8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 1/14

FORD MOTORS AND TOYOTA 

8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 2/14

J

Ford is one of those symbolic and great names of American industry. Founded by Henry Ford and credited

with introducing the assembly line system of 

manufacturing. - Ford brought in an outstanding leader 

Alan Mulally from aircraft makers Boeing. Mulally brought the ability to create a vision, lead change and

transformation and above all, enthusiasm. Mulally

 brought to the organisation a focussed strategy called

"One Ford"

8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 3/14

THE STRATEGIG PLANS OF FORD BY

MULALLYy Aggressively restructure to operate profitably at the

current demand and changing model mix.

y Accelerate development of new products that thecustomers want and value.

y Finance the plan and improve the balance sheet; and

y Work together effectively as one team, leveraging the

global assets.

8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 4/14

STRATEGY OF FORD MOTORSFord motors follows a Global Manufacturing

Strategy that Gives Ford Competitive Advantage

Ford Motor Company is the only automotivemanufacturer executing a truly global power train strategy.

8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 5/14

The new strategy are:y Flexible Manufacturing

y  New architecture models for engine

y

Standardized facilities to maximize Best Practices and reduceCosts

y Computer-Controlled Machines to adapt to changing market

demand

y Standardization of products to improve the efficiencies

y Quality control measures

y  New Database to improves engine quality

8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 6/14

STRATEGY ADOPTED ARE:y Building a network of flexible engine and transmission plants

that can respond quickly to changing market needs.

y

Improving quality and manufacturing efficiency.y The next-generation engine plants are equipped with a

medium-sized production model ,enhancing efficiency and

allowing Ford to adapt quickly to changing market needs.

y

Ford said it will sell its corporate aircraft as part of its overallcash improvement plan

8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 7/14

y First online flexible engine plant in North America

ySimilar manufacturing equipment and plant-floor layoutsaround the world, reducing capital-investment costs

y Cross shipping of components between plants that will

ease launch startups and help in speeding the products to

market.y Ford provided initial details of an accelerated vehicle

electrification plan for a family of hybrids, plug-in hybrids

and battery electric vehicles.

y Ford¶s plan calls for an investment of approximately $14 billion in the U.S. on advanced technologies and products

to improve fuel efficiency during the next seven years

8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 8/14

TOYOTAy Toyota is the largest motor company in Japan, and the

third largest in the world.

y They understand the desire for personal mobility, butalso the impact on finite resources.

y Toyota has established a lead in process - with leanmanufacture and product development.

y They have now gained a lead in product - with theToyota Hybrid System.

y They have secured it with patents, and are exploiting itdirectly, and through licensing and joint ventures.

8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 9/14

The 14 strategy measures known

as the "Toyota Way" are:

y 1. They base the management decisions on long termphilosophies, even at the expense of short term goals

y 2. Create continuous process flow to bring problems to

the surface

y 3. Use pull systems to avoid over production

y 4. Level out the workload

8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 10/14

  j   k  f  f   k   g  j  f

y 5. Build in a method to stop and fix problems when they are discovered, this ensures quality thefirst time

y 6. Standardized tasks provide the foundation forcontinuous improvement and employeeempowerment

y 7. Use visual control so no problems are hidden

8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 11/14

     H     G     H  J     G    F

y 8. Use only reliable, thoroughly tested technology thatserves you people and processes

y 9. Grow leaders who thoroughly understand the work,live the philosophy and can and do teach it to others

y 10. Develop exceptional people and teams who follow your company's philosophy 

y 11. Respect your extended network of partners andsuppliers by challenging them and helping them

improve

8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 12/14

   k   k   k   c   k   c   k

y 12. Go and see for yourself so that you completely understand the situation

y 13. Make decisions slowly by consensus, thoroughly 

consider all options; implement decisions rapidly 

y 14. Become a learning organization through relentlessself examination and continuous improvement

8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 13/14

Strategic Planning

y Redefined leadership within the industry by constantly moving the benchmark of quality, corporate responsibility 

and best practices.y Toyota business strategies include the development of 

hybrid cars,in tune with present consumer.y Strategy include:

1.Understand the customer's needs and wants.

2.Deliver values.3. Develop a strategy that drives our vision4.Execute to that strategy.

y  A workplace with high morale and job satisfaction.

8/6/2019 Strategy of the Automobile Legends

http://slidepdf.com/reader/full/strategy-of-the-automobile-legends 14/14