Ford Achieved 75% Reduction in Head Count in Its Accounts Payable Department by Re-Engineering
Principle: Put the decision point where the work is performed and build control into the process.
This is implemented with the new model, as receiving clerks at the docks had to learn how to make decisions about whether or not to accept the goods. Purchasing staff also had to assume new responsibilities such as making sure that purchase orders were entered into the database with the correct information. Information Technology plays a part here as it is able to capture and process data, effectively aiding these staff in their decision-making process. As these staff become self-managing and self-controlling, slowness and bureaucracy associated with the existing hierarchy disappear.
3. The changes Ford made in its accounts payable operation has also resulted in improved materials management. They now have an up-to-date database system that enables anyone with access to retrieve this information that is needed in their daily work. They are also able to track the incoming and outgoing of goods, which is a result of this reengineering.
- Ford Achieved 75% Reduction in Head Count in Its Accounts Payable Department by Re-Engineering
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