2000 Strategies For Leadership

Ford 2000 ¥ provide the shortest possible the Ford Eight, Anglia, Prefect, Consul, ¥ the bodies are phosphate coated Dagenham’s distance between good ideas and Zephyr, Zodiac, Cortina, Sierra, Corsair and immersed in a giant trough Responding to Challenges Ford’s vision is ‘to be the world’s great products. and the hugely successful Ford Fiesta. containing electro-static primer; response to Ford 2000 leading automotive company’. It is a ¥ a bodyshell is mated to the strategies for in the Competitive Environment management declaration of the Having established the vision, Ford The Dagenham estate comprises 1.75 engine and transmission; direction the Company is taking and needed to communicate the strategic square miles, incorporating 9.8 million leadership In the commercial world, organisations respond differently to outside sends a clear message to customers, process into the organisation, in such a square feet of production plant. The site ¥ assembly includes the fitting of events and the process of change. Some constantly seek opportunities for The Dagenham 2000 project mirrors competitors, suppliers and shareholders. way that allowed operational divisions is confined on all sides, which prohibit wheels, glass, trim, electric’s and growth while others wait until changes are forced upon them. Some run Ford’s corporate strategy but at an Ford’s vision doesn’t “mean the biggest; to embrace the principles and take it from exacting some of the benefits other equipment; operational level. Within the seven out of energy and stagnate, while others develop and move forward in the it means the best.” In Ford terms, ownership for their part in the overall true ‘greenfield’ sites have provided for face of stiffening competition. It is often said that ‘if you don’t think ¥ final checks are made on a global strategies for leadership leadership means ‘product excellence plan. It was important to encourage its competitors such as Nissan and Dagenham has: about the future, you won’t have one!’ linked to being the best in customer operating units to develop their own Honda. Dagenham has become the rolling road before the completed car leaves the factory. satisfaction, value, cost and -agendas which would fit into and centre of world wide excellence for the Achieved worldwide growth Strategic planning is the process most successful companies embrace profitability’. In order to achieve this be compatible with the Group’s overall Fiesta. when determining the route to achieving their business objective. It is a Growth has been achieved through vision Ford 2000 set out seven vision. This case study focuses on how All but the first three phases in this powerful technique, which mobilises resources behind a plan and is one entry into rapidly developing emerging strategies for leadership. These are: Ford Dagenham has adopted the process take place at Dagenham. of the most important factors which distinguishes progressive Process markets. Dagenham’s stamping plant organisations who have identified and communicated, externally and manufacturing also produces panels for the Fiesta for internally, the type of business they want to become. final assembly in the San Paulo plant in Achieve Worldwide Empower People Lead in Achieve The manufacture of motor cars involves Product Excellence Corporate Citizenship Worldwide Brazil. In the European market When Ford developed Ford 2000, it was accepted that the company, Growth a number of simultaneous Dagenham is continuing to although successful, had reached a cross-roads. The business faced many processes. As an example, the produce for Mazda. Dagenham challenges in a number of its competitive environments and required THE same time as sheet metal is being has also exploited the Fiesta’s innovative solutions to boost global competitiveness, in order to sustain stamped into body panels, seats successful market position of continuous growth. WORLD’S LEADING are being trimmed, engine blocks being the number one selling AUTOMOTIVE cast, gearboxes built and European car in the small car instrument clusters assembled. sector, in the developing world COMPANY The synchronisation of these via the small car segment. Global Manufacturing Practices operations and the subsequent distribution of sub-assemblies There are some 600 million cars in use across the globe. Automobile Lead in and components to various production is the world’s largest manufacturing industry, with sales per Be Nimble Through Be a Low Cost Customer stages of the assembly line is annum of £350 billion. The industry supports jobs not only in automobile Process Leadership Producer Satisfaction highly complex and difficult to manufacture, but also in components, distribution, finance, insurance, manage logistically. repairs and maintenance, which in Europe alone amounts to 18 million Ford 2000 indicated that manufacturing jobs. Ford 2000 ‘Strategies for Leadership’ to In its simplest terms car manufacture plants could no longer be managed on a create their own strategy - Dagenham involves: In recent years, the industry has been characterised by the global local basis and must become integrated 2000 - which has enabled the manufacturing practices of Japanese, Malaysian and Korean competitors, into the new worldwide manufacturing development of its own plans to be a ¥ molten metal, produced in which have stimulated a series of innovative developments. A significant strategy. The goal has been to focus ‘centre of excellence’, within a world cupolas being transferred to factor has been the adoption of lean production processes. ‘Lean every Ford resource and to use it more class