India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3. Million units in 2011. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, south Korea, and Thailand. The majority of India's car manufacturing industry is based around three clusters in the south, west and north.
India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3. Million units in 2011. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, south Korea, and Thailand. The majority of India's car manufacturing industry is based around three clusters in the south, west and north.
India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3. Million units in 2011. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, south Korea, and Thailand. The majority of India's car manufacturing industry is based around three clusters in the south, west and north.
India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3. Million units in 2011. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, south Korea, and Thailand. The majority of India's car manufacturing industry is based around three clusters in the south, west and north.
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BRCM COLLEGE OF BUSINESS ADMINISTRATION
SURAT Summer training project T.Y. BBA Semester 5 III Division
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TITLE PAGE: COMPANY CERTIFICATE: COLLEGE CERTIFICATE: DECLARATION:
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INTRODUCTION
CHAPTER:-1 4
Industry details The automobile industry in India is one of the larger markets in the world and had previously been one of the fastest growing globally, but is now seeing flat or negative growth rates. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011. According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, and Brazil), grew 16 to 18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars. The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster consisting of Chennai is the biggest with 35% of the revenue share. The western hub near Mumbai and Pune contributes to 33% of the market and the northern cluster around the National 5
Capital Region contributes 32%. Chennai, with the India operations of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, and PSA Peugeot Citron is about to begin their operations by 2014. Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force Motors having assembly plants in the area. Nashik has a major base of Mahindra & Mahindra with a UV assembly unit and an Engine assembly unit. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned for Tata Nano at their plant inSanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in Gujarat. Kolkata with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country.
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Company details Ford Motor Company, a global automobile industry leader based in Dearborn, Michigan, manufactures or distributes Ford and Lincoln brand vehicles across six continents. Ford has approximately 166,000 employees and about 70 plants worldwide Ford motor company enter the business world on June 16, 1903, when henry ford and 11 businesses associated signed the companys article of incorporation. With $28,000 in cash, the pioneering industrialist gave birth to what was to become one of the worlds largest corporations. Few companies are as closely identified with the history and development of industry and society throughout the 20 th century as ford motor company. Henry ford insisted that the companys future lay in the production of affordable cars for a mass market. Beginning in 1903, the company began using the first 19 letters of the alphabet to name new cars, in 1908, the model T was born. 19 year and 15 million model Ts later. Ford motor company was a giant industrial complex that spanned the globe, in 1925, ford motor company acquired the Lincoln motor company, thus branching out into luxury cars, and in the 1930s, the mercury division was created to 7
establish a division centered on mid-priced cars. Ford motor company was growing. In the 50s came the thunderbird and the chance to own a part of ford motor company. The company went public and, on feb.24, 1956 had about 350,000 new stockholders. Henry ford lls keen perception of political and economic trend in the 50s led to the global expansion of FMC in the 60s, and the establishment of ford of Europe in 1967, 20 years ahead of the European Economic Communitys arrival. The company established its North American automotive operations in 1971, consolidating U.S., Canadian, and Mexican operation more than two decades ahead of the North American free trade agreement. Ford motor company started the last century with a single man envisioning products that would meet the needs of people in the world on the verge of high-gear industrialization. Today, ford motor company is a family of automotive brands consisting of: ford Lincoln, mercury, Mazda, jaguar, Land Rover, Aston Martin, and Volvo. The company is beginning its second century of existence with a worldwide organization that retains and expands henry fords heritage by developing products that serve the varying and ever-changing needs of people in the global community. Ford India established operation in 1995 as a joint venture with Mahindra and Mahindra. The company commenced operations with an initial quality infusion of 8
US$ 375 million in factory and operation.in march 2005, ford India become a wholly owned subsidiary of ford motor company after divesting its crossholding portfolio with M&M. in October 2005, ford India received approval from ford motor company for an additional equity infusion of US$ 75 million to meet the need of future plans. Ford India manufactures and distributes automobiles made at its modern, integrated manufacturing facility at maraimalai Nagar, near Chennai spread over 350 acres. With over 2300 employees, the companys models in India include the ford icon, ford fiesta and ford endeavour. Ford India also has an export program and in 2007 announced its first ever CBU export program of the popular fiesta. Ford India is embarking on an accelerated export strategy wuth its new small car and engine which will be exported to markets within the Asia pacific and Africa region. The company presently has 164 dealership facilities in 94 cities. Ford India has been revamping all its dealerships under for Brand@Retail, a global corporate identity program to offer a world class purchase and ownership experience to the customer. Ford India provides training support to dealers in areas including customer satisfaction, sales, technical and non technical aspects of the business and in the financial management of the dealership. Ford India has its own branded service and sales initiates, quality care, which provides car owners with a superior with a superior sales and service experience at ford dealership nationwide. In addition, ford India has several customer support and after sales program such as ford service plan and Extended warranty 9
offering to provide its customers stress free vehicle ownership and motoring experience.
To become the worlds leading company for automotive products and services. Their mission is to ensure best in class quality, flawless launch and manufacturing innovations that will ensure that their manufacturing processes are leading edge, green and sustainable. History of organization
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Ford Motor Company is an American automaker and the world's third largest automaker based on worldwide vehicle sales. Based in Dearborn, Michigan, a suburb of Detroit, the automaker was founded by Henry Ford, and incorporated on June 16, 1903. Ford Motor Company would go on to become one of the largest and most profitable companies in the world, as well as being one of the few to survive the Great Depression. The largest family-controlled company in the world, the Ford Motor Company has been in continuous family control for over 110 years. Ford now encompasses two brands: Ford and Lincoln. Ford once owned 5 other luxury brands; they were Volvo, Land Rover, Jaguar, Aston Martin and Mercury. But over time those brands were sold to other companys and Mercury was discontinued.
