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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"Ford's Consumer-driven Six Sigma is a very powerful tool
to significantly improve customer satisfaction and shareholder value by reducing
variability in every aspect of our business. We believe it will accelerate the
flawless execution of our existing processes, including FPS, to deliver customer
satisfaction and cost-improvement results faster, and to sustain them on an
on-going basis. Consumer-driven Six Sigma reinforces a mindset that emphasizes
skill building, teamwork, management commitment and accountability. It's
data-driven - to deliver measurable results - not promises."1
- Louise Goeser, Quality Vice-President, Ford Motor Company.
"Ford Motor Company's vision is to become the world's
leading consumer company for automotive products and services. To do that, we
are focusing intensely on our customers and have made customer satisfaction our
highest priority."2
- Jacques Nasser, CEO of Ford Motor Company in 2001.
Introduction
In 2001, JD Power and Associates (JDPA)3
announced the results of its annual Initial Quality Study (IQS)4.
Surprisingly, the study ranked Ford Motor Company (Ford) seventh in terms of
quality among the leading automobile manufacturers in the world. More than a
century old, Ford, headquartered in Dearborn, Michigan (USA), was the second
largest automobile company in the world. In 2003, when JDPA came up with the
results of its IQS, Ford was ranked fourth, a notable improvement over this
two-year period. Analysts felt that this improvement was the result of a series
of quality initiatives which Ford had taken since late 1999, prominent among
which was the Six Sigma.
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Ford was the first major automobile company in the world to adopt the Six Sigma
initiative in a big way.
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Launched as a quality control initiative aimed at enhancing customer
satisfaction, Six Sigma earned wide spread appreciation among employees and
also brought in major financial benefits for Ford.
Appreciating the significance of the initiative, Pauline Burke, a Master
Black Belt at Ford said, "I liked the philosophies of Six Sigma. I liked
the disciplined approach to solving problems. I feel great fixing problems
for customers and making the company stronger by improving quality. When the
employees are happy, they do better work. When they do better work, the
customer wins. They're getting a better vehicle, they save money and quality
rises."5The black belts trained by the company as part of the initiative were
groomed to take leadership positions in future. |
Consumer Driven Six Sigma at Ford
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