The Ford Motor Company Founder:

Ford Motor Company was founded in 1903 by Henry Ford in Detroit, MI. Not only did Ford revolutionize the development of the automobile as a product, he is also the visionary behind the idea of mass production. Ford's ability to make automobiles affordable for the masses is cited as a driving force behind both the automobile
industry and the creation of a middle class in America.

FORD ANALYSIS
Ford business model:

Suppliers

Manufacturer

Distribution Channel

order delivery

Customers

 Our Vision To become the world's leading consumer company for automotive products and services.

Core competencies
Our business is driven by our consumer focus, creativity, resourcefulness, and entrepreneurial spirit. We are an inspired, diverse team. We respect and value everyone's contribution. The health and safety of our people are paramount. We are a leader in environmental responsibility. Our integrity is never compromised and we make a positive contribution to society.

We constantly strive to improve in everything we do. Guided by these values, we provide superior returns to our shareholders.

Current use of AI in Manufacturing at Ford

AI applications for manufacturing Bring appropriate knowledge about manufacturing to the proper people at the right time Improve manufacturing efficiency Reduce workplace injuries through better up-front ergonomics analysis Make assembly build instructions available to operators in other languages Develop common framework for representing knowledge and exchanging it between different systems

STRATEGIES - Use futures technologies in todays cars. Produce smaller cars and vehicles - Strategic alliance - Cost reduction - Market expansion with global partnerships - To be exist in every single country - Produce cars for every single economical level - To have affordable prices for all vehicles To have loyalty of brand

 Strengths S - Globally and strong placed trade name - The subsidiary, Ford Motor Credit Company, offers auto financing to both dealers and customers globally - An American icon for over a century (with a long history) - Icon vehicles such as the Mustang

 An American icon for over a century (with a long history) - Icon vehicles such as the Mustang - Good R&D department - Very big worker foundation with greatly educated motor engineers - One of the largest automotive producer - The company operates about 108 plants globally and produces

 uch models as Ford (Lincoln, Mazda, Mercury, and Volvo) - Fords Motor craft division offers parts for vehicles through the companys Web site (www.ford.com). - Ford Motor Company is number three in market share in the United States. - Perceived as being an affordable brand name catering to a variety of consumer needs and want. - Producing some different ford car models in different countries as like ford Mondeo in Europe

CORPORATE LEVEL STRATEGY This comprises the overall strategy elements for the corporation as a whole, the grand strategy, if you please. Corporate strategy involves four kinds of initiatives: * Making the necessary moves to establish positions in different businesses and achieve an appropriate amount and kind of diversification. A key part of corporate strategy is making decisions on how many, what types, and which specific lines of business the company should be in. This may involve deciding to increase or decrease the amount and breadth of diversification. It may involve closing out some LOB's (lines of business), adding others, and/or changing emphasis among LOB's. * Initiating actions to boost the combined performance of the businesses the company has diversified into: This may involve vigorously pursuing rapid-growth strategies in the most promising LOB's, keeping the other core businesses healthy, initiating turnaround efforts in weak-performing LOB's with promise, and dropping LOB's that are no longer attractive or don't fit into the corporation's overall plans. It also may involve supplying financial, managerial, and other resources, or acquiring and/or merging other companies with an existing LOB. * Pursuing ways to capture valuable cross-business strategic fits and turn them into competitive advantages -- especially transferring and sharing related technology, procurement leverage, operating facilities, distribution channels, and/or customers. * Establishing investment priorities and moving more corporate resources into the most attractive LOB's.

Two Legs of Sustainable Personal Use Less Fuel Transportation

Reduce Gross Energy Consumption
Weight, friction, aerodynamics, auxiliary loads

Increase Instantaneous Powertrain Efficiency

Advanced Combustion (eco-boost, HCCI ) Improved Driveline (dual-clutch transmission )

Increase Average Powertrain Efficiency HEV Powertain Electrification

Use Renewable Fuel

Renewable Chemical Fuel
Alternative Source of Fuel Does Not Equate to Alternative Chemistry of Fuel

Renewable Electricity Fuel Electrification

Arbitrage
Includes Transmission Loss

Coal: 211 g/km Nat. Gas:127 g/km US Avg.: 130 g/km

Todays Grid & Future170 g/km P/T in HEV today Todays Platform* Oil: 145 g/km
NG: SR-NG:
Includes Refining

114 g/km 173 g/km Electrolysis: 517 g/km

SR-NG: 116 g/km Electrolysis: 344 g/km 62 mpg

41 mpg

*transitional scenario measures impact of new vehicle technology with todays energy infrastructure.

0.33 kWhe/mile
0.200 kWh/km

Highly-optimized Series HEV

Ford Challenges
Meeting aggressive CAF and CO2 standards without compromising attributes and remaining profitable.
Light-weight material (cost, manufacturing, safety) Powertrain Electrification
HEV (cost) PHEV (cost, cost, cost) BEV (cost3, range, re-charge time)

Defining long-term (post-2020) platform and product strategy in face of uncertain CO2 policy and renewable fuel availability.
Is Ethanol the only renewable fuel? Will CAF be corrected for renewable fuel? Will electricity be treated as zero-CO2? How might non-vehicle CO2 emissions be tracked, and what is anticipated strategic impact?

FORD: BACKGROUND

Increased foreign and domestic competition

Ford Faces Severe Market and Customer Challenges

Current Challenges What They Mean to Ford Motors Reduced sales and prices Consumers demand higher-value cars at lower prices

Shifting consumer demographics

Industry-wide over capacity

Increased attention to environmental concerns Increased reliance on automotive systems over just parts

Downward pressures on price

High cost of compliance (e.g., new fuelemission regulations) Need to increase partnership with suppliers and vendors

Since 60% of Fords manufacturing cost is explained by purchased parts and materials, Ford is under tremendous pressure to achieve lower cost solutions.

Fords Procurement Process Suggests Several Best Practices

Form partnership relationships with trading partners Consolidate/reduce supplier base Shift focus from initial purchase cost to cost performance over time

Define and implement trading partners selection program Initiate formal supplier performance and rating program Institute long-term contracts with selected trading partners Move towards single sourcing: Fords goal: to reduce the number of suppliers by one-third by 1995 Maintain high level of information exchange with trading partners

Encourage early trading partner involvement in product design stages

Provide suppliers with effective training Delegate quality inspection to trading partners:

Our goal is to have our suppliers be quality-independent