CHAPTER55

Driving Knowledge Management at Ford

Motor Company*
Dar Wolford J and Stan Kwiecien 2
I Manager, Best Practice Replication, IT & E-Business Infrastructure, Ford Motor Company,

Allen Park, MI, USA

'Deployment Manager, Best Practice Replication, UT & E-Business Infrastructure, Ford
Motor Company, Allen Park, MI, USA

Ford Motor Company is a global car manufacturer with over 360.000 employees, and
110 manufacturing facilities in over 30 countries. For more company information visit
www.ford.com. Best Practice Replication (eBPR) is Ford Motor Company's proprietary
process, with an accompanying intranet website, that collects, distributes, and tracks the
value of replicating better ways of doing business across the enterprise. This initiative
has proven it can deli ver value from knowledge, over a five year period US$ 1.3 billion
in projected value has been added to the business, and US$ 886 million in actual benefits
have been recorded. This global based process is managed within Ford's IT and e-
Business Infrastructure organization. Acknowledgment of Ford's Best Practice Replica-
tion Process has come from sources outside the company. The process has been licensed
to Nabisco, Royal Dutch Shell, and Kraft Foods.

Keywords: Best Practices; Knowledge Management; Process Improvement

1 Introduction
We all know the biggest asset a corporation holds is its employees' knowledge,
and at Ford Motor Company we are making an effort to capitalize on this talent.
As aglobai player, the company holds advantages in its ability to design, manu-
facture, and market the best vehicles in the world, but it could not do so without
the knowledge of its people.
With the fast pace of change affecting everyday work practices, leveraging em-
ployee know-how has become a strategie necessity for all "high road" companies.
To remain competitive in the new global economy, organizations must optimize
knowledge management techniques in order to get doser to the customer, improve
business processes and enhance shareholder value .

• Portions of this chapter were previously published in Knowledge Management Review

magazine: Issue 10: September/October 1999, and Vol. 4, Issue 1, March/April 2001.

C. W. Holsapple (ed.), Handbook on Knowledge Management

© Springer-Verlag Berlin Heidelberg 2003
502 Dar Wolford and Stan Kwiecien

Academics will tell you that while knowledge may weIl be an organization's
largest asset, it is the hardest to measure. The frequently asked question is, how
can you put a value on knowledge? Ford has found a way. Knowledge-based ini-
tiatives must showareturn; if they do not, they are simply a wasted effort. As we
like to say, "If you can't measure it, why do it?"
An initiative that has proved it can deliver value from knowledge is the Best
Practice Replication Process. Over the last five years US$1.3 billion in projected
value has been added to the business, and US$886 million in actual benefits have
been recorded. This global based process, managed within Ford's IT and e-
Business Infrastructure organization, is deployed in more than 20 countries and
uses a Web-based intranet site that collects, distributes, and tracks the value of
replicating proven practices across the enterprise. On average, the company ex-
periences about 6,000 replications a year on 2,800 practices. In 2000, we experi-
enced dose to 8,000 replications.
Acknowledgment of Ford's Best Practice Replication Process has come from
sources outside the company. The process has been licensed to Nabisco and to
Royal Dutch Shell.

2 Best Practices
Before we go any further, let's get real about the term "best practice." Frankly,
there is no such thing. There are hetter ways of doing business, but there is no sin-
gle best way for a variety of reasons. One definition of "best" is "something that is
most appropriate." It is important to realize that what may be appropriate for one
location or business function may not be for another.

• Budgetary and economic conditions at one site may prohibit the replica-
tion of a practice that is being employed in a different region;
• The "footprint" of a manufacturing plant may be so different that trying to
copy the process does not make sense;
• Governmental regulations may discourage the duplication of an opera-
tion;
• Any practice, once implemented, is ripe for improvement - it never stays
"best" for very long.
At Ford, we do not try to adopt best practices exactly; instead, we adapt them to fit
individual situations. But a good practice can become a great practice when repli-
cated across common communities of practice. Ford's Best Practice Replication
Web site currently contains more than 2,800 proven practices, and 25 communi-
ties have recorded 16,000 plus replications over the last three years.

