BUSBUS ２７０　２７０　 Project Project ５５Ford Motor CompanyFord Motor Company

ERPERPKristin Evink Carolina Liptak Kristin Evink Carolina Liptak

Gregory Kilpatrick Michael MorrisseyGregory Kilpatrick Michael MorrisseyTakayuki Otake Takayuki Otake

MissionMission To be the world's leading consumer To be the world's leading consumer

company for automotive products and company for automotive products and services.services.

To be part of a global family, providing To be part of a global family, providing quality personal mobility to people around quality personal mobility to people around the world.the world.

To anticipate consumer need and deliver To anticipate consumer need and deliver outstanding products and services that outstanding products and services that improve people's lives.improve people's lives.

Company GoalsCompany Goals Overall GoalsOverall Goals

• AccountabilityAccountability• CommunityCommunity• Products and Products and

CustomersCustomers• Quality of Quality of

RelationshipsRelationships• EnvironmentEnvironment• Financial HealthFinancial Health• SafetySafety

Current Targeted GoalsCurrent Targeted Goals• Ford in ChinaFord in China• The Challenge of The Challenge of

HIV/AIDS HIV/AIDS • Addressing Climate Addressing Climate

ChangeChange• Improving SUV SafetyImproving SUV Safety

Product PortfolioProduct Portfolio Core Auto Brand NamesCore Auto Brand Names

• FordFord• LincolnLincoln• MozdaMozda• MercuryMercury

Premier Automotive GroupPremier Automotive Group• Aston MartinAston Martin• JaguarJaguar• Land Rover ----VolvoLand Rover ----Volvo

Other ServicesOther Services• Ford CreditFord Credit• HertzHertz

Profit PerformanceProfit Performance 2003 was first year of profit since 2003 was first year of profit since

20002000• Financing are save 3.3BillionFinancing are save 3.3Billion

ProfitProfit

-4

-3

-2

-1

0

1

2

2003 2002 2001 2000

Profit Margin

Market ShareMarket Share

Employee InfoEmployee Info

0

50000

100000

150000

200000

250000

300000

350000

400000

1998 1999 2000 2001 2002 2003

USTotal

TechnologyTechnology Voice Recognition TechnologyVoice Recognition Technology

• Normal dialog with carNormal dialog with car• No commands to memorizeNo commands to memorize• Controls most car featuresControls most car features• Recognizes different voicesRecognizes different voices

Technology cont.Technology cont.

Radar/ Vision SystemsRadar/ Vision Systems

• Backseat camerasBackseat cameras• Rear camerasRear cameras• Collision warning systemCollision warning system

Technology Cont.Technology Cont.

Adaptive Cruse ControlAdaptive Cruse Control

Advanced ElectronicsAdvanced Electronics• Wireless and SoftwareWireless and Software• Intergration with PDAs, Cell phonesIntergration with PDAs, Cell phones• Wireless gaming and DVD Wireless gaming and DVD

Key factors for Ford in the global marketKey factors for Ford in the global market

When forming opinions that would describe a When forming opinions that would describe a successful global firm, we used the following successful global firm, we used the following traits.traits.• Satisfy its stakeholdersSatisfy its stakeholders

Constant improvement so as to give the Constant improvement so as to give the highest returns for its investors highest returns for its investors

• Think globallyThink globally Conscious about environmental impacts Conscious about environmental impacts

from its factories and products from its factories and products • Customers drive businessCustomers drive business

Driven by consumer feedback, creativity, Driven by consumer feedback, creativity, resourcefulness, and entrepreneurial spiritresourcefulness, and entrepreneurial spirit

Key factors for Ford in the global marketKey factors for Ford in the global market

The following are factors that may pose a The following are factors that may pose a problem for the Ford Motor Co. now or in the problem for the Ford Motor Co. now or in the future.future.• Outsourcing Outsourcing

Saving money by outsourcing manufacturing Saving money by outsourcing manufacturing and engineering to other countries and engineering to other countries

