Presentation by the final year students of University of Lahore (Department of Mechanical Engineering). Presentation purpose is to understand the implementation of TQM Tool for the improvement of a company. Talha Ali created these slides. Slides include TQM Tools used by Ford Motor. TQM Tools include Six Sigma, Kaizen cycle, Paynter chart and 8D Problem solving.

1. ِ‫ن‬ ٰ‫حم‬َّ‫الر‬ ِ‫ہللا‬ ِ‫سم‬ِ‫ب‬‫يم‬ ِ‫ح‬َّ‫الر‬
In the name of Allah, most gracious and most merciful

3. FORD IMPROVEMENT
BY USING SIX SIGMA
PRESENTED TO: Dr. ZESHAN RAFIQ
PRESENTED BY: Group 5
Talha Ali BSME 01163047
Asad Ahmad BSME01163068
Afaq Nadeem BSME01163074
Ali Naqi BSME01163119

4. SLOGAN
Ford Motor Co. made "Quality Is Job 1" a household slogan in the
1980s as it introduced revolutionary new products and used Total
Quality Management to drive down costs and capture market share.

5. FORD’S APPROACH TO SIX SIGMA
• The Ford Motor Company began using Six Sigma strategy in the late
nineties.
• Their goal was to become a fully-fledged consumer products company
and not just another automobile manufacturer. Additionally,
• They wished to enhance the quality of their products and to improve
their customer satisfaction rates.
• Their approach towards achieving these goals they referred to as
Consumer-driven Six Sigma. Furthermore, Ford was the world’s very
first automaker company to implement Six Sigma methodology into
their business operations on a large scale.

6. IDENTIFYING OPPORTUNITIES FOR
IMPROVEMENT
Ford reasonable scorecard framework gives revealing devices that offer month to
month esteems versus target figures, year-to-date/year-end esteems against target,
and a prioritization framework utilizing red/green/yellow assessments to pinpoint
where improvement is required. Utilizing this assessment framework, the automaker
orders information as:
• Green: measures are on or over objective.
• Yellow: measurements are under objective, yet superior to a year ago.
• Red: results are under objective.

7. REASONS DUE TO WHICH SIX SIGMA WAS ADOPTED
IN FORD MOTOR COMPANY
 Cost Reduction
Quality Improvement
 Improve Customer Satisfaction
Reduce solvent consumption to lower the environment impact

8. ROADBLOCKS IN IMPLEMENTING SIX SIGMA
Commitment of the human resources proved to be a major difficulty and
cause of concern. For Ford to send its top-level management,
senior managers and top 350 leaders through weeks of training was
challenging due to time constraint and skeptical approach of employees.
The issues of time, money and productivity made training of employees
difficult and challenging.
Other major roadblock was to obtain the necessary data to complete the Six
Sigma Project. Ford did not have infrastructure to fully run the Six
Sigma Initiative. Six Sigma requires a lot of data and internal measures
and Ford had to create measurement systems

9. DMAIC
They determined:
• The degree of impact for cost reduction was high, as $1.5 million could
be saved annually.
• Customer satisfaction impact was medium with a target of 127.000
ppm(defective parts per million) reduction.
• Environmental impacts were also medium with a projected 50.000 kg
annually in VOC savings.

10. MEASURE
The next step was creating a data collection plan to help narrow the list of potential
root causes by focusing on the following factors:
1. Daily basecoat consumption. Is there any dependency based on day or shift?
2. Paint film thickness check. Is there an increase, and if so, why?
3. Consumption per robot (automated painter). Are there differences, and if so, why?
4. Consumption per manual painter. Monitor consumption to check the process
capability.
5. First-time through rate versus consumption. A low rate means more repairs, which
translates to higher basecoat use.
6. Application equipment. Check for damages or technical problems.

