Volkswagen Operations Management: Strategies for Enhanced Performance

This report provides a comprehensive analysis of Volkswagen's operations management, examining key aspects such as efficiency, effectiveness, and economy (the 3 E's). It delves into the importance of operations management within the company, dissecting its operational functions and evaluating them through a process model. The report assesses the impact of cost minimization versus quality maximization and evaluates the significance of performance objectives like quality, speed, dependability, flexibility, and cost. Furthermore, it explores how linear programming adds value to the production process and how critical path analysis and network planning are utilized. The report also evaluates the need for operational planning and control and concludes with a discussion on applying quality management techniques to improve operations within Volkswagen. The report incorporates various strategies implemented by Volkswagen to manage its diverse operations and meet customer demands in the global market, including the use of advanced technologies and strategies to maintain a balance between cost and quality.

OPERATIONS
MANAGEMENT IN
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Importance of Operations management in Volkswagen.................................................1
1.2 Analysis of the operation functions of Volkswagen.........................................................2
1.3 Evaluation by using a process model, the operations management of Volkswagen.......3
TASK 2............................................................................................................................................3
2.1 Importance of 3 E’s (Efficiency, Effectiveness and Economy) to Volkswogen..............3
2.2 Assess the impact of tension between cost minimization and quality maximization in. .4
Organizations..........................................................................................................................4
2.3 Evaluate the significance of the of the five performance objectives (quality, speed,......4
dependability, flexibility and cost) ........................................................................................4
TASK 3............................................................................................................................................5
3.1 Linear programming adds value to the Volkswagen production ....................................5
process....................................................................................................................................5
3.2 Critical path analysis and network planning of Volkswagen ..........................................6
3.3 Evaluate the need for operational planning and..............................................................7
control in a selected production process................................................................................7
TASK 4............................................................................................................................................8
4.1 Produce a set of clearly defined operational outcomes for the Volkswagen...................8
4.2 A network plan indicating the resultant critical path of Volkswagen............................8
4.3 Justify how quality management techniques are applied to improve operations in
Volkswagen ...........................................................................................................................9
CONCLUSION ..........................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
A business is consist of various operations and those operations have to managed in an
efficient manager by the manager as well as leader of the organisation (Vom Brocke, and et.al.,
2014). In a globalised environment, it becomes even more necessary to manage the overall
diverse operations of an organisation. For management of operations in the company a manager
or a leader who runs the organisation can choose various types of theories as well as models for
the purpose of effective management of its operations. Volkswagen in the second largest auto
mobile manufacturer in the world after Toyota and is having diverse operations around the
world. The company do have capable managers as well as leaders who can contribute in
efficiently running as well as managing the business organisation. The company is committed to
become a global leader by focusing more on some of the emerging Markets like China, India,
Brazil etc.
TASK 1
1.1 Importance of Operations management in Volkswagen
Operations management can be regarded as the process that would involve planning,
organising, managing as well as controlling along with supervising the production and
manufacturing processes (Sodhi, Son and Tang, 2012). The main aim of a operation manager is
to make sure that the delivery of finished products are timely and need to make sure that the raw
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materials are turned into Output or finished products in an efficient manner. Operation
management plays a vital role in making sure that a project which would be undertaken becomes
successful (Singhal and Singhal, 2012).
 Operations management involves certain similar steps, irrespective of the nature of
industry in which the company operates and the kind of operations the company perform.
Some of the major steps of Operation management that remains the same are planning,
organising, staffing, monitoring, controlling, directing as well as motivating.
 Operation management is obligatory for companies and Volkswagen hire efficient
management for the purpose of managing the diverse operations of the company. The
ultimate job in operation management is to make sure that various resources of
organisation like labour, material, money etc. are managed effectively as well as
efficiently.
 Operations management is basically aimed at making sure that all the business activities
are performed in efficient manner for the purpose of production of goods as well as
services and meeting the standards of customers and their requirements.
 Volkswagen Hires employees and invest a large amount on their training as well as
development so that business can be managed efficiently as well as effectively.
