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Case #1 (Implementation of TQM and six sigma in Ford Motor Company)

Chosen Company

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Table of Contents
1.0 Introduction...................................................................................................................................................... 3
2.0 About Ford Motor Company....................................................................................................................... 3
3.0 The main issues and problems which led the company to implement a total quality
management program and six sigma.............................................................................................................. 4
4.0 The implementation process...................................................................................................................... 5
5.0 The faced challenges during the implementation process.............................................................6
6.0 Results................................................................................................................................................................. 7
7.0 Unresolved issues........................................................................................................................................... 8
8.0 Conclusion.......................................................................................................................................................... 8
9.0 References.......................................................................................................................................................... 9

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1.0 Introduction
In this paper I will discuss one of the most important companies in the vehicle industry
over the world, and how this company tried to implement total quality management tools
to increase its quality and force the faced obstacles, as we know that employing total
quality management (TQM) considers the most successful choices which the company has
been taken it. Besides that, we found that various companies tried to implement total
quality management to improve their productivity and increase customer satisfaction. Ford
Motor Company considers one of the most important companies which depend on total
quality management. In this paper, I will review the executiont of total quality management
(TQM), the faced obstacles during the implementation process, and finally, I will show the
results achieved. Besides that, we can find that the company tried to use the six sigma
approach to improve the quality in the company to fix the challenges in the company,

2.0 About Ford Motor Company

Portage Motor Company considers perhaps the greatest organization in the vehicle
fabricating industry, and it thinks about the best organization in America and over the
world. The organization has been approached by the originators behind the organization
which is designated "Henry Ford". It is known for its imaginative and dynamic way to deal
with assembling. Henry Ford was a trailblazer and involved the assembling perspectives as
mechanical production systems and normalization. Which became called Fordism
moreover that he paid the works living wages that permitted them to buy the items which
they fabricated? The organization makes the plans, assembling, advertising, and
administrations of a finished gathering of traveler vehicles and business vehicles, for
example, Ford Trucks, utility vehicles, vans and vehicles, and Lincoln extravagance vehicles.
(Reuters, 2022). (Reuters, 2022)

Type Public Company

Company Machine driven Industry
Established June 16, 1903
Organizer Henry Ford
Base Camp Ford World Headquarters, Dearborn, Michigan, United States
Region served Worldwide
Items Automobiles, luxury vehicles, commercial vehicles, automotive
parts, pickup, SUVs
Creation outputs 4.2 million vehicles
Administration Automotive finance, vehicles leasing, and vehicle service

Vision of Company:

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“To become the world’s leading Consumer Company for automotive products and services”

Mission of company

“We are a global family with a proud heritage passionately committed to providing
personal mobility for people around the world. We anticipate consumer need and deliver
outstanding products and services that improve people’s lives” (Slideshare, 2010)

3.0 The main issues and problems which led the company to implement a total
quality management program and six sigma
Through the observation, we can find that Ford Motor Company decided to implement a
Total quality management program (TQM) for different reasons which are related to the
main goal of the company as reaching the highest production levels and increasing
customer satisfaction. In the 1960s so we can find that Ford Motor Company was a pioneer
company whereas the introduction of total quality management. The company focused on
adopting the approach of a management system which leads to an increase the quality
standards. Ford Motor Company started to use total quality management in the 1980s
when the slogan of the company was "Quality is job one". In this paper I will take into
consideration the huge difference between quality and total quality, whereas the first one
proposes customer satisfaction with outcomes, the other one includes several crucial
aspects. By deciding on implementing total quality management (TQM) so we can find that
Ford Motor Company aims to improve the quality of its process and operations and its
employees instead of merely improving the customer satisfaction, finally, we can find that
the main reasons which made the company to use total quality management are reaching
to the highest levels of quality not only in the customer services but also in the quality of
the process and employee. (Vimal Kumar, R. R. K. Sharma, 2015)

The main reasons which led to implementing total quality management are as
follows;

 Cost reduction; through the observation, we can find that Ford Motor Company's old
production process was high costs, by implementing TQM so the company will use
the necessary resources only to reduce the production cost.
 Improving quality; through the observation, we can find that the number of defects
in the company increased, the company tried to implement TQM to reduce the
defects in its production processes and the provided vehicles in the served markets.
So we can find that the company did various steps to improve the quality by using
six sigma

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  Poor customer satisfaction rates; as we know that meeting the customer satisfaction
is an important matter to achieve the success and achieve the pros from it, as we
know that there are various problems which relate to other issues. It is probably
that various defects are related to defective products and this also will lead to
dissatisfying the customer. Then we can find that the company tried to implement
total quality management (TQM) to force this issue. (Six Sigma, 2017)
 Lessen normal impacts by diminishing dissolvable use. Six Sigma is a radiant green
perspective, and Ford is using it to carry out a couple of significant upgrades in their
normal care. Entry's use of basic resources has demonstrated to be extravagant long
term. Nevertheless, by sticking to a green business culture with Six Sigma, they've
lessened costs, extended quality, and further created buyer devotion.

