Ford Case Analysis
CASE STUDY #2 FORD MOTOR COMPANY by A
Ford Motor Company - Supply Chain Strategy
TABLE OF CONTENTS Part I. Executive Summary
Part II. Issues Identification
Part III. Alternative Options
Part IV. Recommendation
Part V. Implementation
Part VI. Conclusion
References
Part I. Executive Summary
Ford Motor Company was founded by Henry Ford in 1903; the company had produced over 260 million vehicles with about 370,000 employees today. Although Ford obtained significant revenues and profits from its financial services subsidiaries, the company’s core business had remained the design and manufacture of automobiles for sale on the consumer market. Since in the 1970’s, the automobile industry had seen an increase in competition, especially foreign competition, mostly from Toyota & Honda which led to overcapacity within the industry (estimated at 20 million vehicles).
In an effort to lower cost of developing, building cars and increase efficiency in 1995, Ford developed a restructuring plan known as Ford 2000 which included merging its North American, European, International automobile operations into a single global organization.
Ford 2000 was focused on reengineering of some key projects such as Order to Deliver (OTD) and Ford Production System (FSP) whose primary goal was to reduce OTD from more than 60 days to less than 15 days.
With Ford’s traditional business model, its goal was achievable but would it ‘survive’ at the long run?
In mid-1996, Ford attempted to overcome information constraints in its new global approach, by launching a company-wide intranet, and by early 1997, Ford had expanded upon that system to include Business-To-Business (B2B) capability
Ford Motor Company - Supply Chain Strategy
TABLE OF CONTENTS Part I. Executive Summary
Part II. Issues Identification
Part III. Alternative Options
Part IV. Recommendation
Part V. Implementation
Part VI. Conclusion
References
Part I. Executive Summary
Ford Motor Company was founded by Henry Ford in 1903; the company had produced over 260 million vehicles with about 370,000 employees today. Although Ford obtained significant revenues and profits from its financial services subsidiaries, the company’s core business had remained the design and manufacture of automobiles for sale on the consumer market. Since in the 1970’s, the automobile industry had seen an increase in competition, especially foreign competition, mostly from Toyota & Honda which led to overcapacity within the industry (estimated at 20 million vehicles).
In an effort to lower cost of developing, building cars and increase efficiency in 1995, Ford developed a restructuring plan known as Ford 2000 which included merging its North American, European, International automobile operations into a single global organization.
Ford 2000 was focused on reengineering of some key projects such as Order to Deliver (OTD) and Ford Production System (FSP) whose primary goal was to reduce OTD from more than 60 days to less than 15 days.
With Ford’s traditional business model, its goal was achievable but would it ‘survive’ at the long run?
In mid-1996, Ford attempted to overcome information constraints in its new global approach, by launching a company-wide intranet, and by early 1997, Ford had expanded upon that system to include Business-To-Business (B2B) capability
References: Laudon, K.C. (2011). Managing Digital Firm. Fifth Canadian Edition. Pearson Canada http://corporate.ford.com/our-company/governance-hub/supply-chain-sustainability-group? Supply Chain Management Module one Readings Manual