Managing Quality Part II

Better Quality = Much Happier Customers

At Ford Motor Company better quality is translating into fewer trips to the Able Ford Dealership for warranty repairs and that leads to happier customers. The latest J.D. Power and Associates’ 2008 Customer Service Index (CSI) study shows a historic low across the industry in the proportion of customers bringing their vehicles to the dealer for repair work versus maintenance, as well as an increase in overall satisfaction.

For example, 51% of Ford service customers were in for maintenance work back in 2005 and 49% were in for repair work. In 2008, the maintenance rate jumped to 66% and the repairs dropped to 34%. The company’s ongoing efforts to increase quality can be pinpointed as one reason for the trend.

“This is further proof that Ford’s quality processes are working,” says Bennie Fowler, group vice president, Quality. “We’re launching with quality – right out of the factory – and that leads to long-term durability for our customers.”
The CSI study – which explores satisfaction with dealer maintenance and repair services – ranked Lincoln and Mercury fifth and sixth, respectively, while Ford brand improved at a greater rate than the industry average.

Investing in Quality

Several of Ford’s powertrain plant employees received Six Sigma Black Belt training under a new program that formalizes the Quality Operating System Coordinator (QOSC) position. The positions, which give UAW members control over quality, were first introduced in the early 2000s as a one-year experiment, but quickly became an integral part of quality management. The QOSCs finished their Black Belt coursework and will take the mandatory tests to achieve the prestigious Six Sigma Black Belt certification, with the goal of having at least two Black Belts per plant. The number of QOSCs per plant varies depending upon size, product and volume, but on average there are six per plant.

The QOSCs devote 100 percent of their workday to monitoring quality process and procedure adherence and cannot be pulled from their job to replace an absent employee on the line. They ensure that every employee at every station understands precisely what they need to do and how to do it.

Since the introduction of QOSCs, Ford’s rating in initial and long-term quality surveys has seen an upward trend. Ford’s brand went up by eight points over last year, beating the industry seven-point rate of improvement, according to J.D. Powers and Associate’s Initial Quality Study. Shortly thereafter, the Global Quality Research System durability study noted that Ford brand improved at a rate of 3 percent verses the industry average of 1 percent.