A Comprehensive Analysis of Operations Management at Volkswagen (BTEC)

This report provides a comprehensive analysis of Volkswagen's operations management, covering various aspects of its business processes. The report begins with an introduction to operations management and its significance within Volkswagen, followed by an examination of its functions, including design, planning, managing, and coordinating. It also includes a process model analysis. The report then delves into the 'Three Es' – Efficiency, Economy, and Effectiveness – and their application within Volkswagen, followed by an analysis of the tension between cost minimization and quality maximization. The importance of five performance objectives – quality, speed, dependability, flexibility, and cost – is also discussed. The report further explores the application of linear programming to enhance production processes, along with critical path analysis and network planning. The significance of operational planning and control is justified, and clearly defined operational outcomes and a network plan are presented. The report concludes with a justification of how quality management techniques can be applied to improve operations at Volkswagen, supported by references.

Operation
management of
business (case study
of Volkswagen)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................5
3.1 How liner programming adds values to a Volkswagen production process.........................5
3.2 Critical path analysis and network planning. .......................................................................5
3.3 Justification for needs of operational planning and control. ................................................7
TASK 4............................................................................................................................................7
4.1 A set of clearly defined operational outcome for Volkswagen.............................................7
4.2 Network plan showing the result critical path.......................................................................8
4.3 justification of how quality management techniques that apply to improve operation in
Volkswagen.................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Operation management is an division of management whit concern with the framing and
controlling the procedure of production and rebuilding the entire business operations in the
process of goods and services. it tries to boost the efficiency of production to the maximum level
to provide higher profit in an organisation (Bowling, 2010). The team of operational
management tries to make balance cost with revenue in order to achieve the major total operating
profit. Volkswagen is a German automotive organisation which is framed on 28 may 1937
through the German labour Front. The founder of company is Adolf Hitler and headquarter is
located in Wolfsburg. The firm is listed as largest auto-maker by global sales. This report
showcase the importance of operation management along with function and process modal is
also listed. Assignment has significance of three E's and importance of fiver performance goals.
How linear programming add value to process along with network planning.
TASK 1
Importance of operation management in Volkswagen- Operation managements is refers
to those business exercise who are implemented to the production system and tries to boost up
the efficiency of the entire production which provide higher profit through the best product
hence, Volkswagen in the firm take helps of operation management techniques in their
organisation cause through the assistance of it they will be able to make balance in between cost
and revenue. Therefore, it is very important to each and every firm as it signify to frame all the
products and services more effective and efficient. In the firm is Volkswagen, this division of
management makes signify impact over it. No business will run their operation without help of
it. Operation management facilitates helps in using resources at optimum level so the entire
manufacturing cost will be reducers and profit will be higher. It deals with the development
function of services and products to maintain cost, quality, speed and flexibility of it. Through
the help operation management firm are able to make stronger relation with their suppliers that
ensures the availability and arriving of raw material on accurate time. Apart form it operation
administration flourish customers relation by facilitating them effective quality in order to garb
their demand and satisfy them too. This provide assistance in minimise costing firm production
department either if there are lack of required resource through this management system firm
will use some of substitute on initial level of production and development the product.
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Function of operation management in Volkswagen- Operation management plays a very
vital role in the Volkswagen as they are having some certain function that all are connected with
each one as chain if one is break off then entire chain of function will get stop. Hence it is
essential for every firm. Some of the prominent functions are operation management can be
known as designing, planning, managing and controlling (Expósito, 2016). All of then are
flowing in the production department of Volkswagen viz., Designing- It begins with the
development of product, involving different attribute and features or characteristics of the goods
to be sold. It is nearly examined with the expectation of customers and details of product design.
