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Ford Case Study Analysis

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YÖNEYLEM ARAŞTIRMASI
GİRİŞ
Doç. Dr. Dilay Çelebi

YÖNEYLEM ARAŞTIRMASI
1. Yöneylem Araştırması (ing. Operations Research) kısıtların olduğu bir durumda, belirli bir amaca yönelik en uygun çözümün bulunması için geliştirilmiş bir yöntemdir. 2. Yöneylem araştırması; bir organizasyon içinde operasyonların koordinasyonu ve yürütmesi ile ilgili dünyanın gerçek karmaşık sorunları için fikir üretmede matematiksel modelleme, istatistik ve algoritma gibi bilimsel yöntemleri kullanan disiplinlerarası bir bilimdir. 3. Yöneylem Araştırması ile Yönetim Bilimi (Management Science) modern bilim açısından aynı anlamdadır

YA karar verme problemlerini nicel modelleme yöntemlerini kullanarak ele alır.

YA’nın kısa tarihçesi




  


   

1600’ler Beklenen Değer (Blaise Pascal); Newton’un Minimum bulma metodu (Isaac Newton) • 1700’ler Bayes Kuralı (Thomas Bayes); En küçük kareler yöntemi (Carl F. Gauss) • 1826 Doğrusal Denklemlerin çözümü (Carl F. Gauss) • 1890 Bilimsel Yönetim (Frederick W. Taylor) • 1900 Gantt Çizelgesi (Henry Gantt, Frederick W. Taylor) • 1902 Eşitsizlik sistemlerinin çözümü(J. Farkas) • 1936 “Yöneylem Araştırması” teriminin ilk defa kullanılması • 1939 Kısıtlı problemlerler için optimallik koşulları (W. Karush) • 1941 Ulaştırma Problemi (F. L. Hitchcock) • 1942 BK & ABD’de kurulan YA grupları
Doç. Dr. Dilay Çelebi

YA’nın tarihçesi


II. Dünya Savaşı

Doç. Dr. Dilay Çelebi

YA’nın tarihçesi
• 1944 Fayda Teorisi (John von Neumann, Oskar Morgenstern) • 1947 Doğrusal programlama modeli (Simplex yöntemi) (George B. Dantzig) • 1947 Oyun teorisi (von Neumann & Morgenstern) • 1949 Monte Carlo benzetimi(S. M. Ulam, J. von Neumann) • 1950 En kısa yol problemi • 1951 Doğrusal olmayan Programlama (Kısıt sistemli problemler için optimallik koşulları) (H. Kuhn & A. Tucker) • 1960 Karar Ağaçları • 1960 Markov Süreçleri • 1961 Little Kanunu • 1974 Kuyruk Kuramı • 1984 Yapay Sinir ağları... http://www.lionhrtpub.com/orms/orms-10-02/historysb1.html
Doç. Dr. Dilay Çelebi

YA ne işe yarar?
Organizasyonlar Uygulamanın Özelliği Ulusal su yönetimi politikasını geliştirme Kimya fabrikasında minimum maliyetle üretim hedeflerini karşılamak için üretim işlevini optimum kılma Yayın Yılı 1985 1985 Hollanda Rijks Waterstatt Mosanto Şirketi Sağladığı Yıllık Tasarruf (milyon dolar) 15 2

Weyerhauser Şirketi
Eletrobras/CEPAL, Brezilya Birleşik Havayolları Citgo Petrol Şirketi

Elektrik Gücü Araştırma Enstitüsü
San Francisco Polis Departmanı Texaco, Şirketi IBM Yellow Freight Sistem Şirketi Amerikan Hava Yolları New Haven Sağlık Departmanı

