Assignment:
Aim
To provide learners with an understanding of the role and importance of operations management (OM) in the efficient and effective production of goods and services
Overview the History of Automobile Industry
By manufacturing activities company's agenda is to earn a return on investment. To minimize the cost of production the companies in this sector look for continuous development and innovation. The ancestor aggregation manufacturing was known as "Scientific Management". F.W. Taylor made a theory which diversified managerial and labour activities. Ford was the pioneer to acquaint aggregate manufacturing by arranging assembly line in manufacturing. This led to minimizing the expenditure on employees. In the Year 1970 the ford model started having problems as the ford customer need and wants were varying from region to region then as a result Toyota came up with "Toyota Production System". By this TPS each employee had a sense of responsibility which made Toyota world's leading car manufacturing. Then further it evolved into Lean Management which is systematic method of waste minimization
Executive Summary of Volkswagen
Volkswagen had taken birth on 28th may 1937, Gesellschaft Zur Vorebereitung des deutschen Volkswagens mbh a society which manufactures car for German community by the Nazi Deutsche Arbeitsfront. The main objective of the organization was to produce the Volkswagen car which was earlier known as Porsche type sixty, then Volkswagen type one, which was known as Volkswagen beetle. A consulting firm known as Ferdinand Porsches designed the vehicle which was advocated by the abutment of Adolf Hitler. The company started producing cars for military at the time of Second World War. After completion of the battle in Europe in 1945 British army royal electrical & mechanical engineers had taken of the authority of the plant & begin over the manufacturing process. As per the Orders as many industries were asked to annihilate, so even Volkswagen had to do it, after that the company continued to live on only by manufacturing cars for the army of British. The army of British gave back the control to Germany which was been controlled earlier by Opel chief Heinrich Nordhoff. Slowly the old model manufacturing started & company geared up in 1950-1960 also came up with many new variants. In 1960 as government of Germany had a stake in the company, then the name became Volkswagen werk. 1st of January 1965 Volkswagen acquired auto union GMBH from its parent organization Daimler Benz. This subsidiary started manufacturing under the brand name of Audi. In 1953 Volkswagen Motors Ltd became the official UK importer, and the brand went from strength to strength. Volkswagen also centralised its operations in 1978, and moved into its headquarters in Blakelands, Milton Keynes. From Blakelands the company controls sourcing, marketing and distribution of all vehicles and parts in the UK. Today Volkswagen UK, as part of the Volkswagen Group, is one of the country's largest importers of vehicles, employing nearly 600 people nationwide, with the Volkswagen brand employing 180 in Blakelands alone.
Volkswagen's Global Strategy 2018
Volkswagen wants to be world leader through using technologies & intelligent innovation & at same time quality & customer satisfaction is considered. Company wants to hike its sales to more than ten million units a year in the coming future. It wants to capture above average market chunk. In order to build a first class team Volkswagen aims at becoming top employer at all levels. Company is targeting a return on sales of at least 8 percent before tax in the distant future in regards to maintain its brick wall financial position & take action during uncertain period. As the company has imposed an aspiring deadline of 2018 in its Annual general report-2014.Companys core strategy is to come up with environmental friendly variants. While administering the expenditure & cost company will address people on quality front rather than holding a regular stick of pricing. The organization will work on process standardization in both means direct & indirect sector of the team & lowering throughput times. The Team will be accountable on the seven key performance Indicators which are as follows- 1) Customer timely deliveries, 2) Sales revenue. 3) Operating profit, 4) Capex revenue, 5) Operating return on sales, 6). Return on Investment and 7) Net cash inflow. Company is discerning in broadening range in vehicles on order to create an active position to their individual brands & consistently raising the competitive advantage. Products are adopted on the basis of localization.
CONCLUSION
Volkswagen should now focus emerging markets like china, India & diversify its infrastructure to these rapid developing economies. Volkswagen is focusing electrifying every segment & also looking for single battery installation which will give it a competitive advantage. It was always kept on priority & is carried forwarded for the future. Volkswagen has evolved itself in creating synthetic fuels which are replicable to fossil fuels which do not emit harmful components, these fuels are 100% drop-in. Technology connected car expanding in developing & developed economy in this segment is still very back as compared to the industry rivals. Currently Volkswagen in USA is focusing on ‘Clean Diesel' dynamism now company must bring to limelight Audi & Porsche in high price segment & in low price segment Skoda & Seat. Volkswagen has two brands MAN & SCANIA which are doing remarkably well in Europe it needs to be taken to the global foot print. After learning from crisis of America & Europe Volkswagen should now go for certification as per local government norms & get test clearance reports from them.
Scenario 1
As the newly appointed Trainee Assistant Manager for operations management department, you are strongly advised to read the above case study on Volkswagen carefully and answer the following questions meticulously in an essay format AC by AC. It is recommended that you carry out alternative research into Volkswagen international operations to gain a better understanding of automotive industry where Volkswagen is a key player globally
Essay format
Understand the nature and importance of operations management
Explain why operations management is important to Volkswagen business
Analyze the operations functions of a Volkswagen
Evaluate, by using a process model, the operations management of Volkswagen
Essay format
Understand the link between operations management and strategic planning
Appraise the importance of 3 E's (Efficiency, Effectiveness and Economy) to organizations.
Assess the impact of tension between cost minimization and quality maximization in organizations
Evaluate the significance of the of the five performance objectives (quality, speed, dependability, flexibility and cost) that underpin operations management to the organizations
Scenario 2
You are required as a Trainee Assistant Operations Manager to prepare a coherent and up- to-date business report on Volkswagen production process and system. This report should include where necessary some tables, flow charts and diagrams. Make sure that your report is professionally designed, by using both headings and subheadings for your readers easily understanding.
Business report
Understand how to organize a typical production process
Assess how linear programming adds value to the Volkswagen production process
Evaluate critical path analysis and network planning
Justify the need for operational planning and control with reference to capacity planning, inventory planning, project management and quality assurances, in the Volkswagen production process and system.
Scenario 3
In your first major task as the Trainee Assistant Operations Manager, you are instructed by your line manager to plan and design a bespoke operational plan for the sales department. Using (10-12) structured PowerPoint slides with speaker notes embedded to explain each point on the slide further and there will be no face to face presentation in the class, therefore submit your slides with the whole report together
Be able to apply relevant techniques to the production of an operational plan for an Organization
Produce a set of clearly defined operational outcomes (Objectives) for Volkswagen sales department.
Produce a network plan indicating the resultant critical path analysis.
Justify how quality management methods are carefully used in improving Volkswagen