manufacturer. holding furnaces and then to production’ was first coined by researcher John Krafcik, who wrote that effectively to meet customer needs. It ladles; represents a different way of thinking ‘lean production is lean because it aims to use less of everything’, ¥ rough castings are fettled before allowing the pace of change to Dagenham compared to other forms of production. It resulted in fewer defects and they are machined to accurate accelerate. According to Alex Trotman, Located in Essex and not far from fewer hours to develop products together with greater productivity and dimensions; lower stock levels. The lean producer has therefore significant cost and the Ford Chairman, Ford 2000 will: , the history of Ford at Dagenham dates back to 1929, when ¥ starting with the cylinder block, marketing advantages, which reduce costs and improve choice. ¥ provide economies of scale; ’s son Edsel came to Britain engine assembly includes fitting The location of large new plants by Japanese companies on green field ¥ create quantum improvements in to break the ground for the new cylinder heads, moving parts and sites in the UK has added to the nature and type of competition. Such processes; Dagenham factory. Since 1931, when ancillary components; changes have created a need for companies like Ford to look again at the first vehicle rolled off the ¥ involve investment in Ford ¥ giant presses stamp body panels their operations to view how they could improve their competitiveness in production line and October 1996, more people; from rolls of sheet steel; order to counter threats and reduce the performance gap between than 10 million vehicles have been themselves and their global competitors. ¥ lead to worldwide adoption of the manufactured at Dagenham. These ¥ robots weld the body panels best practices at Ford; numbers include classic names such as together to form a complete shell;

FORD Become nimble through process In its short life, the PVT has been Achieve worldwide product and safety. The Dagenham plant is the leadership effective in the elimination of waste and excellence largest employer in the community it The key principle of Ford 2000 was to improving customer values of around The Fiesta is the top selling small car in serves and the Company is active in TASKS & ACTIVITIES $100 for every Fiesta built in 1995. This improve processes on an ongoing basis. Europe. Its excellence has been recognising its social responsibilities. Explain why ‘lean production’ Talk to someone who has recently is expected to double in 1996. The PVT Ford are amongst the world leaders in At Dagenham this has meant: continually enhanced with more enables an organisation to become bought a new car. Describe how has also contributed to significant sophisticated features, such as air recyclable cars and due to customer 1 5 quality improvements which had led to more responsive to the wishes of the cars have improved around the ¥ improving the interaction conditioning and engine management focus, which ensures they meet exacting improved customer satisfaction. consumer. customer in recent years. between computer systems and systems, all of customer requirements and legislative The Results which have been demands on emissions, the Company manufacturing; Strategy must be measured in terms added in order has determined to take a lead in to satisfy of performance achievements. ¥ the computer sequencing of parts corporate citizenship. Describe the similarities and the Where do you think the views of customer Strategic vision must be translated and components; differences between Ford 2000 and requirements. into realisable and sustainable 2 6management and trade unions Dagenham 2000. The net result is Dagenham 2000 objectives which prove whether converge (come together) and where ¥ developing proposals for effective an even better principles strategy is working. might they disagree, or move apart? logistical delivery; motor car, but Vehicle production due to the added It is important that in achieving Use an example to describe what is ¥ continually exploiting processes Dagenham produces a staggering features a more its strategic results Dagenham also meant by empowerment. which are designed to improve complex car to adheres to the declared principles of 1320 cars per working day. During 3 Ford 2000 set out seven clear production. build. This was the business. Dagenham 2000 has 1996 it will produce more than 7strategies for leadership. Take one evidenced at developed a number of principles which 254,000 vehicles; a significant of these strategies and show how increase on the 171,000 A good example has been Inline Vehicle Dagenham, include: Describe what is meant by the Dagenham 2000 developed its agenda manufactured during 1993. Sequencing (IVLS), which has become where until 4following words and phases: to fit into the overall plan. an essential ingredient for delivering recently, no Customer driven principles - Cars ¥ lean production The savings opportunities have been Efficiency excellence in customer quality and experience existed in the manufacture made at Dagenham equals top ¥ process leadership generated from many sources. As an The number of hours it takes to service at Dagenham. IVLS ensures the and installation of an air conditioning ¥ Nova C example, engineers evaluated a plant quality workmanship. Reliable on-time build a car has fallen from 59.3 in stability of processes and is the first unit. Inevitably, more parts leads to ¥ IVLS Working in groups, list the process involving the receipt of production focussed on zero defects 1989 to 21.8 in 1996. Both labour step in securing fully sequenced more