Bpr at Ford Motor Company, India

1213 WordsSep 14, 20085 Pages
CHALLENGE: need for business process reengineering in Ford Motor Company Ford Motor Company is the world’s second largest manufacturer of cars and trucks with products sold in more than 200 markets. The company employs nearly 400,000 people worldwide, and has grown to offer consumers eight of the world’s most recognizable automotive brands. CHALLENGE With inherent large-scale growth issues, more demanding customers, and mounting cost pressures, Ford needed to transform from a linear, top-down bureaucratic business model to an Internet ready, nimble organization that engages and integrates customers, suppliers, and employees. SOLUTION Working with Cisco, Ford integrated and leveraged their supplier base by designing Covisint,…show more content…
If they matched, the department issued payment. The department spent most of its time on mismatches, instances where the purchase order, receiving document, and invoice disagreed. In these cases, an accounts payable clerk would investigate the discrepancy, hold up payment, generate document, and all in gum up the works. THE PROCESS FLOW CHART It was slow and cumbersome. More than 500 accounts payable clerks matched purchase orders, receiving documents and invoices and then issued payment. Mismatches were common. SYSTEM DRAWBACKS: The drawback in this system was that ford’s accounts payable organization was performed by so many people. The department spent most of its time on mismatches, instances where the purchase order, receiving document, and invoice disagreed. In these cases, an accounts payable clerk would investigate the discrepancy, hold up payment, generate document, and all in gum up the works. Its process was not efficient. SUGGESTED IMPROVEMENT The management thought that by rationalizing processes and installing new computer systems, it could reduce the head counts. One way to improve things might have been to help the accounts payable clerk investigate more efficiently, but a better choice was to prevent the mismatches in the first place.
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