Applying Knowledge Management to Improve Quality.

Applying Applying Knowledge Knowledge

Management to Improve Management to Improve QualityQuality

2

High Priority given to Quality at High Priority given to Quality at Ford Motor CompanyFord Motor Company

Strategy: Quality is JOB #1

Quality Operating System (QOS)

Performance to StandardsQuality Leadership Initiative (QLI)

Engage all employees

Consumer Driven 6-Sigma

Data driven decision making

3

Leverage Quality Improvement Leverage Quality Improvement ProgramsPrograms

Corporate Strategy: Quality is JOB 1

Top Down: Corporate Programs - QOS, QLI, 6-

Sigma…

Bottom Up: Employee based proven methods to improve quality…

…apply Knowledge Management

4

Applying KM to Improve Applying KM to Improve QualityQuality

Illustrative examples will be Illustrative examples will be displayed and discussed displayed and discussed during the presentationduring the presentation

5

Measurable Quality Improvements Measurable Quality Improvements at Ford Motor Companyat Ford Motor Company

JD Power Initial Quality Study: JD Power Initial Quality Study: Ford Motor Company Ford Motor Company products had more than 16% improvement 2002-products had more than 16% improvement 2002-20032003

Consumer Reports 2004 – New Car Consumer Reports 2004 – New Car Preview – Preview –

19 Ford Motor Company products 19 Ford Motor Company products received received

“ “Recommended Buys”Recommended Buys”

Warranty Spending is down Warranty Spending is down 18% 18%

from 2002from 2002

Consumer Driven 6-Sigma effortsConsumer Driven 6-Sigma efforts saved more than $1.3 B since its saved more than $1.3 B since its

inception in 2000inception in 2000

Source: FCN December 15th, 2004, & 2003 Annual Report

6

Ranked #4 by Fortune 500Ranked #4 by Fortune 500 Manufacture and distribute Manufacture and distribute

automobiles in 200 markets across automobiles in 200 markets across 6 Continents6 Continents

2003 Global Revenues: $164 Billion2003 Global Revenues: $164 Billion 327,000 Employees327,000 Employees

2003 - Celebrated 1002003 - Celebrated 100thth Anniversary Anniversary

7

Very Brief History ofVery Brief History ofBest Practice ReplicationBest Practice Replication

1994: 1994: Formalized Formalized process of process of

replicating proven replicating proven practicespractices

1995 – 1995 – Faxing best Faxing best practices amongst practices amongst vehicle assembly vehicle assembly

plantsplants

1996: 1996: Launched Ford Launched Ford Web Hub; BPR Web Hub; BPR used the Web used the Web

across 53 across 53 plants globally.plants globally.

As of 2004: As of 2004: Launched Launched 53 communities of 53 communities of practice. 2,334 Focal practice. 2,334 Focal Points: Vehicle Points: Vehicle Assembly, Plant HR, Assembly, Plant HR, Paint Engineering, Paint Engineering, Ergonomics, Safety, Ergonomics, Safety, Plant IT, Finance, Plant IT, Finance, Environmental…Environmental…

8

BPR PrinciplesBPR Principles

Capture only Capture only Proven, High Proven, High

Value PracticesValue Practices

Value-Add to Value-Add to business business must be must be

identifiedidentifiedManage the Manage the

ProcessProcess

Business Partners Business Partners provide theprovide the content content and and

thethe people, people, IT group IT group provides theprovides the enabling enabling

tooltool

9

Practice Practice Implemented Implemented

at a Ford at a Ford FacilityFacility

Review by Review by each Locationeach Location

ApproveApprove & Distribute& DistributeCollectCollect

Management Management Review Review

of Resultsof Results

Adopt/ Adopt/ Don’t AdoptDon’t Adopt

DecisionDecision

LessonsLessonsLearnedLearned

InspirationInspiration

FPSFPS

CPIPSCPIPS

SiteSiteVisitsVisits

Practice is Proven Practice is Proven AND generates AND generates

ValueValue

TaskTask

Best Practice Replication with prescribed Roles & ResponsibilitiesBest Practice Replication with prescribed Roles & Responsibilities

Many Many Sources of Sources of

IdeasIdeas8Ds8Ds

Selection and Replication of Selection and Replication of Proven Practices at FordProven Practices at Ford

6-Sigma6-Sigma

10

Typical BPR Typical BPR Community of PracticeCommunity of Practice

Senior Senior LeadershipLeadership

Site 1Site 1

Focal PointFocal Point

Site 3Site 3Site 2Site 2 etc.etc.

Community Gatekeeper

Knowledge

WorkersKnowledge Workers Knowledge Workers Knowledge Workers

Focal PointFocal Point Focal PointFocal Point Focal PointFocal Point

11

Best Practice Replication 9 Step Process

DRAFT PRACTICE: Focal Point at Locations enter Proven Practices:

1REVIEW DRAFT PRACTICES:

Gatekeeper looks for replicable practices;

Collaborates with SMEs.

