Presentation on theme: "THE QUALITY JOURNEY OF FORD"— Presentation transcript:
1 THE QUALITY JOURNEY OF FORD Adrian VidoFord Motor CompanyDirector, Global Manufacturing Quality1
2 Where we were…below industry LexusCadillacJaguarHondaBuickMercuryHyundaiInfinitiToyotaMercedes-BenzAudiBMWOldsmobileVolvoAcuraChevroletINDUSTRY AVGChryslerDodgeLincolnPontiacSubaruGMCFordMitsubishiSaabJeepMINILand RoverSaturnSuzukiKiaNissanMazdaScionPorscheVolkswagenHummerJ.D. Power and Associates 2004 Initial Quality StudyProblems Per 100 VehiclesFord ranks 23rd
3 VIEW FROM THE BOTTOM: BELOW AVERAGE QUALITY THREATENED FORD’S FUTURE
4 How below average quality hurt Ford…. Unsatisfied customersLost sales and market shareLower resale valuesPoor reputationLoss of credibility/trustHigher warranty costsLow employee morale
5 Ford’s quality offensive plan…. Design in QualityStandard global processGlobal Product DNA: looks, sounds, feels like a FordDon’t compromise customer wants for lower costVerify designs further upstream through virtual toolsBuild in QualityRead every claim, every day; address in 24 hoursVirtual manufacturing to reduce worker injury/strainEach assembly function (body, paint, etc.) has a dedicated team of problem-solversPeople QualityDeveloping a critical mass of problem solversFord has trained over 90,000 Green Belts, over 9,000 Black Belts and over 500 Master Black Belts worldwideFord has over 900 technical specialists
6 The Road Back….Ford #1 mainstream brandJ.D. Power Initial Quality Study20102009Ford launches a new, stricter global quality standardFord: “World-Class Reliability”; 90% ofline-up average orbetter reliabilityConsumer Reports 2009Annual Auto Issue2008Ford’s quality ranks below industry averageJ.D. Power Initial Quality Study2007Ford achieves initial quality that’s equal to Toyota and Honda—the tipping pointRDA’s Global Quality Research Survey2006Global ProductDevelopment System launched;quality built-inearly20032002Things-gone-wrongper 1,000 vehiclesThen: 2,350Now: 1,100 in 2009
7 GQRS CUSTOMER SATISFACTION US FLM betterIndustry Improvement = 0%FLMVW/AudiHonda/AcuraNew GMHyundai/KiaToyota/Lexus/ScionNissan/InfinitiChrysler LLCFLM ranks 1st in Satisfaction, improving by 2 pct. Pts.GM Satisfaction improves 3 pct. pts. over last year, reaching 80%.
8 GQRS TGW/1000 US FLMbetterIndustry Improvement = 1.9%Chrysler LLCVW/AudiHyundai/KiaNissan/InfinitiToyota/Lexus/ScionNew GMFLMHonda/AcuraFLM 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.
9 Where we are today….#1 full-line brand J.D. Power and Associates2010 Initial Quality StudyProblems Per 100 VehiclesFord #1MainstreamBrand
11 Benefits of having industry-leading quality…. Customer satisfaction – 82% customer satisfaction**Increased dealer showroom trafficHigher U.S. sales – 20% jump in 2010U.S. market share growth – up 16% in 2010Better resale values – highest avg. auction value*Improved credibility and reputationFewer warranty repairs – 40% lower globally v.s. 2009Boosts 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 designsStandardize and adhere to key quality Processes in Manufacturing, New Model Programs, and Product DevelopmentDevelop our People by building a world class quality organization with advanced problem-solving knowledge for improving quality and productivityImprove our Perception by delivering and communicating proof points to stakeholdersOur Quality is fantastic; at the top of the leader boards in any measurement system. Our quality strategy goes like this:Improve our products by:-- Understanding the level of quality we are shipping by listening to the Voice of the Customer-- Stop the defects right now-- Standardize our processes-- Develop our people into Black BeltsWe do this all with strong standards and compliance to these standards.CONTINUOUS IMPROVEMENT FOR LIFECommitment To Innovation And Quality Excellence: Continuous Improvement For Life12
13 I believe Henry Ford said it best ---“Coming together is a beginning, keeping together is progress and working together is success.”Today’s Honorees epitomize what Working Together is all about.13
14 Have you driven a lately? MustangFiestaFocusFusionTaurusEscapeEdgeFlexExplorerExpeditionSuper DutyTransit ConnectE-SeriesF-150Have you driven a lately?