2.1 Genesis of tbe Best Practice Replication Process

There are two stories at Ford that, together, describe the events leading to the crea-
tion of this knowledge management too1.
Driving Knowledge Management at Ford Motor Company 503

The Ford RAPID connection. In early 1995, Ford began rolling out a methodology
called RAPID (Rapid Actions for Process Improvement Deployment). This meth-
odology was designed to explore an issue and come up with aseries of recom-
mendations that could be rapidly implemented. In effect, it created knowledge.
The RAPID methodology proved such a success that a vice-president of vehicle
operations agreed to pilot a program that would replicate solutions that came out
of the RAPID workshops. He thought these solutions would have a wider applica-
bility than simply solving a local problem. The pilot would be adrninistered across
five vehicle operations plants: Wayne Stamping, Louisville Assembly, Dearborn
Stamping, Michigan Truck, and Adanta Assembly. Representatives from these
five plants formed a team and (using the RAPID methodology) created a corporate
process to replicate good recommendations. The RAPID replication process that
was piloted in the original five plants was rolled-out globally in the summer 1996.
The delivery mechanism for the process and the subsequent tracking was a Web
site developed by the IT and became the first transaction-based Web site at Ford.
The Manual Best Practice Process. Independent of the RAPID replication efforts,
Vehicle Operations had developed at a grass root level a process in 1994 to share
proven best practices among the assembly plants. The process required plants to
subrnit practices to a central coordinating group, which would then disserninate
them to other plants, using faxes and computer file exchanges. The paper process
was fine to start with, but it couldn't keep up. In a litde over a year, about 130
practices had been collected and three full-time coordinators were working long
hours in order to make the program successful. The most labor intensive part of
this process was the collection, summarization, and reporting of the replication
intent, completion, and the associated "values." When the coordinators heard
about the RAPID replication process and Web support, they approached IT for
help and the idea for a single process was born.
In August 1996, RAPID replication and the Manual Best Practice Process were
combined into a single Web-initiated effort called Best Practice Replication Proc-
ess (BPR). Ideas generated from RAPID workshops were no longer replicated.
From this point, only proven, fully implemented best practices were entered into
the system.

2.2 Identifying Key Principles

Several key principles were identified from the RAPID process and the Manual
Best Practice Process to help ensure the success of this process:
Only proven practices will be considered for replication. This is an extremely im-
portant principle that has secured success at Ford. The trigger point for this proc-
ess requires that a practice exists somewhere within the company; it' s proven and
it's providing value. While external benchmarking has its place, a practice is not
considered unless it's fully implemented and tested at a Ford site. We don't want
to replicate seerningly good ideas if they rnight not work or not add any real value
to the business. The process is designed to capture proven practices. Nowhere in
this database are "ideas"; ideas without implementation have no proven value.
504 Dar Wolford and Stan Kwiecien

Once an idea is implemented, then it's worth something. But the real value is
when that proven idea can be replicated.
Selection of high value practices is encouraged. Each community of practice de-
termines what is of value to it' s function or business. As you can imagine, a valu-
able practice in human resources would be completely different to a practice in the
paint community of an assembly plant.
The value of replication is recorded, qualified and/or quantified. When a site de-
eides to replicate a practice, it's encouraged to record the practice's projected
value, by either qualifying it with the benefit to the company (such as improving
customer satisfaction), or quantifying it with a projected tangible return (such as
redueing specific fixed or variable costs). When the replication is fuHy imple-
mented, the replicating site records the actual value realized in first year savings
only.
The process and value assessment must be actively managed. Local, regional and
senior management for each community of practice are involved to ensure the in-
tegrity of the process is maintained. Aseries of on-line summary reports enable
management to encourage participation and provide direction. Joining in this
process is not a requirement at Ford, but as one general manager suggested,
"You'd be a fool not to."
Communities of practice own this process and provide the people to make it work.
The operations provide the resources to actively manage the process for their re-
spective communities. The IT e-Business Infrastructure, Strategy and Deploy-
ment departrnent (where Stan and Dar work) launches new communities of prac-
tice, and provides cost-effective and user-friendly Web-based applications and ef-
fectively maintains the intranet database. Existing communities of practice draw
on their support to enhance the WEB application and adjust the process to further
define and gather opportunities to improve their business.

