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

Desicion making chapter 1, analyze the decision tree in figure A.8 what is ...

analyze the decision tree in figure A.8 what is the expected payoff for the best alternative? first be sure to infer the missing probabilities

What are advantages of using delegated sourcing strategies, What are the ad...

What are the advantages of using delegated sourcing strategies? Advantages of using delegated sourcing: a. Expertise of outsourcer as an example of core skills the organi

Customisation - customers needs for a product, Customisation - Customers Ne...

Customisation - Customers Needs For a Product The ability of the operations system to tailor its outputs to meet special requirements of customers. Vision Express has taken a

Break Even Sales, K Ltd a multi product company, furnishes you the followin...

K Ltd a multi product company, furnishes you the following data relating to the year 2000. First half sales Second half sales Sales Rs.45000 Rs.50000 Total cost Rs.40000 Rs.43000

Explain the business-level strategy, Research the corporate-level of strate...

Research the corporate-level of strategies and evaluate the business-level strategy do you believe is appropriate to offset forces in the industry for Victory Motorcycles. Can you

Why analysis phase in an hpt project is the most important, Some HPT practi...

Some HPT practicioners believe that the analysis phase in an HPT project is the most important. Do you agree? Why?

Explain what would happen without a code, In the field of human services, t...

In the field of human services, there are very important ethical codes that should be followed as outlined by the National Association of Social Workers. After viewing the short vi

Define the functional flexibility workforce, Define the functional flexibil...

Define the functional flexibility workforce. Functional flexibility (task flexibility or multi-skilled employees) associates breaking down traditional occupational restricti

Explain imagine an athletic facility such as sawhill, 3. Imagine an athleti...

3. Imagine an athletic facility such as Sawhill. What strategies would you suggest for creating an open environment? Sawhill Athletic Club was an athletic facility in suburban S

Explain information and communication technologies, 1. One consequence of g...

1. One consequence of globalization is increased competition. 2. Due to globalization, organizations often locate parts of their operations in different countries. 3. Due to global

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