APPROVE PRACTICE: Gatekeeper approves only

replicable high-value practices.

PUSH the KNOWLEDGE: Outlook email notification to all Community

Focal Points at each Location.

PRACTICES REVIEWED by each location team

members for applicability.

ADAPT/ ADOPT/ NOT ADOPT DECISION made at each

location. “Copy with Pride”

FEEDBACK: Focal Point at each location enters adopt/not adopt

decision.

REPORTS: Progress Reports available to all

PEER RECOGNITION of practice originators &

replicators.

2

654

7 8 9

3

12

BPR Results SummaryBPR Results Summary

2,800+ active high value 2,800+ active high value practices.practices.

Since 1996: Average Since 1996: Average of 10,000+of 10,000+ replications/yrreplications/yr

53 Communities of 53 Communities of PracticePractice

2,334 active Focal 2,334 active Focal PointsPoints

ProcessProcess licensed to Shell Oil, licensed to Shell Oil, Nabisco, Kraft Foods, and US NavyNabisco, Kraft Foods, and US Navy

13

ContactsContacts

Stan Kwiecien Stan Kwiecien [email protected]@ford.com

Best Practice Replication Deployment Best Practice Replication Deployment ManagerManager

Sanjay SwarupSanjay [email protected]@ford.com

Senior Knowledge Management Senior Knowledge Management SpecialistSpecialist

Dar WolfordDar [email protected]@ford.com

Manager, Venture Transitions and Knowledge Manager, Venture Transitions and Knowledge ManagementManagement

Robyn ValadeRobyn [email protected]@ford.com

Best Practice Integration Best Practice Integration ManagerManager

14

Applying KM to Improve Quality # 1Applying KM to Improve Quality # 1

KM System must capture Knowledge AND KM System must capture Knowledge AND value metrics (Cost Savings, Quality, etc.)value metrics (Cost Savings, Quality, etc.)

15

Applying KM to Improve Quality # Applying KM to Improve Quality # 11

BPR has 168 different types of value BPR has 168 different types of value metrics in 6 broad categories metrics in 6 broad categories

16



17


KM System must capture KM System must capture Quality Improvement PracticesQuality Improvement Practices

from ALL areas of the Enterprise.from ALL areas of the Enterprise.

18



19

Paint EngineeringPaint Engineering Final AssemblyFinal Assembly Stamping OperationsStamping Operations

EnvironmentalEnvironmental Ford FinancialFord Financial Industrial MaterialsIndustrial Materials

Human ResourcesHuman Resources Lean Manufacturing (Ford Production System)Lean Manufacturing (Ford Production System) EnergyEnergy

All 53 Communities of Practice share quality improvement practices: Examples


20


Capture the replication and feedback Capture the replication and feedback of Improved Quality Practicesof Improved Quality Practices

21

Applying KM to Improve Quality Applying KM to Improve Quality # 3# 3


22


Establish a Robust process toEstablish a Robust process to

transfer replicable findings of closed 6-transfer replicable findings of closed 6-Sigma projects to the KM SystemSigma projects to the KM System

23



24


Leadership MUST provide ongoing Leadership MUST provide ongoing encouragement and support for encouragement and support for

initiating AND replicating Quality initiating AND replicating Quality Improvement PracticesImprovement Practices

25


Sample of Recognition given to Initiators Sample of Recognition given to Initiators

26

Why use KM to Leverage Quality Why use KM to Leverage Quality Efforts?Efforts?

Quality Improvement without KM

Quality Improvement

with KM

Quality Local only Enterprise-wide

Value

Effort

Value generated is local only

Maximize Value Enterprise-wide

Minimal additional effort for Enterprise-wide replication

Max effort at one location

27

High KM activity AND High Quality High KM activity AND High Quality Improvement activity = Maximum Improvement activity = Maximum

ValueValue

KM activity

Medium Value Maximum Value

Medium ValueMinimum Value

Quality Improvement Activity

HighLow

Low

High

28

Recap:Recap: Applying KM to Improve Quality Applying KM to Improve Quality

1: Capture Knowledge AND Value Metrics

#2: Enable enterprise wide capture of #2: Enable enterprise wide capture of Quality improvementsQuality improvements

#3: Replicate and capture feedback#3: Replicate and capture feedback

#4: Robust Process of linking KM and 6-Sigma#4: Robust Process of linking KM and 6-Sigma

#5: Leadership MUST provide #5: Leadership MUST provide ongoingongoingencouragement and supportencouragement and support

Applying Knowledge Management to Improve Quality.

Documents

ford practice

best practices

communities of practice

replicable practices

ford facilityreview

ford motor companystrategy

active high value practices

ford motor company products