Essay on Ford Motor Case-Operations Management

855 Words Feb 13th, 2012 4 Pages
Ford Motor Company Report

Course: MGT 203

Ford Motor Company was founded by Henry Ford and incorporated on June 16, 1903. It in addition to the Ford and Lincoln brands, and also owns the stake in Aston Martin in the UK and Mazda in Japan. In 2010 Ford sold Volvo to Geely Automobile. Ford discontinued the Mercury brand after the 2011 model year. It produced over 260 million vehicles and it was the second largest industrial company in the world. There are 370,000 employees in Ford with the revenues of more than $144 billion. It operations spanned 200 countries. It has a very important influence all over the world.

In the last two decades, there are more competitive between Ford , General Motors and Chrysler in Unite States. The
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Ford help the suppliers to improve their operations via a range of techniques like JIT, TQM and SPC, in exchange for closer relationship and long-term commitments.

Today’s management strategy
Today, Ford’s production system is directly to synchronous Material Flow then directly to In-Line Vehicle Sequencing, as the following Chart:

The Ford’s OTD also improved fast, the system as the flowing chart:

The Ford’s retail network:

From Today’s Supply Chain strategy we can see that the biggest change in Ford’s supply chain strategy is from “push” to “pull”, the focus was to maximize production based on a “Push” strategy, which resulted in an over capacity of an estimated 20 million vehicles. This over capacity would have clearly led to a decline in sales and profit margins due to increasing inventory costs.

The Supply Chain strategy of Ford compare to Dell company
With the virtual integration, Dell has a faster direct model with no traditional boundaries and roles in the value chain. Virtual integration is combines the economic benefits of the two different business models. It can be described as a way of capturing the advantage of vertical integration without actually vertically integrating. It also can be seen as the ability to achieve the advantage of vertical integration without incurring the overhead. It helps the Dell to eliminate the resellers markup and the costs and risks

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