Operations Improvement Strategy for Mercedes-Benz: TQM, JIT, Lean Production, and Training & Development

UGB165 Introduction to
Business Operations and
Services 2019

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Operations improvement strategy................................................................................................3
Operational strategies that BMW and Audi can implement........................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operations and services two key aspects within an organisation, venture or company, in
which top-level management in each business is responsible for always running its various
operations & services on a progressive path. This is too important task for upper management of
a business, because without having progressive path to operations & services, the management
cannot timely achieve own decided aims and objectives. In this modern world, there is huge
competition in each sector or industry (Pajewski, Fontul and Solla, 2019). That’s why every
business or company need to effectively serve and operate its various operations as well as
services in market place. After considering these factors, a company can be easily achieved
excellent competitive advantage within its respective sector or industry. This report discusses
Mercedes-Benz’s two key aspects called operation and service. Currently Mercedes-Benz suffers
from various business issues, based on tie-up and quality, etc. in which few productive strategies,
techniques and tools of operation improvement has been mentioned in this report that can help
Mercedes-Benz in order to develop own operations and services. There are some strategies of
operation also has been described below in the report which can help to BMW and Audi to gain
market share from Mercedes.
MAIN BODY
Operations improvement strategy
On the basis of existing organisational situation, upper management at Mercedes-Benz
has highly required to use a productive strategy of operations management. Existing
management within company have to employ few effective techniques and tools in own business
environment, in which by employing various techniques as well as tools, the company will easily
develop own operations and services in market place. There are Audi, Ferrari, BMW, Land
Rover etc. some major competitors for Mercedes-Benz, and these competitors are using various
techniques and tools for properly improving its various services and operations (Roth and et.al.,
2016). That’s why, upper management at Mercedes-Benz have to use different techniques and
tools in order to gain huge competitive advantage under the luxury car sector.

According to various automobile sector experts, the market competition within
international automobile sector is continuously increasing. There are many new entrants comes
in this sector with their new ideas and innovation regularly. That’s why Mercedes need to start
offering vehicles with the best quality and durability in its selected market segments for dealing
with the issue of high market competition. Few productive techniques and tools of operations
management has been discussed below which will definitely help Mercedes-Benz to develop its
vehicles’ quality within global automobile sector.
TQM (Total Quality Management)
The top-level management of Mercedes-Benz need to implement this TQM technique in
its production department to or produce the quality services and products. Nowadays, many other
companies within automobile sector also has successfully employed this total quality
management technique in their production departments to offer excellent quality cars within the
market place (Ruiz-Lozano and Tirado-Valencia, 2016). This is the major reason that, upper
management of Mercedes has required for using TQM technique or approach in own production
department. The marketing department of company has covered market research, and it has
found that many of people in the European countries are ready to give very priority to such
automobile businesses which has offered vehicles with the best production quality. Generally, a
car is that type of assets that customers has purchased for the long-time usage, so Mercedes-Benz
need to understand this common thing. Nowadays, total quality management (TQM) is one of the
best strategies for different companies that can help in improvement of quality of products.
The management of the Mercedes need to adopt some effective decisions for
implementing the total quality management strategy. TQM can be supported to the company to
properly manage an appropriate quality of own luxury cars. Basically, people who comes under
group of high income are able to afford Mercedes-Benz’s cars. There are company charges too
high rates from different various customers when they have purchased cars through this
company. So, top-level management of venture is responsible for providing the best quality
luxury cars with the additional modern and digital specifications to various customers. On the
other hand, this luxury car venture commonly uses value-based strategy of pricing to set the
specific rate to its luxury cars. Basically, many of companies which has used value-based
strategy of pricing are always provides premium cares in market place (CAMACHO, MERAYO