...Executive Summary: Ford Motor Company was incorporated in 1903 in Michigan,USA by Henry Ford and 11 partners with a starting capital of 28000 US $ in cash. The company witnessed tremendous growth and became one of the top three car manufacturers in North America. Sales reached 150 billion $ in 1996 with a total of 370,000 work force worldwide. The company stayed innovative and progressive in its strategy and business model. In the 1970's, the car market became more competitive with the Japanese manufacturers like Toyota and Honda gaining grounds in the auto market worldwide by producing high quality vehicles with extended life time. In 1999 Ford acquired the Swedish company Volvo to establish a foot hold in Europe and launched a campaign called "Ford 2000"to reengineer the company infrastructure and IT strategy that aimed at reducing their vehicle centers to 5 worldwide and requiring information technology to be the driving force and the link between the various company divisions. In doing so, Ford was trying to build a model similar to the one adopted by Dell computers to improve supply chain and delivery times. Dell launched the "direct business model" or "virtual integration" where Dell contracted with reliable suppliers to produce and assemble hardware and software for its computers and note books and tried to sell its products directly to organizations and individuals through the internet by cancelling the role of the retailers or intermediaries. I recommend the implementation...
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...MSTRA- L MANAGING STRATEGY ASSIGNMENT FARUK SULEIMAN TP025329 WORD COUNT: 3694 WORDS UCMF1103MBAIT SCHOOL OF POSTGRADUATE TECHNOLOGY PARK MALAYSIA ASIA PACIFIC INSTITUTE OF INFORMATION TECHNOLOGY UNIVERSITY OF STAFFORDSHIRE SHARMILA A/P K. N. SETHUMADHAVAN EXECUTIVE SUMMARY Strategy is well explained as the effective use of well laid out plans to achieve success. It is no less of spectacle to attribute strategy to individual achievement, achievement from a company, a country or at the very least a non – financial institute to achieve strategic success. Ford Motor Company has in recent times lost its market share to emerging Asian companies such as Honda, Toyota, Hyundai and Nissan. As a new landscape of economic might surfaces, new car stereotypes are emerging. Finding a place in these segments is proving difficult for Ford Motors and hence need to change its strategies. Hyper-competition combined with tough economic times has pushed Ford to the edge of insolvency. This paper examines the issues that plague the company while using published models to make analysis on how and why the problems occur to better understand their potential impact on the company’s sustainable competitive advantage. Recommendations will seek to give strategic solutions to address the issues identified earlier. This research isn’t structured upon models to identify, analyze and solve issues but rather looks at the core of the problems within Ford Motors and provides models...
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...Ford vs Dell Executive Summary FORDs current method of controlling all aspects of the manufacturing is outdated and is limiting the corporation’s annual results. In order to stay competitive and become efficient again, FORD needs to re-evaluate their current supply chain and implement key portions of DELLs vertically integrated supply chain model. A proper implementation will increase information flow between suppliers, departments and dealers resulting in a reduction of redundant inventory and focus towards just in time inventory. All of these factors will further drive up the already US industry leading profit margin per vehicle. In order to accomplish these goals FORD needs to refocus the Purchasing department’s responsibilities, consolidate and develop suppliers that deliver finished high level components and increase the information flow across all points of the supply chain. These steps will help to introduce a more pull-based system. Contents Issue identification 1 Environmental and root cause analysis 2 Alternatives/Options 3 Recommendations 4 Implementation 5 Monitor & Control 6 Issue identification • Current order to delivery (OTD) is more than 60 days. • Management of large supplier network. • Utilization of IT is lacking. • Purchasing isn’t integrated into Product development. • Independent dealership network has resulted in FORDs loss of control over customer service experiences. This network also...
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...Ford Motor Company Table of Contents Executive Summary 3 Introduction 4 Issue Identification 5 - 7 Environment and Root Cause Analysis 8 - 9 Alternatives and Options 10-11 Recommendations 12 Implementation 13-14 Monitor and Control 15 Conclusion 16 Ford Motor Company Executive Summary As director of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri believes that implementing virtual integration by building on Ford’s key initiatives and projects including Ford Production Systems (FPS), Order to Delivery (OTD) and Ford Retail Network (FRN) that are currently underway will make their supply chain run more smoothly with less bottlenecking, reduced inventory, and better overall...
