BMW: An In-Depth Analysis of Operation Management and Logistics

This report provides an analysis of BMW's operation management and logistics. It begins with an introduction to the company, highlighting its focus on luxury vehicles and global operations. The report then delves into key topics, including managing quality through Total Quality Management (TQM), exploring elements like customer satisfaction, continuous improvement, employee empowerment, and supplier quality. The second part of the report focuses on new product development, outlining different categories such as major innovations, product improvements, and product additions, and the benefits and limitations associated with it. The report also examines BMW's adoption of the triple bottom line approach, encompassing economic, environmental, and social considerations. Finally, the report offers recommendations for BMW's management, emphasizing the importance of research and development and the implementation of TQM to meet customer expectations. The conclusion summarizes the key findings, emphasizing the significance of effective operation management in achieving efficiency and quality.

Operation
management and
logistics

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Introduction to the company........................................................................................................3
Triple bottom line........................................................................................................................7
Recommendation.............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Operation management is related to those system of the business which is used by the
company to achieve high level of efficiency and competitiveness within the organisation. It is
one of the important and valuable management of the organisation under which the management
uses different types of techniques and focusing on production of goods and services in the
organisation (Ali, Hilman and Gorondutse, 2020). Logistics is process of planning and execution
of transportation of goods from the point of origin to the point of consumption. It is very
important process of the organisation because the customer get the product in this stage. The
organisation which is chosen here to demonstrate this report is BMW. This report provides
description related to general information of company and the description of the given topic.
TASK
Introduction to the company
BMW is a German multinational car manufacturing organisation which operates their
business in different countries of the world. The management of the company provides number
of luxury cars in market at premium prices. The headquarter of company are present in Munich
Germany and the company was established in the year 1916 as aircraft manufacturing company.
The management of the company are famous for the values and luxury which is provided to their
customers in their vehicles (Androwis and et. al., 2018). The cars of the company only afford by
high class society persons because the prices of cars are generally high. The management of the
company focuses on looks and power of their vehicle and provides quality which increases the
cost of the product. The management of company uses effective strategies in their business
which helps the organisation to improve growth of the organisation. The management of the
company established their business in Munich bot the production of cars are placed in different
countries of the world. The topics which is chosen here is managing quality and new product
development.
Managing quality
Quality management is one of the important and valuable aspect of the organisation
under which the management of the organisation has put their focus on managing the quality of
their product irrespective of their prices. There are number of frameworks are present in the
market which helps to establish quality in the product of the organisation. One of the important

framework is Total quality management and the brief discussion related to the same are given
below:
Total quality management
It is related to those management framework under which the company believes that the
firm can achieve great success in the organisation when all the employees whether it is low level
or higher degree executives made their focus on quality of the product and also the satisfaction of
needs of the customers. There are large number of employees are present in BMW which is
working on different designations (Babatunde, 2020). If the management of the company
required to manage the quality in the management then it becomes essential for all the
stakeholders to focus on the improvement of the quality. There are number of elements are
present in TQM philosophy which helps to establish the concept in the market in effective
manner. The brief discussion related to these elements are given below:
Customer satisfaction
The satisfaction of the customers is one of the important and valuable elements which
plays important role whole establishing TQM in the organisation. The satisfaction of the
customers are based on their needs and desires. It is very important for the management to
analyse the needs and desire and try to develop the product according to the needs and desires of
customers. The management of BMW provides luxury vehicles in the market so it is importamt
for them to focus on comfort in their vehicles.
Continuous improvement
It is very important for the success of given aspect that the improvement plans and the
activities should be continuous and for the long time. It is not possible for any company of the
market to achieve quality in short span of time (Khan, Malik and Janjua, 2019). The management
of BMW was operating their business from many years so it becomes possible for them to
achieve improvements.
Employee empowerment
The concept of total quality management is based on improving production aspect of the
organisation. Employees of the organisation plays important role for the improvement of
production in the organisation. It is very important for the management of organisation to
analyse the needs and desire of employees and try to fulfill them so that their level of motivation
can be increases in the organisation.

Supplier quality
The requirement of raw material for the process of production are fulfilled by the
suppliers of the organisation. If the management of the organisation need to focus on the quality
of the product then they have to established connection with those suppliers of the market which
are having qualitative product range.
Implementation of Total quality management
 The management of BMW have number of executives and managers which developed
effective measures for the organisation. If the management of the company need to
establish this framework in their organisation then they have to follow the number of
measures.
 Management of quality raw material for the organisation. It helps the employees to
minimise the wastage and it also enables the management to operate their business in
effective manner (Kumar and et. al., 2020).
 It is very important for the management of the organisation to motivate their employees
by fulfilling their needs and desire of the employees.
 It is very important for the management to manage the resources of the business in such a
way they provide maximum returns.
Topic 2:
New product development can be described as a process which is linked with the test, developing
and also including product viability into new market which helps businesses to get growth in the
market and also helps to ensure the survival of the organisation. It is a process that consists
coordination among different activities like research and development, manufacturing,
marketing, engineering, purchasing, finance and other. BMW is an organisation which is
adopting all these activities in business (Nasim, Sikander and Tian, 2020). It consist different
types of categories of development of product. Explanation of these categories are mentioned
below:
Major innovations: Innovation is important in order to add something new in a product or make
improvements in existing products and services. In order to adopt innovation, BMW is also
adopting new technology in order to ensure innovation in organisation which is important in
order to create new experiences.