Ağaç ürünlerinin getirisini maksimum kılmak için ağaçların kesimini planlama Ulusal elektrik üretim sisteminde hidro ve termal kaynakların optimal dağıtımı Minimum maliyetle müşteri ihtiyaçlarını karşılama ve rezervasyon bürolarında program değişikliği Rafineri işlemlerini, sunum ve dağıtımı ile ürünlerin pazarlanmasını optimum kılma Elektrik ihtiyacı için petrol ve kömür stoklarını, stok maliyetlerini ve tükenme riskini yönetme
Bilgi işlem sistemi ile polis karakollarının yayılımı ve optimal programlama Kalite ve satış gereksinimleri için optimal benzin karışımını elde etme Servis desteğini geliştirmek için yedek kısım envanterlerin ulusal entegrasyonu Ulusal yük taşıma ağının tasarımı ve yükleme yollarının optimali Geliri artırmak için uçuşların koordinasyonu ve seyahat düzeni sistemini tasarlama Etkili iğne değişimi programı ile maliyetlerde azalma

1986
1986 1986 1987

15
43 6 70

1989
1989 1990 1990 1992 1992 1993

59
11 30 20 + 250 milyon az envanter 17.3 500 > %33

Doç. Dr. Dilay Çelebi

MATEMATİKSEL MODELLEME

Model, gerçekliğin seçilmiş bir soyutlamasıdır* Model bir durumun temsilidir**

Matematiksel model bir problemin soyut matematiksel temsilidir.
Matematiksel programlama, matematiksel modellerin karar verme problemlerinin çözümü için kullanılmasıdır.
*Introductory Management Science, F.J. Gould, G.D. Eppen, C.P. Schmidt, 1993. **Quantitative Analysis for Management, 9th Edition, Barry Render, Ralph M. Stair, M. Hanna, 2006.

Matematiksel Modeller

• Bir sistemin bileşenlerinin simgeler ile tanımlanıp bunlar arasındaki ilişkilerin fonksiyonlar ile gösterimine “matematiksel model” adı verilir. • Veri sayısallaştırılabilir olmalıdır!



İki kardeşten küçük olanı 2km ötedeki istasyona gitmek üzere yaya olarak yola çıkıyor. Büyük kardeş de aynı yoldan istasyona gitmek için 10 dakika sonra bisikleti ile yola çıkıyor. Küçük kardeşin yürüme hızı 80 m/dakika, büyük kardeşin hızı ise 240 m/dakika olduğuna göre, büyük kardeşin küçük kardeşi yakalaması ne kadar sürer?

Introductory Management Science, F.J. Gould, G.D. Eppen, C.P. Schmidt, 1993.

Matematiksel Modeller
• Bir sistemin bileşenlerinin simgeler ile tanımlanıp bunlar arasındaki ilişkilerin fonksiyonlar ile gösterimine “matematiksel model” adı verilir. • Veri sayısallaştırılabilir olmalıdır!

Modeller genellikle varsayımlar kullanarak gerçekliği basitleştirir.
Bir model; 1. Gereksinimlerinize cevap verecek, 2. Sürece ayırabileceğiniz kadar bir zamanda çözülebilecek Kadar detay barındırmalıdır.

Introductory Management Science, F.J. Gould, G.D. Eppen, C.P. Schmidt, 1993.

Varsayımlar
Gerçek Dünya Varsayılan Dünya Model

Doç. Dr. Dilay Çelebi

Sayısal Model


İki kardeşten küçük olanı 2km ötedeki istasyona gitmek üzere yaya olarak yola çıkıyor. Büyük kardeş de aynı yoldan istasyona gitmek için 10 dakika sonra bisikleti ile yola çıkıyor. Küçük kardeşin yürüme hızı 80 m/dakika, büyük kardeşin hızı ise 240 m/dakika olduğuna göre, büyük kardeşin küçük kardeşi yakalaması ne kadar sürer?

Doç. Dr. Dilay Çelebi

Varsayımlar


Bu problemin çözümü gerçek hayatta geçerli midir?
 Sabit

hız  Trafik ışıkları  Yükselti  Yorgunluk  Trafik sıkışıklığı

Doç. Dr. Dilay Çelebi

Varsayımlar...


