Bmw's Operation Management

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BAD 429
Operation Management

Project: BMW

By:
Rodolphe Beyrouthy

Presented to:

Table of contents:

Executive summary................................................................................................3 Charts ……………………………………………………………………………..4 - 6 Introduction………………………………………………………………………..7 History…………………………………………………………………….………..7 – 10 Design of goods and services…………………………………………………..…10 - 11 Managing quality………………………………………………………………... 11 - 12 Process and capacity design………………………………………………..…… 12 Location strategy…………………………………………………………………13 - 14 Layout strategy…………………………………………………………..……… 14 Human resource and job design…………………………………………..…….15 Supply-chain management……………………………………………………... 15 - 16 Inventory, material requirements planning, and JIT (just-in-Time) .…..…… 16-17 Maintenance……………………………………………………..……………… 18 Conclusions and recommendations ………………………………………..……19 – 20 References …………………………………………………..……...………...….. 21

Executive summary:
BMW is a company that manufactures cars, motorcycles and engines by implementing the ten operations management decisions. The design of cars is usually made by the designers and the company uses an interesting technique in which they put the designers of interior and exterior against each other in a friendly competition, then the head designer of the specific series chooses the best design of this series. After choosing, he then builds a clay model of the car and enhances its visuals to see how it would actually look like. Then managers from all departments come to examine the prototype and check for faults and mistakes and if everything checks out, the design will be send to the executives to check its relevance. The quality control procedures that BMW operates within, is achieved through a system of quality audits at the stages of production of parts, and at the stages of the components and in the assembly plants. BMW Group established common policies on flexibility reserves to make sure that their capacity is extremely versatile in production amount. BMW is the world's leading luxury car company and is devoted to maintain and improve its existence in key markets worldwide. Layout decisions are important because they allow a company to be more competitive by considering capacity, processes, flexibility, cost, quality of work life, and customer contact and image. BMW uses intelligent software tools as well as WMS (warehouse management system) which is a computer software designed for managing the movement and storage of materials throughout the warehouse, in order to reduce production costs and increase the number of output in distribution centers. BMW applies selection processes for both internal and external applicants which ensure the appointment of the highest quality staff. BMW is using a service management system as part of a bigger plan to improve supply chain lifecycles. Inventory, material requirements planning, and JIT decisions deal with issues such as how much inventory of each item should exist, and when to reorder. Maintenance deals with issues like how to build reliability into the process and who is responsible for maintenance

Introduction:
Operations management is a discipline concerned with the production of goods and services by transforming inputs into outputs. BMW is one of the companies that implements the ten operations management decisions. It’s the operations managers that are responsible for the way the production is planned. Managers in all companies, perform the basic functions of the management process which are planning, organizing, staffing, leading, and controlling. These are applied to the decisions they make in the 10 major operations management decisions. These decisions include: - The design of goods and services

- Managing quality
- Process and capacity design
- Location strategy
- Layout strategy
- Human resource and job design
- Supply-chain management
- Inventory, material requirements planning, and JIT (...
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