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Location of offices Headquarter Of ford:
Address: Ford Motor Company World Headquarters 1 American Road P.O. Box 6248 Dearborn, Michigan 48126-2798 United States
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Country Type Name India assembly Chennai Assembly - Ford India Private Limited Engine Chennai Engine - Ford India Private Limited
Branches & factories Ford Car Dealers in Surat King Ford
Address: Opp. Goverdhan Haveli, Next to Big Bazaar, Piplod Dumas Road Surat, Gujarat 395007
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Ford India Car Dealers in India Regional Office in the North
Ford India Pvt.Ltd. Tower A, Ground Floor, Unitech Cyber Park, Greenwood City, Sector 39, Gurgaon - 122001 Haryana Regional Office in the South
Ford India P Ltd. Block - 1B, 1st Floor RMZ Millenia Business Park 143, Dr MGR Road, North Veeranam Salai, Perungudi, Chennai - 600 096
Regional Office in the East
Ford India Pvt Ltd. 55/55/1, Chowringhee Road, Chowringhee Court, 14
Unit 33, Second Floor, Opp. Nehru Children Museum Kolkata - 500 071
Regional Office in the West
Ford India P Ltd. 301, Central Plaza CST Road, Kalina Santacruz (E) Mumbai - 4000
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Financial high-light & recent financial performance Mid-decade outlook Wholesale Volumes About 8 million Revenue / Pricing Improving Automotive Operating Margins - North America 8 - 10% - Global 8 - 9% Ford Credit Return on Equity Low Double Digits Capital Spending About $6 billion Total Automotive Debt About $10 billion Investment Rating Plan to achieve investment Grade in the near term and To remain investment grade Through economic cycle Dividends (Pct. of PAT) Appropriate level of after- Tax earnings
Details of promoters & owners 16
Alan Mulally - CEO of ford motor company Michael Boneham President of ford
1. Alan Mulally Alan Roger Mulally (born August 4, 1945) is an Americanengineer and business executive who is the President and Chief Executive Officer of the Ford Motor Company. Ford, which had been struggling during the late-2000s recession, returned to profitability under Mulally and was the only American major car manufacturer to avoid a bailout fund provided by the government. Mulally's achievements at Ford are chronicled in the book, "An American Icon: Alan Mulally and the Fight to Save Ford Motor Company" by Bryce G. Hoffman published in 2012. Mulally was the executive vice president of Boeing and the CEO of Boeing Commercial Airplanes (BCA). He began his career with Boeing as an engineer in 1969 and was largely credited with BCA's resurgence against Airbus in the mid- 2000
2. Michael Boneham : 17
A veteran in the automotive industry with more than 20 years of experience, Michael Boneham took over as Ford India's president and MD in June last year. He has held a number of senior international manufacturing positions within Ford Motor Company in the past. Boneham tactfully tapped the growth potential of India's flourishing small car segment, wherein Ford had no presence, and brought out the Figo.
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Organization structure of the company
Sales consultant Team Leader (Bhavesh sukhediya) Generl manager(Jitendra sharma) Sales manager corporate (Nevilbhai vakawala) Sales manager Retail CEO (Mr Thomas Anthony) Dealer principal (Mr yogendrabhai jadeja) 19
Future plans of organization
Our plan is simple - we are committed to working together to build vehicles that are green, safe, smart and have the high quality standards which our customers are expect.
Our plan also includes building on our competence in our plan also includes building on our competence in hybrid vehicles. And vehicles $14 billion investment on advance billion investment on advance technologies to improve fuel efficiency by over technologies to improve fuel efficiency by over 25%.its also included, Accelerate development of new products our customers want and value Finance our Plan and improve balance sheet Work together effectively as one team -- leveraging our global assets. Pacific Americas Africa
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CHAPTER:-2
MARKETING & SALES FUNCTIONS
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Marketing department : This department concentrates on making sure that there are enough cars to satisfy Ford customer needs. This department makes sure that the customer requirements are meant in every Ford car product. This department will also help the promotion and advertising of new car products. Sales department The sale department focuses on the sale of the car i.e. how much the cars are going for etc. Also the sales department helps ford organization customers with a variety of ways of buying the cars for example if a customer wanted to buy a car but the different of ways which the customer can pay is simple from monthly payments to weekly payments Connections between these two departments:
Sales and Marketing departments: The similarities which these departments have are that the sales department will need the marketing departments to find out what people are willing to buy ford products. And intern the marketing department will look at the sales departments to find out the price which will suitable for a product i.e. a car called a Ford focus before its made will need to go through the process of collecting data from the marketing departments which will add any customer needs which the car needs to acquire. The sale department plays the part of predicting what the price the car would go for when the feature and materials are bought et 22
Types & classification of product & their sales volumes 1. Figo hatch back (2 boxes car)
2. Ford classic sadan (3 boxes car)
3. Ford fiesta - Luxurious sadan 23
4. Endeavour -SUV (Sport utility vehicle)
Sales in India,
Model Feb 2012 Jan 2013 Feb 2013 Figo 6546 5240 3804 Fiesta classic 1389 723 503 New fiesta 77 68 63 Endeavor 23 31 120 Total sales 8035 6062 4490
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Sales In king ford,
Model Sales volume ( monthly) Figo hatch back 70 80 Ford classic sadan 25 30 Ford fiesta - Luxurious sadan Near about 10 Endeavour -SUV (Sport utility vehicle) Near about 4 5
Details of competitors
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Chevrolet TATA Hyundai Nissan Renault Mahindra Volkswagen Skoda Honda 2009 Ford Escape with better highway fuel economy than Toyota RAV4 and Honda CRV. 2009 Ford F150 with class leading fuel economy better than Toyota Tundra and Nissan Titan. 2010 Ford Fusion HEV with bsetter fuel economy than Toyota Camry HEV by at least 6 mpg. 2010 Ford Fusion with better highway fuel economy than Toyota Camry and Honda Accord. 2011 Ford Explorer with better highway fuel economy than Toyota Highlander HEV. 2011 Ford Fiesta with better highway fuel economy than Toyota Yaris and Nissan Versa.
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Unique feature of various products of company 1. Figo : A change for everyone Kinetic design Bluetooth connectivity A change for everyone:
Bold, enigmatic and a head turner, the all new Ford Figo is ready to hit the roads. Kinetic Design, intelligent features like Bluetooth and best-in-class Ride and Handling, make it a smart choice for your daily tussle with the road. Kinetic Design:
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The large hexagonal lower grille, sloping roofline, big day-light opening and sculpted side panels give the Figo its signature look. Adding to this, the planted, sure footed stance and wide, muscular look inspire confidence and imply safety. Bluetooth Connectivity
Stay connected while on the move with the new Ford Figo and hit the roads carefree. Simply pair your Bluetooth mobile with the audio unit and start a conversation. Pair up to 4 phones and access full phone book, dialed numbers, received & missed calls on the audio display. You can mute the call, switch to Privacy Mode, get second Call Alerts and SMS Alerts without reaching for your phone. You can also stream music from your phone. 2. Classic : Styling ORVM Front Fog Lamps Alloy Wheels 28
Fun to drive Performance Technology Styling
The Ford Classic's sense of purpose and powerful appearance makes a bold and strong statement with electrically operated ORVMs, sleek upholstery and integrated fog lamps. ORVM
The new Classic Titanium comes with electrically operated ORVMs with turn indicators that are beautifully crafted into the mirror cowls. 29
Front Fog Lamps
The fog lamps are integrated smartly in the front bumpers which provide better visibility during foggy conditions. Alloy Wheels
This car has the new tubeless alloy wheels that provide better road grip and aesthetic appeal. 30
Fun to Drive
The Bluetooth enabled MP3 player with CD player, an aux-in and 4 speakers lets you play your favourite track on iPod, phone and more. Another great thing about this car is as the wind or car noise increases/decreases at higher/lower speed, Speed Sensing Volume Control automatically adjusts the volume of music or radio, if it is turned on. Now isnt it smart indeed. Performance
The performance of any car depends on the capability of its engine. The all new Ford Classic Titanium is equipped with Duratek petrol engine which gives a mileage of more than 21Kmpl on road and its Duratorq Diesel engine gives a mileage of more 31
than 32Kmpl. This means that the all new Ford Classic Titanium is highly efficient, gives great mileage and hence, is very economical. Technology
Fitted with superior technology such as GEM (General Electronic Module) and PCM (Power Control Module), the Ford Classic's performance is enhanced in terms of Low fuel consumption, low emissions, and critical engine diagnostics. 3. Fiesta : Super Fuel-Efficient 40 Hwy Mpg 2 1.6L Ti-VCT Duratec I-4 Engine Electric Power-Assisted Steering (EPAS) and AdvanceTrac Stability Control Available Power Shift Six-Speed Automatic Ford-Tuned Suspension 32
Super Fuel-Efficient
The SFE Package includes aerodynamic features that minimize air resistance and help Fiesta deliver unsurpassed-in-its-class Hwy mpg. The package includes side air deflectors, underbody shields and blockers on the lower grille. The package also includes a spoiler and 15-inch steel wheels.
