Focused factories - limited vertical integration, Strategic Management

Focused Factories - Limited Vertical Integration

Japanese companies prefer specialisation (derived from Adam Smith's theories on division of labour), with a limited or focused span of activity. They believe that with fewer activities to control, their abilities to master skills and improve productivity, are enhanced. There are some stark comparisons. The Singer Sewing Machine Company in Scotland, once had 14,000 employees working simultaneously on one site. Today IBM in Scotland who are engaged in the large-scale production of personal computers believe their plant has reached an 'optimum' size with 3,000 workers. Under no circumstances, would they allow their plant to approach the dinosaur proportions of the now extinct Singer plant. The issues of organisation and productivity are closely linked. Group technology (GT) This is a technique which is well documented by the British academic, J L Burbidge in his article 'The Future for Batch Production', 1985. Instead of laying out the plant by department specialism, it is considered more sensible to group product families together in cells. The purpose of their grouping is to improve material flow and span of control. For instance, less set up time is needed between parts requiring similar processing. More use can also be made of shared facilities. Group technology has been around for some time - it was widely used by the Soviet Union during World War II to produce tanks. After the war, it was imported to Europe. However, as the literal translation of the Russian is 'family planning' (which has other meanings!) it was altered to group technology.

Posted Date: 3/15/2013 1:07:34 AM | Location : United States







Related Discussions:- Focused factories - limited vertical integration, Assignment Help, Ask Question on Focused factories - limited vertical integration, Get Answer, Expert's Help, Focused factories - limited vertical integration Discussions

Write discussion on Focused factories - limited vertical integration
Your posts are moderated
Related Questions
Characteristics of each component of GE matrix

Why are Crafting & Executing Strategy Important? 1.   Crafting & executing strategy are the top managerial tasks for two very large motives:- (a). Here, compelling requirem

Fisher price is famous for manufacturing quality toys at moderate prices. Fisher price is the best known brand for toys. It enjoys the largest market share of around 65% in the ind

What are the problems in assessing the potential for synergy from a merger

One rich seam of experimental data comes from meteorological measurements.  Thousands of measurements are recorded each day by the Australian Bureau of Meteorology (BoM). This assi

1.1 Describe the importance of external factors affecting an organization. 1.2 Examine the requires and expectation of stakeholders of an organization. 1.3 Examine the main chang

Establish long-term objectives Live Business News investigated that ‘The market researchers AC Nielsen expect that Aldi will expand its branch network in the few urban centers

Among NMS, we can find various scenes of the economic crisis, ranging from countries with extremely serious crisis to countries with rather milder crisis. These countries can be cl

Q. What do you mean by Dual pricing? Dual transfer pricing means setting one transfer price for the internal seller and another transfer price for the internal buyer.  The basi

For this question you will analyse box office receipt data for two movies: Harry Potter 1: Sorcerer's Stone and Pirates of the Caribbean 1: Curse of the Black Pearl . Go