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

Describe interface of financial policy, Explain Interface of Financial Poli...

Explain Interface of Financial Policy and Strategic Management?

Explain about the level capacity strategy, Explain about the level capacity...

Explain about the level capacity strategy. Level capacity strategy: The organisation produces or manufactures at a constant rate of output avoiding any changes or fluctua

Explain social responsibility, Regarding Social Responsibility, who do you ...

Regarding Social Responsibility, who do you agree with more, Leonard (2013) or Friedman (1970)? Why?

Ethical issues that could comes in the underwriting process, What is the di...

What is the difference between rating and underwriting and how is it used? Identify and discuss any ethical issues that could arise in the underwriting process.

Explain support of senior management, Project failure can result from all o...

Project failure can result from all of the following causes EXCEPT- A. Support of senior management B. Changes in scope are not agreed upon by all parties involved C. Too

Explain current trends in the health care industry, How might a universal h...

How might a universal health insurance program change the current trends in the health care industry? In your opinion, are programs like that offered by Aetna to have surgery condu

Explain deviance and a moderate level of cohesiveness, Why is it important ...

Why is it important for groups and teams to have a balance of conformity and deviance and a moderate level of cohesiveness?

Explain silicon border play a role in mexico hi tech, How can Silicon borde...

How can Silicon border play a role in Mexico Hi tech manufacturing for US companies and the US market?

How conduct an analysis of american apparel, Conduct an analysis of America...

Conduct an analysis of American Apparel. Assess American Apparel's vertical integration, global strategy, and diversification. Compare American Apparel's approach to Google's

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