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, , , , , , , , , , , , , , , , – , , , , , , , , , , , , , , , , – Ford Motor Company Case Report , , , , , , , , , , , , , , , , – Executive Summary Ford Motor Company includes a long background, starting in Michigan in 1903. They have dedicated to designing and manufacturing and get very successful, however with increasing competition, global markets and over-capacity the business needs to look at ways to improve profitability. The organization has implemented various courses and techniques to create a trim, responsive system with better consumer forecasting.

Their challenge should be to continue to research ways to stay viable in current market and industry conditions. Dell Pcs has been very successful with a direct unit and virtual integration which may or not work well pertaining to Ford. CONTENTS * ISSUE3 * ANALYSIS4 * ALTERNATIVES6 * ADVICE 7 5. IMPLEMENTATION almost eight * CONCLUSION8 * REFERENCES9 * CONCERN: The Kia Motor Firm is facing a number of difficulties including the course of CEO Jac Nasser to focus on customer responsiveness and shareholder value to deal with increasing competitiveness, an industry with potential over-capacity as well as the expansion in to globalized markets.

Ford acquired begun to implement devices to reduce cycle-time, improve top quality and to lower costs. Programs included consolidating application into five Vehicle Companies (VCs), reeingineered processes including Order to Delivery (OTD), Ft Production Program (FPS) and Business to Business (B2B) capacity. In addition , information flow was evaluated to conquer geographical constraints, thus to become critical component of Ford’s global approach. During the past decade the organization has integrated many applications and techniques becoming the most improved automaker with regular upward trending sales and record profit sharing.

The provision chain in the beginning had a basic of many competitive suppliers before the 1990’s when they began to approach toward fewer, long term dealer relationships. Honda fostered interactions with tier one suppliers who would program with rate two and other suppliers. With Ford’s support, the suppliers tried a variety of strategies including Just-In-Time (JIT) inventory, Total Quality Management (TQM) and Statistical Procedure Control (SPC). A limitation emerged inside the variance from it expertise and capability among the list of supply chain members.

To get to the goal of lowered cycle period, creating a slim and flexible method, Ford is usually researching Dell Computer’s successful direct version to see if this virtual integration system works for them. The direct version reduces enough time and costs of 3rd party distribution through direct interfacing with as few companions as possible in order to improve production and customer responsiveness. The process is to determine if this system is wonderful for Ford Engine Company. 2. ANALYSIS: The CEO’s savoir is challenging by numerous factors.

Although Dell’s direct model works for Dell, it may can be effective with Ford. The organization has been by using a decade of change and adjustments to varied processes and directions and while the option is available, a decision is not urgent as Ford is in a fairly good placement. Dell’s immediate model involves a customer emphasis, small numbers of supplier relationships, customization, a just-in-time inventory and manufacturing. In order to do this kind of, Dell ties in technology to connect and synchronize these desired goals and tactics. They use the actual call top to bottom integration.

Therefore they operate very closely with customers and suppliers including actually having staff upon site doing work directly with customers and partners, showing information and knowledge to allow flexibility and effectiveness reducing cycle instances. Dell determines partnerships or perhaps collaborations with their customers and suppliers which is much like controlled outsourcing techniques. Michael Dell of Dell computers states that outsourced workers is usually a way to “get rid of a problem. His direct style, in contrast, is usually partnering with companies whom are remedied as though they are internal staff.

This model boosts the level of info sharing and motivation to succeed as a team. Technology means that the knowledge sharing can be easily and effectively done in a win-win type of layout. The challenge is usually to maintain these kinds of relationships and focus on the job at hand. Providing suppliers with real-time data and up currently demand allows the distributor to act accordingly to meet Dell’s requirements. Eliminating multiple tiers and doing work closely with customers and suppliers takes away the possibility of false information, reaction some ability to not merely react, but for make more accurate forecasts.

Dell has been capable of streamline their customer response times by assisting the customer ‘decide’ what they need. They make this easier intended for the customer to help make the decisions and they are ultimately getting yourself ready for it even though the conversation is happening. Dell provides for a consultant and trainer obtaining direct responses and important information pertaining to planning, research and development. They incorporate key people from an array of responsibilities in regular group meetings to ensure conversation, ideas and overall dedication from the whole supply chain. Virtual the usage goes even more to combine the traditional tasks and restrictions of the source chain.

