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

Product , Product Product is anything that can be offered to a market ...

Product Product is anything that can be offered to a market that might satisfy a want or need. There are two concepts of product narrow concept and wide concept. In its narrow

Compute the expected weeks of supply, The owner of Genuine Reproductions (G...

The owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring inventory effectiveness. Last year the cost of goods sold at

Explain compensation plan, Do you believe a compensation plan based 100% on...

Do you believe a compensation plan based 100% on commission would ever be justified? Give an example for either option.

Product layout., define the following key terms in product layout; product...

define the following key terms in product layout; product interval time, product duration, assembly line balancing

Define mass customization, Lands End will custom fit the Marinac jacket and...

Lands End will custom fit the Marinac jacket and make it with additional features, such as thumb loops, underarm ventilation slits, and a key clip, when you order from LandsEnd.com

OPERATIONS RESEARCH, Discuss the methodology of operation research

Discuss the methodology of operation research

Describe double exponential smoothing, The Cardinal Electronics Company mus...

The Cardinal Electronics Company must project the sales of cellular phones for the next year (called year 2). The number of cell phones sold by Cardinal Electronics in each of the

Explain what is a bfoq and will it allow acme university, ACME University i...

ACME University is hiring a new basketball coach for its men's basketball team. Carla Coach applies for the position. An official of the University contacts Carla and tells her tha

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