Thursday, August 20, 2015

COMPANY PROFILE OF FORD

FORD OVERVIEW

 In 1908 Henry Ford began production of the Model T automobile. Based on his original Model, a design first manufactured in 1903, the Model T took five year to develop. Its creation inaugurated what we know today as the mass production assembly line. This revolutionary idea was based on the concept of simply assembling interchangeable component parts. Prior to this time, coaches and buggies had been hand-built in small numbers by specialized craftspeople who rarely duplicated any particular unit. Ford’s innovative design reduced the number of parts needed as well as the number of skilled fitters who always formed the bulk of the assembly operations, giving Ford a tremendous advantage over his competition.
     Ford’s first venture into automobile assembly with the Model A involved setting up assembly stands on which the whole vehicle was built, usually by a single assembler who fit an entire section of the car together in one place. This person performed the same activity over and over at this stationary assembly stand. To provide for more efficiency, Ford had parts delivered as needed to each work station. In this way each assembly fitter took about 8.5 hours to complete his assembly task. By the time the Model T was being developed Ford had decided to use multiple assembly stands with assemblers moving from stand to stand, each performing a specific function. This process reduced each worker completely familiar with a specific task

Ford soon recognized that walking from stand to stand wasted time and created jam-ups in the production process as faster workers overtook slower ones. In Detroit in 1913, he solved this problem by introducing the first moving assembly line, a conveyor that moved the vehicle past a stationary assembler. By eliminating the need for workers to move between stations, Ford cut the assembly task for each workers from 2.5 minutes to just under 2 minutes; the moving assembly conveyor could now place the stationary worker. The first conveyor line consisted of metal strips to which the vehicle’s wheels were attached. The metal strips were attached to a belt that rolled the length of the factory and the, beneath the floor, returned to the beginning area. This reduction in the amount of human effort required to assemble an automobile caught the attention of automobile assemblers throughout the world. Ford’s mass production drove the automobile industry for nearly five decades and was eventually adopted by almost every other industrial manufacturer. Although technological advancements have enabled many improvements to modern day automobile assembly operations, the basic concept of stationary workers installing parts on a vehicle as it passes their work stations has not changed drastically over the years.
rk station. In this way each assembly fitter took about 8.5 hours to complete his assembly task. By the time the Model T was being developed Ford had decided to use multiple assembly stands with assemblers moving from stand to stand, each performing a specific function. This process reduced each worker completely familiar with a specific task
DESIGN:
     Introducing a new model of automobile generally takes three to five years from inception to assembly. Ideas for new models are developed to respond to unmet public needs and preference. Trying to predict what the public will want to drive in five years is no small feat, yet automobile companies have successfully designed automobiles that fit public tastes. With the help of computer-aided design equipment, designers develop basic concept drawings that help the visualize the proposed vehicle’s appearance. Based on this simulation, they then construct clay models that can be studied by styling experts familiar with what the public is likely to accept. Aerodynamic engineers also review the models, studying air-flow parameters and doing feasibility studies on crash tests. Only after all models have been reviewed and accepted are tool designers permitted to begin building the tools that will manufacturer the component parts of the new model.
RAW MATERIALS:
     Although the bulk of an automobile is virgin steel, petroleum-based products (plastics and vinyl’s) have come to represent an increasingly large percentage of automotive components. The light-weight materials derived from petroleum have helped to lighten some models by as much as thirty percent. As the price of fossil fuels continues to raise, the preference for lighter, more fuel efficient vehicles will become more pronounced.
FORD INDIA
     Ford India Private Limited began production in 1926, but was shut down in 1954 as the company was in loss. Ford re-entered the market in October 1995 as Mahindra Ford India Limited (MFIL), A 50-50 joint venture with Mahindra & Mahindra Limited. Ford increased its interest to 72% in march 1998 and renamed the company Ford India Private Limited. The total investments made by Ford Motor Company since it set shop in1995 stands $2 billion as of April 2012.
MANUFACTURING FACILITIES