4 arkadaş bir binanın 5. katındaki bir arkadaşlarının evine ziyarete gidiyor. Dördü okey oynamaya başlıyor. Bu esnada kalan biri balkona çıkıyor ve aşağıya düşüyor. Aşağıdan tesadüfen geçmekte olan polisler durumu görüp, soruşturma yapıyorlar. Düşen kişi “Beni Mustafa itti” diyor. Polisler yukarı çıkıp kim olduğunu sormadan Mustafa’yı tutukluyor. Nasıl?

Doç. Dr. Dilay Çelebi

Matematiksel Modeller
1. Bu cümlelerden sadece 1 tanesi yanlıştır. 2. Bu cümlelerden sadece 2 tanesi yanlıştır. 3. Bu cümlelerden sadece 3 tanesi yanlıştır. 4. Bu cümlelerden sadece 4 tanesi yanlıştır. 5. Bu cümlelerden sadece 5 tanesi yanlıştır. 6. Bu cümlelerden sadece 6 tanesi yanlıştır. 7. Bu cümlelerden sadece 7 tanesi yanlıştır. 8. Bu cümlelerden sadece 8 tanesi yanlıştır. 9. Bu cümlelerden sadece 9 tanesi yanlıştır. 10. Bu cümlelerden sadece 10 tanesi yanlıştır. Bu cümlelerden hangisi doğrudur?

Doç. Dr. Dilay Çelebi

Karar Modelleri
Sistemin yöneticisinin kontrolü altında olup, karar değişkeni olarak isimlendirilen değişkenlere hangi değerlerin verilmesi gerektiğini belirlemek amacıyla kullanılan matematiksel modellere “karar modeli” adı verilir. Karar Değişkenleri

2 km A B

V=?
Kısıtlar Amaç En kısa zamanda B Aracın hızı noktasına varmak Yol şartları

Hız, seçilen araç, yol

Karar Modelleri  Ortamı seçici olarak temsil eder  Karar değişkenleri belirlenir  Amaç belirlenir  Kısıtlar tarafından sınırlanır
Introductory Management Science, F.J. Gould, G.D. Eppen, C.P. Schmidt, 1993.

Karar Modelleri








Çeşitli yaşlardan 4 arkadaş, bir gece vakti bir köprüden geçecekler. 1.10 dakikada geçer 2. 5 dakikada geçer 3. 2 dakikada geçer 4. 1 dakikada geçer Ellerinde sadece bir fener var ve köprüden aynı anda en fazla 2 kişi geçebilir. Bu arkadaşları köprüden geçirin ancak sadece 17 dakikada....
Doç. Dr. Dilay Çelebi

Optimizasyon Modelleri

Optimizasyon “en iyi çözümü bulma” faaliyetidir. Türkçe karşılığı “Eniyileme” olarak tanımlanmıştır. Optimizasyon modelleme, bir problemin en iyi çözümünün bulunması ile ilgilenen bir matematiksel modelleme türüdür.

Optimizasyon modelinin amacı karar değişkenlerine bağlı bir fonksiyonun değerinin en az ya da en çok yapılmasıdır.*
ÖRNEKLER Kar Ençoklama Maliyet Enazlama Bekleme sürelerinin enazlanması Kapasitenin en yüksek oranda kullanılması Çalışma saatlerinin en az yapılması

*Introductory Management Science, F.J. Gould, G.D. Eppen, C.P. Schmidt, 1993.

Optimizasyon modelleri


27 000 km yolu araba ile gidecek olan bir kimse, arabasının lastiklerini yeniliyor ve yola çıkıyor. 12 000 km'de kullanılmaz olan lastiklerden, en az kaç tane yedek daha almalıdır?

