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Introduction

  1. They provide a single source of data for production planning and management.
  2. It provides the ability to view production planning and production data with an emphasis on quality.
  3. They are providing accurate scheduling with flexible data.
  4. It delivers production plans and data from an integrated database to other processes like Sales, Marketing, Supply Chain, and Distribution

Overview of the Business Area

The ERP project aimed to provide an infrastructure in which all aspects of the production function are supported. The project needed to be flexible enough to support different types of operations, emphasizing quality and cost.

The system also needed to be configurable to support the various types of vehicles and product offerings. It needed to provide a single source of data for production planning and management and provide the ability to view production planning and production data with an emphasis on quality.

The following are some potential answers or recommendations to deal with the difficulties in deploying an ERP system at Ford Motor Company:

  1. Identify a Single System to Support Your Business: Because a new ERP system will likely replace several legacy systems, identify and support just one or two critical systems.
  2. Identify Key Vendors to Help Install the ERP System: Because different organizations within a large company may have different technical needs, it may be helpful to identify key ERP software vendors to help implement and manage the ERP system.

ERP at Ford Motor Company

Ford Motor Company uses an ERP (Enterprise Resource Planning) system to manage its business processes and operations. The system is designed to integrate different departments and functions within the organization, allowing for better communication, data sharing, and decision-making.

1. Supply chain Management.

2. Finance and Accounting.

3. Human resources.

4. Sales and Marketing.

5. Manufacturing.

6. Business intelligence.

ERP

The Adoption and Implementation of IT-based Business Processes, Like an ERP System, at Ford Motor Company may be Hampered by the Following Major Difficulties:

  1. Limited availability of skilled IT workers: Because companies like Ford Motor Company are highly profitable and successful, many critical IT professionals tend to live in Silicon Valley, Palo Alto, or San Diego. This creates a geographical challenge with providing access to support resources on-site.
  2. Sustainable growth in the number of users and adoption of new technology: Ford Motor Company will likely become increasingly reliant on the ERP system as it scales to meet customer demand and pursue new markets. Suppose a company needs to attract more skilled workers or integrate new technologies. In that case, its ERP system may not scale as expected, leading to a loss of confidence in the ERP system, business processes, and, potentially, the company itself.

The Following are Some Potential Answers or Recommendations to deal with the Difficulties in Deploying an ERP System at Ford Motor Company

  1. Identify a Single System to Support Your Business: Because a new ERP system will likely replace several legacy systems, identify and support just one or two critical systems.
  2. Identify Key Vendors to Help Install the ERP System: Because different organizations within a large company may have different technical needs, it may be helpful to identify key ERP software vendors to help implement and manage the ERP system.

Challenges Faced 

  1. Global Auto needed to track the production process and document issues so that they could be resolved.
  2. Global Auto also needed a high-level view of the manufacturing operation because the system needs to be able to create manufacturing schedules that consider the availability of raw materials and human resources.
  3. The manufacturing environment was highly fragmented, with each vendor having their tools, and Global Auto needed a comprehensive view of the production process and its parts.

9 resion of ERP

Role of ERP System

  1. There was an extensive, redundant system used in each vehicle manufacturing plant, which was highly disjointed and required the user to understand a lot of different languages to get to the different pieces of data.
  2. It was challenging to determine where the information came from and whether it was correct. The system did not integrate the different functions.
  3. This was a fundamental problem for Global Auto because the ERP system needed to provide a single data source for production planning and management.
  4. There were no other data sources, and everything was managed manually.
  5. The system needed to provide the ability to view production planning and production data with an emphasis on quality (Shao, 2019).
  6. Also, because Global Auto was dealing with many different suppliers and manufacturing plants, each with its own production process, it was important that the system would be able to support different types of operations with an emphasis on quality and cost.

Role of ERP system at Ford Motor company

Streamlining Procurement

Ford integrates information from various departments so that they can collaborate on purchasing decisions.

