Faculty of Business and Accountancy

(Academic Year: 2/22/34)

Semester: AUGUST 2022

ARTICLE REVIEW COVER PAGE

Course details
Course Code : PMS 3383
Course Name : QUALITY MANAGEMENT
Lecturer’s Name : MADAM NAFIZA MAHAYUDDIN
Group Number : GROUP 11

Assignment Detail
Title of Newspaper Cutting Article : At Ford, Quality Is Now Problem 1

Student’s Detail

NAME MATRIC NO. COURSE

1. SANTHIYA A/P V. VELU 4202034051 BHRM

2. JEYASREE A//P JEYEMTHIRAM 4202031881 BHRM

3. SUNITHA A/P THANARAJ 4203003811 BHRM

4. TURGKASHINI A/P KUMARAVEL 4202038121D BHRM

5. ANITHAH A/P RAMES 4202037321D BHRM

Article Review Overall Marks:

CLO 1 /5

CLO 2 /10

TOTAL MARKS /15

 SEMESTER AUGUST 2022
2/22/34

Quality Management Assignment 1

Marking Scheme for Article Review

Course code and Course Name: PMS 3383 Quality Management

Excellent Good Average Fair Poor

Criteria Max
5 4 3 2 1
Marks

Clear and detailed Clear and Clear but brief Vague and brief Little review
Literature review of the subject somewhat review of the review of the was conducted.
Review on was conducted. detailed review subject was subject was
poor quality of the subject conducted. conducted.
issues was conducted.

Quality Clear and detailed Clear and Clear but brief Brief discussion Little quality
Improvement explanation on somewhat explanation of on proposed improvement
Activities proposed quality detailed proposed quality quality activities
using 7QC improvement activities explanation on improvement improvement highlighted.
tools was discussed. Quality proposed quality activities being activities.
tools are relevant. improvement discussed.
Examples of activities.
improvement projects Quality tools are
highlighted. relevant.

Conclude the Excellent conclusion Good Fair conclusion Little Weak

quality which is concisely and conclusion which indicates conclusion conclusion was
improvement precisely written. It which indicates reasonable which does not given.
outcome provides concluding considerable analysis and indicate an
remarks that shows an analysis and synthesis of attempt to
analysis and synthesis synthesis of ideas of overall synthesize the
of ideas of overall ideas of overall answer. discussion.
answer. answer.

Total points
Comment : ___________________________________________________________

Marker’s name : MADAM NAFIZA MAHAYUDDIN

Marker’s signature : ________________ Date : _______________

 TABLE OF CONTENT

NO CONTENT PAGES

1 Quality Issues that arise in article 1

2 Total Quality Tool 1 2

3 Total Quality Tool 2 3

4 Conclusion 4

5 References 5

6 Newspaper Cutting Article 6-9

 ANALYZE THE QUALITY ISSUES ARISE IN THE ARTICLE

According to the aforementioned article, Ford's electric vehicle battery issue is the key
concern. This problem has recently this year in May been strengthened by the fires that
were reported while the automobiles were parked. Ford recalled around 49,000 Mustang
Mach-E electric SUVs in June as well amid worries that the battery contractors would
possibly overheat and result in the loss of power. Additionally, claims of "catastrophic
engine failure" in 2021 Ford Broncos occurring at highway speeds have surfaced this year.
In conclusion, it was discovered that Ford was the root of all these issues because it tried
to make too many last-minute engineering and design changes before the introduction of
new vehicles, raising the possibility of problems in the future. As an analyst for
Morningstar Inc., David Whiston stated, for those new and really good vehicles, you don't
need to look troubles right out of the gate. That implies a challenge with either design,
engineering, or manufacturing execution.

1
 TOTAL QUALITY TOOL 1

FLOW CHART

Under body
Basic structure takes shape in
START Production process provided to the
starts in press shop weld
automobile department

Automobile enters Automobile is Automobile Body in white is

to the engine painted and polish enters in paint created
department department

Engine & trans

axle is installed in Final fitment Testing Approved for
automobile approved sale

END

2
 TOTAL QUALITY TOOL 2

CAUSE-AND-EFFECT DIAGRAM

A cause-effect diagram is a graphic representation of potential explanations for a particular

problem or consequence that suggests causal linkages across hypotheses. It is used to logically
organize potential causes.