Doç. Dr. Dilay Çelebi

Nicel Analiz
Karar Süreci
Problem Tanımı

Nicel Analiz
Problem Tanımı

Alternatiflerin Araştırılması

Gözlem

Değerlendirme

Model Kurulumu Sonuçların Analizi

Çözüm

Doğrulama

Seçim

Doç. Dr. Dilay Çelebi

YA Yöntemleri
YA
Deterministik Modeller Doğrusal Programlama Tam sayılı Programlama Doğrusal olmayan Programlama Ulaştırma Modelleri Çok amaçlı Karar Verme
Doç. Dr. Dilay Çelebi

Stokastik Modeller Markov Zincirleri Kuyruk Teorisi Dinamik Programlama

Buluşsal Yaklaşımlar

Doğrusal Programlama
Tanım: a ve b reel sayılar, a≠0 olmak üzere f(x) = ax + b denklemi ile tanımlanan fonksiyona bir doğrusal fonksiyon (linear function) denir.
Doğrusal Fonksiyonlar:

y  ax  b

Doğrusal olmayan fonksiyonlar:

2x 1 y x  2 y  10 3a  369b  432 c

2x2 1 y xy  10 a  3c  432 b c

Doğrusal Programlama
Bir doğrusal programlama problemi (DPP) üç bölümden oluşur:
1. Bir DP problemi, karar değişkenlerinin (x1, x2, ....,xn) doğrusal bir fonksiyonu olan amaç fonksiyonunu içerir. Amaç fonksiyonu maksimizasyon ya da minimizasyon amaçlı olabilir.

Bir f fonksiyonu , x1, x2, …….xn değişkenlerinin bir doğrusal fonksiyonu olabilmesi için c1, c2, …..cn sabitleri için, f (x1, x2,…..xn) = c1x1 + c2x2 + c3x3+……..cnxn formunu alması gereklidir.

Doğrusal Programlama
2. Bir DP problemi, karar değişkenlerinin alacağı değerleri sınırlayan kısıt denklemlerini içerir. Her bir kısıt denklemi doğrusal eşitlik ya da eşitsizlik şeklinde ifade edilmelidir.
Bir doğrusal f (x1, x2, …….xn) fonksiyonu ve b sabit sayısı için, f (x1, x2, …….xn)  b ve f (x1, x2, …….xn) )  b doğrusal eşitsizliklerdir.

Doğrusal Programlama
3. Her bir değişken için işaret kısıtlaması vardır.

Her hangi bir xj (j=1,.....,n) değişkeninin işaretinin belirlenmesi gerekir. Bu durum değişkenlerin negatif olmama (xj  0, j=1,.....,n) ya da sınırlandırılmamış (xj –serbest) olması şeklinde belirtilmelidir.

Doğrusal Programlamanın Unsurları


Değişkenler: Bir problemin modeli kurulduktan sonra değeri hesaplanacak olan bilinmeyen simgelerdir. Karar Değişkenleri: Bir karar modelinin çözümlenmesi sürecinde değeri hesaplanacak olan karar unsurlarıdır. Sapma Değişkenleri: Kullanılan faktör ve onun kapasitesi arasındaki dengeyi kurmaya çalışırlar.






Gölge Değişkenler: Atıl kapasiteyi temsil ederler. “” şeklindeki bir kısıt denklemini (=) şeklinde ifade etmek amacıyla kullanılırlar.
  

Örnek:

X1 + X2  5
X1 + X2 +S1 = 5



Artık Değişkenler: Fazla kapasiteyi temsil ederler. “” şeklindeki bir kısıt denklemini (=) şeklinde ifade etmek amacıyla kullanılırlar.