1.5L Ti-VCT I-4 Engine
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With 120 horsepower and 112 lb.-ft. of torque, the standard 1.6-liter twin independent variable cam timing (Ti-VCT) Duratec I-4 engine is engineered for quick sprints. The engine block is high-pressure die-cast aluminum for strength and light weight. Twin independent variable cam timing allows the camshafts to operate both intake and exhaust valves at different times in the combustion cycle, based on speed and load. And to further lessen weight, the intake manifold is manufactured from a composite.
Electric Power-Assisted Steering (EPAS) and AdvanceTrac Stability Control
Standard features such as electric power-assisted steering (EPAS) and AdvanceTrac electronic stability control (ESC) contribute to the responsive driving experience in the Fiesta. EPAS uses speed-sensitive steering and active nibble control technology, which actively detects and minimizes undesirable rotational vibration, to help provide feedback and confidence at highway speeds. AdvanceTrac 34
ESC automatically applies the brakes and modulates engine torque whenever it detects wheelslip. Skidding and fishtailing are avoided by controlling understeer and oversteer. Additionally, AdvanceTrac ESC helps maintain control under conditions such as ice, gravel or rain, providing confident stopping power. Available Power Shift Six-Speed Automatic
its about performance, its about fun. The available class-exclusive dual dry-clutch Power Shift six-speed automatic delivers performance and fuel efficiency similar to that of a manual transmission, plus the shift quality and ease of operation provided by an automatic transmission. Engine torque is delivered to the drive wheels 100 percent of the time for an extra-connected feel. Hill start assist provides improved drivability on steep inclines. The neutral idle mode helps eliminate drag and contributes to fuel efficiency. As for maintenance none is required. Fill-for-life transmission fluid requires no dipstick and is designed to last up to 150,000 miles. 35
Ford-Tuned Suspension
With a standard MacPherson-strut front suspension, 22 mm front sway bar and twist- beam rear suspension, the 2013 Fiesta is ready to deliver excitement around every corner. Its standard electric power-assisted steering (EPAS) system is Ford-tuned to offer refined overall driving dynamics. It works with a software-based technology called active nibble control to actively detect and minimize undesirable rotational vibration experienced by drivers, particularly while driving at highway speeds. This means that with the Fiesta, taking on straightaways will be a smooth affair. 4. Endeavour : More space for more option New stylish alloy wheels Automatic control 4 wheel drive on-the-fly Revers packing camera More space for more option 36
The space inside the ford endeavoure is in sharp contrast with the harsh terrain on the outside.with innovative stowage spaces, refreshed instrument panel and plush camel interior your ride will be as comfortable as it can be add double folding 2 nd row seats and lots of space for tackling those oversized holiday bags and gear, and you have an off-roader with maxed-out space. New stylish alloy wheels
Boldly styled and aggressively sized, our 16 chrome plated alloy wheels deliver a mighty performance on road. Even when standing still they are designed to captivate onlookers. Automatic control 37
The automatic transmission transfers all the whopping power from the 3.0L engine to the wheels effortlessly. With the ford endeavour, ford has employed ultra-modern technology to create an ultra responsive SUV that converters every last drop of fuel into the power to get ahead. 4 wheel drive on-the-fly
When the terrain needs talking, just roll up your sleeves and shift to 4x4 mode on the fly. 4x4 automatic transmission models feature an electric shift-on-the-fly system for the convenient selection of 2WD or 4WD mode. A proven-tough Borg-warner transfer case ensure traction is evenly supplied to all 4 wheels, so the powerful ford endeavour gets you through any tricky spot with the confidence that only a trailblazer can boast of. 38
Revers packing camera
When youve reach the edge of now here and need to go back on the path you come on, simply switch to reverse gear and the SATNAV system automatically shifts into the reverse parking camera mode. Now you dont need to worry about trampling on the beauty that uncharted territories have to offer. Customer segmentation & target markets Pattern of target market: Customer target market: Types market Targets
Study of how customer orders are processed Sales order processing is a process where customer orders are received, checked for creditworthiness then checking for product availability, and arranging for delivery to customers is done and finally billing and maintaining records of amounts due from customers is carried out. It is included following steps:
1. Price 2. Financial discussion of product & service 3. Vehicle delivery
Document related with sales PAN card Light bill, tax bill, gas bill (ownership proof) 1. Price discussion 2. Financial product & service 3. Vehicle delivery 42
Pricing policies
POLICY OBJECTIVE
This policy aims to promote integrated, phased, enduring and self-sustained growth of the Indian automotive industry. The objectives are to:- Exalt the sector as a lever of industrial growth and employment and to achieve a high degree of value addition in the country; Promote a globally competitive automotive industry and emerge as a global source for auto components; Establish an international hub for manufacturing small, affordable passenger cars and a key centre for manufacturing Tractors and Two-wheelers in the world; Ensure a balanced transition to open trade at a minimal risk to the Indian economy and local industry; Conduce incessant modernization of the industry and facilitate indigenous design, research and development; Steer India's software industry into automotive technology; Assist development of vehicles propelled by alternate energy sources; Development of domestic safety and environmental standards at par withInternational standards
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CHAPTER:-3
PRODUCTION MANAGEMENT
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Detailed organization structure of production department Production department;- Production department of the fords cars is basically is what the department do and focus on. For example if a new car was this is the department where the cars are being made. Actually this is the manufacturing of the Ford cars. Manufacturing launched the production team will find the materials needed for the manufacturing of the new car.
