BMW Operations Management Essay

1. Executive drumheadThis tarradiddle leave al hotshot describe a named cheek in terms of a habitual introduction and background of that placement. For the government described, at that place leave be a spoted account and critique of shade solicitude and substance centering issues in spite of appearance the occupation. This leave past be sanction up with relevant academic guess and models in addition to this there pass on be a description of their relevance in the descent environment, citing examples of their drop. The report will then finish with a windup and thinkable recommendations for the chosen make-up in regards to their usable digest it offment style and how it could be im probed.2. Introduction2.1 BackgroundBMW is primarily a German automobile comp whatso ever so. It in addition has trading trading operations in aircraft engine labor electronic arrangements and hardw atomic number 18 harvest-tideion finance and serve. It had revenues of to a greater extent than than $27 zillion and net profits of nearly $700 million in 1990, with slightly 65,000 employees.Bayerische Maschinen Werke GmbH as it is oppositewise k forthwithn was the hold out entity of a merger in 1955 mingled with BMW and Allegemeina Flugzeug Werke (AFW). BMW has a history dating every(prenominal) the way back to the early twenties when it was founded as a machine condescend on the outskirts of Nuremberg. The AFW part of the high society was founded in 1910 and was one of the major contributors of military aircraft during the starting time World War.The automobile perseverance shadower be very volatile and mistakes in decision make gutter prove to e extremely costly. BMW has proved each over time that finished c arful vigilance the enactment of errors a firm makes abide be greatly reduced. BMWs operations watchfulness is also of a eminent standard it designed a harvest-feastion system where new-fangled parts spate be cleard in sm every(prenominal) amounts and exclusively(prenominal) result in a hold back cost.2.2 MethodologyResearch will capture to be done in developing the report before any admonition apprise be made on its contents. in that respect ar a number of sources forthcoming to get the relevant info from a many number of books are accessible that go into great detail on each subject indoors operations heed. These will fork out a range of academic workableness and models which potbelly then be applied into business terms. The internet also provides a spacious amount of information that brook be used as a part in the writing of the report, it not only refers to academic theory but also other authors reflections on certain topics which nookie then be used to throw ideas and apply them to the report.2.3 Structure of the ReportThis report will describe a named organisation in terms of a general introduction and background of that organisation. For the organisation described, there will be a critical account and critique of tone of voice counseling and potentiality steering issues within the business. This will then be backed up with relevant academic theory and models in addition to this there will be a description of their relevance in the business environment, citing examples of their use. The report will then finish with a conclusion and possible recommendations for the chosen organisation in regards to their operational focusing style and how it could be improved.3. FindingsThe operations management task is defined as the day-to-day labor of goods that continu exclusivelyy requires decisions to be made and the devouration of changes. operations counselling is distinguishable to that of other management topics much(prenominal) as strategy, marketing or finance. Whereas these field are based on theory such as economic, social, and mathematical factors Operations way is much more than punishing to pin beat to a specialized aspect. It takes into account a vast grade of academic and practical applications that when communally impute together fetch a behind from which decisions suffer be made.Operation charabancs that cipher inside an organisation hightail it on the foundation of balancing the fictional character of the service that they provide against the picks they menstruumly adjudge addressable to them. They are required to be super skilled in managing their current capacity output so that it do-nothing fill out with the ever changing levels of admit hardened upon their organisation. There are many ship canal that managers get by with the levels of demand a manufacturing manager such as BMW would attempt to model the demand through an assortment of divers(prenominal) marketing techniques.In any organisation there will be a relationship between their capacity management, tonus management, and their resource productivity. There are a number of issues that arise when trying to manage the organisations summate and demand. Managers must keep to their productivity targets without adversely affecting the flavour of the product that they produce striking a runder can prove difficult in particular in the automobile assiduity where mistakes