Operations Management Analysis and Implementation Plan

Operations Management Analysis and Implementation Plan

Operations Management OPS/571

Operations Management Analysis and Implementation Plan

The key to a company's success is an effective business strategy that can solve current issues and other challenges that may occur. The innovation and growth of a business are done to certify that the welfare of the producers is cared for. This lessens the risks that may be faced when conducting operations. Over the years, the automotive industries have experienced major changes, and most likely these changes will continue. The increase in demand is the main reason for the extreme growth in the automotive industries. According to the Consumer Confidence Index, within five years the economic and employment status increased over 10%. As households’ financials becomes more stable, families are more willingly to make major purchases (IBISWorld, 2016).  The purpose of this paper is to discuss a global competitive landscape and supply chain for Bayerische Motoren Werke (BMW). The supply chain from both product and service standpoints will be analyzed. BMW Group competitive position and possibilities will be assessed. Also, an implementation plan for main objectives will be created.

BMW’s Background

In 2016, of the top 10 automobile companies in the world, BMW ranks number nine. The BMW Group is a German automaker that manufactures premium brand cars, off-road vehicles, and motorcycles under the Husqvarna names. BMW are also famous for their MINI Coopers and the luxurious Rolls Royce. In 1998, the BMW Group bought Rolls Royce Motorcars Ltd. (Kemper, 2015). The BMW Group headquarter is in Germany; however, BMW has factories worldwide, and their cars are sold in 140 countries. The only factory that manufactures Rolls Royce is in Goodwood, England. In 2015, the BMW Group sold over 20% of it vehicles to China; 18% of its vehicles were sold in the United States; and12% of BMWs were sold in Germany. Here is a breakdown of the BMW Group's worldwide automobile sales in the fiscal year 2015.

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Supply Chain

To meet the global consumers’ demand, the BMW Group has 30 manufacture facilities in 14 countries. In 2007, the company went from 23 manufacture facilities to its currently 30 facilities; this is because of its “NUMBER ONE>NEXT” strategy. The BMW Group work with 13,000 supplies in 70 countries. The company’s partnership with suppliers is the understanding of the production quality, competitive prices and innovation, and the integration of sustainability (BMW Group - Supplier Management, 2016). Sustainability is a major element that companies are considering when products are produced. When it comes to the automotive industries, the public and the regulators wants transparency. In working with suppliers, The BMW Group has key suppliers who should follow compliant when working with the company. The results from Original Equipment Manufacturer questionnaire are used to assess the performance of each supplier. The results are a vital function of the company’s procurement process in making an official selection for suppliers (BMW Group - Supplier Management, 2016). The BMW Group also endorses other methods that guarantee the suppliers and employees are constantly working to improve sustainability. Suppliers should be encouraged to put in place new measures. This will make suppliers more sustainable in the supply chain. The BMW Group recognizes exceptional innovations and gives recognition with the Supplier Innovation Award. This gives suppliers incentives and motivations (BMW Group - Supplier Management, 2016). Innovation and continuous growth in its supply chain are what keeps BMW as one of the top leaders in luxury automobile manufacturing. “Maintaining a supply chain network that reduces the order-to-delivery time and the demand planning demonstrates how the company uses technologies that combine its suppliers, manufacturers, and distributors that bring cars into the market in a cost-effective and reasonable timeframe” (BMW Group - Supplier Management, 2016). The flexibility of BMW’s manufacturing helps with the company’s element, therefore, can make the necessary decisions to implement changes.