Name Roll No.

Ameer Hamza 19012120-009

Samiullah Riaz 19812120-007
Hassan Nawaz 19812120-003

Class : BBA 7
Presentation Topic: Total Quality Management in
Ford Motors
Presented to: Sir Khurram Shehzad Sahib

Introduction of the company

• Ford Motor Company is an American multinational automaker that was
founded by Henry Ford in 1903.
• It is headquartered in Dearborn, Michigan, and is one of the largest
automobile manufacturers in the world.
• Ford produces a wide range of vehicles, including cars, trucks, and SUVs,
and has a presence in many countries around the world.
• The company is known for its popular models such as the Ford Mustang, F-
150, and Explorer.
• Ford has a long history of innovation in the automotive industry, including the
development of the assembly line, with the introduction of hybrid cars and electric
vehicles.

History of TQM at Ford

• TQM was first introduced to Ford in the 1980s when competition from
Japanese automakers known for their high-quality products.
• Ford adopted TQM as a company-wide philosophy, with a focus on
continuous improvement and customer satisfaction.
• In the early 2000s, Ford faced quality issues with its Explorer SUV, which
cause them decrease in market share of $3 billion. As a result, the company
launched TQM program to improve quality control.
• The TQM program implement in quality control processes, improved training
for employees, and a focus on customer feedback and satisfaction
• One of the key tools used in TQM was the Six Sigma approach, which
emphasizes the reduction of defects and variability in production processes.

Six Sigma approach

Six Sigma is a approach to quality management that aims to minimize defects
identifying and removing the root causes of problems. It involves using tools and
techniques to measure and analyse data, identify opportunities for improvement, and
implement solutions to improve the quality of products and services. The goal of Six
Sigma is to achieve a level of quality where only 3.4 defects occur per million
opportunities, which is high standards of quality.
Overall, Ford's Six Sigma approach helped the company achieve significant
improvements in quality, efficiency, and profitability, making it a model for other
companies looking to adopt Six Sigma methodology.

Key Principles of TQM

• In Customer focus: TQM aims to meet or exceed customer expectations by
understanding and meeting their needs, and by providing products and services that
meet their requirements.
• Continuous improvement: TQM involves continuous improvement of all
processes and products within the organization. This involves identifying and
addressing problems, and seeking ways to make continuous improvements.
• Employee involvement: TQM involves all employees in the organization,
empowering them to identify and solve problems, and to make continuous
improvements. This is achieved through training, education, and communication.
• Process-driven approach: TQM is a process-driven approach that involves
identifying and understanding all the processes that impact quality, and then using
this knowledge to improve those processes.
• Evidence-based decision-making: TQM involves making decisions based on
data and evidence rather than on assumptions or beliefs.

Benefits of TQM
1. Improved product quality: TQM has enabled Ford to improve the quality of its
products by ensuring that all processes are focused on meeting customer needs and
expectations. This has helped Ford to produce products that are reliable, durable,
and of high quality.
2. Increased customer satisfaction: By focusing on customer needs and
expectations, TQM has helped Ford to improve customer satisfaction..
3. Reduced costs: TQM has helped Ford to cut costs by identifying and
eliminating waste and inefficiencies.
4. Improved employee engagement: TQM involves all employees in the
organization and encourages their participation in problem-solving and continuous
improvement. which has increased employee satisfaction and motivation.
5. Increased competitiveness: TQM has helped Ford to increase its
competitiveness in the global market. This has helped the company to stay top of its
competitors and remain profitable.

TQM strategies at Ford

• Establishment of cross-functional teams: Ford established cross-functional
teams to implement TQM. These teams were made up of employees from different
departments who worked together to identify and solve problems related to product
quality and process improvement.
• Training and education: Ford provided training and education to employees to
help them understand the principles and tools of TQM. This involved workshops,
seminars, and on-the-job training
• Use of quality metrics: Ford used quality metrics to track progress and
measure the effectiveness of TQM initiatives. These metrics included customer
satisfaction, defect rates, and cycle times.
• Focus on continuous improvement:. This involved encouraging employees to
identify and report problems, and to seek ways to make improvements to processes
and products.
These strategies helped Ford to implement TQM throughout the organization and
achieve its goals of improving product quality, increasing customer satisfaction, and
reducing costs.

Challenges and Solutions

• Resistance to change: One of the biggest challenges Ford faced was
resistance to change. Many employees were used to the old ways of doing things.
To overcome this, Ford provided training and education to help employees
understand the benefits of TQM and the tools and techniques involved.
• Cost: Implementing TQM can be costly, as it requires investment in training,
tools, and resources. To overcome this, Ford made a long-term commitment to TQM,
and recognized that the benefits would cover the costs in the long run.
Results of TQM at Ford
The results that Ford achieved as a result of implementing TQM:
1. Improved quality: By implementing TQM, Ford was able to improve the quality
of its products.
2. Increased efficiency:. By improving productivity, Ford was able to reduce
costs and increase efficiency.
3. Higher customer satisfaction: By focusing on customer needs and
expectations, Ford was able to increase customer satisfaction.
4. Improved employee morale: By involving employees in problem-solving Ford
was able to increase employee engagement and satisfaction.
5. Competitive advantage: By improving quality, efficiency, and customer
satisfaction, Ford gained a competitive advantage in the marketplace.

Our Automobile Company FORSA MOTORS

TQM in Forsa Motors
1. Continuous improvement: Forsa Motors is committed to continuously
improving its products and processes. The company encourages all employees to
identify areas for improvement and to work together to find solutions.
2. Customer focus: Forsa Motors places a strong emphasis on understanding
and meeting the needs of its customers. The company conducts market research to
identify customer preferences
3. Employee involvement: Forsa Motors recognizes that its employees are key
to the success of the company. The company encourages all employees to be
involved in the TQM program and to share their ideas and suggestions for
improvement.
4. Process control: Forsa Motors closely monitors all aspects of the
manufacturing process to ensure that products are produced to the highest
standards of quality.
5. Supplier relationships: Forsa Motors works closely with its suppliers to ensure
that materials used in the manufacturing process meet the company's high
standards...
Through its TQM program, Forsa Motors is committed to producing high-quality
automobiles that meet the needs of its customers.
Defect of our product
We noticed that our sunroofs were not meeting our high standards of quality, and we
were receiving a significant number of complaints from customers. After conducting
an analysis, we discovered that the issue was related to the sunroof seals, which
were not properly sealing the sunroof to the car's roof. This was causing water leaks
and other related problems.

To solve this issue, we do a TQM program that included the

following steps:
1. Define quality: We worked with our customers to determine their expectations
for sunroof quality
2. Create a cross-functional team: We created a team that included members
from different departments, such as engineering, quality control, and production.
3. Develop a quality plan: We developed a plan that focused on preventing
defects from occurring in the first place, For example, we looked at our design
process to see if we could make any changes that would make the sunroof seals
more effective.
4. Implement process controls: We implemented a number of process controls,
such as inspection procedures and quality audits, to ensure that the sunroof seals
were properly installed and tested.

As a result of our TQM program, we were able to significantly reduce the defect rate
in our sunroofs. We also received positive feedback from our customers, who were
very happy with the improvements we made. Our TQM program allowed us to
identify the root cause of the problem and apply effective solutions to solve it to
improve quality and increased customer satisfaction.