Arrange the layout with the effective machineries and facilities which all are use while
production therefore, design information system is very signifying in order to enhance the
performance through the help of monitoring and controlling. Planning- system planning is
determining as how can firm will use their available and existing resources in order to cope with
various certain and uncertain situation. The process of planning helps to manages with
environmental change condition some times through suitable planning provide assistance in
coping with ever chaining demands. Managing- team working is very essential and necessary
for every firm cause effective team can be a core part of organisational success and efficient
operations. They are generally arranges the system through the encouragement of workers that
is effective in better and improved performance. Coordination- it is very prominent stage and
through it all things or several parts of work can be framed as interrelated chain. It is generally
coordinating between responsibilities and roles of the job with employees and team of operation.
It can be known as the two types of integration reporting to the manager of Volkswagen as
horizontal and vertical reporting with are falling with in team manager and staff members.
Analysis of process mode- Volkswagen is using operation management hence it will includes
various different processes which enable the quality services and product delivery. All the
numbers are procedures is operated in their serial that needs to be happened continuously;
Parallel techniques can be arise all the while. A Serial process: In this framework, certain
procedure plan and practises with generating consistently. On other practises will be happened in
between a process. Here, this is a general serial plan which conducted in the Volkswagen in that
practises occurs in returns to a certain succession. In general term, this point depicts that firm
will going with the flow which are having a process that cannot be break , for entire product of a
particular product. These all helps in generating information for the process and goods which are
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currently developed. Place operations in parallel: in the Volkswagen, getting two or more
actions in parallel, a team will provide demo for the performance in this operation their
capabilities in the possible time. In this techniques their time and ,limits can be expand all the
operations are playing with distinctive capabilities and performs with smilier capacity but on
different divisions. Unlike operations: several operations that may be different in Volkswagen
such as differ auto parts, other equipments. Like operations: at the point Volkswagen's operation
are in parallel but not in same types of product in diversify stream.
TASK 2
Three E's to Volkswagen- there are three types of E's which are known as Efficiency,
Economy, Effectiveness. All of them are using in an organisation of Volkswagen as all are able to
provide soundness in production department in order to facilitates them a quality product which
are able to satisfy their customers and manages their economic value. Hence all of them are
detailed as: Efficiency- an efficiency is an denoter of the product or services which are offered
by the firm. As Volkswagen is boosts up their business through the help of more additional
activities as they have started their more numbers of stores in different various locations.
Volkswagen have launched many automotive product like auto parts, car wires and so on for
their buyers so that they can be able to purchase all these goods form Volkswagen all product are
made for cars or auto-mobiles which are used by women, men and youngster. This integrated
marketing required appropriate care of their quality and valuable tools. All the firm needs to
match their offered product and services with expectation and perception of the customers.
Economy- the economic point of Volkswagen is majorly focusing on the financial insatiability or
unviability which is the critical condition that happens in some of years back. This thing is
essential to defining the suitable assets which are chosen in production and in appropriate time to
grab right opportunity at the right cost. All of then are undertakes situations as their benchmark
is not easily reachable. All the suitable assets are prominent things for a business. It
straightforwardly focus of expanses (Fayol,2016). Effectiveness- this can be determine as the
effect of certain practises or activities and some of motivational decision which are taken to meet
the goals of the firm. In the Volkswagen all operational activities and management decision are
framed by the managers and worker's inclusion to recover form the some economical issues.
Motivation exercise lead the whole automotive industry in order to facilitates goods and services
to their buyers as it is not possible for the firm to reach out to the every buyers.
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Effects of tension between cost minimization and quality maximization in Volkswagen-
every firm wished to boost up the it's profits in order to making higher profit they needs to be
select the input that reduces the cost of production. Cost reduction is needed to bind the prices of
the service and product that offers in a certain limit that a less cost is placed. On the different
phase quality maximisation is stands form enhancing the quality of services and goods in respect
to meet up the buyers wants. Both are the attribute and feature having opposite relations. It is
nearly same like supply relation and wants in the market (Cruz,2011). If benefits required to be
maximise then more quality and feature are required to be facilitates in a product and in order to
working so the firm needs to boost up the cost. The more of quality, the company needs to
facilitates sufficient prices in the firm. Volkswagen is dealing with the cars and automation
products or tools of automatics. In respect to maximising the profit, firm needs to boost up their
sales volume as well as the all costing of raw material required to be minimise. The tension
between higher profit and cost reduction can not be ignorable. But in order to minimise the gap
between the needs to firm should implement the cost minimization process in sufficient manner
such as cost related with the salary of their workers, transportations cost, all overhead but not by
minimise the quality of input. All avail costs needs to be reduced.
