Question:
Write an essay on Operations and Supply Chain Management.
In order to manage the operations in the trade services, the operation and the supply chain management are designed. The procedures with the help of which the raw materials are converted to the final products by a company are referred to as the operation (Pagell and Shevchenko 2014).
BMW also known as the Bavarian Motor Works was founded in the year 1917 and is headquartered in Germany. It is one of the largest manufacturing automobile companies. It also has a strong customer base due to brand associated with the name. BMW is also among the top three brands that includes Rolls-Royce as well as Mini. With the help of the build-to-order supply chain, BMW is able to meet the requirements of its customers. The team members of BMW are very hard working and they are efficient enough to prepare the canvas. BMW is the parent company of the Rolls-Royce cars. The logo of BMW that is a circular white and blue mainly signifies the movement of an aircraft propeller. In the year 1966, BMW obtained the Hans Glas Company which is based in Germany (Roth et al. 2016).
2.1 The strategy plan
The strategy plan by BMW is to maintain a competitive edge in order to keep the products in the introduction as well as the development stage. In order to execute that BMW will introduce new models in each of its line of product. The competitive advantage has been gained by BMW by generating the energetic as well innovative and well-organized cars (Bustinza et al. 2013).
2.2 The competitive priorities
The company builds a reliable theme via the line of product as well as through the marketing slogan. The differentiation advantage helped BMW to exceed the unit sales of Mercedes as well as the dollar sales in the United States. The competitive priorities of BMW are based on the following points:
3.1 Why Operations Management Is Important To Company?
The operation management is required and important to BMW in the sense that the operations management helps in increasing the revenue by increasing the satisfaction of the customer. One of the most vital features of operation management is that of the team management. The team management helps to summarize the methodologies of working in BMW. The importance of team management also lies in the fact that the organization like BMW mainly supports the teams which are cross functional which in turn helps in solving the problems faced by the company. The cross functional team are basically very efficient and helps in resolving all the problems (Peng and Lai 2012).
Another most vital feature of operation management is that of the strategic management. This management helps in implementing the strategies efficiently. The strategic management helps BMW to implement the various strategies originated by the organization in the functional context (David and David 2016).
Figure: The BMW
(Source: The Telegraph, 2016)
3.1.1 Change Management
Change management is another most important feature of the operation management particularly in the automobile segment. The change management mainly develops the necessary changes that are required by the company. It has been predicted by BMW that almost 25 percent of the value of the car is driven by electronics (Hornstein 2015).
The process management maintains the competence as well as the efficacy of BMW. BMW disquiets itself with the optimal utilization of monetary as well as human resources while dealing with the effectiveness aspects (Frankland et al. 2013).
3.1.2 Quality Management
The last and the most important part of the operational management is that of the quality management that helps in maintain the quality. It mainly deals with the fact that BMW is able to meet the goods as well as the service standard. This particular feature is very important for BMW as the company is very crucial regarding the goods that it generates for the individuals or the consumers. In order to meet the taste and the preferences of the consumer, it is very important to have a suitable quality management. Some advances have been made by BMW in terms of the quality (Goetsch and Davis 2014).
3.2 Operations Management Supports the Company in Achieving Its Priorities
The priorities of a company are competitive and this competitive priority of a company is mainly crucial. The competitive priorities of BMW will depend on the short and the long term strategies of the business so as to gain a competitive edge over the competitors. The operation management will be able to support the company in achieving the priorities in the following ways:
(Source: Created by Author)
The practice of an operation management in a company includes the following:
5.1 Issues Experienced By the Company
5.1.1 Issues
The issue that had been faced by BMW is in terms of the innovation as well as variation in the product that has been committed by the company. The issue that the company experienced was the complexity as well as the difficulty of the operation of the premium luxury cars of BMW. Due the complexity that has been offered to the luxury cars, the manufacturing cost has also increased. It is quite risky and prolonged to develop the new models as well their parts (Allen et al. 2013).
Another issue that has been faced by the company is in terms of the competition that it has been facing from other manufactures of automobiles. The strategy made by BMW has been affected by the competition due to the sluggish growth in the automobile industry (Keller 2014).
Globalization on the other hand has also been an important reason for affecting the sales of BMW. In today’s world, globalization has been a great concern and that is the very reason the governments are forcing the automobile companies to go green. As a result, BMW had to undergo a huge cost in order to incorporate environment friendly engines. This will in turn increase the cost of the car (Scott 2013).
5.1.2 Resolution
BMW needs to make use of the technologically sound Intel Xenon workstation 5500 series that will help the company to stabilize the hardware as well as the application authorizing cost. This will in turn help to increase the performance of the car. The processor will help to run the new applications as well as it allows the models to be tested and created virtually.
