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Ford Hires Transformation Officer to Improve Manufacturing Quality


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Ford Hires John Dion as Chief Transformation Officer to Improve Manufacturing Quality

https://www.freep.com/story/money/cars/ford/2023/03/21/ford-hires-john-dion-chief-transformation-officer/70032469007/

 

Ford CEO Jim Farley just hired a key executive who brings expertise that Farley learned during his years at Toyota.

 

John Dion becomes chief transformation officer at Ford on April 3 "to drive its rigorous and relentless pursuit of high quality, simplicity and low costs," the automaker announced Tuesday.

 

Dion has experience using "kaizen-based Lean manufacturing and transactional systems that prioritized exceptional people and plans and repeatable processes, leading to superior execution and performance," Ford said in a news release.

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Just what a company with layer after layer of management needs is another manager/executive hired for what is more "PR" to show how committed Ford is to improving vehicle quality! Imagine a whole series of meetings that result in a suggestion that Ford revive the "Quality is Job 1" advertising slogan to show how committed the company is. Or "Have You Driven a Ford Lately?" but the vehicle you want to drive can't be driven because of a recall!

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I thought Just In Time was a major contributor to the shortages and delays that Ford and others are experiencing. JIT works well if the entire supply chain from raw materials to finished product has no bottle necks.

On the other hand, I think Farley brought Dion on board to get Ford-E of to a good start,  and not allow any Assistant to the Vice Coordinator of the Department of Redundancy Department types to get in.

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1 hour ago, Chrisgb said:

I thought Just In Time was a major contributor to the shortages and delays that Ford and others are experiencing. JIT works well if the entire supply chain from raw materials to finished product has no bottle necks.

 

What it boils down to is that JIT experienced a black swan event in the form of COVID and the supply chains where not as resilient as they could have been. Then add in geopolitical issues that are pushing reshoring, and well we are where we are. 

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7 hours ago, Chrisgb said:

I thought Just In Time was a major contributor to the shortages and delays that Ford and others are experiencing. JIT works well if the entire supply chain from raw materials to finished product has no bottle necks.

On the other hand, I think Farley brought Dion on board to get Ford-E of to a good start,  and not allow any Assistant to the Vice Coordinator of the Department of Redundancy Department types to get in.


Just in time just gives you a smaller buffer.  With or without it you’re still dependent on suppliers ability to deliver long term.  A larger stock supply can help weather a short term event but this is not a short term event.  Overall Ford is doing pretty good compared to the industry - it’s just certain high demand vehicles that are causing heartburn for buyers.

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6 hours ago, 7Mary3 said:

I think Farley is drawing inspiration from Roger Smith at this point.  Reorganization is the answer to all problems.....


This isn’t a reorg - not yet anyway.  Think of this as a team of consultants that oversee all the other groups.  
 

It’s absolutely needed but why did he wait so long?  Because the warranty costs weren’t high enough until recently.  
 

This could be a good thing or it could just be more corporate speak overhead that doesn’t do anything permanent.  No way to tell.  But at least he’s doing something.

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10 hours ago, tarheels23 said:

Why do you think the Japanese and the Koreans have so few quility problems?  W. Edwards Deming and the systems he taught them in the 50's in Japan.  Farley understands based on his time at Toyota.

The Koreans have major quality issues.

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Deming went to Japan in the 50's because they were willing to listen, when American manufacturers were not.  They had the motivation to improve because their industrial base was devastated.  I don't think the Korean companies have ever been invested in lean principles like the Japanese companies have been.  But quality escapes do happen and can be major mistakes despite quality systems.  The problems come when you fail to correct those mistakes (i.e. the Hyundai / KIA engine issues).  Second point is that JIT manufacturing is not the same as lean.  JIT is a supply chain model, lean is a manufacturing principal to minimize waste and inefficiency.  So you don't necessarily have to follow a complete JIT supply process to be lean, and just because you are JIT doesn't mean you are lean.  Kaizen is an improvement event.  Kaizen is not a process or principal, it is just an event where processes are looked at and improved by everyone involved.  Kaizen is used as part of lean.

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34 minutes ago, Flying68 said:

  Second point is that JIT manufacturing is not the same as lean.  JIT is a supply chain model, lean is a manufacturing principal to minimize waste and inefficiency.

 

The other issue people don't realize that that JIT is encouraged by the government since if Ford had a stock up of parts for something, they could be taxed on it. That is how it was explained to me almost 20-30 years ago. 

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Here’s Ford Authoritie’s take on this matter:
 

“He'll be tasked with cutting costs and improving quality.”

https://fordauthority.com/2023/03/john-dion-to-join-ford-as-chief-transformation-officer/

 

I posted this more or less because of that take.  I would argue that it is because of Ford’s cost cutting that quality has suffered.  Is now the time to be focusing on cutting costs at a time when quality is at a low point? I suppose it depends on what types of costs are cut, but if it were me, I would be dumping a bunch a money into rectifying this problem as soon as possible, because it is giving a long time customer, like myself, second thoughts if I’m making the right purchasing decision, especially with how expensive the vehicles have gotten. I’m sure I’m not the only one that is or has had these thoughts as of late.  Alienating loyal customers because of quality is particularly not a good situation to be in, IMO.  

