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SanjaySwarup,

SeniorKnowledgeManagementSpecialist

FordMotorCompanyKMWorld2004SantaClara,California26thOctober,2004ApplyingKnowledgeManagementtoImproveQualitySanjaySwarup,

SeniorKnowleHighPrioritygiventoQualityat

FordMotorCompanyStrategy:QualityisJOB#1QualityOperatingSystem(QOS)

PerformancetoStandardsQualityLeadershipInitiative(QLI)EngageallemployeesConsumerDriven6-SigmaDatadrivendecisionmakingHighPrioritygiventoQualityLeverageQualityImprovementProgramsCorporateStrategy:QualityisJOB1TopDown:CorporatePrograms-QOS,QLI,6-Sigma…BottomUp:Employeebasedprovenmethodstoimprovequality……apply

KnowledgeManagement

LeverageQualityImprovementPApplyingKMtoImproveQuality

IllustrativeexampleswillbedisplayedanddiscussedduringthepresentationApplyingKMtoImproveQualityMeasurableQualityImprovementsatFordMotorCompanyJDPowerInitialQualityStudy:FordMotorCompanyproductshadmorethan16%improvement2002-2003ConsumerReports2004–NewCarPreview–19FordMotorCompanyproductsreceived“RecommendedBuys”WarrantySpendingisdown18%from2002ConsumerDriven6-Sigmaefforts

savedmorethan$1.3Bsinceitsinceptionin2000Source:FCNDecember15th,2004,&2003AnnualReportMeasurableQualityImprovementRanked#4byFortune500Manufactureanddistributeautomobilesin200marketsacross6Continents2003GlobalRevenues:$164Billion327,000Employees2003-Celebrated100thAnniversaryRanked#4byFortune500VeryBriefHistoryof

BestPracticeReplication1994:Formalizedprocessofreplicatingprovenpractices1995–Faxingbestpracticesamongstvehicleassemblyplants1996:LaunchedFordWebHub;BPRusedtheWebacross53plantsglobally.

Asof2004:

Launched53communitiesofpractice.2,334FocalPoints:VehicleAssembly,PlantHR,PaintEngineering,Ergonomics,Safety,PlantIT,Finance,Environmental…VeryBriefHistoryof

BestPraBPRPrinciplesCaptureonlyProven,HighValuePracticesValue-AddtobusinessmustbeidentifiedManagetheProcessBusinessPartnersprovidethecontentandthepeople,ITgroupprovidesthe

enablingtoolBPRPrinciplesBusinessPartnerPracticeImplementedataFordFacilityReviewbyeachLocationApprove&DistributeCollectManagementReviewofResultsAdopt/Don’tAdoptDecisionLessonsLearnedInspirationFPSCPIPSSiteVisitsPracticeisProvenANDgeneratesValueTaskBestPracticeReplicationwithprescribedRoles&ResponsibilitiesManySourcesofIdeas8DsSelectionandReplicationof

ProvenPracticesatFord

6-SigmaPracticeImplementedataFord

TypicalBPR

CommunityofPracticeSeniorLeadershipSite1FocalPointSite3Site2etc.CommunityGatekeeper

KnowledgeWorkersKnowledgeWorkersKnowledgeWorkersKnowledgeWorkersFocalPointFocalPointFocalPointTypicalBPR

CommunityofPBestPracticeReplication

9Step

ProcessDRAFTPRACTICE:FocalPointatLocationsenterProvenPractices:1REVIEWDRAFTPRACTICES:Gatekeeperlooksforreplicablepractices;CollaborateswithSMEs.APPROVEPRACTICE:Gatekeeperapprovesonlyreplicable

high-valuepractices.PUSHtheKNOWLEDGE:

OutlookemailnotificationtoallCommunityFocalPointsateachLocation.PRACTICESREVIEWED

byeachlocationteammembersforapplicability.ADAPT/ADOPT/NOTADOPTDECISION

madeateachlocation.“CopywithPride”FEEDBACK:FocalPointateachlocationentersadopt/notadoptdecision.REPORTS:ProgressReportsavailabletoallPEERRECOGNITION

ofpracticeoriginators&replicators.26547893BestPracticeReplicationDRAFTBPRResultsSummary2,800+activehighvaluepractices.

