Ford Asia Pacific & Africa: The E-coating Facility Decision in Gujarat, India (A)

Case Solution

Juan Alcacer, Nancy Hua Dai
Harvard Business School ()

In April 2013, Ford Asia Pacific & Africa (FAPA) reviewed its options for green maintenance of metal parts for Ford’s Customer Service Division in Sanand, Gujarat, India. Randy Creel, Director of Parts Supply and Logistics, FAPA, worked with colleagues in the US, UK, China and India to conduct analysis and develop three options: Outsource Green Power to a third party in Sanand, Outsource Power green to a third party in Chennai and the transport of parts to Sanand or the construction of an independent plant in Sanand. Factors such as cost, quality, speed and risk had to be considered in this decision, which had an impact on profitability and customer satisfaction. Which option should FAPA choose?

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