2.3 Collection, Communication, and Management

The overall replication process is split into three main components. These are col-
lection of best practices, communication, and management.
Collection of best practices. When a team or individual is proud of something they
have recently implemented and they feel it is adding value at their site, they can
approach their assigned focal point. This is person responsible for interceding
with the replication Web site. The practice is entered in a draft state on a template
designed for their business. Each community has identified screening criteria that
the draft practice is then filtered through. If the practice meets the criteria, it will
be considered an approved practice. About 95 percent of all draft practices be-
come approved for potential replication. The quality of the information submitted
is crueial for evaluation purposes and it is important that the implementation cost
reflects the real cost. This information can then also help project coordinators at
replicating sites to negotiate with industrial suppliers. Adescription of the reason
for the change and a brief story of how the change was implemented is required so
Driving Knowledge Management at Ford Motor Company 505

that the recipients understand both why and how. Attached pictures, strearning
videos, and support documentation provide the detail and "proof' that the practice
has been implemented and is working. The more complete the information, the
fewer the questions from the sister locations. It is important that the person most
farniliar with the practice be listed as the primary contact. The last critical bit of
information is the value or the benefit that was realized by the originating location.
Providing this in the appropriate metrics answers the first question of a site that
would be potentially replicating, "What's in it for me?"
Communication. Once approved, the power ofthe Web takes over and an e-mail is
sent automatically to each of the focal points at all the other locations in the com-
munity' that a practice has been entered on their behalf. These focal points, in
turn, access the Web site, review the practice, and decide with their subject matter
experts or local management whether or not to replicate it. If they decide that the
practice is worthy of replication, they record its projected value to their location
on the Web site - what it's worth to borrow this particular proven way of doing
business. Some time after implementation they are encouraged to measure the im-
pact of the practice and record the actual value. If they decide that the practice
should not be implemented, they must submit a valid reason. This information is
collected and summary reports are made available for any of the l20,000-plus
employees at Ford who have intranet access.
Management. Management at all levels has a responsibility to periodically review
these reports and take the pulse of the process. Managers access any report in just
two dicks. The reports rnight indicate which practices are completed, under re-
search, adopted, or previously incorporated. Sometimes the status is not economi-
cally feasible for a variety of reasons outlined above. The functional organizations
pay dose attention to the ones deemed not econornically feasible. If replicating a
specific best practice is a requirement to meet their divisional or corporate strategy
then knowing which sites need budget relief is important. The functional organiza-
tions also keep track of "breakthroughs" discovered by individuals and often apply
these to corporate strategy.
The whole process may sound surprisingly easy but while the mechanics are
simple, there are 43 process steps involved in this tool, and an over 63-step project
management template that the Best Practice Replication team uses to launch each
new community of practice at Ford. These documents, along with transferring a
working knowledge of the process, were part of the intellectual capitallicensed to
Nabisco and Shell.

2.4 eBPR
Best Practice Replication is being used as part of the manufacturing operations
e-Business strategy. Since 1995 we have been sharing better ways of doing busi-
ness over the intranet using the Best Practice Replication process. Our perspective
has always been Enterprise wide, and using the Electronic intranet we have En-
abled knowledge transfer at a quicker pace. In May 2001, we changed our name to
eBPR to formally recognize this approach.
506 Dar Wolford and Stan Kwiecien

3 Knowledge Management that Works

Let' stake a look at some specific examples that illustrate how eBPR is enabling
Knowledge Management at Ford.

3.1 Hand-in-Glove Knowledge Sharing

A good example is how we have changed the way workers dispose of work gloves
on the factory floor .. One of our stamping plants conducted a RAPID workshop.
Within four months, the plant had purchased and installed lockers developed train-
ing on updated procedures for new and existing personnei, and identified more
than US$300,OOO in savings from reduced new glove purchases and the promotion
of collecting and reusing washed gloves (work gloves are an expensive item in
any manufacturing plant). This proved to be a great opportunity for replication.
The practiee was proven and some results were measured, so the stamping plant
submitted the practiee into the Best Practice Replication Process. It caught the eye
of a manager at an assembly plant who, in turn, replicated the process with a neat
spin - installing basketball hoops with laundry baskets underneath as a way to col-
lect soiled gloves. These hoops were located near the exit doors encouraging
workers to slam-dunk their gloves through the hoop into the waiting laundry bas-
ket as they left after their shifts. Since this practice and its variations were submit-
ted to the process, they have been replicated in various sites and have saved the
company in excess of US $1.6 million.

