford need to have time (about 2 year in advance) to groom their CEO through succession planning so CEO can fully understand: y y y The focus of the company in the past Their competitive advantage The practices that are currently working right for them, and improving it further when planning for the future (by adapting to current trend, technology and best practices).

They need promote people within Ford into higher position, because they are already familiar with the case history of the organization. They also know where are the weaknesses so they can try to solve it, and they can increase the strength. Currently Ford's top executives are assigning considerable importance to devising succession plans for their key executives. President and CEO Alan Mulally said (in 2007), We spent 6 hours today working on succession planning together. We went through all the talent inside Ford and looked at talent outside Ford. http://wardsautoworld.com/ar/auto_ford_formulates_global/

Q3: WHAT LESSONS CAN FORDS EXPERIENCE PROVIDE TO ANY ORGANIZATION ABOUT THE SUSTAINABILITY OF QUALITY AND

PERFORMANCE EXCELLENCE? In order to maintain the quality and performance, we need to focus on the following factors: Management factor: y y People (engineers). Having a good HR and hiring the best qualified people regardless of their backgrounds. y y Value the knowledge they have and appreciate it, either by rewarding or recognition. Team work (reward or punishment)

Manufacturing factor: y Regular quality meeting to check if all products are near zero defects. Rise up all the issue may have in production line y Having a close supervision of the processes by being in the field and monitoring all the work closely Engineering factor:
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Shift from finding and fixing the problem to prevent the problem in design. Being proactive and not waiting for the problem to happen

Having a disciplined system to implement (six sigma) - analyzing, planning, monitoring, implementing, improving.

Providing the required training to improve their skill

Supplier factor: y Long term collaborative partnership. Takes care of the suppliers and help them in growing as you grow bigger. Stand by their side in the time of need, which create more loyalty from them towards your company.

ISLAMIC PERSPECTIVE "

The meaning of that is If somebody assigned to a task, he has to prefect it Here it shows the importance of the quality in Islam, and this is what brought Ford to be on the track of the competition again. The Quality.

CONCLUSION y Leadership is very important in sustaining Total Quality Organizations. When leaders are committed to the organizations Mission, Vision and Guiding Principles, focusing on quality and doing the right things right, the organization performance will be excellent. y Quality - An opportunity to improve. By making quality the number 1 focus, Ford quality was the best of the Big Three. Ford became a leader in the use of methods such as quality function deployment (QFD) and designed experiments. y Building on Best Practices that has provided excellence in the past.
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