TOTAL QUALITY

MANAGEMENT
INITIAL REPORT ON FORD MOTOR COMPANIES

SUBMITTED BY:
Taha Ateeq BBA173021
Huma Mirza BBA173008

PRESENTED TO:
DR. SHAZIA FAIZ
 FORD MOTOR COMPANIES

Introduction:
Ford Motor Company, commonly known as Ford, is an American multinational automaker
that has its main headquarters in Dearborn, Michigan, a suburb of Detroit. It was founded
by Henry Ford and incorporated on June 16, 1903. The company sells automobiles and
commercial vehicles under the Ford brand, and most luxury cars under the Lincoln brand.
Ford also owns Brazilian SUV manufacturer Troller, an 8% stake in Aston Martin of the United
Kingdom and a 32% stake in Jiangling Motors. It also has joint-ventures in China (Changan
Ford), Taiwan (Ford Lio Ho), Thailand, Turkey (Ford Otosan), and Russia (Ford Sollers). The
company is listed on the New York Stock Exchange and is controlled by the Ford family; they
have minority ownership but the 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 the Indian automaker 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.
Ford is the second-largest U.S.-based automaker (behind 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. The company
went public in 1956 but the Ford family, through special Class B shares, still retain 40 percent
voting rights. During the financial crisis at the beginning of the 21st century, it was close to
bankruptcy, but it has since returned to profitability. Ford was the eleventh-ranked overall
American-based company in the 2018 Fortune 500 list, based on global revenues in 2017 of
$156.7 billion. In 2008, Ford produced 5.532 million automobiles] and employed about 213,000
employees at around 90 plants and facilities worldwide.

Product 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, 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.
On April 25, 2018, Ford announced that it planned to phase out all but one of its North American
automobile models (the Mustang will be the sole surviving model) to focus primarily on trucks
and SUVs. Ford had also planned to introduce an "Active" crossover version of the next-
generation Focus, but canceled those plans due to tariff issues between the United States and
China.

Current Marques

Marqu Country of Years

Markets
e origin used/owned

Ford United States 1903–present Global

North America, Middle East, China, South

Lincoln United States 1922–present
Korea

Troller Brazil 2007–present Brazil

Former marques
 Country of
Marque Years used/owned Markets
origin

Mercury United States 1939–2011 North America, Middle East

Continental United States 1956–1960 North America

Edsel United States 1957–1960 North America

Merkur United States 1985–1989 North America

Jaguar United Kingdom 1989–2008 Global

Aston
United Kingdom 1989–2007 Global
Martin

Volvo Sweden 1999–2010 Global

Land Rover United Kingdom 2000–2008 Global

Mazda Japan 1974–2015 Global

FPV Australia 2002–2014 Australia

Trucks:
Ford has produced trucks since 1908, beginning with the Ford Model TT, followed by the Model
AA, and the Model BB. Countries where Ford commercial vehicles are or were formerly
produced include Argentina, Australia, Brazil, Canada, France, Germany, India, Netherlands,
Philippines, Spain, Turkey, UK and the United States.
Line of heavy trucks made by Ford for the North American market:
  Ford F-Series
 "Super Duty/Extra Heavy Duty (1958-1962)
 "Big Job" (1951-1957)
 Ford N-Series (1963-1969)
 Ford L-Series trucks (1970-1998)
 aka Ford "Louisville Line"
 Ford Aeromax (1988-1998)
 Ford Louisville (1996-1998)
 Sterling (1998-2009)
 Ford C-Series (1957-1990)
 Ford Cargo/CF-Series (1986-1997)
 Ford H-Series (1961-1966)
 Ford W-Series (1966-1977)
 Ford CL-Series (1978-1995)
Buses:
In 1936, Ford introduced the Ford Transit Bus, a series of small transit buses with bodies built by
a second party. Originally a front-engine design, it was modified to a rear-engine design in 1939.
About 1,000 to 1,200 of the original design were built, and around 12,500 of the rear-engine
designs, which was in production until 1947 (rebranded as the Universal Bus in 1946).
Rear-engine Transit Bus chassis model numbers.

 09-B/19-B City transit bus – 1939–1941

 19-B/29-B City transit bus – 1941–1942
 49-B/79-B City transit bus – 1944–1947
 69-B City transit bus – 1946–1947
 29-B City transit bus – 1946–1947
 72-T transit bus – 1944–1945
Tractors:
The "Henry Ford and Son Company" began making Fordson tractors in Henry's hometown of
Springwell’s (later part of Dearborn), Michigan from 1907 to 1928, from 1919 to 1932, at Cork,
Ireland, and 1933–1964 at Dagenham, England, later transferred to Basil don. They were also
produced in Leningrad beginning in 1924.

