Legacy automaker Ford (F) has taken plenty of cues from Japanese automakers in the past. One of the tools that Ford looks to put to use is called a “gemba,” and though it sounds like a blinding flash of the obvious, it might also be just the point that Ford needs to turn around its disastrous rate of recalls seen recently. Ford investors, though, seemed skeptical that this particular trick would work, and sent Ford shares down fractionally in Tuesday afternoon’s trading.
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A “gemba,” for those not familiar, basically means “to go to the place that is actually having the problems to see conditions on the ground for yourself.” “Gemba” itself translates as “actual place,” reports note, so the basic principles make sense. Essentially, Ford is sending its top brass down to the factory floor to see what is going on, and find out just where some of the problems are coming from.
Reports note that a gemba is a “…staple of a lean management philosophy,” which is rational enough. Trying to solve problems through three or more layers of management can result in a lot of miscommunication; just ask anyone who has ever played the game Telephone with more than five people in the circle at once. By sending the top-ranked personnel down to the factory line directly, they can find out from the people who handle those operations directly what is amiss, and respond accordingly.
Ford Security Package
Did you know that only about half the cars ever stolen are actually returned? Ford wants to improve that ratio in the car owners’ favor, and brought out the new Ford Security Package in aid of that. The Ford Security Package is not only designed to help stop theft, but also to help get your car back in case the first part falls through.
Among the tools is a mobile app connection that can send text message alerts to the owner that it may, in fact, be in the process of being stolen as the message hits. The owner can then make contact with a call center that can call police—why not just call the police directly?—and engage a start inhibitor that prevents the car from being started again without the user’s direct permission. The service is free for the first 12 months, and then after that charges a subscription that varies by location.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 10 Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 19.71% rally in its share price over the past year, the average F price target of $14.77 per share implies 6.79% upside potential.
