In recent years, the Ford Motor Company has achieved stunning improvements in productivity and quality, and it is now regarded as the most effective US automaker. Its cars are acknolwledged to be as good as, or better than, those of its European and Japanese competitors. Ford emerged from the 1980s with the greatest productivity increase among the US Big Three automakers. General Motors experienced a 5 percent gain, Chrysler showed a 17 percent increase, and Ford achieved a whopping 31 percent improvement. By 1992 Ford was able to produce as many vehicles as it did in the 1970s with half the number of workers.

Ford’s dramatic productivity improvements were accomplished by focusing on the workforce, technology, and product design. Ford promoted increased participation by its workforce. Front-line workers were given more control over how they did their jobs. In addition, they were made directly responsible for monitoring the quality of their work and correcting defects. Finally, they were encouraged to contribute ideas and make suggestions for improving job methodologies.

Ford also made a concerted effort to use state-of-the-art technologies. For example, many manual tasks are now performed by robots. Such technology provides the benefit of more consistent output, since robots do not suffer from fatigue, nor do they need periodic breaks. Furthermore, robots are advantageous for tasks that may be too dangerous or strenuous for humans.

A new focus on product design also contributed to the productivity improvements. Ford adopted a team concept in developing and designing new models. Team members come from a variety of departments, including accounting, engineering, marketing, personnel, and production. One of the things Ford learned was that simpler is better. For example, an instrument console for the Escort was redesigned with 6 parts instead of the 22 parts in an earlier model. The bumper on the Taurus has only 10 parts compared with more than 100 bumper parts on GM’s competing Pontiac Grand Prix. Improvements such as these have enabled Ford to build its cars with one-third fewer labor hours than GM, giving Ford a cost advantage or almost $800 per vehicle.