Tqm in Ford

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Contents
1. ABSTRACT --------------------------------------------------------------------------- 2 2. Introduction --------------------------------------------------------------------------- 3 3. What is TQM? --------------------------------------------------------------------------- 4 4. Why TQM? --------------------------------------------------------------------------- 5 5. TQM in Ford --------------------------------------------------------------------------- 6 * TQM at Ford motor company ------------------------------------------------------- 6 * TQM is revisited ---------------------------------------------------------------------- 6 * What changed TQM at Ford? ------------------------------------------------------ 7 * Six Sigma -------------------------------------------------------------------------- 7 * Practical Application of Six Sigma ------------------------------------------------ 9 6. Advantages of TQM in FORD --------------------------------------------------------- 11 7. TQM and Customer Satisfaction -------------------------------------------------------- 11 8. TQM and Organizational Development ------------------------------------------------ 11 9. TQM and Human Resources ------------------------------------------------------------ 11 10. TQM and Competitive Advantage ----------------------------------------------------- 12 11. REFERENCESS ------------------------------------------------------------------------- 12

ABSTRACT
The focus of this paper is to trace the TQM-Total Quality Management applied in Ford Motor Industries. Ford Motor Company (also known as simply Ford; NYSE: F) is an American multinational automaker headquartered in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford and incorporated on June 16, 1903.

Introduction
* In today’s world due to insufficient quality or indifference to quality lead to disputes, which imposes serious drain on the financial resources of accompany and limits profit potential. * To be competitive in today’s market, it is essential for manufacturing companies to provide more consistent quality and value to their owners/customers. * It is high time to develop better and more direct relationships with our owners/customers, to initiate more teamwork at the jobsite, and to produce better quality work.

What is TQM?
Definition: TQM is a management philosophy, a paradigm, a continuous improvement approach to doing business through a new management model. TQM is a comprehensive management system which:
* Focuses on meeting owners’/customers’ needs, by providing quality services at a reasonable cost. * Focuses on continuous improvement.
* Recognizes role of everyone in the organization.
* Views organization as an internal system with a common aim. * Focuses on the way tasks are accomplished.
* Emphasizes teamwork
* Total – made up of the whole
* Quality – degree of excellence a product or service provides * Management – act, art or manner of planning, controlling, directing… Therefore, TQM is the art of managing the whole to achieve excellence.

SIMPLE PROCESS

(Source: BS 7850: 1992, “Total Quality Management”)

Why TQM?
The Ford Motor Company had trouble in the early 1980s. Its trucks were selling well, but its line of cars been unpopular and had terrible reputations. The company lost $3.3 billion from 1980 through 1982. Attention to Quality was seen as a way to combat the competition. Perceived quality is governed by the gap between customers’ expectations and their Perceptions of the product or service

Perceived quality is governed by the gap between customers’ expectations and their Perceptions of the product or service

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Customers’ expectations of the product or service...
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