How production plan is prepared from sales plan? how plan is converted in material requirement plan & ultimately in purchase plans All our cars spring to life at Ford's Rs. 1700 crore integrated manufacturing plant at Maraimalai Nagar, 45 kms. From Chennai. The plant, equipped with advanced manufacturing technology from Ford, covers 350 acres, provides employment to about 2,000 people directly and many more thousands indirectly and has a capacity to manufacture upto 100,000 vehicles per annum. Ford is a 6-Sigma company. Every step of every process is planned to perfection. Step 1: STAMPING 45
Semi-automatic press line moulds blank sheets into various body parts. Thorough checks for perfection in dimensions and surface quality. Step 2: BODY SHOP
Entire shell checked with military precision for dimensions. Subjected to stresses to check quality of welding. Step 3: PAINT SHOP
Cutting-edge technology creates a finish that's unaffected by rain or sunshine. 46
Painting so complete that even underside gets full PVC coating for corrosion protection. Baking done to Ford's global paint specifications. Step 4: T C F
Interiors taken care of, before doors and seats come on in Trim zone. In Chassis area, professionals use high power tools to fit in engine, front suspension, bumpers etc. Once nuts and bolts are tightened to perfection, the car gets its wheels. Rolls into final line for remaining parts and filling of fluids. Step 5: QUALITY TESTING
Stringent testing ensures every car is at its best, even in trying conditions. 47
All Ford cars complies with Bharat III emission standards, notified by the Government of India. Analysis of plant location considering various factors
Factor affecting plant location: 1.proximity to market 2.availability of raw material 3.infrastructure facility 4.transports facility 5.law and taxation 6.labour community 7.intangible factors
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Plant lay-out of entire factory showing position of various departments & buildings
Types & classes of material handling equipment Automated materials handling systems,returnable pallets and containers designed for the line as well as an increasing use of information systems that can respond in short time frames with exacting demands.Without the marriage of materials handling, packaging and information, the modern automotive supply chain would not be possible Here, Modern Materials Handlinglooks at the equipment, informationsystems and best practices that aretransforming the automotive industryaround the globe. 49
Enter materials handling. When Henry Ford automated the assembly line decades ago, thats where automation began and ended in the auto industry. The traditional, risk-free decision was to stay manual because a supplier could always hire or layoff personnel as business conditions changed, says Dick Montague, director of industrial sales for FKI Logistexting a world of automated haves and have-nots. However, as the most successful suppliers and OEMs automate, the laggards are forced to follow suit or risk falling further behind. Whats more, some level of automation is required to enable the three most important best practices in the industry today: lean manufacturing, just-in-time delivery of parts, and in-line vehicle sequencing, which involves delivering parts to the line in the same sequence as the cars coming down the line. All three processes involve a level of error-free synchronization that isnt practical without automated materials handling and sophisticated information technology. ROBOTS AND AGVS Traditional automation in the assembly plant was designed to get an automotive chassis down the line. As a result, overhead conveyors and a monorail that can transport an auto in various stages of assembly are commonplace. Automakers continue to find innovative ways to employ those traditional materials handling solutions. We have automakers installing floor conveyors for their workers alongside the assembly line, says Montague. They move at the same speed as the overhead conveyor so an autoworker doesnt have to walk alongside of the vehicle to do theirjob. Other technologies, however, areappearing more frequently in newimplementations. 50
Robots, for instance, are now being used for materials handling and not just spot welding. Theres a lot of interest in using robots for interprocess handling, that is passing a part from one process to another, says Joe Campbell, director of strategic alliances for KUKA Robotics. As the price of robotics has come down and the reliability gone up, theyre also being used for palletizing as well as loading and unloading tonnage. Automatic guided vehicles (AGVs) are also showing up in higher number than ever before. AGV providers cite a variety of reasons for the increased interest.
Automated carts are used to create a flexible, mobile assembly line that can be easily reprogrammed when a model or design changes. 51
More reliable than ever, robots are now being used in operations to pass a part from one process to another and to load and unload damage.
Custom-designed returnable containers anddunnage enable cost-cutting best practices like lean manufacturing and the in-line sequencing of vehicles and parts. 52
In-line vehicle sequencing software synchronizes the activities of order pickers in a facility (left) with the vehicles coming down the assembly line (right). The systems ensure that parts are delivered to the line in the same order as the cars being built. Inventory control system At Ford Motor Company inventory management is definitely not a new idea, as inventory management has some of its developing origins of starting at Ford Motor Company itself. Ongoing analyses of both inventory management and manufacturing processes have led to innovative management systems, such as just-in-time inventory or the economic-order quantity decision model. Just-in-time inventory is a process developed by the Japanese based on a process invented by Henry Ford. 53
Henry Ford managed to cut his inventory by forty million dollars by changing how he obtained materials to produce automobiles. Through a process called vertical integration, Ford purchased mines and smelting operations to better control the source and supply of material to produce cars. In this way, he was able to reduce his standing inventory and increase turnover. In the 1950's, Taiichi Ohno, a mechanical engineer working for Toyota Motor Co., refined this process into what we know today as just-in-time inventory. Just-in-time inventory usually requires a dominant face (or a major partner that has the resources to start the process and keep it organized and controlled) that organizes the flow and communication so that all the parties in the supply process know exactly how many parts are needed to complete a production cycle and how much time is needed in between production cycles. By having and sharing this information, Ford Motor Company and its suppliers are able to deliver just the right amount of product or inventory at a given time. This requires a close working relationship between all the parties involved and greatly minimizes the amount of standing or idle inventory. In the economic-order quantity decision model, an analysis is made to determine the optimum quantity of product needed to minimize total manufacturing or production costs. In other words, through a complex analysis, management attempts to determine the minimum amount of product needed to do the job and still keep the cost of inventory as low as they possibly can. This analysis considers the amount of time needed to generate an order, to process, manufacture, organize, and ship each product, then to receive, put into inventory at a Ford Dealership store, and then sell 54
each product. Lastly is to process the paperwork upon receipt through the final payment process. Ford Motor Company, like many companies today employ a mixture of both processes in order to maintain their independence but still have a close relationship with suppliers. Ford Dealerships, for example, work closely with Ford Motor Company to maintain the lowest possible inventories but still have enough cars to satisfy their customers demand. Ford Motor Company has access to information about each of its Ford Dealerships inventory levels, this allows management to further analyze inventories to ensure that each Ford store is carrying the correct amount of inventory in stock to satisfy that markets needs and maintain minimum levels. Inventory valuation method An inventoryvaluation is a statement which provides information about the value of goods held in inventory. Goods in inventory can make up a substantial portion of a company's equity and there is therefore a great deal of interest in the total value of a company's inventory. This information is reported in financial statements which can be used internally and externally for a variety of tasks related to accounting, valuing the company as a whole, and making business decisions The Ford Motor Company's inventory policy includes two major considerations The first consideration is inventory cost basis while the second consideration is inventory composition for valuation With respect to the cost basis for inventory the major policy choice sare a historical cost value the inventory at initial acquisition cost be 55
replacement cost value inventory at the current market price or some combination of historical and replacement cost.
Different record kept in store Header record supplier releasing data Unique data elements of the supplier release Reconciliation and release data Additional requirement Ford data in supplier release Release remark section supplier release trailer record
Material receipt procedure VDA4905 Weekly Planning Release Message The VDA4905 is a message, which is sent from a party who is planning the use or consumption of products to a party who has to plan for the supply of the products. The message gives the requirements regarding details for medium to long scheduling for products. The schedule is used to determine raw and fabrication material authorization. This is based on the terms and conditions defined in a purchase order or contract. 56
Ford Customer Service Division (FCSD) The Ford Customer Service Division works on its own internal EDI system and has different business practices to the Ford manufacturing plants. This requires different use of some of the data fields in the message layout. FCSD sends only monthly a VDA 4905 message for A-Class parts (not FCI1-part) and for B-Class parts (slow movers) only on reorder point considering the agreed lead time. FCI forecasts are as well advised VDA 4905 formatted (comparable to manufacturing).
Explanation to the Weekly Planning Release for production material and FCSD (Parts Service) material
1. Basic information of the Weekly Planning Release 1.1 Vendor code The vendor code has been assigned centrally in the Global Supplier Data Base (GSDB). The different vendor codes have now been communised: each vendor code consists of a four digit base, plus a fifth digit which offers an opportunity to for example - distinguish different vendor addresses. Addresses of the vendors shipping plants. Separate addresses of the vendor for accounting purposes or recipients of the release authorisations etc.
