The brand name (BMW) was established around the year 1913. During this period, the previous owner of a German aircraft company and a distinguished engineer, K. F. Rapp had established a business in order to manufacture aircraft engines (McDonald, 2005). He had started the company with the name of Rapp Motoren Werke in the city of Munich (originally, the company was based out of a suburban location. The primary reason behind setting up the company at this location was the presence of a major customer (Gustav Otto Aircraft Company) at a nearby location. Rapp quickly met success in his business of manufacturing aircrafts. However, he continued searching for new dimensions in order to keep his company growing. Keeping his efforts steady, he successfully secured a large order to build a huge amount of V12 engines on behalf of various companies which found themselves unable to cater to the continuously escalating demand for these engines (McDonald, 2005).
IMPORTANCE OF OPERATIONS MANAGEMENT FOR BMW:
For diverse firms such as BMW, the field of operations management is extremely important. Following points stress the importance of operations management in BMW: Team Management- Team management is an important aspect of Operations Management as it outlines the working methodologies of an organization (McDonald, 2005). Further, this aspect gains even greater importance in context of multidimensional organizations like BMW as it largely supports cross functional teams in order to better solve problems (McDonald, 2005). BMW believes that just by looking at it, cross functional teams often look inefficient and messy but they are extremely efficient at solving problems that require diverse thinking. In accordance to the management’s belief BMW suspended its classic hierarchy and switched to networks in order to improve efficiency also helped BMW in keeping ahead of its competitors. The management at BMW still turns to the typical hierarchical approach while defining strategic organizational goals but provides its workers the freedom to pick teams from various divisions and hence achieve operational goals in the best way possible. By making a shift to these kinds of human networks while managing its day to day operations BMW has made itself equally entrepreneurial as a new tech startup. The entire process of building and managing cross functional teams has helped BMW in speeding up innovation and change (McDonald, 2005).
Change Management- Change Management forms another important aspect of Operations Management in an organization related to the automobile sector. This is in order to manage the lightening fast changes that are currently taking place in the auto industry. BMW predicts that currently, around 20 percent of a car’s value is driven by electronics (this level is continuously raising. Thus, BMW has focused its operations management strategy in order to electronically drive 90 percent of the product innovations. Hence, an electronically driven trend has forced the once slow moving auto companies (including BMW) to adapt to the current pace of change and innovation.
Strategic Management- This category of operations Management concerns itself with various strategies that are formulated by an organization in operational context. The importance of this category in BMW lies in the effectiveness of strategy implementation and the efficiency with which various organizational processes work. For an organization to work efficiently, it is essential that it employs savvy workers that help optimize various processes. For these workers to optimize various processes, it is however important to have an operations management strategy that permits change. Thus having an effective operations management strategy is extremely important in order to implement change and optimize processes (McDonald, 2005).
Process Management- Process Management in an organization pertains to...