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Applying Knowledge Management to Improve QualitySanjay Swarup, Senior Knowledge Management SpecialistFord Motor CompanyKMWorld 2004Santa Clara, California26th October, 2004High Priority given to Quality at Ford Motor CompanyStrategy: Quality is JOB #1Quality Operating System (QOS) Performance to StandardsQuality Leadership Initiative (QLI)Engage all employeesConsumer Driven 6-SigmaData driven decision makingLeverage Quality Improvement ProgramsCorporate Strategy: Quality is JOB 1Top Down: Corporate Programs - QOS, QLI, 6-Sigma…Bottom Up: Employee based proven methods to improve quality……apply Knowledge Management Applying KM to Improve Quality Illustrative examples will be displayed and discussed during the presentationMeasurable Quality Improvements at Ford Motor CompanyJD Power Initial Quality Study: Ford Motor Company products had more than 16% improvement 2002-2003Consumer Reports 2004 – New Car Preview – 19 Ford Motor Company products received “Recommended Buys”Warranty Spending is down 18% from 2002Consumer Driven 6-Sigma efforts saved more than $1.3 B since its inception in 2000Source: FCN December 15th, 2004, 2003 Annual ReportRanked #4 by Fortune 500Manufacture and distribute automobiles in 200 markets across 6 Continents2003 Global Revenues: $164 Billion327,000 Employees2003 - Celebrated 100th AnniversaryVery Brief History ofBest Practice Replication1994: Formalized process of replicating proven practices1995 – Faxing best practices amongst vehicle assembly plants1996: Launched Ford Web Hub; BPR used the Web across 53 plants globally. As of 2004: Launched 53 communities of practice. 2,334 Focal Points: Vehicle Assembly, Plant HR, Paint Engineering, Ergonomics, Safety, Plant IT, Finance, Environmental…BPR PrinciplesCapture only Proven, High Value PracticesManage the ProcessValue-Add to business must be identifiedBusiness Partners provide the content and the people, IT group provides the enabling toolSelection and Replication of Proven Practices a
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