labels: ford india, ford motors, rane group, passenger cars
Ford India to make Q1 tag compulsory for vendors news
03 February 2004
Ford India has decided to follow its US parent Ford Motor Company''s policy of sourcing components from Q1 certified vendors. However the company has not fixed any time limit within which the vendors must get the Q1 certification.

Ford India sources 90 per cent of the component for its Ikon models from 97 vendors. "Out of these 20 are Q1 certified," says Arvind Mathew, vice president and executive director-India, programs implementation and supply. Ten vendors had complied with the company''s Q1 norms in 2003.

According to David E Friedman, managing director and president: "The Q1 certified component vendors get a head start over others while bidding for Ford Motor''s global supply contracts."

Curiously, the Deming award winner, Rane Brake Linings (See ) a Ford India supplier, does not figure in the Q1 list. "There is no relationship between the Deming Award and our Q1 quality process," says Mathew , and adds, "Rane Brake Linings is in the process of complying with some of our metrics and once that is done, the company will figure in the Q1 list."

Achieving Q1 is a collaborative approach between the Ford and its vendors. The Q1 certification consists of a set of fundamental quality and manufacturing disciplines that ensure a supplier''s success through continuous improvement. Ford India applies the vital metrics to determine which suppliers qualify for the quality tag. The measurements will also continue to determine the vendor''s Q1 retention ability.

According to Mathew the key metrics that decide the Q1 certification are (1) getting the QS 9000/TS 16949, ISO 14001 and MS-9000/MMOG certifications (2) maintaining the rejections within certain limits (3) strictly sticking to the delivery schedules and (4) taking corrective actions in the case of deviations.

As per Ford Motor Company''s norms, every Q1 certified plant starts with 1,000 points and should continue to improve on this. However the plants should maintain at least 800 points to retain the quality ticket.

When asked how the company could measure the plant level component rejections (generally measured as parts per million) when its own production is just around 50,000 units per year, Mathew answers: "Even though our volumes are less than a million, through statistical models we can extrapolate the results achieved by our vendors."

Speaking about Ford India''s plans, Friedman says a new model will be launched this year, though refused elaborate further. "We hope to sell around 170 Endeavours, the sports utility vehicle, per month," he said nd added thatthe company expected a 20 per cent growth of over the 18,000 units sold last year, depending on factors like low inflation, healthy stock market, good monsoon ,etc.

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Ford India to make Q1 tag compulsory for vendors