Ford Case Study

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TEXAS TECH UNIVERSITY

Case 2-3: Ford Motor
Company: Supply Chain
Strategy

Case Critique for ISQS 5231 - IT for
Managers

Professor:
Dr. Qing Cao
Team # 4
Dalal Ahmad
Sayed Almohri
Aliza Levinsky
Andy Rupp
Avinash Sikenpore

2010

Team 4 Critique 1

Contents
Summarize the case ..................................................................................................................... 2 Critique and analyze team 5. ....................................................................................................... 3 Evaluate participation and ways to improve ............................................................................... 5 Appendix A: Glossary ................................................................................................................. 6 Appendix B: Car producer forecast ............................................................................................. 6 Works Cited .................................................................................................................................... 7

Team 4 Critique 2

Summarize the case
The case 2-5 deals with the hurdles, implications and the extent of virtual integration in one of the world’s largest automobile manufacturing company. ‘Ford Motor Company: Supply Chain Strategy’ case focuses on the viability of implementing a supply chain strategy following Dell’s model.

There are several factors which affect how an auto industry is managed and the way important decisions in regard to the company are taken. Ford was established by a visionary Henry Ford in 1903 and it has been in business ever since. Its main competition till 1970’s was with General Motors and Chrysler. However with the entry of Japanese companies like Honda, Toyota and Nissan the firm faced stiffer competition with the auto market being overcapacitated. In 1995 Ford initiated the Ford 2000 plan aimed to restructure many of their key processes like Order to Delivery (OTD) and Ford Production System (FPS). They wanted to reduce the OTD from 60 or more to 15 or less days. FPS was created to convert the supply chain from a push type to a pull type. Ford aimed at reducing the number of suppliers which had grown to several thousands of different suppliers over the years as the company grew. Rather than focusing on selecting suppliers based on costs they wanted to develop close long-term relations with the Tier 1 suppliers who in turn managed and handled Tier 2 and Tier 3 suppliers. The aim was to create a more cost effective supply chain. Ford provided its suppliers with its expertise and techniques to help them better manage their operations. Another important initiative taken by ford was the Ford Retail Network (FRN) to reduce competition among its dealerships in the same locality by having only one unified dealer who provides the best possible level of customer experience. The director of supply chain system, Takai has to take an informed and well thought decision if they should implement the Dell’s integrated supply chain or not.

Team 4 Critique 3

Critique and analyze team 5.
We think that the overall presentation on Ford was good and a lot of information over and beyond the case was discussed and presented. Even then we feel that there were plenty of issues the team could have handled in a better manner. The first area they lacked was describing the specific initiatives by Ford like the Ford Retail Network (FRN), Ford Production System (FPS) and Order to Delivery (OTD) in more depth. Secondly they left the main issue quite open to debate and not specific in terms of the recommendations and the suggested course of action at different levels of the organization and how exactly to integrate the emerging technologies into its supply chain. If we were the presenting team we would have approached this case in a very different way.

An important part of analyzing any case is to elaborate on the alternatives the...
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