Processes and Layout in BMW Group Company - Case Study Example

Title page (Your University) (Your name) Table of contents 1.0 Introduction 2 2.0 Analysis 3 3.0 Theories 4 4.0 Impact of good process design 5 5.0 Operations functions 6 6.0 In put out put process diagram 6 7.0 Customers’ needs 8 8.0 Qualifiers and winners 10 9.0 Layout of processes 10 10.0 Correlation to theory 11 11.0 Recommendation 11 12.0 Conclusion 11 1.0 Introduction Managing operations and quality grading in an organization is very essential. This is due to the fact that the processes within an organization affect the products made therein. This paper is dealing with managing operations and quality grading. It further includes operations management theories. The overall importance of good process design and the impact that process and layout design has on delivery of products and services is further discussed in this paper. This paper is focused on processes and layout in BMW Group Company. Aalbrechtse, (1996, p. 65) 2.0 Analysis BMW Group Company is known to be one of the leading car manufacturers. It is based in Germany and was founded in the year 1922. Production systems in any organization always need to be well designed in order to make the whole process fast and effective. The general layout of the production systems is very essential in these facilities. Layout is defined as the way machines and materials within a company are arranged in relation to one sector to another one. Layout designs are more so very essential in manufacturing companies since they are directly linked to the production costs within organizations. In most cases the processes and layout designs are normally affected by various factors. (Diof, 2006) One of them includes some physical restrictions like space that an organization has. Process and layout designs can actually be based on product or the time cots of the machinery within an organization. In case the process and layout design is basically based product then issues of flexibility and quality of the products are adequately handled. In this case the layout can be described to be quite functional based in nature. Line layouts are the best for this function since they encompass the various designs of jobs in the organization and the technology therein. Manufacturing layout designs within an organization have to be geared towards minimizing the costs therein. The process and layout design has to ensure that sections that have many movements are between each other are placed closely aligned. Aalbrechtse, (1996, p. 65) 3.0 Theories There are various operations management theories that are linked to process and layout designs in organizations. One of them is the process theory. This theory states that there are some inputs that have to be put in place through a predetermined process in order to come up with the desired outcome. In this theory, it is explained that the inputs and the process in general affect the overall produce. In case where there is a high in-put, then the output is also expected to be very high. The process should work towards producing value in the final product. Hillier (2002, p. 35) The other theory is the normative theory of process and production. This theory generally asserts that some tools can actually be used in production process in order to come up with maximum profits. That means that in case an organization’s process and layout design is not working to the maximization of production, then certain aspects can be incorporated in order to come up with the desired results. These additional inputs can also be materials. The process and layout design that is in a company can be modified altogether. Hillier (2002, p. 35) 4.0 Impact of good process design A good process design is very important in a manufacturing company. It generally has to have the following characteristics. One of them involves the ability to produce quality products. This means that the products are durable and actually function well. Another very important aspect of a good process and layout design also includes the time it takes to make a product. A process design has to use the minimum amount of time possible. Any process and design layout that takes so much time is not good and will result in the organization making losses. Good process and layout design generally has impacts on the delivery of products and services within a company. A design that is good will result in quality products being manufactured. This means that customers to the company will be in a position to get quality products. Another aspect of good process and layout deign is in relation to time. For instance the quality products are made within minimal time. Hoskin (2005, p. 90) This means that customers are able to get the products within a short time span. The service delivery within the company becomes very fast, effective and efficient. This is because there are no unnecessary delays within the entire process. Products are also delivered very fast between the various sectors or departments within the organization. 