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THE QUALITY JOURNEY OF FORD THE QUALITY JOURNEY OF FORD Adrian Vido Ford Motor Company Director, Global Manufacturing Quality.

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Presentation on theme: "THE QUALITY JOURNEY OF FORD THE QUALITY JOURNEY OF FORD Adrian Vido Ford Motor Company Director, Global Manufacturing Quality."— Presentation transcript:

1 THE QUALITY JOURNEY OF FORD THE QUALITY JOURNEY OF FORD Adrian Vido Ford Motor Company Director, Global Manufacturing Quality

2 Where we were…below industry J.D. Power and Associates 2004 Initial Quality Study Problems Per 100 Vehicles Lexus Cadillac Jaguar Honda Buick Mercury Hyundai Infiniti Toyota Mercedes-Benz Audi BMW Oldsmobile Volvo Acura Chevrolet INDUSTRY AVG Chrysler Dodge Lincoln Pontiac Subaru GMC Ford Mitsubishi Saab Jeep MINI Land Rover Saturn Suzuki Kia Nissan Mazda Scion Porsche Volkswagen Hummer Ford ranks 23rd

3 VIEW FROM THE BOTTOM: BELOW AVERAGE QUALITY THREATENED FORD’S FUTURE

4 How below average quality hurt Ford…. Unsatisfied customers Unsatisfied customers Lost sales and market share Lost sales and market share Lower resale values Lower resale values Poor reputation Poor reputation Loss of credibility/trust Loss of credibility/trust Higher warranty costs Higher warranty costs Low employee morale Low employee morale

5 Ford’s quality offensive plan…. Design in Quality  Standard global process  Global Product DNA: looks, sounds, feels like a Ford  Don’t compromise customer wants for lower cost  Verify designs further upstream through virtual tools Build in Quality Build in Quality  Read every claim, every day; address in 24 hours  Virtual manufacturing to reduce worker injury/strain  Each assembly function (body, paint, etc.) has a dedicated team of problem-solvers People Quality  Developing a critical mass of problem solvers  Ford has trained over 90,000 Green Belts, over 9,000 Black Belts and over 500 Master Black Belts worldwide  Ford has over 900 technical specialists

6 The Road Back…. Ford #1 mainstream brand J.D. Power Initial Quality Study Ford: “World-Class Reliability”; 90% of line-up average or better reliability Consumer Reports 2009 Annual Auto Issue 2008 Ford launches a new, stricter global quality standard Ford achieves initial quality that’s equal to Toyota and Honda—the tipping point RDA’s Global Quality Research Survey Ford’s quality ranks below industry average J.D. Power Initial Quality Study Global Product Development System launched; quality built-in early Things-gone-wrong per 1,000 vehicles Then: 2,350 Now: 1,100 in 2009

7 FLM ranks 1st in Satisfaction, improving by 2 pct. Pts. GM Satisfaction improves 3 pct. pts. over last year, reaching 80%. GQRS CUSTOMER SATISFACTION US FLM FLM New GM Honda/Acura VW/Audi Hyundai/Kia Nissan/Infiniti Chrysler LLC Toyota/Lexus/Scion Industry Improvement = 0% better

8 GQRS TGW/1000 US FLM FLM TGW continue to improve (5.5%), but does not keep pace with Honda’s improvement rate (8.6%). FLM gives up its first place ranking but remains statistically equivalent to Honda at 95% confidence level. Honda/Acura Toyota/Lexus/Scion New GM Nissan/Infiniti FLM Chrysler LLC Hyundai/Kia VW/Audi Industry Improvement = 1.9% better

9 Where we are today….#1 full-line brand J.D. Power and Associates 2010 Initial Quality Study Problems Per 100 Vehicles Ford #1 Mainstream Brand

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11 Benefits of having industry-leading quality…. Customer satisfaction – 82% customer satisfaction ** Customer satisfaction – 82% customer satisfaction ** Increased dealer showroom traffic Increased dealer showroom traffic Higher U.S. sales – 20% jump in 2010 Higher U.S. sales – 20% jump in 2010 U.S. market share growth – up 16% in 2010 U.S. market share growth – up 16% in 2010 Better resale values – highest avg. auction value * Better resale values – highest avg. auction value * Improved credibility and reputation Improved credibility and reputation Fewer warranty repairs – 40% lower globally v.s Fewer warranty repairs – 40% lower globally v.s Boosts employee morale Boosts employee morale *Data Source: Vehicles 1-5 YIS, NADA AuctionNet May CYTD, Mileage and Mix Controlled, Luxury Brands Excluded **Data Source: J.D. Power and Associates 2010 Initial Quality Study

12 Ford’s Quality Strategy Improve our Product by identifying customer satisfaction opportunities with leading designs Improve our Product by identifying customer satisfaction opportunities with leading designs Standardize and adhere to key quality Processes in Manufacturing, New Model Programs, and Product Development Standardize and adhere to key quality Processes in Manufacturing, New Model Programs, and Product Development Develop our People by building a world class quality organization with advanced problem-solving knowledge for improving quality and productivity Develop our People by building a world class quality organization with advanced problem-solving knowledge for improving quality and productivity Improve our Perception by delivering and communicating proof points to stakeholders Improve our Perception by delivering and communicating proof points to stakeholders Commitment To Innovation And Quality Excellence: Continuous Improvement For Life

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14 Edge Taurus Expedition Transit Connect Fiesta Flex Fusion Explorer E-Series Mustang Focus Super Duty Escape F-150 Have you driven a lately?


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