Question: In 2 0 2 1 , Ford allocated $ 1 , 0 4 1 per vehicle for covering warranty claims compared with $ 7 1

In2021, Ford allocated $1,041 per vehicle for covering warranty claims compared with $713 per vehicle for rival GM. This year, in addition to the recalls, auto-safety regulators also opened a defect investigation into 2021 Ford Broncos after receiving reports of "catastrophic engine failures" at highway speeds.
Part 4
One of the challenges at Ford was that it tried to make too many last-minute design and engineering changes ahead of a new-vehicle launch, increasing the risk of problems down the line. Workers rallied to fix problems when they blew up, but weren't empowered to flag them early in the process when there was still time to head them off. Consumer Reports says Ford has too many new-model launches bunched together and often makes more substantive changes in its redesigns, while other car companies use more carry-over parts.
Part 5
Ford recently installed video cameras to monitor the early build of vehicleslong dashbefore productionlong dashto target any steps they can eliminate or simplify. Higher tech cameras are now used to inspect the vehicles for quality, too, allowing workers to scour for an incorrectly placed hose or a paint blemish."We are placing more time and emphasis on ensuring everything is done right upfront to prevent quality issues from manifesting later in the development process," says Ford's new quality czar.
Part 6
How Ford compares itself to rivals in quality has changed, too. It now sets its quality targets against the benchmarks of its competitors. One example is the quality of Ford's Bronco SUV as compared with the Jeep Wrangler.
Source: The Wall Street Journal(August 6-7,2022).
Part 7
Critical Thinking Questions
1. What appears to be causing many of Ford's quality problems leading to high warranty costs?
A.
nobody in charge of quality control
B.
supply chain issues
C.
bad tires
D.
too many design changes
E.
poorly trained workforce

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!