sequencing and if quality is not advantages and the disadvantages completed doors from Ford’s Cologne is designed to surpass customer and overhead costs have been ¥ Vision 8 delivery of components. Conveyors fully sustained lead to poorer quality. Plant, due to damage in transit. It requirements. reduced per unit, which gives Ford ¥ PVT of Dagenham being a ‘brown’ site bring sequenced components to the This is an area of constant attention to transpired that the completed doors the opportunity to compete with its ¥ Customer satisfaction rather than a ‘greenfield’ site. production line to match operational ensure that worldwide production were difficult to transport from Business principles - These ensure all global competitors. work on the line. This allows stable excellence is achieved at all times. Germany to Dagenham. The solution to areas contribute to shared objectives allocation of work content, which feeds improve the process was to ship in the Empowered people and drive improvements via Quality into quality as the operator becomes components and weld at Dagenham. benchmarking and competitive product The number of warranty repairs Ultimately Ford’s major long-term more in control of his or her processes This resulted in improved pack density within the first three months have sustainable competitive advantage lays processes and facilities. They also on the line. Additionally it helps to when transporting, reduced scrap and dropped by more than half. in the empowerment of its people. ensure that Dagenham’s cost structure sequence each order to delivery thereby improved quality, which reduced the Feedback and action is taken Achieving this has involved the supports Ford Automotive Operation shortening the time the dealer (and total cost of door manufacture. based upon Nova C measurements, formation of a partnership of business objectives. therefore the customer) has to wait for leading to significant improvements management, staff and unions to create the delivery of a chosen model. in quality. The PVT has proved to be so successful a high performing organisation, which Operating principles - Dagenham values learning and knowledge. The key operates an effective team in improving value and improving Employee relations Become a low cost producer at Dagenham has been to train, develop strategy which, through continuous quality, that it has been adopted by all The strategy of partnership has and skills enhance at all levels. To The focus has been on improving Ford plants. improvements ensures quality and cost created a progressive company enhance this: processes. Low cost manufacture at targets are met. The Dagenham quality culture of partnership with the Dagenham has been developed in a way Taking a lead in customer ¥ Ford has approached work in an operating system is compatible with trade unions which has led to which has greatly improved site satisfaction integrated way and on a team company quality operation and ISO developments in employee relations. competitiveness. In 1995, a specialist 9002 ensures only the most capable and As consumers become more demanding basis; unit was introduced in the Dagenham robust processes are used. The keys to further progress are: they look for more sophisticated ¥ layers of management have been plant called the Plant Vehicle Team features, quality build and value for removed; People principles - In developing the ¥ employee commitment (PVT). Its function was to concentrate money. Quality is Dagenhams first ¥ principles of empowerment strategy it has been important to ensure ¥ training and personnel on two key areas: priority. As a result Nova C was combined with improvements in development implemented. This is a quality that all contributors are valued. technology have enhanced the ¥ to examine all processes, measurement, which is driven not by Throughout this process integrity is ¥ common objectives flow of effective information evaluating the total cost of Ford, but by the customer. It has never compromised. Ford has ensured ¥ Dagenham 2000 Principles through the organisation; design, plant manufacturing been successfully developed through equal opportunities for all employees. ¥ progressive and lean processes and activities with a customer focus groups. Ford have ¥ group working has created Teamwork has helped to develop high organisation view to eliminating waste and introduced many Metrics to measure synergistic benefits which has led performance and create pride and reducing cost; this quality and also act on the to the solving of problems and passion. Ford at Dagenham offers With the competition every bit as intelligence received. Quality has also improved productivity. exciting and rewarding careers with determined as Ford, Dagenham ¥ to establish processes which been improved by confining quality lifelong learning. Employees are 2000 has created an agenda, which focus on customer, address their defects to Zones. This enables problems Lead in corporate citizenship empowered at all levels. Relationships enables them to execute actions concerns and implement to be contained as they occur, without Ford plays a key role in corporate between employees, unions, dealers and swiftly and efficiently within the permanent solutions, within 90 them being passed further down-stream Citizenship across a range of important supplier partners are based on trust, co- global market. to other processes in the Plant. areas. The key business driver is health Whilst every effort has been made to ensure accuracy of information, neither the publisher days. operation and respect. nor the clients can be held responsible for errors of omission or commission.

FORD