Örnek:




X 1 + X2  5
X1 + X2 - E1 = 5

Doğrusal Programlamanın Unsurları










Parametreler: DP modelinin davranışını etkileyen sabit sayılardır. DP modelindeki cj, bi ve aij (i=1 ........m; j=1 ......... n) sayıları parametreler olarak adlandırılırlar. Amaç Fonksiyonu: Karar değişkenlerinden ve bu değişkenlerin parametrelerinden (cj), oluşan en iyi çözümün (maksimum ya da minimum) elde edilmesini sağlayan doğrusal bir fonksiyondur. Kısıt denklemi: Bir modeldeki karar değişkenleri ile parametreler arasındaki zorunlu ilişkilerin kurulduğu doğrusal fonksiyonların her birine “kısıt denklemi” adı verilir. Teknolojik Katsayılar: Her faaliyet için gerekli olan kaynak miktarıdır. aij (i=1 ........m; j=1 ......... n) Sağ Taraf Değerleri: Mevcut kaynak miktarlarını gösteren, problemdeki kısıt denklemlerinin sağ taraflarında yer alan parametrelerdir. bi (i=1 ........m)

Doç. Dr. Dilay Çelebi

DP Problemlerinin Genel Yapısı Karar Değişkenleri
Z maks,min  c1 x1  c2 x2  c3 x3  ....  cn xn a11x1  a12 x2  a13 x3  ....a1n xn , ,  b1 a21x1  a22 x2  a23 x3  ....a2 n xn , ,  b2  am1 x1  am 2 x2  am 3 x3  ....amn xn , ,  bm x1 , x2 ,...xn  0, serbest
Kısıtlar Amaç Fonksiyonu

DP Problemlerinin Genel Yapısı
Z maks,min   c j x j j 1 n

a x j 1 ij

n

j

, , bi

x j  0, serbest

Doğrusal Programlamanın Adımları

1. 2.

Değişkenlerin ve karar değişkenlerinin seçilmesi, Amaç fonksiyonun oluşturulması, a) Her değişkenin amaç fonksiyonuna katkısının hesaplanması, b) Doğrusal amaç fonksiyonunun elde edilmesi, c) Amaç fonksiyonunun enazlanacağının mı yoksa ençoklanacağının mı belirlenmesi.

3. 4.

Kısıtların belirlenmesi, İşaret kısıtlarının konulması.

Üretim Problemi
Bir terzi ceket ve pantalon üretimi yapmaktadır. Üretimde kullanılmak üzere 150 m2 kumaş ve 200 saatlik işgücü bulunmaktadır. Her ceket 3 m2 kumaş ve 10 saatlik işgücü, her pantalon ise 5 m2 kumaş ve 4 saatlik işgücü kullanmaktadır. Bir ceketten 50 TL, bir pantalondan ise 40 TL kâr edilmektedir. Toplam kârını maksimum yapmak için bu terzi kaç adet pantalon, kaç adet ceket üretmelidir?
Doç. Dr. Dilay Çelebi

Üretim Problemi


Bir oyuncak üreticisi plastik ve montaj departmanlarından oluşan atölyesinde A ve B tipinde iki farklı oyuncak üretmektedir. Her iki departmanda ikişer işçi çalışmaktadır. Her işçi günde 7.5 saat çalışmaktadır. Bir adet A tipi oyuncağın plastik departmanında işlenmesi için gerekli süre 4 dakika, montaj departmanında işlenmesi için gerekli süre 2 dakikadır. Benzer bir şekilde bir adet B tipi oyuncağın plastik departmanında işlenmesi için gerekli süre 1 dakika, montaj departmanında işlenmesi için gerekli süre 3 dakikadır. Oyuncakların birim katkıları sırasıyla 0.8 pb ve 1.2 pb’dir. Üretici yukarıdaki koşullara uygun olarak üründen en yüksek katkıyı sağlamayı amaçlamaktadır. Yukarıdaki verilere bağlı olarak oyuncak üreticisinin karar probleminin doğrusal programlama (DP) modelini kurunuz.

