PD2 HOMEWORK Ferrari
PD2 Question 2.2.2 Ferrari
(b) Skills training is important at Ferrari because they produce expensive tailored made cars. As with an expensive suit, no errors are allowed, as the fabric used is one of its kind and cannot be replaced easily. A demanding client won't wait.
On top of all the benefits the book explains in page 120, one could also focus on the cost of not providing any training at all, and how this scenario might translate into 1) more mistakes in the manufacturing process, lower quality in the final product, and most probably - more complaints (or returns). These all translate into higher costs of production and extended times of delivery. None of which the company or the customer want to deal with. In the end, investing in training will be less expensive than fixing errors.
(c) Centralization is more effective with low-skilled workers in mass produced goods. This is not the case at Ferrari, where the final product is a piece of art that needs highly skilled artisans to complete the task. Factors such corporate culture and management attitudes and competencies influence the degree of decentralization at Ferrari. The company's core business requires creativity (design), ability (hand made manufacturing) and innovation (engineering) to be on top of any other luxurious car manufacturer. Because of the special competencies that each worker has at Ferrari, management must be flexible to delegate specific tasks to gifted employees. In this highly specialized business, management must guide and direct its workers, opposed to giving them directions on how to complete a task.
(b) Skills training is important at Ferrari because they produce expensive tailored made cars. As with an expensive suit, no errors are allowed, as the fabric used is one of its kind and cannot be replaced easily. A demanding client won't wait.
On top of all the benefits the book explains in page 120, one could also focus on the cost of not providing any training at all, and how this scenario might translate into 1) more mistakes in the manufacturing process, lower quality in the final product, and most probably - more complaints (or returns). These all translate into higher costs of production and extended times of delivery. None of which the company or the customer want to deal with. In the end, investing in training will be less expensive than fixing errors.
(c) Centralization is more effective with low-skilled workers in mass produced goods. This is not the case at Ferrari, where the final product is a piece of art that needs highly skilled artisans to complete the task. Factors such corporate culture and management attitudes and competencies influence the degree of decentralization at Ferrari. The company's core business requires creativity (design), ability (hand made manufacturing) and innovation (engineering) to be on top of any other luxurious car manufacturer. Because of the special competencies that each worker has at Ferrari, management must be flexible to delegate specific tasks to gifted employees. In this highly specialized business, management must guide and direct its workers, opposed to giving them directions on how to complete a task.
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