3.2 Moving Knowledge around

Another example of successful best practiee replication is that of an assembly
plant in Europe that recognized the potential in moving people around the factory
floor - literally. Assembly line operators who assemble parts onto every vehicle
had to walk along each individual unit while carrying their tools and materials
along with them. The plant installed a moving platform that was synchronized
with the speed of the moving assembly line. This "synchronous carrier" now car-
ried the operator, tools and materials alongside the vehicle eliminating the need
walk and reducing the potential for trips and falls and the strain of carrying parts
and tools carried the weight of their tools and enabled them to move effortlessly
with the line. This practice was first installed in February 1996 and has been repli-
cated in 26 plants resulting in over US $3.5 million of actual value by reducing
ergonomie costs, improving quality and increasing productivity. More impor-
tantly, this one practice has spawned over 80 additional practiees using the con-
cept of synchronized carriers. These practices in turn have enjoyed additional rep-
lications and added millions more in value to the company. The concept of these
"synchronous carriers" is not new. In years past there have been pockets of im-
plementation, what the eBPR process enabled was a sense of comfort and reduced
risk. As focal points reviewed examples of successful installations with their local
teams, it sparked thoughts where similar deviees could be applied. The other "bo-
nus" is now the operator who will be affected directly by a change to the work sta-
Driving Knowledge Management at Pord Motor Company 507

tion by this or some other device can see that it is in use elsewhere and can visu-
ally relate and accept the change prior to implementation. The operator(s) have an
opportunity to influence the design and installation prior to rather than after.

3.3 Improving Communication with Video

In the spirit of continuous improvement, we are always looking for ways to better
our methods of communication. The intranet offers a wealth of different types of
media and we have recently started to exploit the technology with the introduction
of video to photoplay specific practices. While a picture might tell a thousand
words - and we use them too - imagine what a two-minute video clip could con-
vey about the details of a manufacturing practice. For example, front seat belts are
installed with different size bolts on the B-post of a vehicle. Installing the bolts
requires two different size tools. One of our US plants along with a tool manufac-
turer designed a dual head nut runner that could apply the correct torque to the
bolts reducing the need to continually change tools. The dual-sided tool and the
practice have been captured on a video depicting the operator installing the seat
belts. Video is the clearest form of communication for this type of knowledge
sharing and during the pilot phase, 34 facilities adopted this practice.

3.4 As CIose to "Best" as You'll Get

There are a finite number of processes involved in assembling a vehicle. Ford em-
ployees worked out a methodology to identify these process chunks and measure
how long it took to perform these processes at 38 separate plants. For example,
everybody used the same method to measure how long it takes to install wheels. It
turned out that one plant instalIed four wheels in 1.4 minutes within a quality op-
erating system, whereas other plants were taking up to four minutes. The originat-
ing group attached a video to its detailed best practice along with explicit instruc-
tions and links to installation manuals to share throughout the system - thus iden-
tifying value for immediate time reduction. All other locations developed action
steps to close the gap between themselves and this internal benchmark. This proc-
ess was repeated for each of the 150 high level steps in assembling a vehicle. In-
terestingly, each plant was the internal benchmark for something - no one single
plant was the best at everything. Every plant contributed something and every
plant benefited from sharing this knowledge.

3.5 Sparking Great Marketing

Global Marketing has launched two communities. It is interesting that the execu-
tive marketing management loved the eBPR process, with it's roles and responsi-
bilities, but didn't think the name Best Practice Replication had that "pizzazz."
They chose to call the process "Sparking Great Marketing" and have developed a
smart looking homepage that captures their identity and desire to use previous
marketing successes to "Spark" new campaigns. The buttons and links will take
the members of the marketing community to the "vanilla eBPR process" with a
508 Dar Wolford and Stan Kwiecien

touch of the sparking theme shown on each of their templates and pages. Their
success in sharing knowledge is measured around increases in brand value and
awareness, customer satisfaction with new product enhancements.

4 New eBPR Communities

Now that we have highlighted a few of our existing communities, let' s focus on a
few that are being planned for roll out within 2001.

4.1 Ruthless Execution of IT

Following the Cisco model, Ford is adapting Ruthless Execution around certain IT
principals. Building IT enterprise communities across these principals will enable
quicker and more cost effective delivery of IT solutions to Ford Motor Company.
The communities that are being established include a System Delivery Life Cycle
team, an Enterprise Information Architecture group, and a community conducting
Operation Reviews with our business partners. Each of these communities will
share better ways to deli ver IT solutions around the classic metrics of on time,
quality and cost.