1.2 Analysis of the operation functions of Volkswagen
There are different types of operations which accomplish in the organisation in effective
manner. There are various strategies which are implemented by the organisation in order to
control different types of activities of organisation in proper manner. The management of
organisation implement a new and advance technology which aids to accomplish demand and
desire of the customer. Organisation have implement new strategies which able to face the
various challenges of industry in effective manner (Schniederjans, Cao, and Ching 2012). It
flatter hierarchies or the horizontal company to establish effective communication channel
between employee working in the organisation and management of organisation in proper
manner. It lower the costs of different models of cars in order to stand before the different rivals
present in the marketplace. The manufacturing department of Volkswagen focus on to
implement different types of digital tools which aids to accomplish various functions of cars in
proper manner. In order to growth of the business and accomplish effective operations in the
different process of organisation aids to enhance the level of profit of company. In order to
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accomplish different operations of the organisation management put their effort to implement
new and advance technology which aids to perform different functions of organisation in proper
manner. There are various activities which are ascertain by the organisation in order to complete
different types of organisation in proper manner (Rolstadås, 2012).
1.3 Evaluation by using a process model, the operations management of Volkswagen
In a Auto mobile manufacturing company, The various operations would be divided into
3 phases primarily, these are Pre production phase, production phase and Post production phase.
During the process of pre production, the necessary resources are assessed as well as allocated.
This would involve assessment of the space required for the purpose of production, work force
required, the quality of raw material that are being procured and the storage of those materials
along with right logistics handling. During the production process, it would be the duty of
operation manager to make sure that the allocated resources are used to transform the raw
materials into finished products and make sure this process will be convenient and effective. It is
also the a part of Operation management that the operation manager make sure that ultimate
finished goods are delivered to customers or buyers. In the last as well as final stage of this
process model, Volkswagen make sure that the final Auto mobiles which are being manufactured
like Cars etc. are delivered to the destination with least possible cost for the company.
The process Model focuses on various activities as well as its flows, Every activity must
be completed to reach the ultimate delivery stage, That is the reason, this stage is called the
transformation stage, because the various inputs are turned into Output at this particular stage.
TASK 2
2.1 Importance of 3 E’s (Efficiency, Effectiveness and Economy) to Volkswogen.
The importance of three 3 E's reveals about the Efficiency, effectiveness and economy.
The Volkswagen companies implement this strategies in order to perform different types of
functions of organisation in effective manner. This aids to increase the working efficiency
employee working in organisation (Preiss, 2012). These 3 E's helps to manage different types of
working procedure of organisation in proper manner the three E' s of management is given
below: Efficiency: This is the strategy which is related to the enabled the working efficiency of
organisation which helps to enhance the performance of employee working in the
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organisation in proper manner. This leads to manage all activity of organisation in
effective manner (Prashar, 2015). Effectiveness: Volkswagen implement different types of strategies by which
implementation of different types of new and advance technology in order to perform
different types of operations of organisation in proper manner. In provide effective
service the organisation implement different types of technique which able to form
various types of function of organisation in effective manner.
 Economy: Manager of Volkswagen implement new and advance techniques which aids
to maximise the level of profit of company. This aids to enhance the level of profit of
organisation in proper manner. There are different types of new and advance technique
which are cost effective and lower the production cost of the organisation.
2.2 Assess the impact of tension between cost minimization and quality maximization in
Organizations
In this Competitive Era, If there is even a slight decline in the level of quality of Goods
and auto mobiles that are being manufactured by Volkswagen will upset the customer or the
buyer and may compel him to switch towards a new brand, also if the product is not as per the
mentioned specification of client, it will also impact the mindset of customer towards the brand
and company in general. If a competitor would bring new added features in his products or
services then this may also harm company's health going forward because the customer would
not hesitate in switching the same. A continuous surge in cost of raw material, unpredictable
vendors, lack and short supply of good quality raw material along with the increase in pressure
from top management to enhance the bottom line has created tension among management people
to maintain a balance between the same (Pagell and Shevchenko, 2014).