     FIPL’S main manufacturing plant located in Maraimalai Nagar, 45 km from Chennai has a capacity to produce 1,50,000 cars on a two-shift basis and 2,00,000 with three shifts. In 2010-11, the company’s production crossed the 1,00,000 mark. As its new hatchback Figo was launched in march 2010, Ford Motor Company has invested $500 million to double capacity of the plant to 200,000 vehicles annually and setting up a facility to make 250,000 engines annually. The engine plant opened for operations from January 2010. To meet the growing domestic demand and with an eye on engine exports, the company has invested $72 million to raise engine production capacity to 330,000 units.
     The company is rolling out the urban SUV Ford Ecosport in June 2013. It had announced a $142-million investment on this. With Ford Ecosport, the Chennai plant will ramp up to full capacity (200,000 units). Last year, production touched 127,000 units.
     The company is going to launch the compact sedan Ford Figo Aspire within this year 2015( In Process………..)
     As part of its plan to launch 8 new vehicles by 2015, the car maker is pumping in an investment of $1 billion for a new state-of-the-art manufacturing plant at Sanand, Gujarat. The plant is coming up on 460 acre site. It will have an Initial installed capacity to manufacture 2,70,000 engines and 2,40,000 vehicles per year. Coming up alongside the plant is the supplier park spread across 150 acres and the company has attracted 19 world-class supplier manufacturers to date. The plant is expected to commence production by 2014. Once the Sanand plant is fully operational, Ford India will have a cumulative capacity to make 440,000 cars and 610,000 engines annually.
Current Models:
1. Ford Classic (Launched 2005)
2. Ford Figo (Launched 2010)
3. Ford Fiesta (Launched 2011)
4. FoedEcosport (Launched 2013)
5. Ford Figo Aspire (In Process….. 2015)
Discontinued:
1.      Ford Ikon (1999-2010)
2.      Ford Mondeo (2001-2006)
3.      Ford Fusion (2004-2010)
4.      Ford Endeavour (2003-2014)
SALES AND SERVICES NETWORK:
     As of February 2013, FIPL has 260 dealership across 138 cities in 23 states an in 3 union Territories of India. In the year 2010, FIPL recorded sales of 83,887 vehicles against 29,488 vehicles sold during the year 2009 and registered a sales growth of 172%
EXPORTS
     Ford India currently exports 40 percent of its engine production and 25 percent of its car production to 35 countries, some of them is South Africa, Italy, Nepal, Mexico, Kenya, Bahrain, Ghana, Iraq, Liberia, Lebanon, Malawi, Madagascar, Mauritius, Nigeria, Senegal, Tanzania, UAE, Zambia and Zimbabwe.
CORPORATE SOCIAL RESPONSIBILITY:
     Ford India’s CSR activities are focused primarily in four key areas such as road safety, education, healthcare and environment.
DRIVING SKILLS FOR LIFE (DSFL)
A regional initiative to raise awareness about safe, economic and eco-friendly driving through a free-training program that mixes classroom learning with practical hands-on sessions. DSFL program was launched in India in August 2009. In partnership with its dealers, Ford India has also trained 4500 drivers since launch Ford Motor Company’s successful Driving Skills For Life (DSFL) training programme that educates new and older licensed drivers of all ages on safe, economical and eco-friendly driving practices.
FORD ACHIVEMENTS:
     Ford India has successfully completed the on going capacity expansion at its Chennai Engine Plant, ramping up annual engine production to 340,000 cars. Manufacturing nearly 17 variants of petrol and diesel engines, nearly 40 percent of which will be exported, the facility strategically positions Chennai as a regional small engine hub for Ford. With Chennai;sstate-of-the-art flexi power Train facility rolling out its 400,000th engine, Ford India is set to deliver on the One Ford Plan. In Chennai, India, 17 July, 2012-Ford India today announced it has completed the expansion of its engine plant, increasing annual engine production capacity 36 percent to 340,000 helping transform the facility into a regional small engine hub. The new facility was completed in record time of just over 14 months and creates capacity in manufacturing over additional 80,000 diesel engines annually. The additional capacity will feed the surging demand for diesel power trains in India and growing exports, creating more employment opportunities in the process. The on going expansion has already led to the hiring of 200 employees.
     “We are delighted to see this new addition to our capacity in the Engine Plant as we gear up to move to the next stage of growth in India and the region,” said Michael Bone Ham, president and managing director, Ford India. The facility is the first Ford Plant in the world with single flexible production line manufacturing petrol and diesel engines. It is also the first Ford facility to run a flexible crank shaft production line producing crank shafts, and to have a fully flexible cold test, hot test and Dyno test facility for petrol and diesel engines.
