Ford Motor Company: Quality management (Ethics and Corporate Social Responsibility)
Ford Motor Company is an automobile manufacturing company which manufactures and distributes the products across six continents. Currently, the company has 65 plants producing vehicles under the Ford and the Lincoln brands (Ford Motor Company, 2014). Also, Forbes describes Ford as an important industrial company in the history of the United States. As a consequence, the company boasts of 180000 employees and an annual revenue exceeding 134 billion dollars (Ford Motor Company, 2014). Similarly, the company operation is highly automated, making it necessary for the company to have a Total Quality Management system in place, bearing in mind that ford is one of the first companies in the world to embrace Total Quality Management, as they used the slogan, “Ford has a better Idea” (Scheid, 2011).
Total quality management focuses on several aspects such as Continuous improvement and the Customers to improve the quality of the products. Ford Company has in place a strong set of values, norms, and artifacts which it strongly enforces. The mission statement for the company is based on a simple phrase, “One Ford: One team, one plan, one goal.” The company vision is, “To become the world’s leading consumer company for automotive products and services.” (Haas-kotzegger, Schlegelmilch, & Ambos, 2013) Both these company philosophies give the company a good favor towards the consumers.
The ethics and
The Total Quality Management model is limited in its scope of improvement. Total Quality Management establishes targets for performance rather than focusing on continuous improvement. This perspective is to narrow because it fails to consider the overall improvement process. To be effective, management must incorporate all aspects of the business into a dynamic improvement process.
In this argument, I will exhibit the process of the total quality management within the Fox Car Rental, Inc. and the Apple, Inc. Firstly, I will provide a history of both companies and the industries of which they are involved. Secondly, I will provide a meaning of the term total quality management, and argue how this system is integrated into both the Fox Car Rental, Inc., and the Apple, Inc. I will also describe the total quality management process that is implemented in these organizations, and the effects of this systematic management process of both companies. The Fox Car Rental, Inc. and the Apple, Inc. will also be compared against the principles of the ISO 9000:2000 quality management process, and among each other. I will also provide recommendations for the development of the Fox Car Rental, Inc.; an organization of which I was recently an employee.
First, it is essential to decompose the concept “Total Quality Management” to clearly understand its goal: “Total” goes for the fact that quality involves everyone and all activities in the company, “Quality” means conformance to Requirements “ Meeting Customer Requirements” and “Management” because Quality can and must be managed. 2 The TQM model is based on the hypothesis that a company’s survival is only possible if a competitive level is achieved and maintained for each of the so called «6 dimensions of quality»: • • • • • • Product & service quality On-time delivery Fair price Employees satisfaction Product & process safety Environment conservation.
Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, manufactures or distributes automobiles across six continents. It is a publicly traded company on the New York Stock Exchange. The Company has about 198,000 employees and 90 plants worldwide with the automotive brands include Ford and Lincoln. The Company also provides financial services through Ford Motor Credit Company. The revenue of the company is $136.26 billion with a net income of $20.21 billion by 2011.
Ford Motor Company prides them in mass producing top of the line vehicles. Ford made “Quality Is Job 1” a household slogan in the 1980s, and they introduced revolutionary new products and used Total Quality Management to drive down costs in order to capture market share. Ford is a big player in the auto making industry, with 345,000 employees Ford has an annual revenue of $180 billion. In order to continue to thrive, it was essential that top management implement a Total Quality Program "Ford Motor Company 's vision is to become the world 's leading consumer company for automotive products and services," said Ford CEO Jacques Nasser.
Total Quality Management (TQM) involves developing quality and execution of product and service of a company. Customer relish is the main purpose which generates customer attention and satisfies customer expectation. So, it can be said that concentrating on customer fulfillment, total quality management manages peoples and business processes. In other words, Total Quality Management includes performance, appearance, easy accessibility, delivery and maintenance or after sales service, cost efficiency and value. Total Quality Management takes consider each and every measures taken at all levels and involving the entire company workforce. According to Ahire et al.,
Total Quality Management (TQM) is a management approach to optimization (Anvari, Ismail & Hojjati, 2011). TQM is defined as an approach to management characterized by some guiding principles or core concepts that embody the way the organisation is expected to operate, which, when effectively linked together, will lead to high performance (Eriksson & Garvare, 2005). According to Radnor (2000) “TQM is the management of quality at every stage of operations, from planning and design through self-inspection to continual process monitoring for improvement opportunities”. Some argue that TQM is corporate culture characterized by increased customer satisfaction through
Total quality management also known in not realistic which is in philosophy type. It used to be a guideline to improve the basis of advance continuously in an organization. The total quality management set the strategy to achieve the vision of the organization. The second principle of total quality management, involvement of all employees. Every individuals should have their own opinions in order to improve an organization, so all the staff gather to come out with a better way to improve organization. Total quality management implement by maintain the quality of service and product to fulfill customer satisfaction, at the same time it does not break down the flexibility and inventiveness of an organization’s operation system. The total quality management take the responsibility to modify the process of organization improvement. It make sure the continuous improvement of the organization so the organization can use the smallest amount of cost to produce better quality of product so it can achieve customer’s satisfaction. The theory of total quality management make sure that the improvement of the activity and the technology is carry out continuously in order
Total quality management means that quality level is sustained during all product phases starting at the design of the product or service and end when the product or service has been placed in the hands of the Customer who remains satisfied. (Mishra et al. 2005).
Total Quality Management (TQM) is an improvement tool that is widely used in many companies. It consists of many aspects including Managing people as well as business processes in order to maintain customer satisfaction. With TQM, Businesses starts to do the right thing from the start and to ensure zero error. Therefore, it is important to learn the principle of TQM and how it acts in organizations with its advantages and disadvantages.
General Motors (GM) is America’s one of the oldest automobile manufacturer. Currently, GM employs 212,000 plus employees working in 396 facilities across the globe (GM, 2014). GM offers vehicles ranging from electric cars to trucks. GM offers a large range of vehicles in more than 120 countries across the globe. The General Motors Foundation is involved in philanthropic activities throughout the world. These activities are mostly related to child hunger, education, promote diversity and support vital non-profit organization. Recently GM has gone through tough time due to the quality of the vehicles they have manufactured. Problems arose due to recall of over 29 million vehicles (CBS News, 2014). As a result of recalls, company’s image and the profitability of the company got negatively impacted.
This particular report has given us the opportunity to get hands on experience regarding different Dynamics of Advantages of Total Quality Management. We are tremendously thankful to you for giving us the opportunity to learn the practical skills during the course.
Introduction - Total quality management (TQM) has been defined as ‘continuous improvement of every production output whether it be a product or a service, by removing inefficient variations and by improving the backbone of the work process’. International managers like their domestic counterparts have found that incorporating the notion of total quality management into their management process and style can give the competitive advantage.
While acknowledging the contribution and importance of a relationship approach and its effect on customer’s perceived value, some academics draw their attention on product and service quality elements through the so called total quality management (Kotler and Keller, 2006).
As Deming wrote in his book "Out of the Crisis," it will not suffice to