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On 3/21/2023 at 10:52 AM, ice-capades said:

Ford Hires John Dion as Chief Transformation Officer to Improve Manufacturing Quality

https://www.freep.com/story/money/cars/ford/2023/03/21/ford-hires-john-dion-chief-transformation-officer/70032469007/

 

Ford CEO Jim Farley just hired a key executive who brings expertise that Farley learned during his years at Toyota.

 

John Dion becomes chief transformation officer at Ford on April 3 "to drive its rigorous and relentless pursuit of high quality, simplicity and low costs," the automaker announced Tuesday.

 

Dion has experience using "kaizen-based Lean manufacturing and transactional systems that prioritized exceptional people and plans and repeatable processes, leading to superior execution and performance," Ford said in a news release.

__________________________________________________________________________________________________________________________________________________________________________

Just what a company with layer after layer of management needs is another manager/executive hired for what is more "PR" to show how committed Ford is to improving vehicle quality! Imagine a whole series of meetings that result in a suggestion that Ford revive the "Quality is Job 1" advertising slogan to show how committed the company is. Or "Have You Driven a Ford Lately?" but the vehicle you want to drive can't be driven because of a recall!

 

Amen!  And as to the comment that Farley learned all this at Toyota, I guess he has had that on the back burner for two years.  When I think of Toyota, what comes to mind first and foremost? Dependability!   Unfortunately it seems the electric bandwagon and the "good press" that brings has preoccupied Farley's time.

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3 hours ago, silvrsvt said:

No check the link out I posted also...but not being able to insure your car because its so easily stolen is a bit more inconvenient then taking it in for a recall...

My intention with the comment about Deming style management is simple SPC processes and the undestanding that a good product is only possible if there is an accurate and precise measnurment system used to confirm a stable and repeating process.

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43 minutes ago, tarheels23 said:

My intention with the comment about Deming style management is simple SPC processes and the undestanding that a good product is only possible if there is an accurate and precise measnurment system used to confirm a stable and repeating process.

 

I'm sure that Ford has a reporting system, but how well its actually used leaves alot to be desired :) 

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48 minutes ago, silvrsvt said:

 

I'm sure that Ford has a reporting system, but how well its actually used leaves alot to be desired :)

I started using the Deming/Ford developed SPC manual in late 80's thru the 2006.  I consulted with many different service and manufacturing industries and fould out the only person who needed to be convinced and involved was the LEADER.   Without that the entire result was doomed.

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6 hours ago, tbone said:

Here’s Ford Authoritie’s take on this matter:
 

“He'll be tasked with cutting costs and improving quality.”

https://fordauthority.com/2023/03/john-dion-to-join-ford-as-chief-transformation-officer/

 

I posted this more or less because of that take.  I would argue that it is because of Ford’s cost cutting that quality has suffered.  Is now the time to be focusing on cutting costs at a time when quality is at a low point? I suppose it depends on what types of costs are cut, but if it were me, I would be dumping a bunch a money into rectifying this problem as soon as possible, because it is giving a long time customer, like myself, second thoughts if I’m making the right purchasing decision, especially with how expensive the vehicles have gotten. I’m sure I’m not the only one that is or has had these thoughts as of late.  Alienating loyal customers because of quality is particularly not a good situation to be in, IMO.  


You didn’t read the article.

 

Quote

In his new role, Dion will be tasked with simplifying and streamlining Ford’s operations and improving its quality at the same time, using his knowledge of lean manufacturing – or Kaizen – and other related methodologies to lead the global deployment of methodologies and tools.


Simplifying and streamlining should improve both costs and quality if done right.

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3 hours ago, tarheels23 said:

I started using the Deming/Ford developed SPC manual in late 80's thru the 2006.  I consulted with many different service and manufacturing industries and fould out the only person who needed to be convinced and involved was the LEADER.   Without that the entire result was doomed.


I’ve been saying that for years.  The CEO not only has to believe it he has to demand it from everyone and hold everyone financially accountable.

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35 minutes ago, akirby said:


I’ve been saying that for years.  The CEO not only has to believe it he has to demand it from everyone and hold everyone financially accountable.

We helped many companies but during follpwup months or years later most failed because the president/CEO wanted his company to change but they expected to contimue what they had determined got them to their position woud keep them there so they refused to change their own behaivor which meant a new way of thinking and was really hard to do, really hard.

Some hypothesied that the Japenese had less problems with this thought process because of the Judeo/Christian ethic of Americans which determined things were either good or bad (pass/fail) versus how good or bad a thing was (variation).

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17 hours ago, tarheels23 said:

as bad as F?, I was not aware

https://jalopnik.com/hyundai-and-kia-will-lose-2-billion-on-fixing-bad-engi-1849671352

 

https://www.classaction.org/blog/new-hyundai-kia-engine-failure-settlement-covers-2m-additional-vehicles

 

Just google "Hyundai blown engine"

 

Funny watching a tech post videos.. he is doing one engine a day, has over 50 done this year to date and is estimating 225-250 by the end of the year at the going rate and when he pans across the shop at the dealership, it's crate after crate after crates of engines.

 

 

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