2.3 Evaluate the significance of the of the five performance objectives (quality, speed,
dependability, flexibility and cost)
The management of the Volkswagen ascertain this criteria in order to determine the
different the performance of different operations which are performed by the organisation it
helps to attain effectiveness in performing various operations of company. The organisation
needs to explains the different measures in order to configuring the environment of organisation
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there are five operational performance objectives which are ascertain by organisation. The five
operational objectives are like quality, speed, dependability flexibility and cost
Quality: The management of Volkswagen implement different types of techniques which aids
to enhance the performance of different products of Volkswagen. Volkswagen consider the
views which is given by customer and implement those in order to provide qualitative products
to the customer (Lavastre, Gunasekaran and Spalanzani, 2012).
Speed: The main objectives of speed is to accomplish different operation in order to produce
new and innovative products which is provided to customer within stipulated time frame. Speed
is related to such problems as the time requires to manufacture one or more products at one time
Dependability : Operation of company is termed as dependable if products and service given by
company is accomplish on stipulated time period. An organisation needs to measure its
dependability on the performance of different functions which are performed at stipulated time
period.
Flexibility: Volkswagen implement this strategies in order to maintain flexibility in performing
different types of operations in order to produce different parts which are related to assemble
various products.
Costs: this is related with variability in the unit cost due to change in the volume of different
products which are produce by the manufacturer, the higher the variety of products produced
and the higher the unit cost and the vice versa. So it is essential the cost of every product will
vary which affect the products price running costs and profits.
TASK 3
3.1 Linear programming adds value to the Volkswagen production
process
Linear planning is the tools or applications which are used to set the different variable in
order to optimize various resource under the definite set of constraints which are concerned with
the organisation. This reveals that linear programming aids to ascertain the optimum resource
which are used for the production of different cars made by the organisation. The quantity of raw
material can impact the ideal sate of the machine and the workforce, the output received in an
hour or a day from the machine. This programming can be implemented by the manager in order
to determine the prices and the volumes of production given constraints which aids to increase
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the level of profit. It also aids to achieve goals and objective of organisation. The management
of Volkswagen implement linear programming in order to attain the large number of profit of
the company. The main objectives of linear programming is to enhance the level of profit of
organisation in stipulated time period. The project manager which are concerned with the
production process able to implement different types of organisation in order to maximise the
level of profit of organisation and attract large number of customer in effective manner. It give
appropriate analyses of profit and also aids to achieve the target in proper manner. It give true
picture of profit of the organisation. It also aids to transform complex process in simple process
which are related to production process (Laudon and Laudon, 2016).
3.2 Critical path analysis and network planning of Volkswagen
Volkswagen has different complex process which are being planned for the the ongoing
process. There are various projects which are being used for the production of the organisation
in proper manner. For these complex projects it becomes very important for the management in
order to accomplish different types of projects of organisation. Critical path Analysis is the key
projects management techniques which helps to boost the different systems in order to attain
efficiency and effectiveness by taking diligent approaches in order to execute the completions
phase. This is achieve by processing with the help of critical steps of venture. An analysis of the
Volkswagen is being accomplish by the manager of organisation in order to fix the stipulated
time period which aids to accomplish different types of activities of organisation in order to
manage the different types of activities of organisation in proper manner.
Network planning aids to reduce the different types of risk which are ascertain by the
organisation during performing different types of activities which are related to completion of
complex venture. It aids to the manager of organisation with the blueprint of the different
projects and aids them to make effective decisions, plans and many more. The network planing
aids to uncover any critical path analysis which aids to accomplish different types of steps of
complex venture in order to take effective decision which are related to projects (Guang Shi, and
et.al., 2012).
List of activities Duration Dependency
1. Purchase of factory, equipment’s 2 month A
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1. Recruitment of employees’
1.5
months -
1. Supply chain initialization 4 months A
1. Marketing 3 months B
1. Training and Development 2 month B,C
1. Production and supply 2 week B, D, E
3.3 Evaluate the need for operational planning and
control in a selected production process
Operational planning and control is the most important factor of the production process
which are concerned with the Volkswagen cars. Planning is the necessary in order to meet the
demand made by the customer. The management of organisation implement visionary
approaches in order to produce different type of cars which aids to maximise the level of profit
of organisation in proper manner. Production plan is based on the forecast on the basis of
demand made by the customer in the marketplace. It aids to accomplish goals and objectives of
organisation in proper manner. Without implementing a plan organisation do not able to produce
various number of cars in stipulated time period. There should be clarity which are related to the
different suppliers of the raw materials determine the strength and weaknesses cost evolved with
the logistic and the human resource which required to transformed the different raw material in
finished products (Brindley, 2017).