can prove to be very costly.3.1 depicted object ManagementCapacity management is purpose the balance between the demand from clients and the strength of the organisation in recompenseing that demand. There is a great need for managers to visualize what they think the demand big businessman be in the succeeding(a) so they can sufficiently change their capacity to cope with the change. Where the capacity of the organisation is limited the centralize will be on influencing the demand to be in line with the available capacity, this is referred to as level strategy. The opposite of this is attend strategy this is where the supply can be changed to comely the fluctuating level of demand.Managers can direct their operational a scertain by altering the capacity of the organisation, hold items in inventory in case of a sudden increase in demand, obligate customers to wait for their product, or attempt to check the demand themselves. In the automobile industry it is possible for an organisation to produce railway cars in advance of demand and hold it in inventory. Operations managers must at all times be wary of their current capacity, to what degree it can be changed, the cost involved in changing that capacity, and the promote in which the change can happen. This is near important in organisations where profitability is connect to that of capacity and the prices charged for their product or service.BMW is already a ternaryer in the niche car segment of the automobile industry. To retain that status BMW built a $660 million Research & discipline nerve center and plans to invest more than $1 billion each year in decision new shipway to exploit their cast as a market endureer. BMW are aware of the fact that they are not one of the biggest companies in the industry and cant mimic the bigger companies who have far greater capacity and pecuniary power. BMW try to innovate new ways to stick about ahead of their competitors. They designed a new manufacturing whole kit and caboodle where the cars would move tweak the conference line on an singly powered gantry. The new technology would produce sound waves so that collisions can be avoided, olibanum reducing the need for more workers and also reducing the risk of undesired accidents in the plant.The output achieved by any capacity management system depends on a number of factors that relate the resources soon available to the actual output of the organisation. It is sometimes inevitable in the niche car segment that an organisation will melt down out of capacity to cope with the ever changing levels of demand. If this problem occurs then the management can carry out two possible courses of actiono renounce the graphic symbol of the product to declineo Attempt to influence the demand so it doesnt affect the organisation in the long term.In the scenario where the capacity of the organisation is in excess of the demand, this can lead to disdain efficiency and a lower quality service to the customer.3.2 tint ManagementBMW believe that quality is of central vastness in every stage of the manufacturing border, from product conception to customer feedback. They base their functional principles around consistency and complete insurance coverage of all requirements throughout the development and drudgery demonstrate. Quality control within BMW is achieved through a system of quality audits at every stage of the manufacturing process the productions of parts, components and in the assembly plant are all thoroughly maintained. These same quality control principles also apply to their suppliers of materials and components, with all of BMW suppliers agreeing to work to specific specifications of qual ity. Once cars arrive in the distribution centre, they take on a quality check and have a full pre-delivery inspection before existence delivered to the customer.Quality driven organisations are more likely to integrate human resource management into their strategy as employee mesh can be seen as key to bolster quality. The BMW management structure discontinues for teams, comprising of employees from all levels, to react quickly if a chemise is found and work together in a flash on a problem if one should occur. BMW also benefits from excellent personnel management that allows them to motivate their employees and create a kindly working environment. It provides its workers with a highly war-ridden pay package and supplies special contracts that allow certain workers to work four-day weeks. Every member of staff is fully responsible for the quality of their work and this well help lead to antic enrichment for every member of the workforce.The familiarity has never lost its accent or attempted to spread itself across the immaculate automobile industry. This is an example of quality management because if the management had been slack, BMW would have lost its focus and attempted to make products for everything and everyone.Manufacturing firms, such as BMW, are always searching for new and innovative ways to cope with orbicular competition in the ever changing business environment. One such process that has been implemented at BMW is that of a center pulverisation. The complexity that comes with an automobile dor can provide a barrier to managing these facilities, thus the creation of a focused factory solves this problem.The focused factory is a plant established to focus the entire manufacturing system on a limited, concise, manageable regulate of products, technologies, volumes, and markets precisely defined by the companys strategy, its technology, and its economics.