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...Part A: Literature Review Logistic systems and supply chains are continuously impacted by a multitude of internal and external variables. These variables include globalisation, shorter product life-cycles, technological advances, the development of electronic supply chains (ESC), increased communication, breakdowns of trade barriers, development of national economies and ever continuing efficiency improvements in transportation, manufacturing and communication (Gunaskeran, Patel & McGaughey 2004, Persson 1991). These factors can make creating and sustaining competitive advantage in supply chain management (SCM) a complicated and difficult task (Cavinato 1992, Persson 1991, Mehrjerdi 2009). A range of measures of supply chain competitiveness have been developed throughout SCM literature. Bhatangar & Sohal (2005, pg. 445) stated that there are “no stable set of measures that can be used for assessing the performance of the supply chain” (Lee & Billington 1992, Gunaskeran et al 2004). The pair constructed a framework (see Appendix A) that categorises and combines many of the concepts developed in the literature surrounding the competitiveness of supply chains. Gunaskeran et al (2004) also developed a framework for measuring performance in terms of strategic, tactical and operational levels of supply chain activity (See Appendix B). Developments in the perceptions of SCM are moving from a basic, purely cost approach to one of value-adding and non-cost measures such as customer satisfaction...
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...The Ford Motor Company’s Supply Chain Management Landon Orchard 292 Windermere Court West, London, Ontario, Canada 519-661-7006 Landon Orchard is currently an undergraduate business management major at Ashland University, Ashland, Ohio North Central Ohio APICS Chapter Full-time undergraduate student The Ford Motor Company’s Supply Chain Management 2 The Ford Motor Company’s Supply Chain Management ABSTRACT The influx of foreign automobiles that flood the United States market is higher than ever before and American companies are struggling to adapt to this decrease in market share. Ford is one of the organizations that has restructured its supply chain strategy to better integrate suppliers into their system reducing cost and making delivery more efficient. INTRODUCTION Background of Ford As European and Asian car manufacturers continue to make advancements on the American markets, Ford's market share will decrease even further. One of the processes that Ford must improve is its supply chain management. By being able to speed up and better interact with suppliers and consumers, Ford will regain lost market share by communicating customer needs between themselves and their suppliers and acting upon these requests quicker and more efficiently. The Ford Motor Company has been the focus of supply chain operations analysts lately as they have begun to revamp their supply chains and how they interact with suppliers and customers. Ford has been a leading...
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...------------------------------------------------- ------------------------------------------------- Ford Motor Company Case Report ------------------------------------------------- Executive Summary Ford Motor Company has a long history, starting in Michigan in 1903. They have focused on designing and manufacturing and have been very successful, however with increasing competition, global markets and over-capacity the company needs to look at ways to improve profitability. The company has implemented various programs and processes to create a lean, responsive system with better consumer forecasting. Their challenge is to continue to research ways to stay viable in current market and industry conditions. Dell Computers has been very successful with a direct model and virtual integration that may or not work well for Ford. CONTENTS * ISSUE 3 * ANALYSIS 4 * ALTERNATIVES 6 * RECOMMENDATIONS 7 * IMPLEMENTATION 8 * CONCLUSION 8 * REFERENCES 9 * ISSUE: The Ford Motor Company is facing a number of challenges including the direction of CEO Jac Nasser to focus on customer responsiveness and shareholder value to deal with increasing competitiveness, an industry with potential over-capacity and the expansion into globalized markets. Ford had begun to implement systems to reduce cycle-time, improve quality and to lower costs. Programs included consolidating product development into five Vehicle Centres (VCs), reeingineered...
