Preview

Learnings in Operations Management from Henry Ford, Sloan and Toyota

Better Essays
Open Document
Open Document
3073 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Learnings in Operations Management from Henry Ford, Sloan and Toyota
The success of Henry Ford till 1925s
Henry Ford did not invent the automobile. He didn’t even invent the assembly line. But more than any other single individual, he was responsible for transforming the automobile from an invention of unknown utility into an innovation that profoundly shaped the 20th century and continues to affect our lives today.

Model T (A car for everyman)
In simple terms, the Model T changed the world. It was a powerful car with a possible speed of 45 mph. It could run 25 miles on a gallon of gasoline. It carried a 20-horsepower, side-valve four-cylinder engine and two-speed planetary transmission on a 100-inch wheelbase.
It was Henry Ford’s foresight which saw the potential market of automobiles. In his opinion transportation was a basic need of human and if affordable anyone would be willing to buy it. It was with this vision of delivering automobiles to everyman that Ford started to experiment with different production methodologies to lower the cost of production.

Influence of Frederick Taylor on Henry Ford
Frederick Taylor was a contemporary of Henry Ford. His theory of scientific management had a big impact on Henry Ford.
According to Henry Ford, the assembly line was based on three simple principles: "the planned, orderly, and continuous progression of the commodity through the shop; the delivery of work instead of leaving it to the workman 's initiative to find it; an analysis of operations into their constituent parts." A scientific approach to these principles, the next logical step in the organization of work, had already been enunciated by
Frederick Taylor in what is now called as scientific management.
Henry Ford used the techniques specified by Frederick Taylor in increasing the efficiency of his process. Taylor 's scientific management consisted of four principles:
1. Replace rule-of-thumb work methods with methods based on a scientific study of the tasks.
2. Scientifically select, train, and

You May Also Find These Documents Helpful

  • Good Essays

    Operations Managements

    • 2532 Words
    • 11 Pages

    Consider a firm with a daily demand of 100 units, a production rate per day of 500 units, a setup cost of $200, and an annual holding cost per unit of $10. Suppose that the firm operates 300 days per year. How many units of inventory must their storage area be able to hold?…

    • 2532 Words
    • 11 Pages
    Good Essays
  • Good Essays

    Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don’t include as many influencing factors. (T/F) F The Delphi approach involves the use of a series of questionnaires to achieve a consensus forecast. (T/F) T In order to compute seasonal relatives, the trend of past data must be computed or known, which means that for brand-new products this approach cannot be used. (T/F) T MAD is equal to the square root of MSE, which is why we calculate the easier MSE and then calculate the more difficult MAD. (T/F) F Capacity decisions often involve a long-term commitment of resources which, when imple- mented, are difficult or impossible to modify without major added costs.(T/F) T Increasing capacity just before a bottleneck operation will improve the output of the process. (T/F)F 7. Design capacity refers to the maximum output that can possibly be attained. (T/F)T Among decision environments, risk implies that certain parameters have probabilistic out- comes. (T/F) T 9. The maximax approach is a pessimistic strategy. (T/F) F A job-shop processing system generally requires less-skilled workers than a continuous pro- cessing system. F In cellular manufacturing, machines and equipment are grouped by type (e.g., all grinders are grouped into a cell). (T/F) T 12. ”Balance delay” is another name for the percentage of idle time in…

    • 1323 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Operations Management

    • 2215 Words
    • 9 Pages

    Supply chain management is the coordination of the processes and functions within a business, adopted by most companies in the UK in the late 1990’s. It deals with the internal and external factors that, when dealt with correctly and systematically, can determine a businesses success or failure. A supply chain is the network of activities that delivers a finished product service to the customer. By definition, supply chain management (SCM) is “the management of the flows of materials from suppliers to customers in order to reduce overall cost and increase responsiveness to the customers” (Reid & Sanders). SCM entails the co-ordination of the movement of good through the supply chain from suppliers to manufacturers to distributors to the final customer. The main aim of SCM is to maximise the efficiency of any given process being carried out by a company; by doing this it is allowing them to try to cut their costs and hopefully keep satisfying their customers’ needs, while at the same time maintaining their competitive position within their market. Supply chain management is seen as more of an “open system” in contrast to the traditional system used by the majority of companies just 20 years ago. The new “open system” allows room for change which is greatly needed with the current financial instability of the economy.…

    • 2215 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Operations Management

    • 1231 Words
    • 4 Pages

    There are many performance indicators for the success of a business. This include brand identity, reputation, innovation, leadership, productivity, process management, customer satisfaction, and quality to name a few.…

    • 1231 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Part I 1. Project management: a) Is the planning, scheduling and controlling of project tasks to meet objectives. b) Is used primarily in construction and public works. c) Requires less communication than ongoing process management. d) Focuses on well-understood, unambiguous tasks and relationships. Using the following project, with activity times estimate in days and a critical path of CH-J-K, to answer the next 3 questions: Activity A B C D E F G H I J K Immediate Predecessor A A A, B C C E, F, G H D, I, J Optimistic 2 4 6 5 3 8 4 3 5 12 1 Most Likely Pessimistic 5 3 7 12 4 9 6 7 7 13 3 6 7 10 14 5 12 8 8 12 14 4…