• Fuel pricesFuel prices Increasing fuel prices may force Ford and Increasing fuel prices may force Ford and

other car manufactures to consider alternate other car manufactures to consider alternate fuels and the new infrastructures associated fuels and the new infrastructures associated with them with them

Utilization of CIS at FordUtilization of CIS at Ford The role of CIS in production and designThe role of CIS in production and design

• CAD in the design of the car and in engineeringCAD in the design of the car and in engineering• CAM for distribution of parts to the factories CAM for distribution of parts to the factories

and cars to the dealershipsand cars to the dealerships• SCM for optimal efficiency through supply SCM for optimal efficiency through supply

chainschains• All used to comprise computer integrated All used to comprise computer integrated

manufacturing where everyone in the process manufacturing where everyone in the process are able to contact each other through the are able to contact each other through the internet or an intranetinternet or an intranet

Industrial Model Industrial Model (work system &business organization)(work system &business organization)

　　　　　　　　　　　　　　　　　　　　　　　　　　

Computer Integrated Operations Outsourcing

Relationship Management Culture Management

Downsizing High Trust Relations

In-Person Service Workers Information Workers

Innovations Productivity

Integrated National

Work Organization

Human Resource practice

　　　　　　　　　　　　　　　　　　　　　　　　

Control System 　　　　　　　　　　　　　　　　　　　　　　　　

Industrial RelationIndustrial Relation 　　　　　　　　　　　　　　　　　　　　　　　　　　

Business StrategyBusiness Strategy 　　　　　　　　　　　　　　　　　　　　　　　　　　

Enterprise OrganizationEnterprise Organization

　　　　　　　　　　　　　　　　　　　　　　　　　　

Work OrganizationWork Organization• OutsourcingOutsourcing - Ford outsources tiers and - Ford outsources tiers and

other little parts of the car. This enables other little parts of the car. This enables them to focus on making the car and not them to focus on making the car and not having to create all components having to create all components

• Computer Integrated Operations-Computer Integrated Operations- Enables buyers to locate and shop for Enables buyers to locate and shop for cars online. All of the dealers are hooked cars online. All of the dealers are hooked up so that the car can be located up so that the car can be located

Control System Control System • Culture ManagementCulture Management- Needs to know - Needs to know

what different kinds of people like to be what different kinds of people like to be able to create different cars to suit themable to create different cars to suit them

• Relationship ManagementRelationship Management- People buy - People buy more that one car in their lifetime. If more that one car in their lifetime. If Ford keeps a good and positive Ford keeps a good and positive relationship with their customers they relationship with their customers they will keep coming back and buying Fords will keep coming back and buying Fords cars cars

Industrial Relations Industrial Relations

• DownsizingDownsizing- Ford finds the most efficient - Ford finds the most efficient way to make cars. Less people are way to make cars. Less people are needed now then in the past needed now then in the past

• High Trust RelationsHigh Trust Relations- Less recalls and - Less recalls and problems with cars the more the problems with cars the more the customers trust Ford and will repeat customers trust Ford and will repeat purchasespurchases

Human Resource Practice Human Resource Practice

• In person service workersIn person service workers – Dealerships – Dealerships deal closely and personally with deal closely and personally with customers customers

• Information workersInformation workers – There are always – There are always people to check cars and answer people to check cars and answer anyone’s question involving them anyone’s question involving them

Business Strategy Business Strategy

• ProductivityProductivity- make the most cars the - make the most cars the most efficient most efficient

• InnovationsInnovations – there is a lot of – there is a lot of competition in the auto industry. New competition in the auto industry. New ideas are always needed.ideas are always needed.

Enterprise Organization Enterprise Organization

• IntegratedIntegrated – all Ford locations work – all Ford locations work together to give the customer what they together to give the customer what they need need

• NationalNational- There are Ford cars and - There are Ford cars and personnel across the nationpersonnel across the nation