Operations Management Comparing Servicing Industry and Manufacturing
The main factor that differentiates products from services is tangibility. Although these industries have different operations, as we are moving towards a world that is more and more service based it is observed that operations management theories, approaches and other methodologies used in manufacturing can mostly be modelled to work in the service industry. In this essay we will be contrasting some principles of operations management between Ford Motor Company and McDonald 's, two succesful multinational companies with prominent operations functions.
a)
When it comes to processes and activities, there are wide differences between a service-based organisation and a manufacturing environment. In the production line of a factory like Ford where we are mostly dealing with materials transformation, processes are as follows:
1. Components: each bit of item required to make a car is supplied by over 4000 suppliers and are transported to the relevant plant.
2. Chassis: sequentially, the frame which forms the base of the car, moves on a conveyor to equip the car with suspensions, gas tank, axle and shaft, gear and steering boxes, wheel drums, braking systems, engine, transmission, and radiator.
3. Body: on a separate assembly line to the chassis, the door pillars, roof and side panels are attached. Fully assembled doors, deck lids, hood panel, fenders, truck lid and bumper reinforcements are then installed.
4. Paint: skilled body repairmen repair any cosmetic damage on the shell after it has been thoroughly inspected. The car is then mechanically painted a number of times.
5. Interior Assembly: workers assemble all interior instrumentation and wiring systems, dash panels, interior lights, seats, doors and trim panels, head-liners, radios, speakers, all glass except wind shield, steering column and wheel, weather-strips, vinyl tops, brake and gas pedals, carpets and bumpers. The wind-shield is then robotically installed prior to the shell being given a water
a)
When it comes to processes and activities, there are wide differences between a service-based organisation and a manufacturing environment. In the production line of a factory like Ford where we are mostly dealing with materials transformation, processes are as follows:
1. Components: each bit of item required to make a car is supplied by over 4000 suppliers and are transported to the relevant plant.
2. Chassis: sequentially, the frame which forms the base of the car, moves on a conveyor to equip the car with suspensions, gas tank, axle and shaft, gear and steering boxes, wheel drums, braking systems, engine, transmission, and radiator.
3. Body: on a separate assembly line to the chassis, the door pillars, roof and side panels are attached. Fully assembled doors, deck lids, hood panel, fenders, truck lid and bumper reinforcements are then installed.
4. Paint: skilled body repairmen repair any cosmetic damage on the shell after it has been thoroughly inspected. The car is then mechanically painted a number of times.
5. Interior Assembly: workers assemble all interior instrumentation and wiring systems, dash panels, interior lights, seats, doors and trim panels, head-liners, radios, speakers, all glass except wind shield, steering column and wheel, weather-strips, vinyl tops, brake and gas pedals, carpets and bumpers. The wind-shield is then robotically installed prior to the shell being given a water