Since1996:Averageof10,000+

replications/yr53CommunitiesofPractice2,334activeFocalPoints

Process

licensedtoShellOil,Nabisco,KraftFoods,andUSNavyBPRResultsSummary2,800+actiContactsStanKwiecienskwiecie@BestPracticeReplicationDeploymentManagerSanjaySwarupsswarup@SeniorKnowledgeManagementSpecialistDarWolforddwolford@Manager,VentureTransitionsandKnowledgeManagementRobynValadervalade@BestPracticeIntegrationManagerContacts

ApplyingKMtoImproveQuality#1KMSystemmustcaptureKnowledgeANDvaluemetrics(CostSavings,Quality,etc.)ApplyingKMtoImproveQualitApplyingKMtoImproveQuality#1BPRhas168differenttypesofvaluemetricsin6broadcategoriesApplyingKMtoImproveQualityApplyingKMtoImproveQuality#1IllustrativeexampleswillbedisplayedanddiscussedduringthepresentationApplyingKMtoImproveQualityApplyingKMtoImproveQuality#2KMSystemmustcaptureQualityImprovementPracticesfromALLareasoftheEnterprise.ApplyingKMtoImproveQualityApplyingKMtoImproveQuality#2IllustrativeexampleswillbedisplayedanddiscussedduringthepresentationApplyingKMtoImproveQualityPaintEngineeringFinalAssemblyStampingOperationsEnvironmentalFordFinancialIndustrialMaterialsHumanResourcesLeanManufacturing(FordProductionSystem)EnergyAll53CommunitiesofPracticesharequalityimprovementpractices:ExamplesApplyingKMtoImproveQuality#2PaintEngineeringEnvironmentalApplyingKMtoImproveQuality#3CapturethereplicationandfeedbackofImprovedQualityPracticesApplyingKMtoImproveQualityApplyingKMtoImproveQuality#3IllustrativeexampleswillbedisplayedanddiscussedduringthepresentationApplyingKMtoImproveQualityApplyingKMtoImproveQuality#4EstablishaRobustprocesstotransferreplicablefindingsofclosed6-SigmaprojectstotheKMSystemApplyingKMtoImproveQualityApplyingKMtoImproveQuality#4

IllustrativeexampleswillbedisplayedanddiscussedduringthepresentationApplyingKMtoImproveQualityApplyingKMtoImproveQuality#5LeadershipMUSTprovideongoingencouragementandsupportforinitiatingANDreplicatingQualityImprovementPracticesApplyingKMtoImproveQualityApplyingKMtoImproveQuality#5

SampleofRecognitiongiventoInitiatorsApplyingKMtoImproveQualityWhyuseKMtoLeverageQualityEfforts?QualityImprovementwithoutKM

QualityImprovementwithKMQualityLocalonlyEnterprise-wideValueEffortValuegeneratedislocalonlyMaximizeValueEnterprise-wideMinimaladditionaleffortforEnterprise-widereplicationMaxeffortatonelocationWhyuseKMtoLeverageQualityHighKMactivityANDHighQualityImprovementactivity=MaximumValueKMactivityMediumValueMaximumValueMediumValueMinimumValue

QualityImprovementActivityHighLowLowHighHighKMactivityANDHighQualRecap:

ApplyingKMtoImproveQuality1:CaptureKnowledgeANDValueMetrics#2:EnableenterprisewidecaptureofQualityimprovements#3:Replicateandcapturefeedback#4:RobustProcessoflinkingKMand6-Sigma#5:LeadershipMUSTprovideongoingencouragementandsupportRecap:

ApplyingKMtoImproveSanjaySwarup,

SeniorKnowledgeManagementSpecialist

FordMotorCompanyKMWorld2004SantaClara,California26thOctober,2004ApplyingKnowledgeManagementtoImproveQualitySanjaySwarup,

SeniorKnowleHighPrioritygiventoQualityat

FordMotorCompanyStrategy:QualityisJOB#1QualityOperatingSystem(QOS)

PerformancetoStandardsQualityLeadershipInitiative(QLI)EngageallemployeesConsumerDriven6-SigmaDatadrivendecisionmakingHighPrioritygiventoQualityLeverageQualityImprovementProgramsCorporateStrategy:QualityisJOB1TopDown:CorporatePrograms-QOS,QLI,6-Sigma…BottomUp:Employeebasedprovenmethodstoimprovequality……apply

KnowledgeManagement

LeverageQualityImprovementPApplyingKMtoImproveQuality

IllustrativeexampleswillbedisplayedanddiscussedduringthepresentationApplyingKMtoImproveQualityMeasurableQualityImprovementsatFordMotorCompanyJDPowerInitialQualityStudy:FordMotorCompanyproductshadmorethan16%improvement2002-2003ConsumerReports2004–NewCarPreview–19FordMotorCompanyproductsreceived“RecommendedBuys”WarrantySpendingisdown18%from2002ConsumerDriven6-Sigmaefforts

savedmorethan$1.3Bsinceitsinceptionin2000Source:FCNDecember15th,2004,&2003AnnualReportMeasurableQualityImprovementRanked#4byFortune500Manufactureanddistributeautomobilesin200marketsacross6Continents2003GlobalRevenues:$164Billion327,000Employees2003-Celebrated100thAnniversaryRanked#4byFortune500VeryBriefHistoryof

BestPracticeReplication1994:Formalizedprocessofreplicatingprovenpractices1995–Faxingbestpracticesamongstvehicleassemblyplants1996:LaunchedFordWebHub;BPRusedtheWebacross53plantsglobally.

