While reflecting on my existing blog posts, I realized that I missed out on a very intriguing field; the realm of operations!

Thus, when glancing over Honda’s decision to invest $857-million on a new Ontario plant, I found it more interesting to examine the issue through the lens of an operations manager, instead of just a conventional financial-cost based analysis. Honda’s investment suggests that they’re hoping to maximize productive capacity and efficiency, most likely to aid mass outsourcing of manufactured units. Professor Mahesh  referenced the operations manager’s role of forecasting and variability in-class, and in my opinion, these concepts become highly essential to the future implications of purchasing the new plant, as possible ramifications Honda could consider include: the expected returns of this heavy capital expenditure, methods to mitigate sunk costs, or even the added integration of new distribution channels.

I then put two-and-two together, synthesizing the inherent importance of a functional supply chain, which Honda must develop to effectively support its operations. Another excerpt I found from Canadian Manufacturing Press claims that collaboration and innovation are key in fostering supply chain evolution, which I absolutely agree with. The intertwinement of key supplier relationships (model canvas!) and infrastructure expansion should allow Honda favourable opportunities for growth.

After all, what’s a factory without its network of distributors?