1.2 Program Release-Number 57
This code which distinguishes each release program has a twofold meaning: the first three characters (e.g. 660) mark the program month which is common to Ford world- wide, and the fourth character identifies the interim release runs (660-1, 2,..) which occur within each program month weekly. The program month has no relation to the calendar month.
Production material: The "main-run", i.e. the monthly release calculation, which adds the 6th month, gets the suffix -1, e.g. 660-1. Within this release calculation requirements will be generated for each production part. Releases for e.g. adhesives, greases, oils (so called bulk material) will be generated only in the second release run ("-2 run).
FCSD The main release-run, i.e. the monthly release-calculation, which adds one month requirements, gets the suffix 01, e.g. 660-01.
1.3 Part number The Ford part number has the following structure:
Prefix right justified 6 characters Base right justified 8 characters Suffix left justified 8 characters
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Please enter the part number on the advice notes and in the advanced shipping note in the same structure as printed and transmitted on the releases of the destination plant.
1.4 The receiving plant / Customer Plant Code All plants of the Ford Companies in Europe are identified by a 2-digit plant- code. All data on the release authorisation refer to plant and part number! The plant is transmitted in record-type 512, field 03 as a 2-digit code. It is absolutely essential that in every kind of documentation or data transmission the plant code and the part number are indicated! A table of plant codes and their address information can be viewed on the Ford Supplier Portal (FSP) in the Library service section
1.5 book number: The book number is a classification code for a number of parts, which are assigned to a Parts Analyst. One analyst can administer more than one book number; they can be established dependent on receiving plants or identify specific part commodities. The book number identifies your contact person at Ford for questions of material scheduling. The book number is transmitted in record-type 512, field 12 as up to 4-digit code.
1.6 Commitment for fabrication and material authorization 59
The release authorization for fabrication and raw material will be generated for each production part. Purchase Parts
For each part it is defined in the purchase order, for how many weeks Ford will acknowledge the commitments. Generally the commitment is
3 weeks fabrication authorization 9 weeks material authorization
This means that the fabrication authorization of 3 weeks is included in the material authorization of totally 9 weeks (3 week plus further 6 weeks = 9 week material in total). Deviating commitment terms must be negotiated with purchase and documented in the purchase order. Primary Metal Primary Metal has usually a material authorization of the rest of the current month plus one month.
FCSD For each part it is defined in the purchase order/release, for how many weeks FCSD will accept the commitment, e.g.
4 weeks fabrication authorization 8 weeks material authorization 60
This means that the fabrication authorization of 4 weeks is included in the material authorization of totally 12 weeks, e.g.:
Fabrication authorization 4 weeks Material authorization further 8 weeks = total 12 weeks
1.7 Part related data remarks CMMS3 allows the input of plant-part number related data by the Material Control Analyst. For this purpose 20 positions are reserved in the remarks section, which will be transmitted from 21 position of the third text string (record type 518, field 05). FCSD In the FCSDs parts master file the supplier's part number is maintained in a special field. The transmission of this supplier's part number (for which Ford will not take any responsibility) is also performed in the 3rd text-string starting from position 01.
1.8 Plant / Supplier related remarks With these general remarks Ford draws attention to special plant related conditions, e.g.: "Receiving closed at..." "No delivery at..." "Plant shut-down from...to. These remarks are transmitted in the second text-string (40 characters) and in the first 20 characters of the third text-string. 61
1.9 FCSD FINIS-Code
The Ford Parts Service Depots are working in their internal systems additionally to the Ford part number with a numeric identification. This is a code with a length of 7 characters. This code should also be mentioned on all delivery documents to the Parts Service Depots. As the VDA standard does not contain a code for this, we selected a field of the standard, which is not used by Ford. It is the field order number in record-type 512, pos. 10. It contains data only for releases with FCSD plant codes.
1.10 Over-/ under delivery O/U quantities will not be transmitted in a separate field. Quantities will be accumulated in the first segment.
1.11 Quantity per load unit Production material The "quantity per load unit" will be transmitted in record-type 517, field 05. The packaging code cannot yet be made available. FCSD The detailed package conditions are subject of the purchase order, resp. the package specification. This record type 517 is currently not used by FCSD-E.
1.12 Data of the last delivery 62
The Advice Note data, Advice Note Number, date, quantity, cum shipped (cum shipped calculated in Ford CMMS3 system) will be transmitted according to the VDA-standard with record-type 513, fields 03-07. Date, quantity, cum shipped refer to the latest recorded transaction in CMMS3; this may not always be the last receipt, as long as further material is still in transit.
1.13 Release Run Production material For every part and every vendor we generate releases on a weekly base. 95 % of all releases are sent straight from the Data Centre into the supplier's mailbox even though all releases are generally subject to control of the parts analyst. The parts analyst decides if he wants to control the releases prior to the transmission in order to amend them, if required. The CMMS3 Releasing System enables the Material Control Analyst to amend supplier releases on-line on his terminal. This can happen any day. To identify amended releases the seventh position of release-numbers is added with an A on the suffix. FCSD All releases are calculated automatically. For every A-Class respectively forecast parts FCSD generates releases on a monthly base. Visteon plants and non-European suppliers get releases also on a monthly base, but the requirements within the agreed fixed lead-time are shown as weekly requirements.
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1.14 Data Transmission
Weekly Planning Release Regularly the weekly planning release will be transmitted once a week. Occasionally we encounter problems in the process of the release calculation, which demand that a release-run has to be repeated. In such a case of any problems which may be based on technical issues or on BoM problems we are able to issue an additional release run. The program number will show in addition to the normal program number a letter.
Material issue procedure, document related with material issue & receipt, purchase procedure
Use of the analysis Review of the analysis Prioritization of the Issues Identification of Material Business Issues 64
1. Identification of Material Business Issues We developed a list of more than 500 issues, grouped into 15 topics. The issues were identified by reviewing Ford business documents as well as comments from employees, dealers and our major external stakeholders: customers, communities, suppliers, investors and NGOs. For the Ford analysis, the documents included Ford policies, business strategy and performance tracking tools, and the Annual Report on Form 10-K. To represent stakeholder views, we looked at Ford-specific inputs like summaries of stakeholder engagement sessions as well as documents that represent stakeholder views more broadly, such as the Global Reporting Initiative G3 Guidelines, the Ceres Roadmap to Sustainability and reports from socially responsible and mainstream investors. 2. Prioritization of the Issues We noted the frequency with which issues were raised in the source documents and rated each issue as low, moderate or high for current or potential impact on the Company in a three- to five year timeframe, and degree of concern to stakeholders (by stakeholder group). For each issue, the ratings were averaged separately for Ford and stakeholders (with extra weight assigned to investors and multi-stakeholder inputs, as they are key audiences of our reporting). The issues and their ratings were then plotted on a materiality matrix. We consider the issues in the upper-right sector to be the most material. None of the issues is unimportant; the position of each in the matrix simply represents our understanding of its relative importance to the Company and its stakeholders. 65
3. Review of the Analysis The draft matrix was reviewed internally. It was then reviewed and revised again based on a meeting of a Ceres stakeholder committee that included representatives of environmental and other NGOs, socially responsible investment organizations and a supplier company. 4. Use of the Analysis We have used this analysis to identify issues to cover in our reporting and as an input to our sustainability strategy development. This analysis, and the methods for conducting materiality analyses generally, is works in progress. Sustainability issues are not discrete. Rather, they overlap and interconnect in a complex system that is difficult to capture in a list of issues. Analysing issues by stakeholder group adds depth to our understanding of who is concerned about which issues and why, but in the process of placing them on a two-dimensional matrix, some of that nuance is lost. Finally, an element of subjectivity is inevitable.