The competition issue can also be avoided by BMW as it has introduced an innovative model that includes x5 and z4. These models are made with advanced electronics which will make the cars luxurious and also sporty.
5.2 Operations/Supply Chain Management Can Help Resolve Issues
5.2.1 The Supply Chain management
Supply chain management is crucial for the success of an organization as it helps to resolve the issues faced by the organization. BMW mainly needs the supply chain management when they have to make a decision regarding the fact that where they have to make a new capacity. The supply chain management involves the purchasing as well as the quality and the logistics workers as they not only deal with the development of the parts of the vehicle but also a supply chain right up to the suppliers. The supply chain management procedure involves the requirement for a sophisticated information technology and it also involves the management of information (Christopher 2016).
5.2.2 The operation management
The operation management can resolve the issues by determining the size of the manufacturing plants as well as the methods that are related to the management of project. The main aim of the operation management is to involve the objective of the use of raw materials. It also ensures a minimal occurrence of waste. The operation management also understands the international and the domestic trends of the demand of the customers (Krajewski et al. 2013).
A process map is flow chart or a flow diagram of a workplace, which helps in generating a clear knowledge about the procedures, involved in the organization. A process is mainly a prearranged set of activities that helps in converting the inputs into outputs. The process map in turn helps to explain this process visually. It is mainly defined as a sequence that helps to give the details of the step involved in a process. During the manufacturing process, the body of the automobile is formed and painted and then it put in the stacker (Malinova et al. 2014)
Figure: The process map
(Source: Created by Author)
Figure: The Swim Lane process map
(Source: Created by Author)
7. Conclusion
It can thus be concluded that BMW is also among the top three brands that includes Rolls-Royce as well as Mini. The category under which BMW belongs to is the premium car category. BMW disquiets itself with the optimal utilization of monetary as well as human resources while dealing with the effectiveness aspect. The issue that had been faced by BMW is in terms of the innovation as well as variation in the product that has been committed by the company. As a result, the operation management will help the company to maintain a top and a consistent quality of its model. The importance of team management also lays the organization like BMW mainly supports the teams which are cross functional which in turn helps in solving the problems faced by the company.
References
Allen, D.E., Kramadibrata, A.R., Powell, R.J. and Singh, A.K., 2013. Default Risk in the European Automotive Industry. International Review of Business Research Papers, 9(1), pp.22-37.
Bustinza, O.F., Arias-Aranda, D. and Barrales-Molina, V., 2013. Strategic Information and Customer-Oriented Systems: The Role of Competitive Priorities. In Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management (pp. S1_17-17). ToKnowPress.
Christopher, M., 2016. Logistics & supply chain management. Pearson Higher Ed.
David, F. and David, F.R., 2016. Strategic Management: A Competitive Advantage Approach, Concepts and Cases.
Frankland, R., Mitchell, C.M., Ferguson, J.D., Sziklai, A.T., Verma, A.K., Popowski, J.E. and Sturgeon, D.H., Applications In Internet Time, Llc, 2013.Integrated change management unit. U.S. Patent 8,484,111.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. pearson.
Hayes, J., 2014. The theory and practice of change management. Palgrave Macmillan.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Hornstein, H.A., 2015. The integration of project management and organizational change management is now a necessity. International Journal of Project Management, 33(2), pp.291-298.
Keller, M., 2014. BMW: Entering the Automobile Market in Brazil: Critical Analysis and Evaluation of the Automobile Market in Brazil. GRIN Verlag.
Kim, B., 2014. Effective supply chain strategy to enhance firm’s responsiveness: empirical evidence from the BMW Leipzig plant.International Journal of Services and Operations Management, 18(1), pp.21-37.
Krajewski, L.J., Ritzman, L.P. and Malhotra, M.K., 2013. Operations management: processes and supply chains. New York: Pearson.
Malinova, M., Leopold, H. and Mendling, J., 2014. A Meta-Model for Process Map Design. In CAiSE (Forum/Doctoral Consortium) (pp. 25-32).
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015.Purchasing and supply chain management. Cengage Learning.
Pagell, M. and Shevchenko, A., 2014. Why research in sustainable supply chain management should have no future. Journal of Supply Chain Management, 50(1), pp.44-55..
Peng, D.X. and Lai, F., 2012. Using partial least squares in operations management research: A practical guideline and summary of past research.Journal of Operations Management, 30(6), pp.467-480.
Roth, A., Singhal, J., Singhal, K. and Tang, C.S., 2016. Knowledge Creation and Dissemination in Operations and Supplyâ€ÂChain Management. Production and Operations Management.
Schönsleben, P., 2016. Integral logistics management: Operations and supply chain management within and across companies. CRC Press.
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