     “We are at an interesting phase of growth with the markets demanding swift responses from manufacturers, and I’m proud to say that with this plant’s amazingly flexible production lines of both petrol and diesel engines, we’re well-poised to move quickly,” Bone ham added. Bone ham recently joined the Engine plant’s chief, BalasundaramRadhakrishnan, Vice-president, power train Operations, Ford India, in cutting a ribbon to mark the roll-out of the 400,000th engine from the plant. “This is a special occasion for all of us at the Chennai Engine Plant. Commissioning this facility in record time is a tremendous milestone and just adds to the many significant achievements this plant has in terms of Quality, Safe, Smart and Green,” said Radhakrishnan.
     “To be rolling out the 400,000th engine from the Chennai plant in just under four years is an outstanding achievements, and one that everyone involved should be extremely proud,” said Gary Johnson , Vice president, Manufacturing, Ford Asia Pacific and Africa, “Ford is currently building seven new plants across Asia Pacific and Africa, and we are making a significant commitment in India, which will see it become a regional hub for law-displacement engine production. “The Chennai Engine plant has delivered several achievements in terms of Ford’s four pillars of Quality, Green, Safe and Smart.
QUALITY ASSURANCE OF FORD
     Ford Motor Company total quality management or TQM practices started in the 1980’s when “Quality Is Job 1” was their slogan. How did TQM work at ford and are they still standing behind this process? Jean Scheid, a Ford Dealer talks with Ford management along with some insight of her own.
TQM AT FORD MOTOR COMPANY:
     Today at Ford Motor Company, their most popular slogan is “Ford Has a Better Idea”. Back in the 1980’s when Ford Motor Company total quality management practices were vast, the slogan of “Quality Is Job 1” made more sense. In a conversation with Dan Dobbs, a Six Sigma Master Black Belt at for, it was noted that TQM may have worked in the 1980’s, but Six Sigma is the project management methodology of choice these days.
     When TQM, a process improvement methodology based on a customer satisfaction quality-driven process with guidelines set by management was first utilised, it started through a joint venture. Through a partnership with Chemfil, a division of PPG Industries, Ford wanted to produce better quality products, a stable work environment for the workforce, effective management, and profitability; all by the 1990’s “Quality People, Quality Products. “ Through this partnership with paint supplier Chemfil, paint process were developed to ensure that a “quality product that meets customer’s needs translates into financial success.” According to an insider press release obtained from the Ford Media Room. TQM was forefront in their painting design as the process of preparation (based on customer quality standards) was implemented by Chemfil with Ford management and workers informed of all steps needed to follow the application of paint to a quality outcome. Gone were the days of guessing, and TQM meant processes at all levels of production were strictly followed, constantly developed upon, and improved mostly through customer quality satisfaction surveys.
TQM IS REVISITED:
     In 1999, Terry Chenault joined Ford, a risk management specialist who along with phongVU, helped to further the TQM methodology through a consumer Driven Six Sigma process. Says Dan Dabbs today of TQM and Ford, “ It  may have been newsworthy in the 1980’s nut Ford Motor Company Total Quality Management practices really began with Henry Ford. “ That’s true if you look at Toyota’s 5S Best Practices in the production of their cehicles, a methodology decided upon after visiting Henry Ford’s assembly lines. While TQM at the Ford assembly lines looked good to Toyota, they found too much waste and went on to develop their own quality process or 5S.
WHAT CHANGED TQM AT FORD?
     According to Dan Dobbs, the Six Sigma Master Black Belt who runs Six Sigma practices at Ford, “Waste and lack of quality on many levels.” This is true especially when you look at the far superior Ford Warranty claim system. As of 2008, the warranty repaire rate for Ford by utilizing Six Sigma decreased by 60% Ford Chief Engineer Art Hyde takes the now implemented Six Sigma a step further saying, “ the design and engineering analysis process makes it possible for problems that previously may not have surfaced until (product) launch, to be caught and corrected in the virtual world through the DMAIC process.”
     The DMAIC process, or define, measure, analyse, improve, and control has “built an overall strategy for consistency in our teams,” continues Hyde of their Six Sigma implementation for 2010 product launches, Dobbs told me, “ The Company’s Quality Operating System or(QOS) is crucial for identifying and correcting problems within the manufacturing facilities.” He goes on to say, “ Six Sigma and QOS implemented in each plant includes cross-functional groups of engineers, plant management, and production specialist-all skilled problem solvers who’ve been trained through Six Sigma.”

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