Üretim Problemi


Bezz Tekstil kumaş ve boya hammaddelerini kullarak üç çeşit giysi üretmektedir. Bu ürünlerden birer tane üretmek için gerekli hammadde miktarları ve gelecek hafta itibariyle bu hammaddelerin mevcut miktarları aşağıdaki gibidir: Kot Pantalon Kumaş Boya 4m 2 kg Elbise 3m 4 kg Gömlek 3m 5 kg Miktar 60 m 50 kg



Ürünler ile ilgili parasal bilgiler şu şekildedir:
Kot Pantalon
Satış Fiyatı Değişken Üretim Maliyeti 1300 490

Elbise
1000 400

Gömlek
950 430



İşletmenin sabit maliyetleri 1200 TL’dir ve üretilen her ürünün satılabildiği varsayılmaktadır. Buna göre işletme karını maksimum yapacak DP modelini kurunuz.

DP’nin Varsayımları

DP'nin gerçek hayatta karşılaşılan problemleri modellemekte kullanılabilmesi için temel varsayımlarının bilinmesi önemlidir:
1.
1. 2.

Doğrusallık (Linearity)
Toplanabilirlik (Additivity) Orantısallık (Proportionality)

2. 3.

Bölünebilirlik (Divisibility) Belirlilik (Certainity)

Kaynaklar


Operations Research: Applications and Algorithms , Fourth Edition,

WINSTON, W. L. (2004), Thomson Learning Inc: Canada.








Introduction to Management Science, 9th Edition, Taylor B.W., Prentice Hall, New Jersey, 2007. ISBN: 0-13-1966133-0, ITU Library Number: T56.T39.1990/T56.T39 1986. Quantitative Analysis for Management, 9th Edition, Barry Render, Ralph M. Stair, M. Hanna, Prentice Hall, New Jersey, 2006. ISBN: 0-13-153688-5, ITU Library Number: T56.R46 2006. Fundamentals of Management Science, Efraim Turban, Jack R. Meredith, Plano, Tex. : Business Publications, 1981. ISBN: 025602393X, ITU Library Number: HD30.23.T87 1981 Introductory Management Science, F.J. Gould, G.D. Eppen, C.P. Schmidt, Englewood Cliffs, N.J. : Prentice Hall, c1993. ISBN:0134864409, ITU Library Number: HD30.25.G68 1993.

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...Ford Motor Case Study Table of Contents Executive Summary 3 Introduction 4 Issue Identification 5 Environmental and Root Cause Analysis 6 Alternatives and Options 8 Recommendations 10 Implementation 11 Monitor and Control 12 Exhibits 13 Executive Summary After reviewing Ford Motor supply chain, we became aware of its very complex nature. Due to this complexity we are forced to search for alternatives to overcome the costly supply chain challenges faced by our industry both now and in the future. The present system has an inefficient control of a large database and a vast and complex network of suppliers. We need to change our supply chain in order to make it more cost effective and profitable. After careful analysis we recommend the implementation of a partial virtual integration system, similar to the system used by Dell Computers. With this system, Ford will use information technology and the internet to interact and transact with both their suppliers and their customers. Ford can increase their sales by providing better customer service and faster communication from the supply end through to the manufacturing division and right on to their end user, the customer. This system will be implemented with their existing supply chain so Ford will cover both markets at the same time. If Ford concentrated only on the virtual system their competition would put them out of business,......

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Ford Case Study

...Ford Case Report Virtual Integrate or Not? Table of Contents -------------------------------------------------------------------------------------------------------------------------------Executive Summary 3 Issue Identification 4 Environmental & Root Cause Analysis 4-5 Alternatives 6 Recommendations 7 Implementation 8 Monitor and Control 9 Executive Summary Being one of the top 3 auto manufacturers, Ford had been challenged for their leading position in the auto industry by their foreign-based competitors (Honda and Toyota) in past decades; at the same time auto industry was overcapacity which lead to more fierce competition. How could Ford maintain competitive power and market share in auto market? Improve quality, decrease price and fast response......

