Operations Management Analysis of Daimler AG

OPERATIONS MANAGEMENT ANALYSIS 1
Daimler AG operational management analysis
Student Name
Course Unit Title
Institution

OPERATIONS MANAGEMENT ANALYSIS 2
Executive Summary
Operational management is a core part in the activities of any organization. It is important since
it defines the processes involved in the production of goods and services for the organization
clearly showing the input, transformation and output (ITO) activities of the business. The
following is a report highlighting the operations management at Daimler AG Company.

OPERATIONS MANAGEMENT ANALYSIS 3
Table of Contents
Introduction...............................................................................................................................................4
Primary operations of Daimler AG......................................................................................................5
The four vs. of operations management in relation to Daimler AG...................................................6
Volume.......................................................................................................................................................6
Variety........................................................................................................................................................7
Variation....................................................................................................................................................7
Visibility.....................................................................................................................................................8
Daimler’s Operations performance objectives....................................................................................9
The quality objective.................................................................................................................................9
Speed..........................................................................................................................................................9
Dependability...........................................................................................................................................10
Flexibility.................................................................................................................................................10
Cost...........................................................................................................................................................10
The Key process within Daimler AG..................................................................................................11
Daimler’s layout and flow...................................................................................................................11
Challenges experienced by Daimler AG in their operations and possible solutions.......................12
Control and feedback mechanisms that can be used to meet objectives of the organization.........12
Conclusion................................................................................................................................................13
References................................................................................................................................................14

OPERATIONS MANAGEMENT ANALYSIS 4
Introduction
Daimler AG is a multinational automotive corporation based in Germany. Its
headquarters are in Stuttgart, Baden-Wurttemberg. The company was created through the
merging of Daimler Motoren Gesellschaft and Benz & Cie in 1926. Currently, the company
owns and has shares in several car, truck, and bus and motorcycle brands such as Mercedes-
Benz, Mercedes-AMG, Mitsubishi Fuso, Detroit Diesel, Freightliner and Thomas Built buses. In
addition to this, the company also has shares in Beijing Automotive Group. The company
recorded a sale of 3.3 million cars in unit sales in 2017 and is the thirteenth largest manufacturer
of vehicles and the largest truck manufacture worldwide (Krajewski, 2010. ). Besides
manufacturing and selling vehicles, Daimler also offers financial services through its Daimler
Financial services arm. The company is listed in the Euro Sox 50 stock market index. The
following is a report that looks at the operations management activities of the company. It
describes the primary operations of the organization in terms of inputs, outputs and
transformation processes and an analysis of the four Vs in their operations management. In
addition to this, the main process within the organization has been identified which an operations
manager can be involved in to meet the objectives of the company. The report goes further by
identifying the problems within their operations and offers several alternatives that can be
applied to mitigate the challenges.