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Applying Knowledge Management to Improve Quality

Applying Knowledge Management to Improve Quality. High Priority given to Quality at Ford Motor Company. Strategy: Quality is JOB #1. Quality Operating System (QOS) Performance to Standards. Quality Leadership Initiative (QLI) Engage all employees. Consumer Driven 6-Sigma

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Applying Knowledge Management to Improve Quality

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  1. Applying Knowledge Management to Improve Quality

  2. High Priority given to Quality at Ford Motor Company Strategy: Quality is JOB #1 Quality Operating System (QOS) Performance to Standards Quality Leadership Initiative (QLI) Engage all employees Consumer Driven 6-Sigma Data driven decision making

  3. Leverage Quality Improvement Programs Corporate Strategy: Quality is JOB 1 Top Down: Corporate Programs - QOS, QLI, 6-Sigma… Bottom Up: Employee based proven methods to improve quality… …applyKnowledge Management

  4. Applying KM to Improve Quality Illustrative examples will be displayed and discussed during the presentation

  5. Measurable Quality Improvements at Ford Motor Company JD Power Initial Quality Study: Ford Motor Company products had more than 16% improvement 2002-2003 Consumer Reports 2004 – New Car Preview – 19 Ford Motor Company products received “Recommended Buys” Warranty Spending is down 18% from 2002 Consumer Driven 6-Sigma efforts saved more than $1.3 B since its inception in 2000 Source: FCN December 15th, 2004, & 2003 Annual Report

  6. Ranked #4 by Fortune 500 Manufacture and distribute automobiles in 200 markets across 6 Continents 2003 Global Revenues: $164 Billion 327,000 Employees 2003 - Celebrated 100th Anniversary

  7. Very Brief History ofBest Practice Replication 1994: Formalized process of replicating proven practices 1995 – Faxing best practices amongst vehicle assembly plants 1996: Launched Ford Web Hub; BPR used the Web across 53 plants globally. As of 2004: Launched 53 communities of practice. 2,334 Focal Points: Vehicle Assembly, Plant HR, Paint Engineering, Ergonomics, Safety, Plant IT, Finance, Environmental…

  8. BPR Principles Capture only Proven, High Value Practices Manage the Process Value-Add to business must be identified Business Partners provide the content and the people, IT group provides theenabling tool

  9. Selection and Replication of Proven Practices at Ford Task Lessons Learned Site Visits FPS Many Sources of Ideas 6-Sigma CPIPS 8Ds Inspiration Practice Implemented at a Ford Facility Practice is Proven AND generates Value Best Practice Replication with prescribed Roles & Responsibilities Approve & Distribute Review by each Location Adopt/ Don’t Adopt Decision Management Review of Results Collect

  10. Typical BPR Community of Practice Senior Leadership Community Gatekeeper etc. Site 2 Site 1 Site 3 Focal Point Focal Point Focal Point Focal Point Knowledge Workers Knowledge Workers Knowledge Workers Knowledge Workers

  11. Best Practice Replication • 9 StepProcess 3 1 2 REVIEW DRAFT PRACTICES: Gatekeeper looks for replicable practices; Collaborates with SMEs. APPROVE PRACTICE: Gatekeeper approves only replicablehigh-value practices. DRAFT PRACTICE: Focal Point at Locations enter Proven Practices: 4 5 6 PUSH the KNOWLEDGE:Outlook email notification to all Community Focal Points at each Location. PRACTICES REVIEWEDby each location team members for applicability. ADAPT/ ADOPT/ NOT ADOPT DECISIONmade at each location. “Copy with Pride” 7 8 9 FEEDBACK: Focal Point at each location enters adopt/not adopt decision. REPORTS: Progress Reports available to all PEER RECOGNITIONof practice originators & replicators.

  12. BPR Results Summary Since 1996: Average of 10,000+replications/yr Processlicensed to Shell Oil, Nabisco, Kraft Foods, and US Navy 2,800+ active high value practices. 53 Communities of Practice 2,334 active Focal Points

  13. Contacts Stan Kwiecien skwiecie@ford.com Best Practice Replication Deployment Manager Sanjay Swarup sswarup@ford.com Senior Knowledge Management Specialist Robyn Valade rvalade@ford.com Best Practice Integration Manager Dar Wolford dwolford@ford.com Manager, Venture Transitions and Knowledge Management

  14. Applying KM to Improve Quality # 1 KM System must capture Knowledge AND value metrics (Cost Savings, Quality, etc.)

  15. Applying KM to Improve Quality # 1 BPR has 168 different types of value metrics in 6 broad categories

  16. Applying KM to Improve Quality # 1 Illustrative examples will be displayed and discussed during the presentation

  17. Applying KM to Improve Quality # 2 KM System must capture Quality Improvement Practices from ALL areas of the Enterprise.

  18. Applying KM to Improve Quality # 2 Illustrative examples will be displayed and discussed during the presentation

  19. Applying KM to Improve Quality # 2 All 53 Communities of Practice share quality improvement practices: Examples • Paint Engineering • Final Assembly • Stamping Operations • Environmental • Ford Financial • Industrial Materials • Human Resources • Lean Manufacturing (Ford Production System) • Energy

  20. Applying KM to Improve Quality # 3 Capture the replication and feedback of Improved Quality Practices

  21. Applying KM to Improve Quality # 3 Illustrative examples will be displayed and discussed during the presentation

  22. Applying KM to Improve Quality # 4 Establish a Robust process to transfer replicable findings of closed 6-Sigma projects to the KM System

  23. Applying KM to Improve Quality # 4 Illustrative examples will be displayed and discussed during the presentation

  24. Applying KM to Improve Quality # 5 Leadership MUST provide ongoing encouragement and support for initiating AND replicating Quality Improvement Practices

  25. Applying KM to Improve Quality # 5 Sample of Recognition given to Initiators

  26. Why use KM to Leverage Quality Efforts? Quality Improvement without KM Quality Improvement with KM Quality Local only Enterprise-wide Value generated is local only Maximize Value Enterprise-wide Value Effort Max effort at one location Minimal additional effort for Enterprise-wide replication

  27. High KM activity AND High Quality Improvement activity = Maximum Value Medium Value Maximum Value High Quality Improvement Activity Minimum Value Medium Value Low Low KM activity High

  28. Recap: Applying KM to Improve Quality 1: Capture Knowledge AND Value Metrics #2: Enable enterprise wide capture of Quality improvements #3: Replicate and capture feedback #4: Robust Process of linking KM and 6-Sigma #5: Leadership MUST provide ongoing encouragement and support

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