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Ford Motor Case Study

...Executive Summary: Ford wanted to adapt the idea of virtual integration to improve its supply chain. By the use of technology; it wanted to reduce its working capital and increase profits. Moreover, the company was emphasizing more and more on shareholder value and customer responsiveness so they were looking into reengineering some of their processes which can help improve their current forecasting model and reduce OTD cycle times substantially. With new business models prevailing, Ford did not want to be left behind; they were looking at high-tech industry’s growth in the recent years and thought if they could implement some these ideas to their business. Ford has always been a forerunner in employing technology to overcome its constraints of information flow between its global manufacturing sites, they wanted to implement a similar I.T solution to get the better of its suppliers. But having such a large supplier base was making it difficult to manage; then they looked at high tech industry’s leading player DELL who was not only growing phenomenally every year but was also successful in building proximity to both its suppliers and customers. A comparative analysis of Ford and Dell’s SCM operation helps understand the differences in their organizational models and find strategies that could be applied for Ford’s success. Different areas like supplier management, sales, inventory management and customer experience have been compared to identify the bottlenecks in Ford’s......

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Ford Case Study

...Assignment # 1 - Chapter 5 Case - “Ford Motor Company” Fred Baylor Principles of Management - BUS 302 Professor Khaki Weber October 31, 2010 The case creates four options to choose from. Discuss at least three criteria the company should use to decide which of the four listed options is best and the reasons why each criterion should be used. Ford is a household name and has been around for over 100 years. Their slogan, “Built Ford Tough”, is engraved in the hearts of a lot or people, both employees and dedicated customers. In order for things to start to look up for Ford, they must develop a project plan that will work, but make the plan flexible enough to adapt if market conditions change. A solid project plan should include making certain that they are compliant with the United Auto Workers (UAW), so that jobs, benefits and retirement is impacted and falls under the guidelines that are in place. It will be impossible to make changes and this area not be impacted. The plan should include selling all or some of the products from their luxury car line, maybe not all at one time, but a gradual dissemination. The demand for luxury cars these days have declined and consumers are not sure if they have the value that they have had in the past. Lastly the plan should include extending their presences in the international market where they have been successful. Europe, South America, and China have been very...

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...Introduction and Review of case Ford Motor Company, American automotive corporation founded in 1903 by Henry Ford and 11 associate investors. (htt28) It is the multinational corporation and the world's third largest automaker based on worldwide vehicle sales. The Company operates in two segments: Automotive and Financial Services. Automotive includes Ford North America, Ford South America, Ford Europe, and Ford Asia Pacific Africa region. Financial services include Ford Motor Credit Company and Other Financial Service. The Company manufactures or distributes automobiles across six continents. Its automotive brands include Ford and Lincoln. Other Financial Services includes a range of businesses, including holding companies and real estate. Effective September 26, 2013, Ford Motor Company acquired Livio, a developer of software. (htt29) Ford Motor Company is one of the largest car makers in the world. In the past the ford sold large number of vehicles that are fuel efficiency. In 2007 ford receive the severally awards and its revenues increased to $173.9 billion, while producing over 6.5 million automobiles. By 2005 ford losses the market share and due to high labor cost and high price of gasoline the ford company lost $ 12.6 billion in 2006. The demand of ford automobile is decreased in the market and the labor cost is increased furthermore the company was suffered from labor surplus. To control over its expanding labor costs the company and the United Auto Workers,......

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...Ford Pinto: An Ethical Inferno Michael W. Daniels Excelsior College Introduction and Analysis “Pinto crashes caused the death and mutilation of 900 occupants after their cars burst into flames after rear-end collisions,” Robert Sherefkin explains in his article Lee Iacocca's Pinto: A fiery failure. The engineered design of the Ford Pintos resulted in the gas tank rupturing in low speed rear end collisions. The design flaw was recognized early in the Ford Pinto’s production. According to Dowie’s article Pinto Madness. Mother Jones, “Internal company documents in our possession show that Ford has crash-tested the Pinto at a top secret site more than 40 times and that every test made at over 25 mph without special structural alteration of the car has resulted in a ruptured fuel tank.” Dowie then explains how more than a quarter of those tests were performed prior to the initial release of the vehicle. It was estimated that just 11$ upgrade per vehicle would have remedied the problem (Dowie, 1977). On June 10, 1978, almost a decade after the first Pinto was built, Ford eventually agreed to recall the Pinto (Boyce, D, 2012). The decision was made after countless lawsuits over a span of eight years drained the Ford Motor Company of millions of dollars. The company’s President Lee Iacocca could have rectified the design flaw but deemed it too late in production to reconstruct the vehicle. His requirement of the car weighing less than 2000 pounds and cost of......

