General Motors Company Management - Essay Example

Abstract This paper intends to reflect various controlling aspects of management in an organization. Moreover, the paper would also highlight the benefits of lean manufacturing technology which has been implemented in General Motors Company (GM). The technique has been recognized as the controlling tool of the business operations within GM. It contributes in the control of manufacturing along with labor costs during the production process. Introduction Lean manufacturing can be well described as a compound approach aiming at reduction of wastes, coordination with supply chain and creation of close collaboration with customers (Brondo & Baba, 2010). GM is regarded as one of the foremost leaders in the automobile industry which became much interested in implementing the technology of lean manufacturing for fulfilling its expected business targets. In the early 1980s, GM observed the execution of the Toyota Production System by several Japanese auto manufacturers. Thus, GM became much interested in the implementation of the same. In the year 1994, GM negotiated with Toyota and adopted the practice of lean manufacturing technology (United States Environmental Protection Agency, 2003). The execution of the technique relating to lean manufacturing had marked a significant success within GM. The technology certainly enhanced the quality of the products that the company manufactured along with served to the customers and most significantly enhanced the profitability of the organization. Discussion The implementation of lean manufacturing technique has provided GM with numerous benefits. It supported the organization in terms of quality improvement, cost reduction, increased volume of sales and also control of production related aspects with the aim of meeting customers’ needs. In the 1990s, the management of GM realized that the technique of lean manufacturing was not quite enough to enhance the business, rather it must emphasize meeting the demands of the customers. In this regard, the organization assigned a group of engineers in order to work along with the suppliers for developing its product quality, lessening costs and delivering products on time. The group of engineers visited the suppliers on a frequent basis and acquired a brief idea about the efficiency of lean manufacturing technique. It can be apparently observed that relating to the execution of lean manufacturing based technique at Lansing Grand River Assembly (LGRA) plant of GM, the technique supported the organization to control production and comply with varied customer demands by a greater degree. This can be justified with reference to the fact that the worldwide manufacturing tactics of GM focused on enhancing product quality along with plant productivity in manufacturing world-class vehicles. These tactics eventually supported GM towards controlling its different production techniques and most importantly meeting demands of its customers conveniently (United States Environmental Protection Agency, 2003). Thus, after the implementation of all the above discussed strategies that can be associated with lean manufacturing technology, it can be affirmed that the organization is quite able to satisfy the needs of the customers through controlling the material costs of the vehicles. It can be apparently observed that GM not only controlled the procedure of over production, but also satisfied the demands of the customers through lessening costs and delivering products on time. After the invention of lean manufacturing technology, most of the automotive based organizations observed the rise of competition in their respective businesses. It has been viewed in this regard that the competitive position of the Japanese automotive organizations reduced due to the adoption of lean technology by the companies belonging to the US. This is owing to the reason that the average time taken in the production of vehicles in the US is quite lesser i.e.16.6 hours in comparison with that of Japan. The technique i.e. lean technology helped GM in the improvement of product quality through incorporating the aspects of standardization and people engagement among others. It is worth mentioning that most of the vehicles of GM were produced with zero defects which made the organization to attain superior competitive position over its chief business market competitors. It can be affirmed that technique of lean manufacturing made the competitive position of the organization less severe in the end of 1997 rather than the early stages of the adoption of the method (Holweg, n.d). Thus, based on the above discussion, it can be stated from a broader outlook that the procedure concerning lean technology supported GM to become competitive as compared to others. From the above mentioned study regarding the process along with the method of lean manufacturing, it can be affirmed that this technique is regarded as one of the major elements of control aspect of management. It provides numerous benefits in controlling the manufacturing costs of the vehicles at large. Lean manufacturing monitors the reduction of labor costs which in turn declines the costs of manufacturing. In precise, it can be affirmed that the major function of lean manufacturing is controlling the costs of the manufacturing processes of the final products. It also emphasizes controlling various costs involved along with enhancing the quality of the products. It can be viewed that almost all automotive companies generate certain wastages during manufacturing vehicles. In this particular case, lean technique tends to eliminate and diminish certain wastages so that the production process is not adversely affected. It can be strongly believed that the execution of lean technique provides a better instance of ‘control’ aspect of management within GM. The fundamental facets of lean technique within GM that include incessant enhancement, shorter lead-times, people engagement and customer responsiveness among others eventually depicts the technique as a better instance of ‘control’ aspect of management (Feld, 2000). The technique often acts as a controlling agent in the course of efficient management of business. Thus, the role of the technique as a controlling agent of wastages and enhancing production procedure ultimately determines itself as a better example of ‘control’ characteristic of management. Conclusion From the above study, it can be concluded that the technique of lean manufacturing is of great use to every company. Relating to this significant aspect, this particular technique assisted GM in complying with the demand of the customers along with control in the overall production procedure. The technique has also brought about a scope of generating superior competitive advantage in terms of making the organization more competitive against its chief business market competitors. The technique concerning lean manufacturing can also be referred as one of the good examples of ‘control’ aspect of management. It controls various costs involved in the production processes along with labor costs. Therefore, this technique can be viewed as a better technology which can be duly considered as one of the greatest tools of controlling within various organizations such as GM. References Brondo, K. V., & Baba, M. L. (2010). First In, First Out: A Case Study of Lean Manufacturing’s “Success” in North America’s Automobile Industry. Human Organization, 69(3), 263-274. Feld, W. M. (2000). Lean Manufacturing: Tools, Techniques, and how to use them. United States: CRC Press. Holweg, M. (n.d). The Evolution of Competition in the Automotive Industry. Judge Business School, 13-34. United States Environmental Protection Agency. (2003). Lean Manufacturing and the Environment: Research on Advanced Manufacturing Systems and the Environment and Recommendations for Leveraging Better Environmental Performance. Retrieved from http://www.epa.gov/lean/environment/pdf/leanreport.pdf. Read More