The operational planning and the controls aids to ensure about the smooth execution of
operations. This is because of dynamic nature in structure of the marketplace. Change in the
needs of customer different rivals hikes of price of different materials which are concerned with
the production sudden unavailability of the raw material, natural calamities policies made by the
government all these factors which impact the different process of operational projects. A
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planned and controlled operational approach aids to enhance the productivity of different cars
which are produced by the organisation.
TASK 4
4.1 Produce a set of clearly defined operational outcomes for the Volkswagen
Considering about the Volkswagen organisation as an example which limpidly explained
about the different set of operational outcomes which are as follows:
Increase the number of customer: Volkswagen is the car manufacturer organisation which are
medium of direct point of contact where different customer interact with the organisation and
take purchasing decision, this leads to increase the large number of customer interact with the
different models of cars in the marketplace. A detailed analysis about the different showrooms
which are concerned on to target the different customer in order to accomplish the target which
is assigned by organisation.
Increase the accessibility of the products:
due to large number of showrooms opened in the marketplace which helps to make
availability of different number of cars for the customer. The digital and social network is an
added advantage for reaching to different customer. Selling products through e-commerce can
also increase in the reach and accessibility for the customer.
Improving the lead times in production- In order to monitor the sells of various products,
manager of Volkswagen provide different types of facilities to the customer in order to increase
the sales of different products. This aids to improve the performance of organisation in effective
manner. Increasing in the capability of productions aids to maximise the level of profit of the
company in proper manner (Boehm, and Thomas, 2013).
4.2 A network plan indicating the resultant critical path of Volkswagen
Considering the example of and advertisement campaign for the Volkswagen. The list of
activities are as follows:
 The advertising plan
 creation of different video of cars that will be aired
 Design of different cars
 Test marketing the video in order to target different customer
 Test the components of the Volkswagen
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 Presentation of thoughts top the board of directors
 Communication to internal employee
Task Order/ dependency Estimated time(hours)
To be completed first necessarily 5 hours
To be started only upon
completion of A
7 hours
To started only upon completion of
A
8 hours
To be started only upon
completion of C
11 hours
To be started only upon
completion of D and E
10 Hours
To be started only upon
completion D,E,and F
9 Hours
6 Hours
Early start time : Considering the earliest time activities for activity of A is 0, activity of B
and C start after 5 hours to complete the of activity of A. Task D can be completed only when
Task A and B are completed.
Last finished time: Next calculation is the Last finish time. The start must occurs at node 8 and
there is working backwards for the calculations. Task G must necessarily be completed which is
at node of the diagram.
The Critical Path: Upon determination of all the LFT's the critical path can be accomplished
this is the allotted by the drawing nodes of all nodes in the places where the earliest start time
and the latest finish time ( Ahi and Searcy, 2013).
4.3 Justify how quality management techniques are applied to improve operations in
Volkswagen
Quality management is the techniques like six sigma,Pare to analysis which are
implemented by the organisation in order to improve operations which aids to enhance
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efficiency and effectiveness of performing different types of activities of organisation. Six sigma
is the process which aids to determine error reductions in the production process. Just in time on
the other hand it is used to focus on to reduce the accumulation of inventory, making availability
of raw materials and labour by bringing in resource right when they are supposed to be used
( Ates, and et.al., 2013).
CONCLUSION
As per above mentioned report it has been assumed that different type of strategies
which are used by the organisation in order to enhance the rate of sales of different models of
car and it also controls the mechanisms in the productions processes of different cars to fulfil
demand and desire of different customer in proper manner. It aids to maximise the level of profit
of the company.
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