Essay on Supply Chain Management of Automotive Industry - Ford Motor Company
9 Pages3615 Words107 Views
Added on 2020-06-04
Essay on Supply Chain Management of Automotive Industry - Ford Motor Company
Added on 2020-06-04
ShareRelated Documents
The Automotive company (manufacturing industry)An area of market in which organisations included design, manufacturing, development, selling, marketingetc. of motor vehicles is considered as automotive industry. It is one of the fastest growing sector in theworld, where contributes a huge level of the GDP, of an economy as compared to other segments. Whenlooking at the automotive sector of UK, it can be seen, that, this sector generated 77.5 billion GBP inrecent accounting period. Apart from this, more than 169,000 people are employed in this stated sectordirectly. The present essay is based on operations, logistics as well as supply chain management ofautomotive industry. Further, Ford Motor Company is taken into account in the current assignment, whichhas global presence in automotive sector. Further, it is a public company and provides luxury andcommercial vehicles along with automotive parts. Apart from this, it provides services of vehicle leasingas well as automotive finance worldwide. In order to carry out the essay, two areas are selected which are related to operations as well as supplychain management. Herein, managing quality of products and services as well as managing businessrelationships in supply chains are considered. Apart from this, theories related to managing quality likeTQM, lead production, Kaizen etc. are applied. Furthermore, some aspects or theories like employeerelations, proper logistics etc. are implemented which support the Ford Motor for fulfilling the businessrelationship in supply chains (Stadtler, 2015). Every company along with Ford Motor is highly concernedtowards the quality aspect of the products and services provided to the customers. One of the best toolsis Total Quality Management (TQM), where initially the standards of raw materials purchased areevaluated before entering into the operation process. Additionally, for managing business relationships,the company should apply one of the best tools which is Human Capital Management (HCM). Thisparticular concept will be helpful to Ford Motor for managing employees and establish attractive relationsat the working environment. In the workplace of the selected company, when these both areas will beimproved up to a greater extent, managers will easily be able to enhance the business performance. Critically review theories of relevant operations, logistics as well as supply chain managementAccording to Prajogo and Olhager (2012), the operation department is one of the pivotal parts of eachand every organisation. The reason is, that it helps to convert available raw materials or processedproducts in finished goods and services. Once this process is completed, then only management is ableto sale the products to the customers and generate sales revenue. At the time of manufacturing any kindof goods, quality is a highly concerned part of an enterprise. This particular aspect is supportive for thecompanies, in order to increase the attraction level of customers. Ford Motor Company is one of thelargest organisation in the automotive industry, which provides cars and services across the globe. Beinga multinational company, it offers higher quality of cars, where luxurious vehicles are also included in itsproduct range. Under the operation function of Ford Motor, it is mandatory to make a proper plan andschedule for the whole production (Seuring, 2013). When an appropriate and efficacious plan of theproject is made, then, any organisation is easily able to manufacture products by focusing on the quality1
aspect. For this, theories as well as principles related to operations, are coming into consideration.Furthermore, by implementing such theories, in an effectual direction, Ford is able to provide the higherquality of luxurious cars, worldwide. As per the views of Fernie and Sparks (2014), being a multinationalcompany, logistics must be suitable, which helps to transport goods and services, from one place toanother place. The Ford Motor Company is considering the best and the efficient kind of logistics,whereby, the process is easy and smooth to be able to deliver products or cars from one area to another.Apart from this, inbound logistics of the firm is also very higher and appropriate. On the basis of this, rawmaterials are easily purchased and delivered at the workplace for completing process of operations. Onthis aspect, quality matters up to the greater level, where raw materials must be of the higher standard.On the other side, if quality of such materials is lower, then Ford Motor is unable to reach the higherstandards for the cars. In logistics, theories regarding the stock are coming into consideration, wherelogistics depended on this only (Seuring and Gold, 2012). Herein, if the closing stock in the firm isremained at the end of year, then management will manufacture less number of cars in the following year,resulting in requiring less raw materials at the lower quantity than the previous year. Therefore, on thebasis of stock level, decisions related to logistics are to be made in the workplace of Ford Motor. Tako and Robinson (2012), articulates relating the logistics that, there are seven R's involved which makethis process accurately and smooth. Logistics in each organisation of automotive industry consists oftheory of seven R's where R denotes for 'Right'. Such R's includes Right product, time, quality, consumer,cost place and quantity. Until and unless these things are not accurate and efficient in the Ford Motorworkplace, then it cannot complete logistics in a smooth manner. The selected company, consideredlogistics aspects along with operations in an appropriate direction. However, if sometimes therelationships between the employees and employers are not very strong. Both concepts of quality andquantity are highly the main concern under the logistics concept. The reason is the quality of the rawmaterials must be of the higher level along with the adequate quantity. The same thing should be relatedto outbound logistics where manufactured cars are supplied among customers and retailers. In the opinion of Walker and Jones (2012), omission of materials, finance as well as all the informationrequired in the operation department, where this move from one party to another is referred as the supplychain management. Generally, such things and aspects are to be moved from supplier to manufactureri.e. Ford Motor to wholesaler, retailer and then customers. In this, very high level of strong coordinationalong with integration is required up to the greater extent. If coordination is not of the strong level amongbusinesses, then it is not possible to complete the supply chain in smooth direction. For managing andimproving supply chain there are some theories and standards involved in this. By taking advantage ofsuch theories, the organisation of automotive sector is easily able to supply the goods and services, in aneffective manner (Dyckhoff, Lackes and Reese, 2013). One of the best and widely considered theory ofsupply chain management is theory of constraints (TOC). This specific principle, supports the Ford Motor,for assessing any issues associated with the supply chain before proceeding. Due to this particular2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Solved Understanding operations, Logistics and Supply Chain Management Assignmentlg...
|12
|3107
|117
Managing Quality and People in Operations and Supply Chain at Ford Motorslg...
|11
|3120
|87
Understanding Logistics and Supply Chain Management Assignmentlg...
|12
|3020
|400
Analysis of Ford Motors Supply Chainlg...
|14
|2919
|417
Understanding Operations, Logistics and Supply Chain Managementlg...
|9
|3020
|99
Understanding Operations, Logistics and Supply Chain Management Essaylg...
|10
|2964
|133