    • 2606 Words
    • 11 Pages
    Satisfactory Essays
  • Best Essays

    Managing the Ford Way

    • 2532 Words
    • 11 Pages

    Innovator, industrialist, and outdoorsman: Henry Ford started it all (Ford Motor Company INC., 2010). Henry Ford was born in 1863 in an area of Michigan that later would become Dearborn. He was the oldest of six children and came from an agricultural background. In the 1890s he showed promise as an engineer at the Edison Illuminating Company and rapidly advanced to chief engineer in 1893. That year Henry’s only son Edsel was born. In the late 1890s Henry Ford became friends with Tomas Edison. The friendship lasted more than 30 years, and they continually inspired, encouraged, and contributed to each other’s work (Ford Motor Company INC., 2010). Henry’s first vehicle was the Quadricycle. It afforded him the opportunity to vacate his job at Edison Illuminating, and in 1899 he helped form the Detroit Automobile…

    • 2532 Words
    • 11 Pages
    Best Essays
  • Good Essays

    Operations Management

    • 692 Words
    • 3 Pages

    Yes there is, scholars agree that supply chain for service is more complex and difficult for manufacturing than services due to the fact that flow of physical goods and services focuses on human resources capabilities, ethics. Sales are intangibles in the service industry and decision are making at the one site as opposed to different location as it happens in the manufacturing industry. The behavior of humans regardless of how much training an employee is given, the outcomes is unique by each individual delivering the service. Therefore, human touch is what makes service In addition; the focus of efficiencies in service supply chains is on management of capacity, flexibility of…

    • 692 Words
    • 3 Pages
    Good Essays
  • Good Essays

    1. Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements. True (Global company profile, easy) The production process at Hard Rock Café is limited to meal preparation and serving customers. False (Global company profile, easy) All organizations, including service firms such as banks and hospitals, have a production function. True (What is operations management? moderate) Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs. True (What is operations management? easy) An example of a "hidden" production function is money transfers at banks. True (What is operations management? moderate) One reason to study operations management is to learn how people organize themselves for productive enterprise. True (Why study OM, easy) The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. True (What operations managers do, easy) "How much inventory of this item should we have?" is within the critical decision area of managing quality. False (What operations managers do, easy) In order to have a career in operations management, one must have a degree in statistics or quantitative methods. False (What operations managers do, easy) Henry Ford is known as the Father of Scientific Management. False (The heritage of operations management, easy) Shewhart’s contributions to operations management came during the Scientific Management Era. False (The heritage of operations management, easy) Students wanting to pursue a career in operations management will find multidisciplinary knowledge beneficial. True (Where are the OM jobs? easy)…

    • 18758 Words
    • 76 Pages
    Good Essays
  • Powerful Essays

    Operations Management

    • 4028 Words
    • 17 Pages

    Robert Vinaja University of Texas-Pan American 1201 W. University Dr., Edinburg, TX 78541 (956) 381-3314…

    • 4028 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    We study Operations Management because it is such a costly part of an organization. A large percentage of the revenue of most firms is spent in the Operations Management function. Indeed Operations Management provides a major opportunity for an organization to improve its profitability and enhance its service to society.…

    • 1270 Words
    • 6 Pages
    Good Essays
  • Best Essays

    LSW International Sdn Bhd (LSW) was incorporated in 2007 with a vision to be trendsetters in the training and development industry (see Appendix 1). The core business of the…

    • 2636 Words
    • 11 Pages
    Best Essays
  • Best Essays

    Ford Motor Company (FMC) manufactures and sells vehicles worldwide. The company has two business segments that include automotive segment and financial services. Ford carries out operations in North and South America, Europe, Asia and Africa. Hence, the company has to ensure that its operations are working effectively to meet its organizational objectives. The company also has to ensure that its operations management strategies are adequate to provide maximum benefits to the company. Domestic car manufacturers are facing intense competition from foreign vehicle manufacturers such as Toyota, Honda, Nissan, Mercedes Benz, BMW and Audi just to name a few. There is thus the need to manage operations so as to improve efficiency, reduce costs and in the process achieve competitive advantage. Heizer and Render (2011), noted that operations management is a transformation process that occurs in companies producing goods and also in service organizations. Transformation process involves daily activities that focus on creating value for the organization. Operation processes are determined in terms of effectiveness (whether the process is able to attain company objectives) and efficiency (is the process using resources adequately). According to Davis and Heineke (2005), different types of transformation could be physical as in manufacturing, location as in transportation, storage as in warehousing, health care which is physiological, and informational which is telecommunication.…

    • 3104 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    2) How is variability affecting capacity at the clinic? Can the source of the variability be controlled or eliminated? How…

    • 932 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Laser Projection Keyboard

    • 267 Words
    • 2 Pages

    I think that this product is too expensive but it is very convenient for everyone who love new invention for your Apple's product. If I was the inventor , I wouldn't add any features but I'd discount the price to let the middle class own this laser projection…

    • 267 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    1. CAD/CAM- CAD/CAM stands for Computer-aided design and Computer-aided manufacturing. It is used in product development to enable manufacturers to design and build their products using computers.…

    • 580 Words
    • 3 Pages
    Good Essays