Awards Won by Ford:

Gates Ford is proud to be recognized as one of the country’s longest standing family-led
dealerships, with nearly one hundred years of service under our belt. During this time, we are
proud of the many awards our vehicles have received from leading organizations such as What
Car? and Auto Express, across numerous categories, including build quality, environmental
performance and technology.
Ford’s exceptional engine design was once again applauded in 2015, when the 1.0-Litre
EcoBoost petrol engine was named International Engine of the Year. 87 automotive journalists
from 35 different countries agreed that this spritely engine was a clear standout.

Known for delivering scorching hot hatches, Ford won Car of the Year with the Fiesta ST-2 in
What Car’s 2016 award line up. Having been described as ‘joyful’ by the judges of the hot hatch
category, the ST-2 sped to success and was praised for its impeccable performance and
blisteringly quick range of engines.

Being renowned for exceptional quality is one thing, but one of Ford’s proudest achievements
must surely be its place on the Ethisphere Institute’s list of the World’s Most Ethical Companies.
For seven years running, Ford has been recognized for its ethical practices and is the only car
manufacturer to be featured in the line-up.

SIX SIGMAS FOLLOWED BY FORD:

There are four core factors behind Ford’s Six Sigma initiative. These are:

 Cost reduction: Ford’s old production process was surprisingly costly. By introducing

Six Sigma, they were no longer using resources that were not necessary.
 Improving quality: Ford has always been known for their quality products, but event
heir standards slip from time to time. While, for most companies, a mere 99% quality
level is considered acceptable, this lets through a surprising amount of defect. As much as
20,000 instances of defect. Six Sigma espouses that only 99.99966% (and up) is ideal.
This percentage limits the number of defects per million to just seven As such, Ford made
some great astonishing strides in quality improvement using Six Sigma. 
 Poor customer satisfaction rates: Satisfying customer demand is as critical to success as
leveraging it. Many of these issues link to one another, as multiple instances of defect are
likely to add up to a defective product. This will inevitably dissatisfy the customer which
is why Ford chose to implement Six Sigma, to streamline their processes, and improve
production issues. All of which adds up to a more productive company and happier
customers.
 Lowering environmental impact: by reducing solvent consumption. Six Sigma is an
extremely green philosophy, and Ford uses it to make some great changes in their
environmental awareness. Ford’s consumption of vital resources proved very costly in the
long-term. But by committing to a green work culture with Six Sigma, they reduced
costs, increased quality, and improved customer satisfaction.
Ford’s Approach to Six Sigma:
The Ford Motor Company began using Six Sigma strategy in the late nineties. Their goal was to
become a fully-fledged consumer products company and not just another automobile
manufacturer. Additionally, they wished to enhance the quality of their products and to improve
their customer satisfaction rates. Their approach towards achieving these goals they referred to as
Consumer-driven Six Sigma. Furthermore, Ford was the world’s very first automaker company
to implement Six Sigma methodology into their business operations on a large scale.

One of the most pressing problems facing Ford at the time was the 20,000 plus opportunities for
defects that came with manufacturing cars. Despite the company’s prior history of quality control
and innovation, some defects inevitably slipped through their fingers. Following this revelation,
they achieved substantial improvements using Six Sigma. Their aim was to reduce their defect
rate to only a single defect per every 14.8 vehicles, and they succeeded. Furthermore, this also
satisfied their goal of enhancing customer satisfaction. In Six Sigma, even the smallest change
can have a ripple effect, helping to change other processes and move towards continuous
improvement.

Obstacles for Ford’s Six Sigma Initiative

Despite its success, there were several obstacles in the way of Ford’s Six Sigma implementation.
These are:

 Employee commitment. As is often the case, many employees at Ford, including top-
level and senior management, initially viewed Six Sigma with skepticism. This meant a
lack of commitment was present from the beginning, proving a major cause of concern
for Ford’s Six Sigma implementation. The time constraints, on top of this, made it
difficult to put its 350 top leaders through weeks of training.
 Time, Money, Productivity. Furthermore, along with a lack of commitment, key
resources like time and money meant employee training was often difficult. The lack of
commitment also led to a lack of productivity.
 Data needs. Finally, Ford was new to Six Sigma and poorly equipped to follow through
with its Six Sigma initiative. Six Sigma, of course, relies on vast amounts of data to This
meant that Ford needed to create and implement new measurement systems to tackle the
needs of Six Sigma. Only then was it able to provide any great benefit for the company.

Ford’s Six Sigma Successes

Ford’s use of Six Sigma methodology, while it did provide some road bumps, enabled them to
eliminate more than $2.19 billion in waste over the last decade and a half. They solved this
problem by applying Lean Six Sigma techniques, such as a data-driven problem-solving process,
to devise solutions to waste issues. Moreover, the company’s methodologies for quality
improvement and waste elimination saw a staggering impact on the company’s operations.
Ford’s Consumer-driven Six Sigma has saved them over a billion dollars worldwide, helping
complete almost 10,000 improvement projects since the early 2000s. Regarding customer
satisfaction, Ford managed to increase their percentage by five points. Six Sigma saved Ford
from its deep-rooted problems. These issues include inadequate productivity, poor use of
resources, low customer satisfaction, and environmental unfriendliness.