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Operations management - Essay Example

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Daimler-Chrysler (DC) is one of the leading car manufacturing companies in the world. Increasing competition and shrinking profit margins forced the managements of both Daimler and Chrysler to join hands and efforts to work towards a common objective. The merger was to pool the resources and manage the operations in such a manner that the company could take up the competition from other companies…
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Operations management

Download file to see previous pages... Operations management in an organisation is concerned with the management of people, processes, technology and other related resources in order to produce quality goods and services. In general Operations Management is concerned with the following four interrelated modules;
ii. Supply chain modelling: Supply chain forms the backbone of any company and for a production company in particular, the implementation of TQM policies can only be carried out if the supply chain is reliable and quality conscious
iii. World class production systems: This aspect can be very well taken care of by the individual company. But the rapid pace with which technological advancements is taking place calls for regular updates on production requirements as well.
Lowering the production costs is indeed one of the tried and tested formula for achieving break even and promising profitability for any organisation. But under the globalization regime costs is not the prime factor for the long term survival of the business prospects. Small (1998) contends that, "Over the past two decades there has been a shift in the basis of competition in manufactured product markets. Firms that previously focused almost exclusively on lower costs have adjusted to a focus that places just as high and often higher premiums on quality and flexibility." Therefore managing the operations of an organisation requires it to adjust to these changes. Advanced Manufacturing Technologies (AMT) is the name given by industry experts to the technological advancements being implanted in the production sector.

Managing Diversity
Liberalization and globalization has opened up newer vistas of trade and business all around the globe. The car market in particular has become very competitive with major players like GM, Ford, Toyota, Audi, BMW, VW etc. besides the local players in some markets. With technology playing a major role in advancement of the features in a car, IT/ICT's help in making the car more intelligent has become very crucial. Besides adding features into the car itself, IT plays an important role in coordinating different aspects related to other departments. Developing effective marketing communication techniques is another such area requiring contribution of IT. Therefore, it appears from the case study that Daimler-Chrysler (DC) has its hands full. The company has not only to take care of the merger after-effects, but it has to keep the company ready to take on the competition from other car makers. As of now the wide culture gap between Stuttgart and Auburn Hills appears to be causing too many problems for the company. The global economy has made it almost mandatory for international corporations that an effective strategy is adopted for managing the diversity. Companies are moving towards flatter organisational structures, and the global economy is allowing the movement of the workforce across national boundaries, effective interaction amongst ...Download file to see next pagesRead More
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Operations Management
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