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...FINAL REPORT SUPPLY CHAIN MANAGEMENT IN AUTOMOTIVE INDUSRTY MARCH 13, 2015 TABLE OF CONTENTS INTRODUCTION 2 OVERVIEW OF SUPPLY CHAIN STRATEGY: 3 FORD: LOGISTICS AND SUPPLY CHAIN STRATEGY 3 About the company 3 Features of Ford system of manufacturing 4 Supply chain Design 4 Push Pull Strategy 5 Best practices 6 TOYOTA: LOGISTICS AND SUPPLY CHAIN STRATEGY 6 About the Company 6 Supply chain design 7 Key features of Toyota business model 7 Drivers of supply chain 8 Parts Ordering 9 Parts and Supplier Master 9 Forecasting 9 Toyota distribution model 10 Best practices 10 COMPARISON 10 ISSUES 11 RECOMMENDATIONS 12 REFRENCES 13 INTRODUCTION The Indian automotive industry, comprising vehicle and component manufacturers, has grown steadily since the economic liberalization of the early 1990’s. The arrival of major global auto companies has galvanised the domestic sector into adopting Supply Chain best practices. The changing business conditions of the 21st century has led to companies facing issues ranging from globalisation, economic uncertainty to new technologies and increasing consumer demands. In the automobile industry, as manufacturers design and build vehicles globally, their supply chains become increasingly complex with challenges that often stand in the way of profitability and higher shareholder value such as long order-to-delivery lead times, unreliable production schedules, excess inventory...
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...Strategic Report for Ford Motor Company Rhett Dornbach-Bender Bill Slade Joe Thorpe April 20, 2009 Ford Motor Company (NYSE: F) Table of Contents Executive Summary .......................................................................................................................... 3 Company Overview........................................................................................................................... 4 History ............................................................................................................................................... 4 Business Model and Market Overview......................................................................................... 5 Competitive Analysis ........................................................................................................................ 7 Internal Rivalry................................................................................................................................. 7 Supplier Power ................................................................................................................................. 9 Buyer Power ..................................................................................................................................... 9 Entry and Exit................................................................................................................................ 10 Substitutes ....................................
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...Ford Motor Company: Supply Chain Strategy Attn: Jac Nasser, CEO Dear Mr. Nasser Please find attached the report as requested Yours Truly, Teri Takai Ford Motor Company: Supply Chain Strategy ------------------------------------------------- Case Study Response Executive Summary As Director of Supply Chain Systems and decision maker on if we should proceed with the Virtual Integration Model I have carefully analysed all aspects of this model to see if it could work within Ford and the Automobile industry. We have a rich history of success and working through difficult challenges and I have no doubt that we will do so again with the right decision on this model. The Automobile industry is a complex one with many suppliers, parts, dealerships, competitors and all this is now happening in a global market. This complexity makes efficiencies difficult to implement and drives up the costs our supply chain. Many efficiencies would require the cooperation of both internal and external parties and would require significant investment. Ford’s main problem with their current system is the inefficient usage of their huge data base, the complex network of suppliers, the presence of many independent distributors who are making forecasting difficult and the lack of direct communication with customers. Through my review I have come to the conclusion that the full implementation of the Dell Model would not work; the way customers buy cars and computers in this day and...
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...CASE STUDY Ford Motor Company Ford Motor Company, one of the world’s largest automotive manufacturers, has worked with Penske on several Six Sigma initiatives. As its lead logistics provider (LLP), Penske’s quality team of associates are trained in Six Sigma practices and work closely with Ford to streamline operations and create and maintain a more centralized logistics network. Together, they uncovered several areas for real cost savings as a result of reducing inbound carrier discrepancies, eliminating unnecessary premium costs and reducing shipment overages. Plus, Penske implemented accountability procedures and advanced logistics management technologies to gain more visibility of its overall supply network. Six Sigma initiatives streamline operations Penske Logistics began its relationship with Ford as lead logistics provider (LLP) for Ford’s assembly plant in Norfolk, Va. At the time, each of Ford’s 20 North American assembly plants managed its own logistics operations. A decentralized approach provided total control of logistics at the plant level, but presented costly redundancies in materials handling and transportation. Ford conducted studies to determine the benefits of transitioning the company’s decentralized logistic operations to a centralized approach. The decision was quickly apparent – centralization of the company’s logistics operations would increase both velocity and visibility throughout the network, as well as reduce supply chain costs. Shortly thereafter...