4.0 Implementation process

Through the perception we can find that the organization presented complete quality
administration (TQM) presented a typical joint endeavor with ChemFil, the PPG enterprises
with the assistance of ChemFil, so we can find that Ford Motor Company empowered to
further develop its workplace and benefit through making less destructive composition
process,

Portage Motor Company turned over including the Six Sigma system in the last piece of the
1990s. Their goal was to transform into an irrefutable customer things association and
notwithstanding another automaker. Likewise, they should chip away at the idea of their
things and further foster consumer loyalty rates. Their technique for achieving these goals
is suggested as buyer driven Six Sigma. Additionally, Ford was the essential automaker in
the world to execute Six Sigma in its business strategy for an enormous degree.

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Maybe the most crushing issue Ford took a gander at the time was the at least 20,000
entryways for slips away that went with collecting vehicles. No matter what the
associations past history of significant worth control and improvement, a couple of flaws
inescapably moved beyond them. After this exposure, they made immense redesigns using
Six Sigma. Their goal was to diminish their defect rate to just a single disfigurement for
each 14.8 vehicles, and they succeeded. Furthermore, this in like manner fulfilled their
target of overhauling consumer loyalty. In Six Sigma, even the humblest change can have a
multiplier influence, helping with changing various cycles and moving towards steady
improvement. (Six Sigma, 2017)

5.0 The faced challenges during the implementation process

Through the observation, we can find that each organization provides a good process so
there will be challenges and obstacles which can appear. In the case of the implementation
of total quality management (TQM) for Ford Motor Company, so we can observe that there
were many challenges and obstacles. The main issue appears in convincing the employees
that the modifications in the company's products are necessary and it doesn't reduce the
brand image of Ford Motors Company, the next challenge is that the shareholders in the
company don't accept the innovations, finally we can find that the company realized that
the probability that the consumers don't accept on these changes, however, we can find
that the management team forced wisely on these challenges and all the stakeholders
realized the importance of the new approach. (Rubel Miah, 2015)

During the implementation of six sigma so we can find that the company faced various
obstacles as follows;

Employee responsibility; as is a large part of the time the case, various representatives at
Ford, including progressively up organization, at first saw Six Sigma with doubt. This infers
that the shortfall of obligation was accessible all along, which shows a critical excuse to be
stressing out about Ford's Six Sigma execution. Besides, time restrictions made it trying to
put 350 of its top bosses through significant length of readiness.

Time, money, and efficiency; Besides, got together with a shortfall of obligation, particular
benefits, for instance, time and money inferred that planning workers were habitually
irksome. The shortfall of obligation similarly provoked a shortfall of efficiency.

Data needs; finally, Ford was new to Six Sigma and insufficiently ready to complete the Six
Sigma drive. Six Sigma relies upon huge proportions of data and that infers Ford needs to
make and execute new assessment systems to resolve Six Sigma's issues. Truly around then
was she prepared to give any colossal benefit to the association?

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6.0 Results
According to the implementation of total quality management (TQM) so we can find that
the company (Ford Motor Company) achieved observed positive results, so we can track
down that the primary parts of complete quality administration as (essential direction,
client center, fixation on quality, cooperation, long haul responsibility, from there, the sky is
the limit) assisted the organization with improving its efficiency. Other than that, we can
find that the organization gave absolute quality administration (TQM) through the normal
venture with ChemFil, the PPG enterprises division. With the assistance of ChemFil so we
can find that Ford Motor Company empowered to further develop its workplace, and its
productivity by executing a less unsafe artistic creation process, then we can track down
that all out quality administration (TQM) came at the first in planning the paints since the
arrangement which ChemFil did it in light of the guidelines of client quality, in any case, the
work on every one of the levels through the one of a kind principles so it changed which
implies that long stretches of speculating were gone. Therefore, the trademark of the
organization changed from (quality is work one) to individuals with the quality and items
with quality, at last, we can track down that the principal consequence of carrying out
absolute quality administration (TQM) is expanding the quality on all levels, through the
observation we can find that the implementation of total quality management (TQM)
achieved the success for the company although there are unresolved issues. (Steven James
THOMPSON, 2007)

