All one-ton-class small trucks produced at Auto Alliance Thailand (AAT) will be marketed under either the Mazda or Ford brand. On its vast premises, prototypes for each company are undergoing repeated test runs. "We will achieve best-in-class quality," says Hisao Takiyama, 54, General Manager in charge of quality assurance, with a ring of confidence in his voice.
Late in March, small trucks produced by three Japanese carmakers operating in Thailand were secretly brought to AAT. An in-house team of experts started comparing them with their own prototype. As a result of their extensive check, covering as many as 180 items-including appearance, vibration level during driving, and functions of accessories, they discovered that in terms of quality the prototype was at the same level as the competition. So, they set the target at an even higher level.
"I would like you to secure product quality that can meet global competition," Wayne Booker, 63, Vice-Chairman of Ford, has repeatedly demanded at the board meetings held once every three months. His demand is a result of the plan to export products manufactured in Thailand to Europe and Australia. It is a plan which maks the most of Mazda's production technology, which he believes is excellent.
However, Mr. Takiyama and his colleagues, do not have their hands free to do whatever they want to improve quality. The Financial Management Department controlled by Ford checks the budget very rigorously. Their authority is much stronger than Mazda's.
Purchasing is a case in point. Ford takes quotations from at least three suppliers and chooses the most inexpensive option after obtaining approval from the Financial Management Department. Ex posto facto reports will not do. Naturally the process takes time. Furthermore, at Mazda if payment can be contained to, for example, within \800,000, for a budget of \1,000,000, the balance left over can be used to buy other necessary equipment. At AAT, however, the remaining balance goes into the profit. Although Mr. Takiyama understands the approach Ford takes, he was quite candid, "It is really tough. You know, we also have to meet our schedule which is backed up to the plant start-up."
The word "off-set," which can be roughly translated into Japanese as sashiki or 'balance', is another concept which is already well established at AAT. This is a system to keep the total number of employees unchanged. Thus if you want to add personnel in one department, you have to cut the workforce by the same number in some other departments. "It is hard for us. But, again, there are the advantages to the Ford style," says Norio Sugimura, Manager in charge of instructing technology to parts suppliers.
The ten members on Mr. Sugimura's team were scheduled to go back to Japan one month after plant start-up. However, they discovered that the product quality of several suppliers didn't meet the set standard. "We cannot achieve the target quality before the scheduled deadline," Mr. Sugimura said, showing the number openly to the person in charge of financial management and asking for his approval to extend their stay. The person from Ford agreed and the decision was made to extend the stay of five members of the team members for six more months. But, in exchange, the other five members had to go home earlier than originally scheduled.
While Ford is very strict in managing finance, it undoubtedly pays a measure of respect to Mazda's production technology. "They are achieving the target for product quality while meeting the budget and delivery schedules." says Otto Winter, 57, Vice-President in charge of purchasing. "That is no mean feat". The Vice-Chairman, Mr. Booker, says that, "AAT can serve as a model for other plants."
In a way, such views held by Ford seem to represent satisfaction with the scheme whereby Mazda implements Ford's strategy at AAT. Mr. Sugimura, however, states his view of the situation very clearly, "In manufacturing operations Mazda's experience is utilized, while in management and strategy Ford's accumulated know-how is made the most of. We are complementing each other. I don't feel in any way we are working under their orders."
The personnel on loan from Mazda share the view that AAT is a location where Mazda must demonstrate its capabilities to Ford. An AAT executive from Mazda showed even stronger determination, saying, "If we fail in this, they will think it is no good to team up with Mazda. By all means possible, we must make this a success." Which reveals just how intense this link with Ford is for Mazda.