4.2 Recruiting Knowledge on Campus

Ford Motor Company actively recruits new employees at 80+ universities. Our
recruiting efforts are staffed by employees who volunteer, and go to universities
looking for the best and brightest. The eBPR process is used as a tool to help train
new recruiters and capture the learning's of experienced employees. The value
benefits are expressed in terms of time saved both in training new recruiters and in
the actual recruiting process and success rates in recruiting.

4.3 The 6-Sigma Connection

Plans are to replicate select key findings from the 6-Sigma projects that are being
conducted throughout Ford. Some of the findings will be identified as opportuni-
ties to improve future model design and some are relevant to existing manufactur-
ing and business processes. The latter two are being replicated within the existing
25 communities using the proven eBPR process.

5 Does It Work?
We are often asked why this works at Ford, what are the key drivers? We believe
there are three:
Driving Knowledge Management at Ford Motor Company 509

1. There is a strong business driver with a single mantra - "An inspired and
global team - customer-focused and shareholder-driven." This is how
our CEO, Jacques Nasser closes each and every weekly "Let's Chat" e-
mail that goes to every employee in the Company. By using eBPR as a
tool, organizations find ways to leverage cost reductions and revenue en-
hancements with a strong customer focus.
2. There's no direct monetary reward for contributions to the system, but
each practice identifies the person who first implemented the best prac-
tice, and as such offers kudos to the entrant. Recognition among peers
has high value; there is a strong sense of pride
3. The system includes a prompt to encourage users to document their
whole experience - both successes and failures. The communities wanted
a place to put lessons leamed so that mistakes were not replicated. While
the descriptions are of a success story, it's important that contributors de-
tail what not to do as well during the initial implementation. This is a
testament to the strength of the Ford culture that contributors are happy
to relate and value those things that don't go well as those that do.

5.1 Making the System Stick

There are several of elements that make the eBPR intranet tool effective. For example:

• The site includes a "What's New" link that flashes when updated, a con-
tact list that shows the primary support people, and all the communities
by location. All focal points can use this list to find out who the others
are. Because the system provides a fieldcalled "Contributing Locations,"
communities have begun collaborating on efforts.
• When entering proven practices, users can add attachments, such as
documents, photographs, or any other PC file. Adding a photo or digital
video clip offers proof that the practice has indeed been implemented and
is working! The guidelines are not too strict on additional content and
the template is very user-friendly - making it easy to contribute. You can
also link to any other Web site anywhere in the world, or link it to an-
other picture sheet, so there's a lot of flexibility.
• The search facility is robust. Ford built its own search function that al-
lows for two basic types of searches. One is a simple keyword search,
which can be launched once a user has picked a community. The second
type of search is an advanced search which is dynamic and - depending
on how many communities you choose - more intricate because there are
unique fields for every community
• Contribution to the site generates recognition for individuals. The IT and
eBusiness Infrastructure department periodically sc ans reports and
community summaries. If the department notices one with a lot of
activity it concludes that someone is eligible for recognition, the
department will write them a letter, which is signed by a vice president
and is presented by the focal point' s plant manager. This recognition may
help an employee during his or her formal appraisal.
510 Dar W olford and Stan K wiecien

5.2 Lessons Learned

Where would a knowledge management tool be if we didn't try and leam from it?
The Best Practice Replication Process is undoubtedly successful, but by its own
nature it forces us to continually assess and improve the methodology. This proc-
ess helps us leam from our collective knowledge and we have cited many tangible
improvements in this chapter. As a knowledge management team we are con-
stantly stretching the boundaries of eBPR, but always keeping with the basic prin-
cipals of the process. It is exciting to witness how the established and experienced
communities of practice begin to plateau as the type and amount of knowledge
shared has satisfied the selection criteria. When this happens the communities on
their own demand arevision to the criteria and even more strengthening of the
process to assure that there is a never-ending source of opportunity.

6 Conclusion

It is easy to talk about knowledge management in abstract terms, but there are
simple effective ways to disperse knowledge and place a value on doing so. The
people who use it have a passion for it. This is fun. Breakthroughs will occur
when people at all levels understand that they have a role to play in the success of
their company, and information access is built directly into the work process.
Knowledge management solutions should be considered a business initiative, and
as such they must be quick to market, quality-driven and support substantial
shareholder value - reducing costs and increasing revenues.