Material Machinery

Not correctly use carbon Extreme engine bay

fiber temperature
Poor Maintenance
Not place of traditional
steel
Less use fusion models Alternator overcharging

Paint Shorted battery

blemish
Battery
overheat and
catastrophic
engine
failure

Standard of air pressure is not Work error

setting
Work instruction unclear Untrained workers

Majority workers are semi-

Instruction were not followed skilled

Make too many last minutes

Fast driving engineering changes

Methods Manpower

3
 CONCLUSION

In summary, we should pressure that obligation regarding quality can't rest solely with the
creation division. Advertisers should likewise be dynamic in adding to impression of value.
Advertisers have been too uninvolved in overseeing quality. Fruitful organizations of today
will utilize promoting procedures to plan, plan, and execute quality techniques that stretch past
the industrial facility floor. Product quality is significant in light of the fact that it influences
the progress of the organization and lays out its standing in client markets. In this article,
passage as of late introduced camcorders to screen the early form of their vehicles — before
creation — to focus on any means they can dispense with or streamline. Higher tech cameras
are presently used to investigate the vehicles for quality, as well, permitting laborers to scour
for an inaccurately positioned hose or a paint imperfection, Mr. Halliburton said. It currently
sets its quality focuses against the benchmarks of its rivals, he said. One model, he said, is the
nature of Ford’s Bronco SUV as contrasted and the Jeep Wrangler. With that, he hopes to
likewise retouch Ford's standing with baffled clients. Quality is basic to fulfilling your clients
and holding their unwavering so they keep on purchasing from you later on. Quality items
make a significant commitment to long haul income and productivity.

4
 REFERENCES

• By Indeed Editorial Team, Updated June 29, 2022, Published June 15, 2021
Understanding Product Quality.
https://www.indeed.com/career-advice/career-development/product-quality.

• Larry Alton. Independent Business Consultant Freelance. (July 28, 2016). Why
Quality Is the Most Important Thing to Your Customers.
https://www.mycustomer.com/community/blogs/larryalton/why-quality-is-the-
most-important-thing-to-your-customers

• By Hafizh Rizqi, Updated 10 January 2022, Ford Aluminum Body: Is it better

than steel?
https://www.motorverso.com/ford-aluminum-body/

• This entry was posted on 08 April 2021 under Blog & General & Group 1 Cars
https://www.group1cars.co.za/blog/car-manufacturing-process/

• By Nora Eckert, Updated Aug. 6, 2022 12:44 pm ET, THE WALL STREET
JOURNAL
https://www.wsj.com/articles/at-ford-quality-is-now-problem-1-11659758404

5
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https://www.wsj.com/articles/at-ford-quality-is-now-problem-1-11659758404

AUTOS INDUSTRY

At Ford, Quality Is Now Problem 1

Ford used to tout the reliability of its vehicles in ads. After a string of recalls, the auto maker is
trying to change how it finds problems.
By Nora Eckert Follow
Updated Aug. 6, 2022 12:44 pm ET

Josh Halliburton joined Ford F -2.28% ▼ Motor Co. in January to help improve its shaky quality
record. Within months it was clear how big a challenge he faced.

In May, the auto giant recalled some Ford Expeditions and Lincoln Navigators after reports of fires
while vehicles were parked. In June, it recalled roughly 49,000 Mustang Mach-E electric SUVs over
concerns that the battery contactors could overheat and cause the vehicle to lose power. In the first
seven months of the year, Ford had 46 separate safety recalls on 6.8 million vehicles, more than any
other U.S. auto maker.

“That’s not good enough,” said Mr. Halliburton, Ford’s newly hired executive director of quality. “We
want to be a quality leader.”

An auto maker once touted for its quality record—“Quality is Job 1” was its slogan for much of the
1980s and 1990s—is betting that Mr. Halliburton can help restore its reputation. The 46-year-old
executive comes from auto research firm J.D. Power, where he advised companies on production
quality, and his strategy at Ford is to improve how the company identifies problems. He is installing
video cameras to catch flaws while products are being built, adding more monitoring of social media
to find complaints flagged by customers and pressing workers to raise their hands early about design
and production challenges.

The task of this new quality czar is central to the company’s larger ambition to challenge Tesla Inc.
and other rivals for electric-vehicle superiority in the years ahead. The billions of dollars Ford
spends each year on warranty repairs and recalls make it more difficult to reach its goal of shaving $3
billion in annual costs by 2026 and free up spending for new electric-vehicle models, battery plants
and manufacturing plants. Last year Ford set aside more than $4 billion for warranty costs, up 76%
from five years earlier. Its total warranty expenses increased about 17% from 2016 to 2021.
The problems also raise the stakes for the 119-year-old company as it tries to snatch new customers
interested in EVs. Chris Spears, a 34-year-old customer service manager for an oil-and-gas company
and Mustang Mach-E owner, said the latest recall of his vehicle gave him second thoughts about the
brand after purchasing Ford vehicles for years.

“Maybe next time we need to take a look at a different manufacturer,” said Mr. Spears, who lives in
the Dallas area.

Quality problems have long been a drag on the company’s bottom line. Ford took hefty charges
against its earnings several times in the last decade to address issues, and it contended with bungled
new-model launches that led to delays. When Chief Executive Jim Farley took over in October 2020,
he made quality a top priority, pledging to lower warranty-related costs and earn back customers’
trust.

“For these new and very desirable vehicles, you don’t want to see problems right out of the gate,”
said David Whiston, an analyst for Morningstar Inc. “That implies a problem with either design,
engineering or manufacturing execution.”