11. ANALYZE
The Six Sigma team conducted a 5 way analysis, as well as test trials on the six
potential root causes.
The results showed that factors one, two, four, and five were not significant.
Factor three, consumption per robot, showed an increase for the liftgate robot.
Through testing of factor six—application equipment—the team discovered a
damaged solvent recovery valve that warranted further investigation.
Additional testing uncovered that a defective solvent recovery valve was causing a
direct paint flow from the color changer to the recycling tank, thus increasing
consumption.
Normally, the solvent recovery valve opens only for the cleaning program to bring
the cleaning solvent back to a recycling tank.

12. IMPROVE
Based on the outcome of the analyze phase, four potential improvement actions were
identified for the defective solvent recovery valve factor:
1. Replace plastic valves with stainless steel valves.
2. Create an automatic recovery valve check system.
3. Check the valves weekly.
4. Eliminate the solvent recovery process.

13. IMPROVE
For the liftgate robot factor, three potential solutions were identified:
1. Develop a new cleaning program.
2. Change the robot process to a manual paint application.
3. Upgrade to an electrostatic paint application.
Once the solutions were finalized, the team created a three-stepimplementation plan
that included the following steps:
1. Think: Plan all necessary implementation activities.
2. Act: Implement the solutions.
3. Control: Check if solutions were correctly implemented.

14. REDUCING CONSUMPTION, IMPROVING
SATISFACTION
Goal Target Result
Reduce Cost $ 1.5 million annualy $ 2 million annulay
Improve Customer
Satisfaction
127.000 ppm reduction 129.000 ppm reduction
Reduce environmental
impact
Lower VOCs by 50,000
kg annually
VOCs reduced 70,000
kg annually

15. CONTROL
The new monitoring system and standard operating procedures are vital to
helping the Saar louis plant sustain the results gained in this project.
This system provides a real-time view of paint consumption in detail for
each of the four paint booths.
All of the plant’s standard operating procedures are part of the plant’s ISO
9001 compliant quality management system and are therefore included in
routine audits.
This helps assure that paint consumption will remain within specifications.

16. BENEFITS TO FORD MOTOR COMPANY DUE TO SIX
SIGMA IMPLEMENTATION
• In Ford Motor Company, Six-Sigma data-driven problem-solving process has
globally eliminated more than $2.19 billion in waste since 2001.
• According to 2003 Annual Report, the quality improvement and waste
elimination methodology, has had an increasingly dramatic impact on
the operation of the enterprise. Since the inception of Customer Driven Six
Sigma , Ford has completed more than 9,500 projects savings $1.7
billion worldwide, including $731 million in 2003.
• As per 2002 Annual Report, Six Sigma projects have saved Ford Motor
Company $675 million worldwide since its implementation in 2000.
• According to company’s internal customer satisfaction survey, customer
satisfaction has increased to five percentage points.

17. FORD LISTENED TO SHAREHOLDER FEEDBACK AND IN 2015 MADE
SIGNIFICANT CHANGES TO OUR PERFORMANCE UNIT PROGRAM THAT
ADDRESSED INVESTOR CONCERNS.

18. PRODUCTIVITY IMPROVEMENTS

19. SALES

20. EIGHT DISCIPLINES PROBLEM SOLVING(8DS)
IS A METHOD DEVELOPED AT FORD MOTOR COMPANY
8D follows the logic of the PDCA cycle
• Establish the Team
• Describe the Problem
• Develop the Interim Containment Action (ICA)
• Define and Verify Root Cause and Escape Point
• Choose and Verify Permanent Corrective Action (PCA)
• Implement and Validate Permanent Corrective Actions (PCAs)
• Prevent Recurrence
• Recognise Team and Individual Contributions

21. KAIZEN CYCLE
The Kaizen method consists of five founding elements:
• Teamwork
• Personal discipline
• Improved Moral
• Quality circles
• Suggestion for improvement

22. KAIZEN CYCLE

23. PAYNTER CHART IS A GRAPHICAL TOOL THAT WAS DEVELOPED
BY MARVIN PAYNTER AT FORD MOTORS TO ANALYZE PRODUCT
FAILURE AND TO VERIFY THE EFFECTIVENESS OF THE
CORRECTIVE ACTIONS.

24. THANK YOU