SanjaySwarup,SeniorKnowledgeManagementSpecialistFordMotorCompanySantaClara,CaliforniaApplyingKnowledgeManagementtoImproveQualityBestPracticeReplicationBPR2HighPrioritygiventoQualityatFordMotorCompanyStrategy:QualityisJOB#1QualityOperatingSystem(QOS)PerformancetoStandardsQualityLeadershipInitiative(QLI)EngageallemployeesConsumerDriven6-SigmaDatadrivendecisionmakingBestPracticeReplicationBPR3LeverageQualityImprovementProgramsCorporateStrategy:QualityisJOB1TopDown:CorporatePrograms-QOS,QLI,6-Sigma…BottomUp:Employeebasedprovenmethodstoimprovequality……applyKnowledgeManagementBestPracticeReplicationBPR4ApplyingKMtoImproveQualityIllustrativeexampleswillbedisplayedanddiscussedduringthepresentationBestPracticeReplicationBPR5MeasurableQualityImprovementsatFordMotorCompanyJDPowerInitialQualityStudy:FordMotorCompanyproductshadmorethan16%improvement2002-2003ConsumerReports2004–NewCarPreview–19FordMotorCompanyproductsreceived“RecommendedBuys”WarrantySpendingisdown18%from2002ConsumerDriven6-Sigmaeffortssavedmorethan$1.3Bsinceitsinceptionin2000Source:FCNDecember15th,2004,&2003AnnualReportBestPracticeReplicationBPR6Ranked#4byFortune500Manufactureanddistributeautomobilesin200marketsacross6Continents2003GlobalRevenues:$164Billion327,000Employees2003-Celebrated100thAnniversaryBestPracticeReplicationBPR7VeryBriefHistoryofBestPracticeReplication1994:Formalizedprocessofreplicatingprovenpractices1995–Faxingbestpracticesamongstvehicleassemblyplants1996:LaunchedFordWebHub;BPRusedtheWebacross53plantsglobally.Asof2004:Launched53communitiesofpractice.2,334FocalPoints:VehicleAssembly,PlantHR,PaintEngineering,Ergonomics,Safety,PlantIT,Finance,Environmental…BestPracticeReplicationBPR8BPRPrinciplesCaptureonlyProven,HighValuePracticesValue-AddtobusinessmustbeidentifiedManagetheProcessBusinessPartnersprovidethecontentandthepeople,ITgroupprovidestheenablingtoolBestPracticeReplicationBPR9PracticeImplementedataFordFacilityReviewbyeachLocationApprove&DistributeCollectManagementReviewofResultsAdopt/Don’tAdoptDecisionLessonsLearnedInspirationFPSCPIPSSiteVisitsPracticeisProvenANDgeneratesValueTaskBestPracticeReplicationwithprescribedRoles&ResponsibilitiesManySourcesofIdeas8DsSelectionandReplicationofProvenPracticesatFord6-SigmaBestPracticeReplicationBPR10TypicalBPRCommunityofPracticeSeniorLeadershipSite1FocalPointSite3Site2etc.CommunityGatekeeperKnowledgeWorkersKnowledgeWorkersKnowledgeWorkersKnowledgeWorkersFocalPointFocalPointFocalPointBestPracticeReplicationBPR11BestPracticeReplication9StepProcessDRAFTPRACTICE:FocalPointatLocationsenterProvenPractices:1REVIEWDRAFTPRACTICES:Gatekeeperlooksforreplicablepractices;CollaborateswithSMEs.APPROVEPRACTICE:Gatekeeperapprovesonlyreplicablehigh-valuepractices.PUSHtheKNOWLEDGE:OutlookemailnotificationtoallCommunityFocalPointsateachLocation.PRACTICESREVIEWEDbyeachlocationteammembersforapplicability.ADAPT/ADOPT/NOTADOPTDECISIONmadeateachlocation.“CopywithPride”FEEDBACK:FocalPointateachlocationentersadopt/notadoptdecision.REPORTS:ProgressReportsavailabletoallPEERRECOGNITIONofpracticeoriginators&replicators.26547893BestPracticeReplicationBPR12BPRResultsSummary2,800+activehighvaluepractices.Since1996:Averageof10,000+replications/yr53CommunitiesofPractice2,334activeFocalPointsProcesslicensedtoShellOil,Nabisco,KraftFoods,andUSNavyBestPracticeReplicationBPR13ContactsStanKwiecienskwiecie@ford.comBestPracticeReplicationDeploymentManagerSanjaySwarupsswarup@ford.comSeniorKnowledgeManagementSpecialistDarWolforddwolford@ford.comManager,VentureTransitionsandKnowledgeManagementRobynValadervalade@ford.comBestPracticeIntegrationManagerBestPracticeReplicationBPR14ApplyingKMtoImproveQuality#1KMSystemmustcaptureKnowledgeANDvaluemetrics(CostSavings,Quality,etc.)BestPracticeReplicationBPR15ApplyingKMtoImproveQuality#1DeliveryQualityEnvironmentMotivationCostSafetyBPRhas168differenttypesofvaluemetricsin6broadcategoriesBestPracticeReplicationBPR16ApplyingKMtoImproveQuality#1IllustrativeexampleswillbedisplayedanddiscussedduringthepresentationBestPracticeReplicationBPR17ApplyingKMtoImproveQuality#2KMSystemmustcaptureQualityImprovementPracticesfromALLareasoftheEnterprise.BestPracticeReplicationBPR18ApplyingKMtoImproveQuality#2IllustrativeexampleswillbedisplayedanddiscussedduringthepresentationBestPracticeReplicationBPR19PaintEngineeringFinalAssemblyStampingOperationsEnvironmentalFordFinancialIndustrialMaterialsHumanResourcesLeanManufacturing(FordProductionSystem)EnergyAll53CommunitiesofPracticesharequalityimprovementpractices:ExamplesApplyingKMtoImproveQuality#2BestPracticeReplicationBPR20ApplyingKMtoImproveQuality#3CapturethereplicationandfeedbackofImprovedQualityPracticesBestPracticeReplicationBPR21ApplyingKMtoImproveQuality#3IllustrativeexampleswillbedisplayedanddiscussedduringthepresentationBestPracticeReplicationBPR22ApplyingKMtoImproveQuality#4EstablishaRobustprocesstotransferreplicablefindingsofclosed6-SigmaprojectstotheKMSystemBestPracticeReplicationBPR23ApplyingKMtoImproveQuality#4Illustrativeexampleswillbedisplay