Integrating with Operations

Integration is another aspect of ERP systems. By connecting to other systems, ERP systems help to improve information accessibility. 

ERP System Features

  1. The business category generally includes core processes such as accounting, inventory management, and ERP system configuration.
  2. In addition to the business-level functionality, manufacturing-level functionality can also be provided.
  3. Enterprise-level functionality consists of additional functions such as production planning, enterprise resource planning, human resources, manufacturing information management, business intelligence, quality management, and production execution.

ERP System Feature at Ford Motor Company

Finance Management:

These systems help Ford monitor its financial performance and track cash and operating expenses, as well as plan for future financial needs.

Product Development:

These systems are used to provide the product development teams with an organized view of the supply chain and a means to communicate with other team members.

Benefits of ERP System

  1. ERP Systems are becoming more important to manufacturers as they increasingly adopt a process-centric approach to value creation.
  2. By connecting many disparate software tools to encourage data exchange, collaboration, and a common operating platform, ERP systems provide the tools to bring all of the necessary departments and people under a single management platform.
  3. In some cases, using an ERP system can result in new revenue streams and increased profitability due to improved logistics and logistics management capabilities.
  4. By reducing overall costs through improved efficiencies, an ERP system also improves profitability.
  5. Improved Efficiency: The ERP system has streamlined Ford's business processes by eliminating redundant tasks, reducing manual data entry, and automating workflows. This has improved efficiency and productivity across the organization.
  6. Better Decision-making: The ERP system provides real-time access to data, enabling Ford's management team to make informed decisions quickly. The system also provides predictive analytics, which helps identify trends and forecast future performance.
  7. Enhanced Collaboration: The ERP system has improved communication and collaboration between different departments and functions within Ford. This has helped to break down silos and improve cross-functional cooperation.
  8. Cost Reduction: The ERP system has helped Ford to reduce costs by eliminating manual processes, improving inventory management, and reducing the need for paper-based documentation.
  9. Improved Customer Service: The ERP system has improved Ford's ability to respond to customer needs by providing real-time data on inventory levels, order status, and production schedules. This has helped to improve customer satisfaction and retention.

ERP Benefits

Data Flow Between Production and Procurement

  1. At Ford Motor Company, procurement, and production function work closely together. This relationship allows the two functions to plan the flow of raw materials and components. The two functions use the production plan to plan the production of parts and assemblies.
  2. The production process is affected by the availability of materials and components.

Data Flow Between Quality Control and Engineering

  1. The engineering and quality control functions are often viewed as two separate entities, but the company has developed a set of processes that span the cross-functional divide to make the two functions work together, and with a common goal of providing top-quality products and services (Javidroozi et al., 2020).
  2. The company uses three distinct types of product defects: failures, flaws, and flaws that lead to failure

Data Flow Between Accounting and Operations

The operations function needs to understand the accounting system it is working with in order to ensure it provides accurate information to the accounting function.

The accounting function, in turn, needs to understand the workings of the manufacturing system and the accounting systems it uses to ensure proper reporting of cost and financial information.

Conclusion

The close interrelationships between units allowed us to focus on how we could maximize value for the customer through higher quality, more efficient manufacturing, and lower costs," explains Mark Bender, manager of financial planning at Ford

References

Javidroozi, V., Shah, H., & Feldman, G. (2020). A framework for addressing the challenges of business process change during enterprise systems integration. Business Process Management Journal, 26(2), 463-488.

Shao, Z. (2019). Interaction effect of strategic leadership behaviors and organizational culture on IS-Business strategic alignment and Enterprise Systems assimilation. International journal of information management, 44, 96-108.

Nah, F. F. H., Eschenbrenner, B., Claybaugh, C. C., & Koob, P. B. (2019). Gamification of enterprise systems. Systems, 7(1), 13.

Hütsch, M. (2021). Comparing Architectures of Neural Networks for an Integration in Enterprise Systems: A Retail Case Study. Procedia Computer Science, 181, 619-627.

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