Dell argues the fact that direct style and online integration is helpful to the customer from distribution to manufacturing and design. It works pertaining to Dell, nevertheless whether it will work for Kia is the problem. Ford has reduced it can supply string base by simply dealing with Tier one suppliers to use Just-In-Time inventory operations and other ways of improve determination and functionality. They integrated the Kia Production System (FPS), centering on key parts of the making process to enhance efficiency. The Synchronous Material Flow (SMF) was developed to make sure a continuous movement of components.

This was done by using slim manufacturing concepts, careful organizing and sequenced assembly. Their Order to Delivery (OTD) method was likewise developed to streamline the cycle time, reducing the order to delivery from 65 days to as little as two weeks. In order to do this kind of they employed forecasting, keeping 15 days of vehicles inside the assembly plant’s order traditional bank, using regional mixing centers for shipping and a responsive order amendment process. Last but not least that they worked on a thing called the Ford Selling Network (FRN) to test guidelines and to produce an alternate syndication channel.

The concept was to merge Ford’s initiatives to be competitive against the competition of different auto makers rather than remain competitive against one another. Because Dell and Ford are such different companies it is difficult to learn if vertical integration works. Dell is actually a smaller firm whose current success is because of customer emphasis, pull require, speed of response and virtual the use. In contrast, Kia is a much larger company which has a complex and long-standing approach to supply cycle leadership in which purchasing was historically intensely involved in the various activities in the company.

A move to digital integration requires that roles shift and responsibilities in order to allow greater collaboration and information writing. ALTERNATIVES: Differences between the corporations include dealer networks, product and method complexity, age group and scale the company, technical expertise and control over devices. Ford includes a great amount of control, problems forecasting consumer needs, higher product difficulty, a strong dealer network and unionized work. Dell is relatively new, there may be high technological expertise, the merchandise is less complex, predicting can be quite accurate and their supplier relationships are good.

Kia enjoys an important amount of control over all their supply chain, manufacturing, assembly and division, while Dell may not be able to exercise control depending on the associations built and arrangements built. At this time, Honda does not should really make a decision to alter their business model, but we have a push intended for greater the positive effect, efficiency and adaptability. They can move toward electronic integration, stay, or adopt some kind of equilibrium of the immediate model with the current style.

Because of their size and proven supply string, a push toward top to bottom integration and a direct style would mean fairly drastic improvements and stopping controls which were carefully designed over the past decade. That said, staying the same probably would not be advisable, as the marketplace is significantly competitive around the local and global level. Ford will probably be required to look at further adaptations to their operations in order to stay competitive. SUGGESTION: It would be a good idea for Honda to examine vertical integration in at least some aspects of their functions.

Because this needs high numbers of technology, they can work with Rate one suppliers to develop collaborations and more comprehensive information writing. Doing nothing is not usually a possible option in successful organization and complete integration can be very difficult to perform and my not have the results that Dell provides due to the different differences in the firms and their goods. IMPLEMENTATION: Honda can use concentrate groups and regular group meetings to move toward a direct model in for least several areas of the organization.

The seller network can be used as a benefit to foretelling of if they will work even more closely while using development clubs, manufacturing and assembly vegetation. The customer emphasis groups can start to develop relationships that assist to develop what customers wish and might have as comprimé can be insightful and will increase forecasting. Purchasing, engineering, marketing and other organizations can get involved with these concentrate groups, which may also encourage dialogue and collaboration toward cohesive final results. * SUMMARY:

Ford offers implemented various strategies efficiently and has been forward thinking within their consideration of numerous models and options. Getting faster might work for their advantage since buying a car is a decision that is weighed carefully and it is a bigger investment than choosing a computer or laptop. The velocity at which the company supplies a vehicle once purchased is important, nevertheless I suggest, this tag dose not carry the same weight as the customer having the options, loans and assistance that they anticipate with this kind of purchase.

In spite of this, customers expect greater modification and choice than ever before. If Ford assumes on this model or chooses to analyze another style is a part of the right way. Supply sequence management is a large part of how very well the company can respond to customer needs and ultimately produce profit and ongoing competitive advantage. * REFERENCES: Austin tx, Robert G., Ford Motor unit Company: Supply Chain Strategy, 9-699-198, Harvard Business University Publishing, 99. Magretta, Mary (2001) “The Power of Digital Integration: An Interview with Jordan Dell,  Harvard Organization Review