Maintenance planning system TRAVELLING WELL WITH FORD MAINTENANCE PROTECTION PLAN (FMPP) Customer buying peace of mind when they purchase or lease a quality Ford product customer want their ownership to be satisfying and pleasurable and so do ford! Thats why ford provide Genuine Ford Parts & Service. Their new vehicle is backed by a 3 year/60,000 kilo meter (whichever occurs first) New Vehicle Basic Warranty. 66
To add to your peace of mind and help protect your investment beyond your New Vehicle Basic Warranty, youll be travelling well with a Ford Maintenance Protection Plan (FMPP) or a Ford Maintenance Protection Plan Plus! (FMPP Plus!) prepaid maintenance for the road ahead. CONFIDENCE FOR THE ROAD AHEAD FMPP and FMPP Plus! Plans cover all required scheduled maintenance for Ford vehicles, as outlined in your vehicles Customer Information Guide or Owners Guide (Owners Guide Diesel Supplement for Ford Power Stroke Diesel engine vehicles). FMPP and FMPP Plus! Plans are available with scheduled maintenance intervals every 6 months/8,000 kilometers, 6 months/12,000 kilometers, 6 months/16,000 kilometers or 12 months/16,000 kilometers. All maintenance and wear item replacements are made with Ford approved parts. FMPP and FMPP Plus! includes coverage for 8 wear items as required, due to failure caused by normal wear or defect REGULAR MAINTENANCE OF VEHICLE WILL HELPENSURE OPTIMUM PERFORMANCE YEAR AFTER YEARSCHEDULED MAINTENANCE AND WEAR ITEMS.
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Quality control system Our customers satisfaction is essential to our future success. Therefore, the quality of our products and services must be our number one priority today and tomorrow. At Ford Motor Company Quality is Job 1. It is of vital importance that we consistently deliver continually improving results in terms of customer satisfaction with our products and services. Process and people have and will always be the keys to achieving these results. The principles outlined below must be relentlessly applied in our day-to-day actions. The Customer defines Quality - Our customers want products and services that throughout their lives meet their needs and expectations at a cost that represents value. The Quality Operating System - Built on our standards and procedures, the Quality Operating System defines the key processes in terms of deliverables necessary to achieve results. It is the disciplined execution and continual metric- driven improvement of these processes that allow us to eliminate waste and deliver value. Quality objectives must be met. Quality standards must be set, respected and achieved. Processes must consistently be followed. People - Employees, suppliers and dealers must be engaged to sustain and improve quality performance. Creating an environment of mutual respect and trust facilitates communications, teamwork and the quality execution of our processes. Our employees must have the necessary skills and tools to serve as a role model for process discipline and lead the processes that provide the highest value products and services. 68
The Use of Metrics and Data Decision making, objective setting and problem resolution are the links that focus the strength of our people and processes on continually improving our products and services. This policy letter provides the foundation to ensure a commitment to continually improve the process and performance results of our metric-driven Quality Operating System. Additionally, as a global citizen serving global customers, Ford Motor Company through this Policy Letter will help ensure that we meet or exceed the requirements of applicable international standards related to our products and services. Adherence to this policy will assure that we continue to provide our customers with the highest value products and services possible, ensuring our future and our success.
TQM and Ford Motor Company: Ford Motor Company total quality management or TQM practices started in the 1980s when Quality Is Job 1 was their slogan. How did TQM work at Ford and are they still standing behind this process? TQM at Ford Motor CompanyToday at Ford Motor Company, their most popular slogan is Ford Has a Better Idea. Back in the 1980s when Ford Motor Company total quality management practices were vast, the slogan of Quality Is Job 1 made more sense. 69
In a conversation with Dan Dobbs, a Six Sigma Master Black Belt at Ford, it was noted that TQM may have worked in the 1980s, but Six Sigma is the project management methodology of choice these days. When TQM, a process improvement methodology based on a customer satisfaction quality-driven process with guidelines set by management was first utilized, it started through a joint venture. Through a partnership with ChemFil, a division of PPG Industries, Ford wanted to produce better quality products, a stable work environment for the workforce, effective management, and profitability; all by the 1990s, Quality is Job 1 became Quality People, Quality Products.
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CHAPTER:-4 FINANCE & ACCOUNTS
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Finance department: - This department plays a big part in the organization. This department is the main sources of financial funding to any department. This department plays the part of making sure that the company has a big turnover and the company is smoothly running each day. This department will fund any departments which need financial needs i.e. if the human resources department needs funding for advertising a new job for the company etc. Costing methods Ford, General Motors, and Chrysler used absorption costing to make themselves look more profitable, researchers say. But the practice can be costly, and other companies may want to think twice before they follow suit. Cost structure
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Internal audit policies & financial control systems Evolution of the Internal Quality Audit at Ford Motor Company's Central Laboratory
This is the evolution of an internal laboratory quality audit which takes into account the needs and expectations of the laboratory customers, the laboratory management, and the laboratory employees. This audit has been in operation for over 15 years and its development and early years were reported at an ASTM Symposium in 1981. Since then a number of changes have been implemented to improve the effectiveness of the audit. This paper describes the creation of the auditor position with organizational independence. Developments in the Quality Audit Manual, the Laboratory Report Format Procedure and other audit standards are also reported. The paper discusses the advantages and disadvantages of using a classification system to rank discrepancies identified by the audit process. Because the underlying purpose of an internal quality audit is to improve laboratory report quality, the major beneficial role is as a learning tool. As originally structured the audit was conducted with complete anonymity of the laboratory employee. Unfortunately this anonymity constrained the reporting procedure and inhibited the universal implementation of corrective actions. After several years with no improvement in the discrepancy rate, a process change was desired. Coinciding with this need, process improvement methodology based on 73
Deming's Plan-Do-Check-Act cycle was used to develop an improved process. An audit improvement team proposed and conducted a pilot audit procedure that audited reports monthly for the natural work groups with open discrepancy reporting at work group meetings. Based on the successful pilot, management approval was obtained to implement the revised procedure and improvements in laboratory report quality as assessed by the internal laboratory quality audit are observed.
Accounting policies
Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect our reported amounts of assets and liabilities, our disclosure of contingent assets and liabilities at the date of the financial statements, and our revenue and expenses during the periods reported. Estimates are used to account for certain items such as marketing accruals, warranty costs, employee benefit programs, etc. Estimates are based on historical experience, where applicable, and assumptions that we believe are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ.
