An important aspect of Ford’s portfolio management approach involves understanding the value of each programme. Once that is known, the value of the portfolio can be better understood. The value of a...

An important aspect of Ford’s portfolio management approach involves understanding the value of each programme. Once that is known, the value of the portfolio can be better understood. The value of a programme is not simply the sum of the individual programme’s timing, quality, cost and content but rather a non-linear combination of these factors. Time, quality, cost and content have different weights based on specific targets and strategic goals; for instance, in some cases quality might have more weight while in others ‘timing’ might be more significant in terms of the overall value of the programme. As an illustration of a case where one priority is weighted more heavily than another, a hypothetical example is offered where Ford is beaten to market by a competitor with a derivative product. In such a case, the time factor becomes the predominant value component. Quality would not be as much of an issue, because known sub-systems from the current platform will be used. Costs will be allowed to temporarily exceed the norm and content is going to carry over from previous development projects 3 plus any extra content needed to stay competitive. In this case, timing carries the greatest weight. In general, the newer and bolder the product, the more important timing becomes. If timing is missed, then synchronisation with tooling manufacturing plans, advertising, promotions, etc. is lost. Under other conditions, content has a greater weight than other factors, where additional features are being made to luxury-end products.