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 why is it best not to enter a percentage completion, Answer the foll...

Answer the following questions: 1) Why is it best not to enter a percentage (%) completion? 2) According to your Project Summary, is this project on schedule? Will you be ove

Explain what is tims best defense, Tim is a director and officer of United ...

Tim is a director and officer of United States Sales, Incorporated. Tim makes a marketing decision that results in a dramatic decrease in profits for United States Sales and its sh

Explain trial balance, Explain Trial Balance. Trial Balance : After po...

Explain Trial Balance. Trial Balance : After posting all journal entries in the ledger, a statement termed as trial balance is prepared to check the accuracy of postings in th

Explain environment that best serves the organization, Briargrove is taking...

Briargrove is taking proposals for a Centralized Learning Network to be rolled out first in the corporate office in Dallas, TX and then across the organizational footprint. A priva

Describe system safety program, You are the System Safety Engineer for a ma...

You are the System Safety Engineer for a major aerospace firm. You have been assigned to lead the system safety program for a newly developed aircraft. What are some of the key tas

What are the organisational differences in operations, What are the organis...

What are the organisational differences in operations? Organisational differences in operations are as follows: a. Degree of volume which can be produced for example, standa

Explain what challenges does adam-woodford face, What challenges does Adam-...

What challenges does Adam-Woodford face as he develops his five year product roadmap?

Compute the npv, Expando, Inc., is considering the possibility of building ...

Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to their product line. The company is currently considering two op

Needs for trade- offs - business strategy, Needs for Trade- offs - Business...

Needs for Trade- offs - Business Strategy In recent years another reason for questioning the need for trade-offs has arisen. In manufacturing industries great efforts have bee

What protected in a bia plan, Select an organization and discuss what type ...

Select an organization and discuss what type of information should be protected in a BIA plan. How would you ensure protection of the confidentiality of such information and preven

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