The Monitoring of Production Planning Department in BMW - Assignment Example

OPERATIONS MANAGEMENT AT BMW MINI By Presented to Outline Question One: There are areas within the final assembly process that do not follow concepts of operation management. a) Sustainability policies are increasingly responsible in information exchange and coordination of similar activities within divisional boundaries. b) The company has set out various criteria and measures for individual divisions within the company. Question Two: The adherence to the delivery schedule presents a positive impact to capacity and planning. a) BMW Group Purchasing currently maps out areas across the world that faces high risks of natural disasters and findings help in the selection of the right supply routes and locations. b) Product policy remains the integral component of competitiveness and is dependent on various qualitative factors. Question Three: BMW has a strong delivery lead time schedule that is based on ideal supply chain configuration. a) BMW uses a simple supply chain model to improve its load planning. b) The interim goals of BMW aim towards achieving sustainability strategies. Policies and options are objectively, continuously and transparently communicated to the in-house team and the external public. BMW has process strengths and weaknesses in the course of producing conclusions and recommendations on strategy. a) Weekly preview can be used in planning and discussing different compensation options for a deviation such as setting up additional shifts and reducing planned shift outputs. Introduction Over the years, BMW has made an impact in the automobile industry through offering high-end and customized products to the market. BMW recognizes the flexibility of production capacities as a central issue with respect to future uncertainties in demand. Corporate policy illustrates mandatory flexibility reserve which is a buffer difference between available capacity and expected demand for each product and production department within its plants. Multistage and single-stage production systems that have a supply chain flexibility are based on multiple production sites with dependency on how the firm’s allocation of products and resources to various sites. Question One: extraneous factors affecting the final assembly process at Mini Formalization of BMW’s strategic planning process, as well as interfaces across strategic load planning, defines the firm’s partial strategies. BMW has rigid location strategies, allocation strategies, flexibility and capacity strategies, and make-or-buy strategies. The characteristics of such strategies are critical to impacting premium car manufacturing, unlike mass product manufacturers (Riesenbeck & Perrey, 2009, p 156). For example, the determination of location strategy means that BMW should consider the availability of qualified personnel in foreign countries and positive impact on the production image of Germany. Determination of the allocation strategy is based on BMW’s goal to make highly customized cars based on orders and requires more flexible assembly lines to be used for any product within the plant. The direction of BMW’s sustainability strategy is based in the global focus on international markets. Involvement of all management board members schedules planning processes for sustainability and convenes diverse interest and assessments of the company’s progress. Responsibility for the operative implementation includes evaluation of measures among individual company divisions and the focus of the sustainability circle. The implication is that there are representations on sustainable business operations and environment responsiveness. The responsibilities of the institution include evaluation and identification of opportunities and risks relating to sustainability. The concept also oversees continued product enhancement in terms of sustainability strategies (Lussier, 2011, p 78). The firm’s performance refers to sustainability rankings from independent agencies and contributes to communications alongside the Sustainable Value Report. The goal of the process is to be a top performer across all rankings published by the major rating agencies (Surhone, Tennoe & Henssonow, 2011, p 34). Further analysis at the BMW production process shows presence of many circumstances that trigger problems within the production process. Some of the issues include downtimes for robots within white body shop as well as increase of repainting jobs due to of paint process problems (Iwaarden & Wiele, 2006, p 312). There are other elements of downtime resulting from the assembly line workstations. Most of the problems affect inventory levels for white body stackers as well as painted body stackers. The other critical factor that influences the inventory levels includes operations time for the production department. Within the Regensburg BMW plant, white body shop use different shift models through different operations times as compared to paint stores. In turn, white body stackers should be in a position of buffering enough white bodies in compensating the variations of operations times. In addition, painted body stackers should be in a position of buffering enough painted bodies for purposes of availing different shift models between assembly and paint shops (Russell, 2006, p 422). BMW continues to develop its leading position among the important sustainability indices across the world. BMW has made continuous efforts in the establishment of sustainability strategies within the subsidiaries and over global dealership networks. In addition, BMW