• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

BMW Operations Management

Extracts from this document...


1. Executive Summary This 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 detailed account and critique of quality management and capacity management 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 management style and how it could be improved. 2. Introduction 2.1 Background BMW is primarily a German automobile company. It also has operations in aircraft engine production; electronic systems and hardware production; finance; and service. It had revenues of more than $27 billion and net profits of nearly $700 million in 1990, with about 65,000 employees. Bayerische Maschinen Werke GmbH as it is otherwise known was the surviving entity of a merger in 1955 between BMW and Allegemeina Flugzeug Werke (AFW). BMW has a history dating all the way back to the early 1920s when it was founded as a machine shop on the outskirts of Nuremberg. ...read more.


This is most important in organisations where profitability is linked to that of capacity and the prices charged for their product or service. BMW is already a leader in the niche car segment of the automobile industry. To retain that status BMW built a $660 million Research & development centre and plans to invest more than $1 billion each year in finding new ways to exploit their position as a market leader. BMW are aware of the fact that they are not one of the biggest companies in the industry and can't mimic the bigger companies who have far greater capacity and financial power. BMW try to innovate new ways to stay ahead of their competitors. They designed a new manufacturing plant where the cars would move down the assembly line on an independently powered gantry. The new technology would produce sound waves so that collisions can be avoided, thus reducing the need for more workers and also reducing the risk of unwanted accidents in the plant. The output achieved by any capacity management system depends on a number of factors that relate the resources currently available to the actual output of the organisation. It is sometimes inevitable in the niche car segment that an organisation will run out of capacity to cope with the ever changing levels of demand. ...read more.


Performance feedback, audit results, and customer opinion 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 suitable training and sound environment so that those requirements can be met. Organisations that cut down on investment in employee development will suffer a decrease in employee performance due to the close relationship between the two, and this will ultimately 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 don't suffer from overcapacity as they are usually 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 kept in their inventory. Automakers usually add capacity in the 100,000s so the market is never satisfied precisely; there is either 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 improvement of the business by improving quality, productivity, customer service, and delivery. 5. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Banquets Management

    own list of events for consultations, he should also check will local associations of that locality and consequently plan his activities to attract the local community. Advantages of Buffet. 1. Maximum service with minimum help 2. Eliminates poor and costly service 3.

  2. Knowledge Management: Here to Stay or Management Fad

    products and services, organizations become more efficient at what they do, by retaining knowledge as organizations restructure, organizations can save costly mistakes and the value of an organization's wealth is increasingly in its tangible assets. The variety of the views expressed shows that knowledge management is well worth looking into further.

  1. Administrative Operations Unit 20Introduction The project we held was a year 7 disco. The ...

    want balloons then we should try to provide them and meet their needs. Hall not to be vandalised The final constraint for the objectives was the hall to be left in the same way we found it, which was clean, and tidy.

  2. "Japanese forms of operations management are inappropriate to Western organisations." Critically evaluate this statement.

    by very carefully planned scheduling and flow of resources through the production process. JIT can lead firms to rethink their approach to factory work. The traditional approach of splitting work into repetitive fragments results in an uncooperative workforce. So firms organise the workforce into teams, working together on large units

  1. From Production Line to Segmentation of Production

    According to Baron and Kreps (1999: 3) "Human Resources are the key to organizational success or failure". Human resource management including the concepts of intrinsic and extrinsic motivation may be seen as the countermovement to the alienation of the worker form the product of his work, as observed by Karl

  2. The background of the Kettering Park Hotel and Spa

    happens, it could lower staff morale and cause MAD and 'IIP' to go out the window, and this in turn will probably mean they will no longer be the number one hotel in the area because their spa is losing money, the business may be forced out of the market

  1. Mgw 3352 - Service Operations Management

    An example of this would be an hour without a patient for a massage therapist or an empty seat on an ocean cruise. Management must address this issue in a service setting by ensuring that the organization is operating at full capacity regardless of the fluctuations in consumer demand (Youngdahl, 2002).

  2. Investigate about the important roles that management plays in achieving my chosen organisation aims ...

    Strategic Tactical Operational Strategic This are the highest position in the company E .g. board of directors It helps the senior management of Tesco tackle and address strategic issues and long-term trends both in the firm and external environment. Match changes in external environment with existing organizational capability such as: Where will employment level be in five years?

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work