BMW Operations Management

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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. The AFW part of the company was founded in 1910 and was one of the major contributors of military aircraft during the First World War.  

The automobile industry can be very volatile and mistakes in decision making can prove to e extremely costly.  BMW has proved over time that through careful management the number of errors a firm makes can be greatly reduced.  BMW’s operations management is also of a high standard; it designed a production system where new parts can be produced in small amounts and only result in a moderate cost.

2.2 Methodology

Research will have to be done in developing the report before any reflection can be made on its contents.  There are a number of sources available to get the relevant information from; a many number of books are accessible that go into great detail on each subject within operations management.  These will provide a range of academic theory and models which can then be applied into business terms.  The internet also provides a vast amount of information that can be used as a reference in the writing of the report, it not only refers to academic theory but also other authors reflections on certain topics which can then be used to draw ideas and apply them to the report.

2.3 Structure of the Report

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.  

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3. Findings

The operations management task is defined as the day-to-day production of goods that continually requires decisions to be made and the implementation of changes.  Operations Management is different to that of other management topics such as strategy, marketing or finance.  Whereas these fields are based on theory such as economic, social, and mathematical factors; Operations Management is much more difficult to pin down to a specific aspect.  It takes into account a vast array of academic and practical applications that when communally put together produce a basis from which ...

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