Operations Management Report: Aston Martin and Millennial Demand

This report provides a framework for understanding the operations and quality management challenges facing Aston Martin, a UK-based luxury sports car manufacturer, particularly concerning the changing demands of the millennial generation. It identifies excess production, sustainability, and retaining a talented workforce as key challenges in the automotive industry. The report emphasizes that millennials' shifting preferences, such as favoring renting over buying and seeking experiences over luxury goods, pose a significant operational challenge for Aston Martin. Potential areas for continuous improvement are explored, including enhancing product quality, reducing prices, ensuring product consistency, complying with industry standards, and maximizing resource utilization. The report references industry and academic research to support its analysis and suggests that Aston Martin should focus on creating experiences through their products to attract the millennial generation. Desklib provides a platform for students to access this report and many other solved assignments for their academic needs.

Operations Management Individual
Report Framework

Table of Contents
Provide background Information to your chosen sector and organization / company....................3
Identify current operations and quality management challenge(s) facing the organization’s /
company’s sector.............................................................................................................................3
Operations challenge.......................................................................................................................4
Identify potential operations and quality management industry and academic research that may
be of value in exploring the challenge using a range of credible sources.......................................4
Identify potential continuous improvement within organizations, industry and academic research
that may be of value in exploring the challenge using a range of credible sources.........................5
REFERENCES................................................................................................................................6

Provide background Information to your chosen sector and organization /
company.
Operational management is concerned with processes of converting raw material and
labour into goods and services and maintaining efficiency of organisation. Operations
management within automotive industry is very complicated and challenging. Automotive
industry refers to wide range of firms involved in designing and developing, manufacturing,
marketing and selling of motor vehicles Ebrahimi-Nejad and Kheybari, (2017). On the basis of
revenue this is largest industry of world. Automotive industry of UK is a vital part of overall
economy and turnover of industry is more than £78.9 billion. Automotive industry adds value of
around £15.3 billion to the economy of UK. In addition to this, around 180,000 individuals are
employed in manufacturing and additionally 864,000 people are employed across industry UK
Automotive, (2020). Organisation being considered for report is Aston Martin, UK based
manufacturer of luxury sports car and grand tourers. It was founded in 1913 and is headquartered
at Gaydon, Warwickshire, England, UK. Brands of the company includes Aston Martin and
Lagonda.
Identify current operations and quality management challenge(s) facing the
organization’s / company’s sector.
Excess production- Excess production is an operational challenge that industry is facing
automotive industry in which there is excess production than demand.
Sustainability- Carbon emission and related environmental sustainability have become a key
operational challenge for automotive industry.
Millennial generation demands- Changing demands and differentiated preference of millennial
generation is also a operational and quality challenge for automotive industry.
Retention of talented workforce- This is a quality management talent because increasing use of
technology in cars and vehicles require that industry has suitable workforce Ma et.al., (2020).
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Operations challenge
Challenge identified to be affecting Aston Martin is changing demand of millennial
generation. In relation with sports car millennial generation have different preferences then
earlier generations and this is a big operational challenge for Aston Martin.
Identify potential operations and quality management industry and academic
research that may be of value in exploring the challenge using a range of
credible sources.
Mindset of millennial generation is changing in relation with cars and generation is not as
excited as earlier generation when it comes to drive and own a car. One of the reasons is that
younger generation have less capability for making a large capital purchase. Another reason is
technology and facilitation provided by it. People can get a car at doorstep through their mobile
and this facility does not motivate and require people to get their own car. Avoiding burdens
related to maintenance and commitment is also a reason that millennial generation avoids
ownership of cars. Millennial generation consumers’ preference is changing as they prefer
renting over buying goods and cars as well Ma et.al., (2020). Preference of millennial for
experience rather than goods is also a reason that this generation avoid buying costly and luxury
things and sports car like Aston Martin is one of such goods.
However, companies like Aston Martin can work on creating experiences through their
products in order to attract millennial generation towards car can be very helpful for maintaining
growth when millennial generation is on rise. One of the researches by another sports car
company that Ferrari outlines that millennial generation is less interested in buying a car and this
is a worry for the company and as this is a worry for Ferrari, this is a worry for Aston Martin as
well. Millennial generation seeks emotional experiences rather than having luxury and sports car
Ferrari 'very worried' that younger generation are less interested in driving cars, (2019).
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Identify potential continuous improvement within organizations, industry and
academic research that may be of value in exploring the challenge using a
range of credible sources.
Continuous improvement is very important and sports car industry is continuously
working on this. This involves enhancing quality and also working on reducing prices as
millennial generation is less likely to buy large capital goods. In addition to this, in relation with
continuous improvement in sports car industry is done through product consistency for making
manufacturing line completely functioning and creating products to meet needs of end-users.
Compliance with standards is also important for continuous improvement in which Aston Martin
needs to comply with different standards in relation with car, safety of car and ensuring that
customers’ needs are met Hovorun et.al., (2017). Maximum resource utilisation is also involved
in continuous improvement that includes that resources are used in best possible way to reduce
wastage to least possible quantity.
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REFERENCES
Books and Journals
Ebrahimi-Nejad, S. and Kheybari, M., 2017. Brake System Design for Sports Cars using Digital
Logic Method. Automotive Science and Engineering. 7(4). pp.2571-2582.
Hovorun, T.P. et.al., 2017. Modern materials for automotive industry.
Ma, F. et.al., 2020. The influence of continuous improvement of public car-sharing platforms on
passenger loyalty: a mediation and moderation analysis. International journal of
environmental research and public health. 17(8). p.2756.
Online
UK Automotive. 2020. [Online]. Available Through:
<https://www.smmt.co.uk/industry-topics/uk-automotive/>.
Ferrari 'very worried' that younger generation are less interested in driving cars. 2019. [Online].
Available Through: <https://www.arabianbusiness.com/transport/435041-ferrari-very-
worried-that-younger-generation-are-less-interested-in-driving-cars>.
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