Product improvement: It is another category of new product development. In this, the focus of
business of BMW in to make improvements in existing products by correcting existing problems
related to the product and also to improve the performance of the business.
Product addition: It is a category of new product development in which a business needs to add
new features to the product. It is important for the business of BMW as it allows them for
purpose of bringing something new in the product (Saleh, Sweis and Saleh, 2018).
Reposition of product: It is another category of product development in which business needs
to reposition their product which will enhance the image of the firm. It is important for the
business of BMW in order to differentiate different types of products and services in the
marketplace and also to compete with different players.
Adoption of new product development, BMW can get different types of benefits. On basis of it, a
business can also improve its image in minds of its customers. Explanation of some of the
benefits get by BMW from new product development are mentioned below:
 Culture of innovation: New product development is one of the important component
which is important for business. It allow BMW to create revenue for business and also
motivate different people working in organisation to adopt new ideas. New product
development allow managers of BMW to promote innovation culture in business.
 Building high-value proposition: New product development is one of the important
approaches for business as it is meeting consumer needs and focuses on developing a
higher value proposition. It is also important for businesses by develop different image of
BMW in the marketplace.
 Developing a professional network: New product development is also important for
business as it allows them for purpose of attracting new people within the industry. It is
also aimed with the cutting of cost which allows the business to connect with experts and
innovators (Sweis, Obeidat and Kanaan, 2019).
There are various limitations of new product development for an organisation as it can increase
the cost of the company. It is increases risk in business that create problem for business. Some of
these limitations new product development in context to BMW are mentioned below:
 Risk in the market: There are various risk present in the market which creates threat for
business. Some times consumer cannot accept the products and service developed by the

firm which create problem for business. Due to this, business needs to face loss for set up
of new product development.
 Increase cost: It is also creating a problem for businesses as it increases the cost for
business. New product development incur new cost for business as due to this, business
needs to spend more money over research and development, implementing new
technologies, machinery and other things (Talib and and et. al., 2019).
Triple bottom line
Economic, environmental and social approach
BMW is one of the organisation which is focusing on adoption of triple bottom line. It is
adopting environment, social and economic approach with their operation. It is an organisation
that is focusing on new product development and also managing the quality of products and
service. It is also important for business as it allow them for purpose of effectively manage its
operation in the environment.
 Economic approach: It is one of the approaches which allow BMW for purpose of
ensuring development of products and service. It is important for business as it helps
them to produce product in less cost and also to make the produce in less cost and also for
increasing the profit.
 Environmental approach: It is also an approach which helps business of BMW to
develop products without harming the environment. It is essential for business as it allow
them for purpose of developing products in most sustainable manner.
 Social approach: BMW is adopting this approach for purpose of developing the product
without harming to values, culture and other things of people. It allows businesses to
increase the likeliness of product and also for enhancing the demand of products
(Tortorella and et. al., 2019).
Recommendation
 On basis of above discussion, it can be recommended to managers of BMW, they should
ensure proper research and development. It is important for business in order to ensure
successful product development. On basis of it, business can understand needs and
requirement of customers which allow them to develop products in effective manner.

 It is also recommended to business managers of BMW to adopt total quality management
which allow them to meet expectations of customers and different stakeholders. It is
important for them to increase demand of products as customer in todays time give
preference to quality in place of price of products.
CONCLUSION
From above mentioned project report, it can be concluded that operation management is one of
the important approaches for business. It allows them to produce products in an effective manner
which will allow them to avoid barriers and ensure the production of goods in less time and in
less cost. It avoids wastage of resources and helps to maintain quality of products up to the
expectation of different stakeholders.

REFERENCES
Books and Journals
Ali, G.A., Hilman, H. and Gorondutse, A.H., 2020. Effect of entrepreneurial orientation, market
orientation and total quality management on performance: Evidence from Saudi
SMEs. Benchmarking: An International Journal, 27(4), pp.1503-1531.
Androwis, N., and et. al., 2018. Total quality management practices and organizational
performance in the construction chemicals companies in Jordan. Benchmarking: An
International Journal.
Babatunde, O.K., 2020. Mapping the implications and competencies for Industry 4.0 to hard and
soft total quality management. The TQM Journal.
Khan, M.N., Malik, S.A. and Janjua, S.Y., 2019. Total Quality Management practices and work-
related outcomes: A case study of higher education institutions in Pakistan. International
Journal of Quality & Reliability Management.
Kumar, V., and et. al., 2020. Barriers to total quality management for sustainability in Indian
organizations. International Journal of Quality & Reliability Management.
Nasim, K., Sikander, A. and Tian, X., 2020. Twenty years of research on total quality
management in Higher Education: A systematic literature review. Higher Education
Quarterly, 74(1), pp.75-97.
Saleh, R.A., Sweis, R.J. and Saleh, F.I.M., 2018. Investigating the impact of hard total quality
management practices on operational performance in manufacturing organizations:
Evidence from Jordan. Benchmarking: An International Journal.
Sweis, R., Obeidat, B. and Kanaan, R.K., 2019. Reviewing the literature on total quality
management and organizational performance. Journal of Business & Management
(COES&RJ-JBM), 7(3), pp.192-215.
Talib, F., and and et. al., 2019. Ranking model of total quality management enablers in healthcare
establishments using the best-worst method. The TQM Journal.
Tortorella, G., and et. al., 2019. Mediating role of learning organization on the relationship
between total quality management and operational performance in Brazilian
manufacturers. Journal of Manufacturing Technology Management.