5.0 Operations functions Analysis of BMW Company shows that there are various operations therein. The company is mainly concerned with the manufacture of vehicles. Operations functions within BMW Group Company include the following. One of them is in relation to manufacturing quality products (cars) that meet the customers’ needs. This is not just in Germany only but also in the global markets. Another operations function in BMW Group Company includes the ability to minimize waste. This includes the materials that are used in the production of cars. Another resource that is also included is time. Manufacturing of cars includes assembling of so many important parts and any form of wastage in this can result in multiple losses in the company. Another operations function in relation to process and layout design is in relation with flexibility of the entire process. This means that any necessary corrections or changes can easily be made without affecting the whole set up. Schmenner (2005, p.4) 6.0 In put out put process diagram Each and every manufacturing company has got inputs and outputs. The in puts go through a process before the outputs are produced. The BMW group Company also has a process and layout design. Below is the diagram showing the input and out put process in BMW Group Company. Input (raw materials, labor, and time) Output (finished automobiles) The process in BMW group Company is quite diverse in nature. They include analyzing the various parts of equipment that need to go through the manufacturing process. Next, there is the incorporation of the parts and quality checking until the final output products are made. They are then dispatched to the market. 7.0 Customers’ needs Analysis of the BMW Group Company shows that the customers have various needs. First of all customers to this company want the cars to be of very good quality. This means that customers want cars that can last for a long time without breakups. Research shows that it is normally very disappointing for customers when they purchase a vehicle that after one or two years becomes wrecked and useless. Tokyo (1994, p. 45) Customers also want trendy vehicles that are quite fashionable. Nobody ever wants to be seen with a vehicle that looks like that that was made in the eighteenth century. This means that the BMW group company has to manufacture trendy vehicles that will appeal to the entire market in Germany and in global markets too. The organization’s customers also need the cars and motorbikes to be of an affordable price. Tokyo (1994, p. 45) Key performance objectives Every organization normally has its key objectives. This also applies to the BMW Group Company. The following are the key performance objectives in this company; Production It is the key objective of this organization to produce an adequate number of vehicles that can meet the customer needs. Generally the company produces more than one million vehicles in all its branches in a year. Sales This is also one of the key performance objectives of BMW Group Company. It aims at increasing its sales by eighty percent. This objective enables the management to stay focused in all its endeavors. Profit It is never just enough to sale but it is quite important for organizations to make profit. This is also one of the key objectives of BMW Group Company. This company aims at making profit in all its sales. (Diof, 2006) Return This refers to the number of faulty vehicles that are returned by customers. The company’s key objective is to minimize the number of returned vehicles as much as possible. Analysis of the above objectives in BMW Company shows that they highly relate to the five key performance objectives. The five key performance objectives include speed of delivering products to customers. Dependability and quality of products is also very important. These are highly co-related to the objectives in BMW Group Company. 8.0 Qualifiers and winners Qualifiers refer to an organization’s product characteristics that make it easy to sell. They include factors like price, quality, reliability, and reputation and also the number of years that the company has been in operation. The winners aspect refers to aspects about the company’s products that make it win customers’ orders both in local and in the global market. They include delivery speed, price, quality, delivery consistency and the reliability. Order winners and qualifiers are basically based on the aspect of the company’s competitive advantage. (Diof, 2006) In order to appeal to customers, the BMW ensures that it produces quality vehicles. The prices are comparatively fair in relation to other companies. This company has been in operation for the past eighty five years and hence it is highly known. It ensures that orders are delivered very fast and these aspects have made it to excel in business. 9.0 Layout of processes The layout of processes in BMW Group Company includes getting materials from various companies. The equipment and material are then checked in terms of quality. This includes weight checking. Push system is used for production of assembles and sub assembles. These go through a process of in-joining. Then there is painting and quality checking again before the vehicle is ready for dispatching. 10.0 Correlation to theory The process design in BMW Group Company is effective in meeting customer needs. This is in relation to the process theory that talks of the inputs that go through various processes in order to come up with the desired results. The process in BMW Company plays a great role in meeting customer requirement of quality. The time and costs are minimized resulting in fast deliveries and affordable prices to customers. Aalbrechtse (1996, p. 65) 11.0 Recommendation The process should incorporate more updated technology in its delivery processes so that the duration for delivering finished products from the company to customers is shortened. 12.0 Conclusion BMW Group Company is known to be one of the leader manufacturers of vehicles. This company has various processes that are incorporated to ensure that quality products are made. The qualifiers and winners aspect is fulfilled through its pricing, quality and promotions. It is evident that process and layout design affect the success of an organization. Read More