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Ford Case Study

...Case Study of Ford Motor Co. Executive Summary Ford Motor Co. was second largest automobile company in the word, with revenue $.144 billion and more than 370,000 employee (in 1996), with extended operations to 200 countries. Ford dealing with a huge number (thousands) of suppliers and dealers in daily basis, which create high level of complexity combined with other internal and external factors have pushed Ford to search for solutions in order to overcome the costly supply chain challenges that they are facing and may continue to face in the future if they didn't find a proper solution . the main issues with their current system is: the inefficient control of their large data base and complex network of suppliers, the existence of independent distributors and their inability to communicate and serve their customers directly. Ford realized that they should modify their supply chain in order to make it more cost effective and more profitable, in order to solve this issue for launched a full organization re-structures business process plan called (FORD 2000), by segmenting their market to 5 Vehicles Centers (VCs) for product development activates, each (VC) was responsible about for developing of vehicles in a particular customer market, By partly adapting the virtual integration direct business model of Dell Co., Ford can use the emerging information technologies and internet as well as new ideas from high tech industries in order to interact and transact with......

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...the automotive industry, Ford wants to reposition itself and its business model regarding as how to better satisfy consumer needs, which is to produce smaller economic cars that the US middle-class customers value. Therefore, it seeks to take a new direction and to bring a revolution to the automobile industry, and to revive its glory years. A number of vehicle programs have been changed, delayed or even dropped throughout 2007. Ford officials believe that the shifts are aimed to get the right products to the market faster, with the emphasis on reducing costs and accelerating product development. 3.1 TOWARDS MORE ECONOMIC VEHICLES Ford’s current business strategy is to make new mobility solutions that are fuel-efficient and environmental-friendly, and at an affordable cost to consumers. By monitoring the US market, Ford has detected a change in consumers’ purchasing behavior: the fact that the sales of trucks & minivans constantly fell since 2004 (the “peak” year), while small cars sales have been growing since the same year. This is a clear indication that the trucks in the US is in its declining stage, whereas smaller cars are favored in consumers’ eye. The ever-rising fuel price is another incentive for future car owners in buying more economical, thus smaller cars. Therefore, Ford’s vision of its short-term to medium-term strategy is that the firm will be able to bring affordable mobility solutions to millions of US citizens. By year 2020, Ford will be able to......

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...type of automobile, car manufacturers in United States of America started to manufacture their own subcompact cars. The current president of Ford at that time, Lee Iacocca, recognized the market potential for this design of vehicles; he then led the designing of Ford’s first subcompact model car, namely Pinto on the year 1968. Due to the competition from various domestic and international automobile companies, Ford was influenced to accelerate the production of their first subcompact car. After for only 25 months of designing and manufacturing of the vehicle instead of a typical time frame of 43 months, Ford Pinto first debuted into the automotive industry as a two-door sedan with the entry model price at $1850 and followed by a hatchback and wagon version of the car later in 1972. The short time frame of the car from being a conception to the production surely raised some doubt among the sceptical during that time. Nevertheless, Ford Motor Company was still eager to market the car since it was a trend at the time. During the first few years Ford Pinto was introduced to the world, the sales were remarkable. By January 1971, the Pinto had sold over 100,000 units and 352,402 for the entire 1971 production run. 1974 saw the most Pintos produced in a single model year with 544,209 units (“Ford Pinto,” 2015). However, during mid-1970’s, Ford Pinto was surrounded by numerous controversies due to several accidents involving the car. The first accident occurred in 1972 involving a......

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