Analysis of Ford Motor Company’s Operations Management Strategies
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.
Ford has numerous activities involving several areas that can lead to cost saving and translate into increased profitability for the company. By effectively implementing and executing operations management strategies, the company is able to deliver value to customers and generate more revenues and profits. Ford employs a wide range of operations strategies and one of these is product strategies. Product strategies employed by Ford includes having many vehicle platforms, brands, and models. As a result
Ford has numerous activities involving several areas that can lead to cost saving and translate into increased profitability for the company. By effectively implementing and executing operations management strategies, the company is able to deliver value to customers and generate more revenues and profits. Ford employs a wide range of operations strategies and one of these is product strategies. Product strategies employed by Ford includes having many vehicle platforms, brands, and models. As a result
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