DEARBORN, Mich., Aug. 13, 2008 – The warranty repair rate for Ford, Lincoln and Mercury vehicles in the United States is now almost 60 percent lower than it was in 2004.
The falling repair rate contributed to a $1.2 billion reduction in Ford’s worldwide warranty costs over the past 18 months.
The reason is simple: Ford vehicle quality is improving quickly.
As Ford strives to be best in class in every phase of vehicle development – from design to pre-delivery – internal measures continue to show the company is making significant quality strides. For example, transmission warranty work for 2005 model Ford vehicles with three years in service dropped by more than 50 percent compared with the 2004 model year.
The drive to improve quality is most evident during a new-model launch. Since 2005, each new model from Ford has delivered better quality – as measured by warranty rates and things-gone-wrong metrics – than the models they replaced.
“In 2006, when we launched the Mercury Milan and Ford Fusion, we saw the best quality numbers we’d ever seen.” said Curt Yun, Ford director, Global Warranty. “Since then, our new models have been achieving even better results and are leading the way in our overall quality improvement.”
Ford’s Global Product Development System ensures quality is built-in early in the process.
“It all starts with the company’s commitment to developing and implementing standardized engineering processes,” says Art Hyde, chief engineer, Global Product Development System. “By fully utilizing our (Computer Assisted Design) toolsets, we are signing off on all aspects of our designs before we even release the first prototype.”
Hyde says the design and engineering analysis process makes it possible for problems – that previously might not have surfaced until launch – to be caught and corrected in the virtual world.
“We’re using some of the same software and equipment as our competitors, but how and when we use it has given us a competitive advantage,” Hyde said.
The assembly plants build on that competitive advantage. Recent successes can be attributed to the strong partnership between Ford’s leadership team and the UAW, says Philip Calhoun, director, Manufacturing Quality, Americas: “Together, they’ve built an overall strategy for consistency and given our teams in the plants the tools they need to deliver. Vehicles are designed for quality, and the plants have the necessary tools to deliver that quality in the manufacturing process.”
For example, the company’s Quality Operating System (QOS) is crucial for identifying and correcting problems within the manufacturing facilities. QOS is implemented in each plant by Variability Reduction Team (VRTs) – cross-functional groups of engineers, plant management and product specialists, including the company’s most skilled problem solvers who’ve been trained through Six Sigma.
Each VRT is assigned to one of 12 subsystems crucial to customer satisfaction. The subsystems are Ride and Handling; Sheet Metal; Wind; Water; Paint; Noise, Vibration and Harshness (known as Squeak and Rattle); Chassis; Exterior Ornamentation; Interior Trim; Electrical; Powertrain; and Handles, Locks and Mechanisms.
One example of how the process is working: Squeak and Rattle has gone from being one of the company’s biggest challenges to an emerging strength. Since 2004, the company has reduced the number of squeak and rattle repairs prior to customer vehicle delivery by 57 percent.
The Ford Flex, Ford’s new seven-passenger crossover, was subjected to rigorous testing for squeaks and rattles at every design phase. Every inch of the vehicle was scrutinized for unwanted noise from the outside in, right down to the potential hum from the optional refrigerator.
As Flex and other Ford Motor Company vehicles hit the road, the anticipation among company officials is that warranty claims will continue their downward trend. “I see the recent $1.2 billion in worldwide warranty cost savings as a billion reasons to continue down this path,” Yun said. “Instead of setting aside those funds to fix cars, we’d much rather invest it in exciting product programs for our customers.”
Ford Motor Company
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 229,000 employees and about 90 plants worldwide, the company’s core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford’s products, please visit www.ford.com.
