Span of processes - make or buy, Operation Management

Assignment Help:

Span of Processes - Make or Buy

When Henry Ford developed his famous moving assembly-line method of producing the Model T car at the River Rouge plant in Detroit, he chose to 'own' all stages of its production, ie the widest possible span of processes. His company owned the rubber plantations that supplied the raw materials for the car's tyres; it owned the forests that supplied the wood for the car's wheels; it owned the iron mines, steel plants, foundries, forges, rolling mills and machine shops which manufactured the engine and other components. Its ownership of the complete span of processes even extended to the company's shipping line and railroad for the transport of materials and product. Today, no car manufacturer tries to manage such a wide span of processes; the lessons of Skinner's 'factory focus' have been learned, and many of the car's components are bought from specialist suppliers. Returning to the example of the gas-turbine component and the process sequence, consideration would be given to how much of the span of these processes should be carried out by the company itself. Instead of installing and managing all of the processes, a plausible alternative would be to buy the precision forgings from a specialist supplier, and restrict the internal focus to the machining operations. In the case of the airline service discussed earlier, it might be decided to focus on the long-haul flights between hub airports, leaving the feeder flights to and from the hubs to be provided by other airlines. Likewise, the in-flight entertainment and catering provisions might be outsourced to specialist suppliers.


Related Discussions:- Span of processes - make or buy

Define critical path, Define Critical Path. Critical Path: Computatio...

Define Critical Path. Critical Path: Computation of Earliest and Latest Values of the events of the specified network is as follows:-  Event              EOT

Explain divisions of labour are appropriate, Draw an organizational chart o...

Draw an organizational chart of the business school or college that you attend. Outline its major roles and functions. How differentiated is it? Do you think the distribution of au

What is assuming by theory x, What is assuming by Theory X? Ans: The...

What is assuming by Theory X? Ans: Theory X assumes that a typical person dislikes work.

Explain when communicating a change, When communicating a change, which rol...

When communicating a change, which role is more important: reporter of information or sense maker? Why

HR functions, What are teh Pros and Cons of gentralizing or decentralizing ...

What are teh Pros and Cons of gentralizing or decentralizing HR functions as it relates to organization relationships?

Explain the criteria you would use if you were a manager, In one paragraph ...

In one paragraph supported by your text and other research, describe the criteria you would use if you were a manager charged with evaluating corporate contributions to decide whet

Describe what is the expected value of perfect information, Director of leg...

Director of legal services of ABC Company must decide whether to hire another full-time lawyer or to hire part-time lawyers. Anticipated costs for the two options under three possi

Capasities in both manufacturing and service sector operatio, define the te...

define the term "operation management" and expailn the importants of operation management theories in both manufacturing and services

Explain project layout, Give an example of a project layout. Describe the s...

Give an example of a project layout. Describe the site and how the environment is organized?

Decision making process for ethical solution, Profits have been decreasing ...

Profits have been decreasing and power plant executives are considering whether to use a production process that decreases costs (and therefore increases profits) but adds to the p

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd