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

Interview Questions, What questions can be ask in interview for after gradu...

What questions can be ask in interview for after graduation level by a Computer Engineer?

Describe yelled at her in front of co-workers, Recall the case in which an ...

Recall the case in which an employee claimed harassment by her supervisor in which he altered her work hours with the knowledge that doing so would adversely affect her hypoglycaem

Explain reduce time in calculating customers, New software has been purchas...

New software has been purchased to reduce time in calculating customers' accounts. Establishing report and effective communication with team members is primary importance to make t

Molecular response to thyroid hormones, Molecular Response to Thyroid Hormo...

Molecular Response to Thyroid Hormones during Metamorphosis Thyroid hormones can cause obtainable tissues to break down or can remold the tissues to their adult function. The

Explain briefly the vrooms expectancy theory of motivation, Question 1: ...

Question 1: More and more organizations are showing greater reliance on team building and team work as opposed to individual work. Please discuss. i. Give characteristics o

Explain theory of negligence or strict liability, Architect Bob Berryman pu...

Architect Bob Berryman purchased a late model car from Fred's Ford dealership. Three months after he purchased the car, he had to replace two of the tires because he ran over nails

Explain how do projects drive accountability, How do projects drive "accoun...

How do projects drive "accountability"? Why would managers fear this particular terminology?

Calculating idle time and itilization, How do I calculate idle time and uti...

How do I calculate idle time and utilization in a two=stage processing problem?

Want help creating database using microsoft access, Need help creating data...

Need help creating database using Microsoft access. Please see question. Please create a new database called Automobiles for North East Honda dealership. The database will have

Green supply chain management, what is the meaning of green sipply ...

what is the meaning of green sipply chain managent and is it applied in production process

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