Besides that we can find that the implementation process for TQM in the company led to
various benefits and advantages as follows;

 Strengthened the competitive position of the company in the served markets

 Increase the productivity of the company to meet the demands of the customers
over the world
 Enhance the market image
 Reducing the defects and waste for the company to achieve the highest levels of the
customer satisfaction
 Increasing the profitability of the company (ASQ, 2022)

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By using six sigma so we can find that the company achieved the success as follows;

Usage of Six Sigma, while it has conveyed a couple of awkward hindrances, has enabled
them to get rid of more than $2.19 billion in waste throughout recent years and a half. They
deal with this issue by applying Lean Six Sigma methodologies, for instance, a data driven
decisive reasoning cycle, to devise deals with serious consequences regarding wasting
issues. In addition, the association's frameworks for quality improvement and trash
evacuation magnificently influence the association's errands. Portage's client drove Six
Sigma has saved more than $1 billion all over the planet, helping them with completing
right around 10,000 improvement projects since the mid-2000s. To the extent that
consumer loyalty, Ford sorted out some way to extend their rate by five. We could dare to
such a limit as to say that Six Sigma saved Ford from its deeply grounded issues. These
issues consolidate insufficient efficiency, sad usage of resources, low consumer loyalty, and
nonattendance of natural appropriateness.7.0 Unresolved issues

Although the successful purpose and successful implementation of total quality

management (TQM) and its positive impact on the productivity of the company, we can find
that the appearance of new approaches as business processes reengineering (BPR) pushed
the company to change its techniques and approaches to achieve better results and
consequences, the main issue which the company faces it, is related to the discontinuous
improvement. To improve the potential position, so we can find that the company needs to
use Information technology (IT) as the main engine for business processes reengineering
(BPR). As we know that information technology (IT) helps in analyzing, and publishing the
data which can get from the customers and suppliers in a good and improved way, in
addition, that choice as client-server design and PC organizations can improve gigantically
the course of activity the organization, before decades, we can find that the managers of
Ford Motor Company tried to reduce the numbers of employees with 20 percentage with
help of new systems of information technology, but this method didn't achieve the target
results, however, we can find that the need to develop business processes reengineering
(BPR) considers an urgent demand in the modern businesses over the world, finally, we

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can find that Ford Motor Company has to take more of the interest to solve the issue of
information technology which can contribute in making the company more stable and
profitable.

8.0 Conclusion
In this paper, we can find that the implementation of Total quality management (TQM) has
pros and cons, the way Ford Motor Company implemented TQM so we can find that the
company tried to implement this approach to achieve the desired goals and pros and
achieve the highest profits and increasing the customers and employees satisfaction levels.
Besides that, we can find that the company must develop new approaches even if the
potential strategy achieves positive results, although total quality management enhanced
the productivity of Ford Motor Company the company has to focus on business processes
reengineering (BPR) because this process considers able to meet the needs of information
technology. In addition that the implementation of six sigma contributed well to achieving
success in the company.

9.0 References
Slideshare. (2010, Jan 14). Retrieved 05 10, 2022, from Ford Motor Vision: To become
Visions & Missions of Fortune Global 100:
https://www.slideshare.net/openinnovation/visions-missions-of-fortune-global-
100/23-Ford_MotorVisionTo_become_the_worlds

Six Sigma. (2017, May 19). Retrieved 05 10, 2022, from Six Sigma Case Study: Ford Motors:
https://www.6sigma.us/uncategorized/six-sigma-case-study-ford-motors/

ASQ. (2022). Retrieved 05 10, 2022, from BENEFITS OF TOTAL QUALITY MANAGEMENT:
https://asq.org/quality-resources/total-quality-management/tqm-gets-results

Reuters. (2022). Retrieved 05 10, 2022, from Ford Motor Co.:

https://www.reuters.com/markets/companies/F.N

Rubel Miah. (2015). Total Quality Management (TQM) in Ford Motor Company. Bangladesh:
Independent University Bangladesh.

Steven James THOMPSON. (2007). Improving the Performance of Six Sigma; A case study of
the Six Sigma process at Ford Motor Company. Bedfordshire: UNIVERSITY OF
BEDFORDSHIRE.

Vimal Kumar, R. R. K. Sharma. (2015). Identifying critical success & failure factors for TQM
implementation: Extract from real case studies. IEEE International Conference on
Industrial Engineering and Engineering Management (IEEM), 123-135.

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