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Scm Ford

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Submitted By Gabrij
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Ford Motor Company
The Company Background Ford Motor Company is based in Dearborn, Michigan, and has become the second largest industrial corporation in the world. Since Henry Ford had incorporated in 1903, the company had produced over 260 million vehicles. Operating in approximately 200 countries, Ford employed 370,000 workers and obtained significant revenues and profits from its financial services subsidiaries, core business had remained the design and manufacture of automobiles for sale on the consumer market.

Operations before SCM was introduced In the past, The Ford Company managed to maintain its position ahead of its competitors by vertically integrating itself as it owned or controlled virtually every aspect of its business. Hence, Ford was able to eliminate inefficient delivery process and control the raw materials for mass production. Ford's mass production which led to mass profits and the company was able to buy and control its resources, everything from the mines and plantations that provided iron ore, coal, and rubber. This helped Ford to track the source of the problem quickly if something went wrong with one of its supplier and fixed immediately so not to slow production. However, until the 1970s when Japanese car manufacturers enter the competition, Ford lost its market share. Since the industry became more competitive and Japanese car manufacturers had took the lead with its more cost and time effective method How did they develop SCM? Ford is taking the Japanese model of outsourcing suppliers and others, and then applying it to its own operations to improve their performance. The main reason for this change is the fact

that the current management structure is “unable to respond quickly to changing markets or consumer demands”. Their methods are explained below: Assist suppliers in improving their operation through JIT inventory, TQM, SPC

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