Increases/(decreases) in Accumulated other comprehensive income/(loss) resulting from translation adjustments were as follows (in billions): Gains or losses arising from transactions denominated in currencies other than the functional currency of the locations, the effect of premeasuring 74
assets and liabilities of foreign subsidiaries using U.S. dollars as their functional currency, and the results of our foreign currency hedging activities are reported in Automotive cost of sales, Automotive interest income and other non-operating income/(expense), net, and Selling, administrative, and other expenses. For additional discussion of hedging activities, see Note 26. The net after-tax gain/(loss) of this activity for 2009, 2008, and 2007 was $(757) million, $922 million, and $217 million, respectively. Revenue Recognition Automotive Sector Automotive sales consist primarily of revenue generated from the sale of vehicles. Sales are recorded when the risks and rewards of ownership are transferred to our customers (generally dealers and distributors). Marketing Incentives and Interest Supplements Marketing incentives generally are recognized by the Automotive sector as revenue reductions in Automotive sales. These include customer and dealer cash payments and costs for special financing and leasing programs paid to the Financial Services sector.
Supplier Price Adjustments ford frequently negotiate price adjustments with our suppliers throughout a production cycle, even after receiving production material.company recognize price adjustments when they reach final agreement with their suppliers. In general, they avoid direct price changes in consideration of future business; however, when these occur, our policy is to defer the financial statement impact of any such price change given explicitly in consideration of future business where guaranteed volumes are specified. 75
Raw Material Arrangements ford negotiate prices for and facilitate the purchase of raw materials on behalf of our suppliers. These raw material arrangements, which take place independently of any purchase orders being issued to our suppliers, are negotiated at arms length and do not involve volume guarantees to either party. When we pass the risks and rewards of ownership to our suppliers, including inventory risk, market price risk, and credit risk for the raw material, we record both the cost of the raw material and the income from the subsequent sale to the supplier in Automotive cost of sales. When we retain the risks and rewards of ownership, we account for the raw material as Inventory on our balance sheet.
Government Grants and Loan Incentives From time to time, company receive grants and loan incentives from domestic and foreign governments. Grants are recorded in the financial statements in accordance with their purpose, either as a reduction of expenses or a reduction of the cost of the capital investment. When recorded as a reduction of expense, grants are recorded as a reduction in Automotive cost of sales. The benefit of grants and loan incentives are recorded when performance is complete and all conditions as specified in the agreement are fulfilled.
Selected Other Costs Freight, engineering, and research and development costs are included in Automotive cost of sales; advertising costs are included in Selling, administrative and other expenses. Freight costs on goods shipped and advertising costs are expensed as incurred. Engineering, research and development costs are 76
expensed as incurred when performed internally or performed by a supplier when reimbursement is guaranteed.
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CHAPTER:-5
HUMAN RESOURCE MANAGEMENT
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Human resources This department also plays a big part as any company will need to have employees for it to run and make products. Human resources is there to give the employees peace at mind when working, the department will help the employees to resolve any problems which they have within the business.
This department looks as the recruitments of personnel for the Ford organisation. This department makes sure that the company has enough staff to run the company as a whole. I.e. Ford may need a special worker for manufacturing of a new car; the HR department will take care of recruiting and interviewing applicants for the vacancy.
HRM at ford : When 5500 people work together as a confident, inspired and motivated team, the rewards are great.
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Recruitment & selection process
Source of recruitment a. Internal Recruitment i. Promotion or movement across the unit or department. ii. Consultances. 1. Advertisig 2. Application process 3. Screening 4. Testing 5. Interviewing 6. Referencing 7. Selecting 80
iii. Employee referrals b. External Recruitment i. Campus Recruitment from educational and professional institutes: Campus recruitment will be coordinated entirely by HR department, who will establish the necessary contacts with campuses ii. Walk in interview. iii. Newspaper Advertising
Job description & job specification for various positions Job Description Sales Consultant Department: Sales Reports to: Sales Manager/ Corporate Sales Manager/ Team Leader
Overview: 81
Act as the principal contact between the Sales Department and potential customers. Sell new vehicles using the Quality Care Sales Process to meet gross profit, volume, and customer satisfaction standards Assist customers in determining vehicle needs and completing financing paperwork, where applicable. Offer and accompany customer(s) on a test drive. Use a map of the pre-determined test drive route to effectively demonstrate the performance of the vehicle. Offer customer assistance for trade-in & involve yourself in trade-in evaluation. Build customer loyalty and increases customer satisfaction through professionalism, trustworthiness, sincerity, attitude, and a business-like appearance during every customer experience. Maximize Dealership sales from an appropriate mix of business development activity and existing owner retention. Enthusiastically promote and be an advocate of the Ford brand. Duties and Responsibilities: 82
Meet or exceed monthly income and sales goals Know and competently perform the 10 Step Quality Care-Sales process Review/ develop and implement a daily prospecting action plan using QC-S Report #1(Sales Lead Work plan) & QC-S Report # 2 (Sales Consultant Prospecting & Sales Status). Follow up all Walk-out customers within 24 hours of initial contact. Use the follow up script provided by the management for this purpose. Demonstrate knowledge of the 6-position walk-around and competitive comparisons for all vehicles sold by the Dealership Complete a Potential Customer Record form (PCR) promptly (and accurately), for every contact at or away from the Dealership. Load the PCR data to the QC-S Web portal before leaving for the day Effectively prospect by phone, mail, e-mail, and face-to-face Follow up with customers to ensure ongoing customer satisfaction Ask for referrals at close & delivery in every deal by calling the customer on the 3rd day after delivery. Use the specific Post Delivery Follow up script provided by the management for this purpose. Provide excellent customer service by listening to customer inquiries and requests,asking questions to identify needs, resolving customer concerns, and selling additional services (Finance, Insurance, Registration , Accessories & Extended Warranty) when appropriate Assist other Sales Consultants when needed Follow all Sales Department policies and procedures Attend all product and sales process training as required Participate in show events/mall displays etc for prospect generation as directed by the management. Visit Corporate/companies for prospect generation as directed by the management. 83
Skill Requirements Excellent communication skills
Education/Certification Requirements High school or equivalent Some college or sales training preferred Valid drivers license Experience Two years in a customer service position preferred with a notable track record of customer satisfaction One year in retail sales with notable sales record for volume and profit Relationships Maintain close relationship with Stock Controller, PDI & Service to ensure timely delivery of vehicles sold Maintain close relationship with Business Manager/ Finance & Insure to ensure internal Dealership Finance & Insurance is maximized.