has approved project packages that are designed for purposes of promoting social sustainability (Roy, 2007, p 123). Efficient target systems allow the firm to work effectively while setting a viable direction for the company towards greater sustainability. BMW has assessed various opportunities availed of the facilities across the world for purposes of using renewable energies (Mahadevan, 2008, p 35). However, the top management has ensured that employees are aware of the sustainability strategy and built capacity through training events and courses. The model incorporates impacts of tax to approximate levels. Absence of simulation tools within the process makes it time-consuming and difficult to implement. The major reasons for such focus include making people from various departments having different production planning experiences become more involved in developing common understanding of actions that affect inventory levels (Kiley, 2004, p 853). The BMW system lacks standardized methodologies in terms of planning different options while it has typical allocation of resources towards investigating different compensation options. The newly experienced simulation tools allow for processes of discussing and planning different options through great improved. The simulation tool within BMW is a standardized tool that can be used within the discussion for purposes of projecting inventory level graphs through a computer onto screens. All involved stakeholders and team members can see the impact of one action to inventory levels (Ahoy, 2008, p 321). Such an improvement to common understanding for the BMW system goes beyond the time engaged in discussing one compensation option coupled with a significantly shortened option for supply chain management for BMW products. Question Two: the delivery lead time of the supply chain configuration and the impact this has on capacity and planning The extended strategy issues restrictions on possible allocations. The production site in BMW’s products for serial production and start up across immediate futures is a fixed concept. Other products within BMW’s product line can use single locations based on the available alternatives and split production processes (Mukherjee, 2009, p 85). The overall goal includes choosing different locations from a range of alternatives. Split products allow for different plants that start through production of products from different years. The start-up year for most of BMW’s product is evaluated through initial demand occurring based on available demand data. Production variables are a representation of scope of cars that are produced yearly, per product, and by each plant through assessment of the first demand occurring across the demand data. Production variables are a representation of various elements of cars that are produced yearly in all plants and for each product (Johnson, 2005, p 32). There are restrictions on the available capacities for the departments. Products have separate capacities in body assembly while the capacities of the paint shops and final assembly lines sharing products within the plant. The firm can reduce the inefficiency figures through the use of the model in accounting for the general flexibility reserve. The modern global economy is characterized by an increase in connectivity and competition that multiply the incalculable chain risks and reactions from knock-on effects. Establishing risk management systems allows BMW to appreciate the risks early and allow for success in tackling them. The scope of performance includes decentralized networks for risk representatives that work at group level and the system operates at all levels (Elearn Limited. 2005, p 153). The areas of BMW are focused on raising awareness of relevant risks as well as the best ways of dealing with them professionally. Each identified risk is recorded within the risk management circles and evaluated by supervisory and management boards. Activities within risk management are centrally controlled by the Finance Division and regular internal audits ensure all suitable and effective measures are implemented. The process of choosing BMW suppliers involves contributions of supplier relationship management department (Surhone, Tennoe & Henssonow, 2011, p 856). The personnel in such areas verify the viability based on company’s technology and terms of business and environmental and social credentials. Processes are monitored and supported by BMW’s Compliance Committee. However, in various operations, BMW can attain the precision required through automation. Financial variables relating to investments are based on capital expenditure as well as contributions towards cost and revenue. In sum, such variables translate into cash flows that are attributable to investment as well as net present value for cash flow through usual criterion in investment evaluation. The load planning problem allows for revenue fixing at sales prices of BMW products are fixed (Lussier, 2011, p 134). The objective is minimizing the NPV sum for all expenditures and costs on capital. The critical balance is on the calculation of cash flow after or before tax. Large taxation variations from one country to another presents the strong argument in tax consideration especially in terms of global strategic planning (Phillips & Stawarski, 2008, p 64). However, calculation of taxes for international enterprises requires focus on internal transfer payments and prices. The fact that incorporation of such complexities can overload BMW’s planning model, it is prudent to work on cash flow prior taxation. The