Assesment Oppurtunity- increase effciency at ford

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If Fords is to successfully compete with the Japanese car manufacturers such as Toyota and Nissan they must improve efficiency. Efficiency means maximum output at minimum cost. Fords would benefit from lower costs of production which would help increase profits. There are many ways for ford to improve their efficiency one of the ways Fords could improve efficiency is to introduce Just In Time (JIT).

This is a system will allow ford to receive their raw material just in time when they need it just. JIT can prove efficiency within ford. By introducing JIT ford is able to save capital which then they can use this capital on Improving motivation in their stuff. A better-motivated workforce will work harder and take pride in their work. This should increase the speed of production and also improve the quality of products that are being produced. There are many different financial and non-financial ways for businesses to motivate their workers.

The main disadvantage of JIT is that if the raw material is delivered very late then they will be delays on producing the car this late delivery can let down the customers and the company can lose customers so that means that they will lose 3things customers, capital and time. Another big disadvantage is that they might lose bulk buying, because they only buying the amounts that they only need this amounts can be low so that means that they have to pay more. In business the more you buy the cheaper you get it.

The main advantage of using JIT is that less product is likely to be damaged or wasted because they only order the raw material whenever they want it so it won’t be damaged because it is not in the factory and it wouldn’t be wasted because you they only order the amount that you want, this can save the company capital that can be use to improve effecincy. TQM is a system that everyone from the buyers of raw material to designed to improve quality within Fords.

Everyone within the company would be responsible for quality. TQM leads to zero defects and improved worker motivation. This means that Fords would make the cars right first time. This would lead to significant improvements in quality and would help boost Fords reputation. Also, fewer mistakes would be made which would help to lower costs of production. Thus, improving efficiency. However, TQM takes a long time to implement as a result of training and changing working practices. It can also be very expensive.

TQM can prove efficiency with in Ford they will produce better cars with higher qualities and also buy producing better quality they will meet their customers’ needs and they will attract more customers as well because of the good quality of their cars. TQM needs additional training for the employees these training can be very expensive and as Ford is a really big company they have to do this to all the employees around the world.

A big disadvantage of TQM is that because the workers check that everything is alright this will take some time and they will lose capitals as time is money in business. To conclude, I believe that Fords should introduce TQM because they will make cars with high quality which will meet the customers’ needs and it will improve their efficiency significantly as they will find more customers.

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