Asof2004:

Launched53communitiesofpractice.2,334FocalPoints:VehicleAssembly,PlantHR,PaintEngineering,Ergonomics,Safety,PlantIT,Finance,Environmental…VeryBriefHistoryof

BestPraBPRPrinciplesCaptureonlyProven,HighValuePracticesValue-AddtobusinessmustbeidentifiedManagetheProcessBusinessPartnersprovidethecontentandthepeople,ITgroupprovidesthe

enablingtoolBPRPrinciplesBusinessPartnerPracticeImplementedataFordFacilityReviewbyeachLocationApprove&DistributeCollectManagementReviewofResultsAdopt/Don’tAdoptDecisionLessonsLearnedInspirationFPSCPIPSSiteVisitsPracticeisProvenANDgeneratesValueTaskBestPracticeReplicationwithprescribedRoles&ResponsibilitiesManySourcesofIdeas8DsSelectionandReplicationof

ProvenPracticesatFord

6-SigmaPracticeImplementedataFord

TypicalBPR

CommunityofPracticeSeniorLeadershipSite1FocalPointSite3Site2etc.CommunityGatekeeper

KnowledgeWorkersKnowledgeWorkersKnowledgeWorkersKnowledgeWorkersFocalPointFocalPointFocalPointTypicalBPR

CommunityofPBestPracticeReplication

9Step

ProcessDRAFTPRACTICE:FocalPointatLocationsenterProvenPractices:1REVIEWDRAFTPRACTICES:Gatekeeperlooksforreplicablepractices;CollaborateswithSMEs.APPROVEPRACTICE:Gatekeeperapprovesonlyreplicable

high-valuepractices.PUSHtheKNOWLEDGE:

OutlookemailnotificationtoallCommunityFocalPointsateachLocation.PRACTICESREVIEWED

byeachlocationteammembersforapplicability.ADAPT/ADOPT/NOTADOPTDECISION

madeateachlocation.“CopywithPride”FEEDBACK:FocalPointateachlocationentersadopt/notadoptdecision.REPORTS:ProgressReportsavailabletoallPEERRECOGNITION

ofpracticeoriginators&replicators.26547893BestPracticeReplicationDRAFTBPRResultsSummary2,800+activehighvaluepractices.

Since1996:Averageof10,000+

replications/yr53CommunitiesofPractice2,334activeFocalPoints

Process

licensedtoShellOil,Nabisco,KraftFoods,andUSNavyBPRResultsSummary2,800+actiContactsStanKwiecienskwiecie@BestPracticeReplicationDeploymentManagerSanjaySwarupsswarup@SeniorKnowledgeManagementSpecialistDarWolforddwolford@Manager,VentureTransitionsandKnowledgeManagementRobynValadervalade@BestPracticeIntegrationManagerContacts

ApplyingKMtoImproveQuality#1KMSystemmustcaptureKnowledgeANDvaluemetrics(CostSavings,Quality,etc.)ApplyingKMtoImproveQualitApplyingKMtoImproveQuality#1BPRhas168differenttypesofvaluemetricsin6broadcategoriesApplyingKMtoImproveQualityApplyingKMtoImproveQuality#1IllustrativeexampleswillbedisplayedanddiscussedduringthepresentationApplyingKMtoImproveQualityApplyingKMtoImproveQuality#2KMSystemmustcaptureQualityImprovementPracticesfromALLareasoftheEnterprise.ApplyingKMtoImproveQualityApplyingKMtoImproveQuality#2IllustrativeexampleswillbedisplayedanddiscussedduringthepresentationApplyingKMtoImproveQualityPaintEngineeringFinalAssemblyStampingOperationsEnvironmentalFordFinancialIndustrialMaterialsHumanResourcesLeanManufacturing(FordProductionSystem)EnergyAll53CommunitiesofPracticesharequalityimprovementpractices:ExamplesApplyingKMtoImproveQuality#2PaintEngineeringEnvironmentalApplyingKMtoImproveQuality#3CapturethereplicationandfeedbackofImprovedQualityPracticesApplyingKMtoImproveQualityApplyingKMtoImproveQuality#3IllustrativeexampleswillbedisplayedanddiscussedduringthepresentationApplyingKMtoImproveQualityApplyingKMtoImproveQuality#4EstablishaRobustproce

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