Dagenham 2000 Strategies for Leadership
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Dagenham 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 mini-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: London, 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; Henry Ford’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