ABSTRACT
Ford’s slogan, “Quality Is Job 1,” has caught on with increasing segments of the car-buying public. The company’s North American Automobile Group is gaining market share among U.S. manufacturers and has a higher net income than General Motors with only two-thirds the amount of sales.1 Things were not always this way. Between 1978 and 1982, market share slipped to 16.6 percent and sales fell by 49 percent, with a cumulative loss in excess of $3 billion. Ford was losing $1000 on every car it sold. The company sought advice from W. Edwards Deming. Reports John Betti, at that time a senior executive at Ford, “I distinctly remember some of Dr. Deming’s first visits. We wanted to talk about quality, improvement tools, and which programs work. He wanted to talk to us about management, cultural change, and senior management’s vision for the company. It took time for us to understand the profound cultural transforma tion he was proposing.”2 The company’s subsequent turnaround is a classic example of the results that can be obtained from a strategic change based on quality. The major changes responsible for reversing the company’s fortune were as follows:
■ Emphasize quality and review new product planning and design. ■ Keep investing in new products and processes. ■ Make employee relations a source of competitive advantage.3