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Chief Executive OFFICER OVERVIEW
Manage the Sales Department to achieve agreed volume and Dealership profit objectives. Manage the advertising program to drive enquiry to King Fords sales team Manage inventory to balance between meeting obligations to Factory, customer delivery time expectations and minimized inventory carry cost Lead Customer Satisfaction aftersales standards and attain Dealership objectives Report to Dealer Principal Liaison with Principals for sales, service, spares & finance related matters. Supervise all personnel in the Sales Department
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DUTIES AND RESPONSIBILITIES
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Sales Management: Plan and report the dealerships operations for the past and coming year. Obtain, review & recommend improvements for each department managers monthly forecast/plan. Ensure that every department operates harmoniously and profitably. Develop and maintain a good working relationship with the factory and lending institutions. Formulate sales targets based on usage of High Income Work Plan (HIWP-QCS Template # 3). Ensure that the HPSS: Sales Consultants tool kit is available to all new Sales Consultants through the GSM/SM. Formulate policies and establish procedures for all training programs and monitor their effectiveness. Monitor that records are kept for all training & coaching programmes by GSM/SM. Review/monitor dealership daily traffic using QC-S Report # 3 (Dealership Total Traffic & Sales Activity) & Report # 4 (Dealership Traffic activity by Model Line). Conduct Weekly Sales Performance meeting based on QCS Report #2 (Sales Consultant Prospecting & Sales Status) & Report # 6 (Sales Consultant Comparison Report) using Sales Performance Control Whiteboard. Review QCS Report #5 (Sales Consultant Performance & Coaching Plan) at mid month and weekly thereafter. Approve the 90 day Training plan for Sales Team(developed byGSM/SM) and update monthly (around the 25 th ) based on QCS Reports #5(Sales Consultant Performance & Coaching Plan), # 6 (Sales Consultant Comparison report)& #7(Sales Consultant Coaching Recommendation). Ensure that all sales department staff including GSM/SM are updated on product knowledge by attending various training programmes conducted by the company. 87
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Customer Relationships: Build close relationships with key fleet clients. Implement and support Brand throughout all department activities. Ensure that post sales follow up calls are happening in a specified & timely manner. Ensure usage & updating of customer concern resolution log. Resolve customer complaints, and build a loyal customer base.
Staff Management: Oversee all dealership personnel functions including interviewing, hiring, measuring, and evaluating performance, recognizing accomplishments, and termination Direct and schedule the activities of all department employees Review and approve the compensation plans for all employees Establish and communicate managements policies and procedures to all sales people and ensure they are understood and followed. Complete a formal performance evaluation of each sales department manager annually Conduct managers meeting at scheduled intervals. Review and report GSM/SM & Sales Consultants performance. Conduct annual personnel reviews with all Sales team staff. Establish/maintain/build practices to train, develop, and motivate department employees. 89
Establish / maintain/monitor good housekeeping, safety & security procedures. Delegate the tasks to specific personnel to ensure compliance to company standards.
Administration: Develop and implement cost effective advertising and merchandising programs to build retail traffic to the showroom in consultation with GSM/SM. Recommend to the Dealer Principal the new-car inventory to be carried by color, model, and equipment, based on a variety of customer and market analysis In conjunction with the GSM/SM & finance Dept. review and forecast controllable expense elements for the new-vehicle Sales department Understand and comply with government regulations that affect new-vehicle sales Maintain standards for the delivery of vehicles to customers Approve Retail Orders / Deals Approve multiple volume Fleet Orders/ Deals SKILL REQUIREMENTS Action orientated Coaching staff, excellent communication skills, and excellent administrative skills.
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EDUCATION/CERTIFICATION REQUIREMENTS Valid drivers license. Ideally degree qualified. Completed Year 12 with Dealership selling experience or other relevant automotive experience with a strong emphasis on business skills preferred e.g. F&I
EXPERIENCE Five years of retail sales experience with supervision Previous supervisory experience required e.g. retail manager.
Job Description Receptionist
Department: Sales Reports to: General Manager/Sales Manager
Overview 91
Act as the principal personal contact between the Sales Department & Potential Customers. Act as the principal telephonic contact between the Sales Department and potential customers. Act as principal receiver of all e-mail, mail & courier documents. Ensure customer comfort. Ensure contact between walk in customer & sales consultant immediately. Enthusiastically promote and be an advocate of the Ford brand. Duties and Responsibilities 92
Greet all walk-in customers cheerfully with a smile. Listen to their request. Make them sit comfortably in the customer lounge. Offer water/refreshments. Introduce them to a sales consultant. Hand over a blank PCR card to the consultant for filling up & ensure to enter the details in your walk- in customer register. Provide excellent customer service by attending to phone-in customer inquiries and requests. Politely collect the contact details & then pass on the sales related calls to the sales team for further action. Assist the sales dept. staff for making any out-going telephone calls. Pass on all e-mail/ mail/courier leads received directly or through Ford India to the sales team so that action is taken on the same. Ensure to record lead in your register. In case members of the sales team are unavailable, call the customer & inform that a sales person will call back with all details as may be required by the customer. Ensure stock of blank PCR cards by co-ordination with the SM/GM Ensure co-ordination with the data entry staff to verify that all PCR cards given to Sales consultants have been filled & received for entry in the QC-S portal. Verify number of walk in & phone in customers against cards filled in from your walk in/phone in register. Report discrepancies to Sales Manager. Follow all Sales Department policies and procedures
Skill Requirements 93
Excellent communication skills Pleasing personality & manners Excellent telephone etiquette Excellent Computer Skills Education/Certification Requirements High school or equivalent Some college or sales training preferred
Experience One to Two years in a customer service position preferred with a notable track record of customer satisfaction Relationships Maintain close relationship with tele-calling team. Maintain close relationship with Sales Consultants/Team Leaders/Sales Manager. Maintain close relationship with Customer Relations Manager / F&I /Service to ensure customer satisfaction.
Different welfare activities 94
Employee Benefits
Ford Benefits: Our employees are our most valuable asset and are the driving force behind our success. That is why it is so important to us that our programs and employment practices recognize the diverse needs of all our employees. We invite to explore a company that is focused on designing better cars, but also cares about you, your family and your community. Employee Benefits: Medical Dental Vision Paid Vacation Paid Company Holidays Ford Flexible Work Program Savings & Stock Investment Plan (401K) Ford Retirement Plan Vehicle Purchase Plan Community Service Program Ford Employee Recreation Program (FERA)
Training and development 95
Training: Ford encourages a strong commitment by its employees to a vast range of training and development programs including a specialist training in : latest automotive production techniques TQM practices at ford including quality assurance HRM opportunities. That is customer service, recruitment, training, appraisal, induction. Equal opportunity policy Negotiation skill with staff and management Its also included, Induction (4 to 5 week for new staff) Competency based training (vehicle industry certificate 2 to 3 year) Team development training and job specification training Organization & personal performance (O & PP)
Induction training
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Need for induction of new recruits: Induction training is a process by which a new employee is situated into a milieu to establish a relation with the goal, objectives, vision, mission, practices, policies and strategies of the organization. It is a strategic means to welcome a new entrant and in the process to make him or her feel acknowledge as an honored member of the staff. They introduce following points to the new recruits in induction training. introduction of organization 6 demo step 10 steps QCS process Examination
Labour relations & activities of trade unions Industrial relation impact on employees. Enterprise bargaining agreements are quite flexible at ford Union involvement is significant
Wage & salary administration and compensation packages for various levels of employees 97
Payroll Ford privilege club superannuation
Incentives and motivation systems
Motivation: Rewards for 20, 25, 30, 35, 40 yrs anniversary Rewards and Recognition program prices given If individuals achieve their own top 5 priorities, reward and recognition is given Job Rotation every 2 to 3 months Motivational posters throughout the factory