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...CASE STUDY Ford Motor Company Ford Motor Company, one of the world’s largest automotive manufacturers, has worked with Penske on several Six Sigma initiatives. As its lead logistics provider (LLP), Penske’s quality team of associates are trained in Six Sigma practices and work closely with Ford to streamline operations and create and maintain a more centralized logistics network. Together, they uncovered several areas for real cost savings as a result of reducing inbound carrier discrepancies, eliminating unnecessary premium costs and reducing shipment overages. Plus, Penske implemented accountability procedures and advanced logistics management technologies to gain more visibility of its overall supply network. Six Sigma initiatives streamline operations Penske Logistics began its relationship with Ford as lead logistics provider (LLP) for Ford’s assembly plant in Norfolk, Va. At the time, each of Ford’s 20 North American assembly plants managed its own logistics operations. A decentralized approach provided total control of logistics at the plant level, but presented costly redundancies in materials handling and transportation. Ford conducted studies to determine the benefits of transitioning the company’s decentralized logistic operations to a centralized approach. The decision was quickly apparent – centralization of the company’s logistics operations would increase both velocity and visibility throughout the network, as well as reduce supply chain costs. Shortly thereafter...
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...As director of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri believes that implementing virtual integration by building on Ford’s key initiatives and projects including Ford Production Systems (FPS), Order to Delivery (OTD) and Ford Retail Network (FRN) that are currently underway will make their supply chain run more smoothly with less bottlenecking, reduced inventory, and better overall performance. Managers could overcome the complex and inaccurate manual process of forecasting and procuring parts which would result in reduced OTD lessen costs and enhance customer satisfaction. Further improved Supply Chain management will improve Supply Chain responsiveness and increase shareholder value to keep investors interested in the company. ------------------------------------------------- Introduction Due to increase in market competition, supply chain superiority of...
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...COMPANY REPORT: TATA MOTORS Chapter 1 INTRODUCTION India has been one of the largest automobile industry in the world. The growth of this industry had been one of the fastest globally but due to various reasons the growth has unacceptably declined in the present day. Passenger car and commercial vehicles manufacturing industry of India stands in the sixth position in terms of volume, 3.9 million units were produced in 2011. India saw a growth from 16 to 18 percent of sales during 2011 to 2012.Earlier Brazil was ahead of India in terms of volume production. India managed to surpass the old and new auto makers such as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain and France. India managed to beat Thailand in 2010 and came forward to third position from fourth position the previous year in being Asia’s largest exporter of passenger cars. By 2015, the Society of Indian Automobile Manufacturers predicted that the annual vehicle sales will increase to 4 million. India’s car manufacturing industry can be largely divided into three hubs i.e. the south, west and north. Chennai in the southern cluster contributes 35% of the share of revenue. Mumbai and Pune in the western cluster is responsible for contributing 33% of the revenue and the National Capital region in the northern hub contributes 32%. Ford, Hyundai, Daimler, BMW, Hindustan Motors, , Nissan, Caparo, Mini, Renault, Mitsubishi, and Datsun have their operating station in Chennai. General Motors, Tata Motors...
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...Case Study for Ford Motor Company Supply Chain Strategy Prepared by Student: Prepared for Instructor: This report is submitted in partial fulfillment of the requirements of the course Table of Content Subject Page Executive Summary ............................................................................... 2 Issue Identification -.......................................................................................... 3 Environmental And Root Cause Analysis.............................................. 3 Alternative And Options......................................................................... 5 Recommendation And Implementation.................................................. 6 Monitor And Control.............................................................................. 6 Reference ................................................................................................... 7 Executive Summary This paper evaluates and discusses the Ford 2000 project to reorganize its international operations in America, Europe, Asia and other locations for cost reduction. Following the evaluation, this writer finds that to implement and to proceed with Ford 2000 project and implement the information technology. As Ford will reduce the delivery time to 15 days and have direct relationship with supplier Tier 1, we will cut the cost. However Ford Motor Company is one of the...
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