OPERATIONS MANAGEMENT

Operations Management



Executive Summary

In this study, we try to explore the concept of operations management in a holistic context. The main focus of the research is on operations management and its relation with lean manufacturing. The research also analyzes many aspects of operation management and tries to gauge its effect on lean manufacturing. Finally, the research paper describes various factors, which are responsible for the operation management and its impact on the lean manufacturing system of Ford. The main outcome of the study is to analyse the ways to enhance the performance excellence in business through lean manufacturing.



Table of Contents

Executive Summaryii

Synopsis1

Primary Research2

Critical Review of Salient Features of Lean Paradigm3

Introduction4

Discussion5

Benefits of Lean Production6

Evaluation of Lean Paradigm8

Lean Operation Management Process8

Lean Principles: A Problem-Solving Approach9

Lean Consumption10

Challenges faced by Ford during the implementation process11

Recommendations for implementation of Lean Manufacturing12

Conclusion15

References16

Bibliography18

Operations Management

Synopsis

The selected company for the purpose of this research is Ford, which is a global automotive industry leader based in Dearborn, Mich., distributes or manufactures automobiles across six continents. In 16 June 1903, Henry Ford founded the Ford Motor Company with a capital of 150,000 U.S. dollars. With about 80 plants worldwide and about 176, 000 employees, the company's automotive brands include Mercury, Lincoln, Ford and, until its sale, Volvo. The company also provides financial services through Ford Motor Credit Company.

Ford was founded in 1903 with $ 28,000 contributed by twelve investors, among which included the partner who gave name to the company, Henry Ford, who by then had 40 years of age. In its early years, Ford produced a few cars per day at its factory on Mack Avenue in Detroit, Michigan. Groups of two or three men worked with each car using components made in other companies. Gradually, the Ford Motor Company continued to grow into one of the biggest and most profitable companies in the developed world. Ford was one of the companies that survived the Great Depression of the 30's.

In 1908, the company released the Ford Model T Ford, whose first unit was manufactured in the Piquette Manufacturing Plant. The company soon had to move their production facilities to Plant Highland Park to meet the unexpectedly high demand for the new Model T. By 1913, the company had developed all the basic techniques of line and mass production. Ford created the first moving production line in the world that year, which reduced chassis assembly time from 12 hours to 100 minutes. The assembly line set up by Ford in 1911 and revolutionized the automobile industry. Moreover, the evolution of the T-model was parallel to the evolution of the company. During 1917, the company started manufacturing tractors and trucks. In 1919, Henry Ford purchased the remaining shares that were held by their partners which led the Ford family took full control of the company.

The purpose of this paper is to research and prepare a report critically reflecting on the application of best practice in the business sector in relation to Performance management through lean ...