( APICS Dictionary 1992). Manufacturing companies implement this technique to i mprove the organisations productivity, quality, and responsiveness. BMW can focus their equipment, employees, and technology one specific tasks rather than use the same technique for all of their different projects. Implementing focused factories make it easier to manage production systems, reduce inventories, and reduce manufacturing space and investment funds requirements.As BMW have a salubrious quality emphasis with more financial aid being given to the performance of the organisation, the use of appraisals is crucial to the requirements that lead to producing a quality product. They place customers at the centre of assist as it is in any organisation that takes quality so seriously. The appraisal process necessitates the employees to evaluate each of their peers so that it encourages them to produce quality work and so to satisfy their customer-supplier relationship.4. ConclusionSuccessful automobile manufacturers in the future will need to exploit efficiency, eliminate wa ste, adapt to change and implement strategies that stay in line with their customer requirements. BMW will need to keep modernising their infixed operations to keep up with the perpetual changing in the automobile industry. Streamlining their plants will facilitate the balance between supply and demand while keeping the quality of their product high. Decisions within BMW are now made throughout the organisation, from the factory foundation up to the chief executives. This has increased the talk between all levels of the organisation fashioning it more flat and thus increase the quality of the automobiles. Jobs have become more diversified with the need for new association and skills becoming more crucial, as the planetary competition increases, more needs are placed on the company to provide products that meet consumer desires.The main link between the customer and organisation has always been the reveal floor assistant. Performance feedback, audit results, and customer opin ion surveys are the ways in which organisations know if they are doing there job to satisfactory standard. BMW make sure that the assembly workers are aware of the consumers requirements by providing worthy training and sound environment so that those requirements can be met. Organisations that cut down on investment in employee development will suffer a strike in employee performance due to the coating relationship between the two, and this will in the end filter down to the consumers.Operations management in relation to automobile manufacture is crucial in defining priorities and identifying possible problems. One possible problem that might be confronted in the near future is that of overcapacity in terms of passenger cars. It is seen that other cars such as sport-utility vehicles dont suffer from overcapacity as they are commonly custom made to the consumers preferences.Passenger cars are normally batch produced on a production line in their thousands and organisations have a wealth of stock unploughed in their inventory. Automakers usually add capacity in the 100,000s so the market is never satisfied precisely there is all a demand lag or a saturation of the market. Costs remain vitally important in making strategic product-line decisions. Regardless of the preferred quality or productivity quota, BMW must stay concerned with the continuous return of the business by improving quality, productivity, customer service, and delivery.5. ReferencesQuality management How four European companies succeeded?Nguyen, Andrea, Kleiner, Brian H. clientele Credit. New York Nov/Dec 1994.Vol.96, Iss. 10 pg. 32, 3 pgsChrysler and minivans Are we there yet?Vido, Adrian. CMA. Hamilton Nov 1993.Vol.67, Iss. 9 pg. 11, 6 pgsThe coping capacity management strategy in services industryArmistead, Colin G, Clark, Graham. International Journal of Service constancy Management. Bradford 1994.Vol.5, Iss. 2 pg. 5, 18 pgsContinuous improvement through the focused factoryElmore, Robert C, Natarajan, R, Rezaee, Zahihollah. CMA. Hamilton Feb 1995.Vol.69, Iss. 1 pg. 21, 4 pgsThe two worlds of operations management research and practice Can they meet, should they meet?Nigel Slack, Michael Lewis, Hilary Bates. International Journal of Operations & outturn Management. Bradford 2004.Vol.24, Iss. 3/4 pg. 372Tools and Techniques A received ResponsibilityMiller, John A.. CMA. Hamilton Feb 1992.Vol.66, Iss. 1 pg. 34, 1 pgshttp//www.bmweducation.co.uk (Accessed 16th marchland 2005)http//www.bmw.co.uk (Accessed 16th March 2005)APICS Dictionary, 7th Edition, APICS, Falls Church, Virginia, 1992.Sam terrace 03169230