Consumer Driven Six Sigma at Ford
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Case Details:
Case Code : OPER041
Case Length : 12 Pages
Period : 1998 - 2004
Organization : Ford Motor Company
Pub Date : 2004
Teaching Note :Not Available
Countries : USA
Industry : Automobile
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Six Sigma in Action
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Though Six Sigma sounded a good concept with promising benefits, its actual
implementation was much tougher than expected and required the total involvement
and support of the top management. Ford implemented several Six Sigma projects
successfully and reaped significant benefits. In one such project, when Ford
found that some of its vehicles for export reached the destination with outside
surface problems, the company decided to implement Six Sigma and followed the
DMAIC cycle.
Define
In the Define stage, Ford made efforts to identify the problem.
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The problem was the application of transit protection film on the vehicles in
order to protect them from dust and scratches while in transit. The vehicles
were shipped to the ports from Ford's manufacturing plants by trucks and
rail and from the ports to foreign countries by ship...
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The Implementation
Phase I of the implementation of Six Sigma concentrated on the issues
relating to customer satisfaction which demanded significant attention
during that time. Accordingly, 25 consumer issues were identified.
Ford's initial Six Sigma efforts concentrated on addressing these issues
in all its assembly plants. The first Six Sigma project was piloted in
sales, power train operations and truck vehicle center at Ford.
Subsequently, it was implemented across the company. Within the first
one and a half years of the program, about 10,000 Ford employees had
received Six Sigma training... |
The Benefits
Ford reaped several benefits by implementing Six Sigma. After the first year of
its launch, in fiscal 2000, Six Sigma contributed $52 mn in financial savings
for Ford. The savings rose to $325 mn in the fiscal 2001 and $359 mn in fiscal
2002...
Exhibits
Exhibit I: The Concept of Six Sigma
Exhibit Ii: Implementation of DMAIC Cycle at Ford - An Example
Exhibit Iii: Tools Used in Define & Measure Phase of DMAIC
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