Effectiveness of outsourcing of engineering service : survey inside the Ford of Europe interior department

The effectiveness of outsourcing in the Ford interior department is analyses by having a closer look at all outsourced groups, especially a look at three different engineering service groups and four job experience groups. The focus is on outsourcing car development from start to end. Two mini case...

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Bibliographic Details
Main Author: Verneville, T.
Published: University of Surrey 2010
Subjects:
Online Access:http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.521726
Description
Summary:The effectiveness of outsourcing in the Ford interior department is analyses by having a closer look at all outsourced groups, especially a look at three different engineering service groups and four job experience groups. The focus is on outsourcing car development from start to end. Two mini case studies have shown a need for effectiveness improvement. From the literature the outsourcing definition, reason for outsourcing, advantages and disadvantages are identified. The literature is checked how the effectiveness and performance can be measured. Outsourcing and effectiveness are the fields of interest for the survey from which the research questions have been generated. The Ford interior population was target for this survey, while access issue resulted in asking all outsourcing groups inside the Ford interior department, 518 persons have been asked without the Ford employees, 68 did answer. Supported with two mini case studies the evaluation has been showing that the main fields of ineffectiveness are target setting, design efficiency, salary, complain handling, trust and relationship. This survey was cross sectional. To get continues improvement inside the Ford interior department, it is needed to implement a performance measurement or quality control system. The automotive industry has already implemented ISO/TS 16949 (2009), but Ford and the other outsourcing provider seem to have a gap in controlling it through the project phases, resulting in finding effectiveness gaps. The survey result will underline the need for a performance and quality control system, which is effective and improving effectiveness, if continuously used in all project phases. The wider implications for management are that the outlined questions could be usable in any other outsourcing organization, maybe even in any organisation to evaluate the areas of ineffectiveness and to start with this framework the necessary uplift of effectiveness and performance.