The problems continued in 2021. That year Ford allocated $1,041 per vehicle for covering warranty
claims compared with $713 per vehicle for larger rival General Motors Co., according to an analysis
by Warranty Week, a trade newsletter for warranty management professionals. Ford said it can be
difficult to compare companies because each reports warranty data differently, but didn’t dispute the
accuracy of the Warranty Week analysis. GM didn’t dispute the numbers, either.

This year, in addition to the recalls, auto-safety regulators also opened a defect investigation into
2021 Ford Broncos after receiving reports of what an auto-safety regulator called “catastrophic
engine failures” at highway speeds.

“We continue to be hampered by recalls and customer satisfaction actions,” Mr. Farley said in a July
earnings call. “This affects our cost but more importantly, it falls short on our most fundamental
commitment to our customers.”
The hiring of Mr. Halliburton is part of the latest attempt to find a solution. His arrival came three
months before the creation of a Transformation and Quality Office that stands independent from
operations and is led by Stuart Rowley, who reports to the CEO and is now chief transformation and
quality officer. Mr. Halliburton reports to Mr. Rowley and leads the 200 people within Ford’s quality
organization.

An electrical engineer by training, he has long enjoyed tinkering with old cars and motorcycles in his
spare time, said former colleague Dave Sargent, who has known him since 2007.

He also worked for Ford before, from 2000 to 2004, as a launch engineer. After he left the company,
he stayed connected. While he worked as a consultant with research firm J.D. Power, his job was to
help clients improve their production quality. He assisted with improvements in more than 100
factories around the world, and Ford was among his clients.

“They knew what they were buying before they bought it,” said Mr. Sargent.

Warranty accruals per vehicle sold

$1,200

1,000

800

600
 400

200

0 Toyota Hyundai General Motors Stellantis Ford

2012 ’21 2012 ’21 2012 ’21 2012 ’21 2012 ’21

Source: Warranty Week

Those who worked with Mr. Halliburton at J.D. Power, where over 17 years he rose to become vice
president of global consulting and head of European operations, described him as collaborative,
decisive and a quick wit. “He’s pretty gregarious, especially for a quality engineer,” said Mr. Sargent,
a vice president of connected vehicles at J.D. Power.

One of the challenges he identified at Ford was that it tried to make too many last-minute design and
engineering changes ahead of a new-vehicle launch, increasing the risk of problems down the line.
He said workers rallied to fix problems when they blew up, but weren’t empowered to flag them early
in the process when there was still time to head them off.

“It wasn’t a top priority,” he said. “Everyone wants to make sure they can hit the targets we are
aiming to achieve. If the goal was to launch on time, we were often focused on getting to launch
versus prioritizing quality.”

It’s important, he said, to reward those people who do find problems early. “We are aligning specific
objectives to the directly responsible individuals for the aspects of quality they are in control of,” he
said. “Thus making it much more clear how each person directly fits into our quality goals.”

Jake Fisher, senior director for automotive testing at Consumer Reports, said Ford has too many
new-model launches bunched together and often makes more substantive changes in its redesigns,
while other car companies use more carry-over parts. Rolling out a new model is fraught with
difficulties for any car company, so the closer the launches are together in timing, the more
complicated they become, Mr. Fisher said.

“They make a lot of changes very quickly, and then go for a time without making any changes at all,”
Mr. Fisher said. Mr. Halliburton said vehicle-launch strategy is part of the problem but not the whole
problem.

Changing how Ford tests its products is another part of his strategy. Ford recently installed video
cameras to monitor the early build of their vehicles—before production—to target any steps they can
eliminate or simplify. Higher tech cameras are now used to inspect the vehicles for quality, too,
allowing workers to scour for an incorrectly placed hose or a paint blemish, Mr. Halliburton said.
“We are placing more time and emphasis on ensuring everything is done right upfront to prevent
quality issues from manifesting later in the development process,” he added.

The quality czar is also paying more attention to customers who highlight problems on social media.
The company has an “Always On” team that monitored different platforms during the launch of
Ford’s Mustang Mach-E and sometimes engaged with customers about their complaints. That team
has since expanded its scrutiny to conversations about other models, such as the electric F-150
Lightning pickup, traditional gas-engine F-150 and Bronco. The team also tracks for any trends about
complications.

How Ford compares itself to rivals in quality has changed, too. It now sets its quality targets against
the benchmarks of its competitors, he said. One example, he said, is the quality of Ford’s Bronco SUV
as compared with the Jeep Wrangler.

Mr. Halliburton said he expects to see Ford’s warranty problems improve next year, but it may take
two to three years to see the most impactful results. With that, he expects to also mend Ford’s
reputation with frustrated customers.

“I knew it would be an interesting challenge to tackle,” he said.

Corrections & Amplifications

Ford recalled roughly 49,000 Mustang Mach-E electric SUVs in June over concerns that the battery
contactors could potentially overheat and cause the vehicle to lose power An earlier version of this
article incorrectly said the vehicles were recalled because of concerns that the battery could
overheat. (Corrected on Aug. 6)

Write to Nora Eckert at nora.eckert@wsj.com

Appeared in the August 6, 2022, print edition as 'Quality Is Problem 1'.