model allows the company to consider the load planning impact to the scope of supply chain among the suppliers and customers the model is also useful in developing quantitative optimization techniques that achieve clearly defined objectives and functions. BMW also implements the model through easy-to-use systems and software. Extension of existing load planning process past the departmental borders allowed for the integration of new load-planning models to BMW’s strategic-planning process (Geller, 2004, p 143). The firm can obtain cooperation from all departments including engine plants, distribution logistics, and procurement. BMW takes into account all implications regarding corporate strategic planning such as product planning. Incorporation of strategic decisions relating to product programs in the overall optimization model is not the ultimate proof of performance within the automotive industry. However, load-planning models are used in supporting decisions regarding new products through showing supply chain consequences (Liker, 2004, p 143). Question Three: conclusions and recommendations  The first recommendation for BMW’s assembly line is to categorize processes into various main sections mainly trim, final assembly and chassis. The trim section is involved in the installation of lightweight parts while extensively heavier parts are installed within the chassis section, such as transmission and the engine. Production processes end within final assembly as various small operations are undertaken (Cox, 2008, p 21). The activities include filling different fluid reservoirs, making minor repairs and conducting numerous quality checks. The supply process for parts facilitates the assembly line as its starts with supplier plant developing parts and completes with such parts arriving within assembly workers’ department onto the car requiring such components. Supply plants can be provided with facilitation schedules through electronic data interchange networks to allow adequate lead-time in the delivery of required parts when necessary (Young, 2009, p 322). The BMW plant in Regensburg utilizes supply relations under Just-in-Time in dealing with product varieties. Cars produced within the BMW plant at Regensburg are different on dimensions such as interior and exterior color, harness, body stile, choice of options and power train. Further, manufacturers of most mass products utilize dedicated assembly lines in each of the products where minimal variants as well as increments in productivity lead to reduced costs. Allocation of different products within a plant makes it feasible in balancing utilization and production of large-volume products from various plants. Abundance of resources gives BMW flexibility capacity to address variations in demand. Capacity got installed machines needs to be greater as compared to expected demand to allow BMW have flexibility of meeting actual demand based on choice of appropriate working times. BMW Group has well-defined rules regarding ways of determining flexibility reserves (Arora, 2004, p 164). The allocations of new products within various plants of BMW allow the top management to involve product-specific investments. The body assembly department, the final assembly and paint shop departments are critical contributors to BMW’s value chain (Chase, Aquilano & Jacobs, 2010, p 372). It is critical to appreciate those structural investments towards additional space, especially for buildings as well as expansion equipment allow for new product shares based on existing products. The expansions are achieved through discrete steps such as addition of spray robots within the assembly line. Engineers focus on the machines’ technical configuration varies the degree and the pace of automation to achieve BMW’s requirements on high quality. The systems provide ample data towards load planning. Configuration depends on manufacturing locations. For example, high automation levels are more profitable within countries that there are high labor costs while countries with minimal labor costs have less automated production systems (Henry, 2008, p 875). In conclusion, actual inventory levels for white vehicle bodies, as well as painted body stackers, are an important component in making the production process work properly. The monitoring of production planning department allows for the inventory levels develop consistencies with daily provision reports among other production departments of the BMW plant. Previously, simulation tool usage within the daily production reports shows static illustrations of actual production situations. The implication was increased hindrance to effective estimation of future stackers’ development and too late recognition of critical situations. The facilitation of the new simulation tools within the production planning process will extend the daily production impact through use of graphs to show estimated progress of inventory levels in the short run. Such reports can be published on BMW’s plant intranet daily on a daily basis. All departments with access to such information can anticipate curtail situations earlier to inform discussions and actions aimed at avoiding the deteriorative situations. References Ahoy, C., 2008. 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Opearation Management: Quality and Competitiveness in a Global Environment, Wiley India Edition, Fifth edition. Surhone L., Tennoe M., & Henssonow, S., 2011 Operations Plan. New York: Betascript Publishing. Young, S., 2009. Essentials of Operations Management. New York: SAGE Publications Inc. Read More