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

Systems approach - operations function, Systems Approach - Operations Funct...

Systems Approach - Operations Function In parallel with the development of management science, and also largely stemming from the wartime inter-disciplinary teams, an interest

Explain the problems associated with performance measurement, Question 1: ...

Question 1: The objective of Government organizations is not for profit. Explain the problems associated with performance measurement in not for profit organisations and ho

Explain the attitudes or traits of an engineer, Describe the attitudes or t...

Describe the attitudes or traits of an engineer that make the engineer unqualified to be a manager

Explain how many storage rooms of each size to build, Personal Mini Warehou...

Personal Mini Warehouses is planning to expand its successful Nashua business into Lowell. In doing so, the company must determine how many storage rooms of each size to build. The

Explain should you raise or lower price, If elasticity is -2, price is $10,...

If elasticity is -2, price is $10, and marginal cost is $8, should you raise or lower price?

Explain social responsibility on the part of businesses, What are the argum...

What are the arguments for and against social responsibility on the part of businesses? Research the topic and discuss. In addition, which set of arguments is more compelling?

Scope overview as well business case sections of the project, The scope ove...

The scope overview and business case sections of the project charter provide the high-level "what and why" of the project

Describe what is the workstation cycle time, Some tasks and the order in wh...

Some tasks and the order in which they must be performed according to their assembly requirements are shown in the following table. These re to be combined into workstations to cre

Explain what are the risks associated with backdoor, What are the risks ass...

What are the risks associated with backdoor (maverick) buying and selling? Why is purchasing interested in controlling this business practice?

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