Ford Motor Company

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• Ford Motor Company
• Pete Jury
• Jordan Thompson
• Danny Harmon
• Shermika Nelson
• Alicia Brown

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Outline

• Company ProfilePete Jury
• Business ModelJordan Thompson
• SWOT AnalysisDanny Harmon
• ChallengesShermika Nelson
• Recommendations FutureAlicia Brown
• Questions?

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Background

• Est. 1903
• Design and manufacture of vehicles for consumer
  market.
• Second largest industrial corporation in the
  world.
• 144 billion in revenues
• 370,000 employees
• Operations in 200 countries

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Company Question

• How should Ford use emerging technology to change
  how they interacted with suppliers?
• Two different views
• Technology made it necessary to redesign its
  supply chain and other activities to come up with
  an entirely new business model. Favored virtual
  integration.
• Companies that had benefited from an aggressive
  approach to technology such as DELL were very
  different from Ford.

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Becoming Global

• Companies turn to industry consolidation. (Ford
  acquired Volvo)
• 1995 Ford2000. Program to make processes
  products globally common.
• Technology made it possible for teams to
  communicate as if they were in the same room.
• 1995 Public website launched, by 1997 more than
  1 million visits per day.
• Teamed with Chrysler and GM to create Automotive
  Exchange Network (ANX)

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RESULTS.

• By the end of 1998
• Fords profits were 6.9 Billion
• World leader in trucks
• U.S leader in profit per vehicle
• Named 1997 most improved automaker

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Business Model
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Enterprise Model
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Strengths

• NAME RECOGNITION
• No. 2 Auto Maker World Wide

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Weaknesses

• Excessive Inventories
• Push System of Production
• Delayed New Vehicle Delivery 45 to 60 days

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Opportunities

• Reduction of Manufacturing Costs
• Total Quality Management
• Pull Production Method
• Lean Manufacturing Concepts
• Decrease New Vehicle Delivery to 15 Days
• Create the Ford Retail Network

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Threats

• Foreign Competition
• Toyota
• Nissan
• Hyundai
• Honda

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Problem Identification

• How to use Emerging Technologies?
• Should Virtual Integration be Implemented?
• How to maintain Global Presence?

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Problem Identification

• How to improve quality and reduce cycle times?
• How to improve shareholder value and customer
  responsiveness?
• What methods would deliver results for Ford?

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The Future

• The Supply Base
• They dealt with a large network of suppliers,
  making operations unnecessarily complex.
• Suppliers were chosen because of cost, with
  little thought for the overall supply chain
  costs.
• They decided to strive for suppliers that would
  provide more stable, long-term relationships.

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The Future

• Ford Model Production System
• Similar to the production system employed by
  Toyota.
• Aimed to make manufacturing operations leaner,
  more responsive and efficient.
• To do this, they needed to have an In-Line
  Vehicle Sequencing system in place that would use
  storage devices and software to keep up with
  production processes.

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The Future

• Order to Delivery
• This program was expected to reduce customer
  waiting time for an order to fifteen days,
  thereby increasing manufacturing stability.
• They were aiming to meet customer expectations at
  the right time and the right place.

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The Future

• On July 1998, Ford launched the Ford Retail
  Network in Tulsa, Oklahoma.
• It was supposed to test the best practices in
  retail distribution and push those practices
  throughout the dealerships.
• It also was supposed to compete with newer retail
  distribution channels on the Internet.

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The Future

• Virtual Integration
• Ford wanted to reshape their organization to make
  it more comparable to Dells. However, there
  were some important differences in the two
  organizations, making the validity of this idea
  questionable.
• Virtual integration would move them from push
  to pull processes.

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Question 1

• What are some of the advantages and
• disadvantages of Ford Motor Companys
• desired changes?

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Question 2

• What are the differences and similarities
• between Dell and Ford Motor Company?

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Question 3

• What differentiates vertical integration from
  outsourcing?

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Question 4

• Ford Motor Company wishes to build a
• model that is similar to Dells, what
• challenges are going to pose more strain
• on Ford as opposed to Dell?

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Question 5

• How will customers benefit with the changes that
  the company has set in motion?

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The End