Importance of five performance objectives- these all five performance objectives are
defined for measuring its operations performance. These objectives are named as: Quality,
Speed, dependability, flexibility and cost . Each of then are determine in terms of how they can
be measured and their importance to competitiveness of company's. Cost- costing are the
expense a firm required to sustain in order to facilitates the buyers with their demanded product.
Volkswagen is not able to expand more as they can not change their cost tag because there are so
many competitors in the same sectors and who are providing the same product. Quality-
Volkswagen needs to look after the quality of their cars and material which ever are used in the
car or auto-motives tools in order to maintain of provide the sound quality Volkswagen required
to grown their costs a bit up but in the market with high competition it is quite not possible to
boost their cost. Speed- Volkswagen is leading car and auto-maker sellers they requires to frame
up a speedy network of delivering the goods to the buyers as to match up with their perception
and expectation. It is true that more fast services will lead then to higher satisfaction of the
customers. Dependability-Volkswagen showroom's needs to concentrate on the needs and wants
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along with having feedbacks. As the buyers wished to dependant for then the firm should be
integrated. Flexibility- Volkswagen needs to opts those service channels or manufacturing
procedure which are more flexibility that can be able to provide help in order to frame immediate
changes in accordance to the needs to buyers.
TASK 3
3.1 How liner programming adds values to a Volkswagen production process.
Linear programming is a numerical strategy for determining the approach to grab the best
result in Volkswagen in prescribed scientific model. It is a system for the improvement of the
target capabilities, concern to direct equity and non settled requirement (Chen, 2011). Linear
programming is duty-bound improvement, where the needs and the objective capacity are in
direct manner. It can be known as the programming which are able to grab goals in a certain liner
order. In the production department it involves. Item decision, some of options with different
major informations, rare inputs, Expand profits. In general terms linear programming is a manner
to garb the optimum utilisation of resources and assets of the firm. The decision taker can use
this linear programming to provide effective utilization of the improper resources through the
suitable using. This techniques will add values to the process of decision making it offers
different varieties of outcome or solutions and hence it aid in having best possible solution at the
level of operation. It permits the changes to the past model to match the requirement of decision
making process. This decision taker is able to decide the manner the right level of the objective
of business are attained. The linear programming also enable the organisation to arrange even in
changing situation and take sound effective decision for execution.
3.2 Critical path analysis and network planning.
Critical path analysis in an preparation and project management techniques. As this is
methods is highly used by the project manager and this tools is suitable for all types of project.
This methods involves contraction, research projects, defence, development of product, plant
maintenance, development of software, engineering. Hence the network planning is deals with
the identification of the different various activities considered by the firm and sequence of
activity is determine along with the duration of the each and every activity. Critical path is the
higher and wider part of every project. In can be undertakes in terms of framing needed tool
which are includes various activities like:
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A) Integration of raw material (all necessary equipment for making tools for car)= 5 weaks
B) shorting up the suitable things = 2.5 weak
C)arrange stuff in order = 2 weak
D) frame product development =1.5 weak
E) begin process of product development = 1weak
F) new product = 3 days
Above framed values and added diagram shows the timing of new product of
Volkswagen the total activity will be of 35 days and there are many procedure but firm will have
the best one in order to frame any new product. According to this planning firm needs to collect
their all resource then short it up, after it they needs to keep all necessary thing and frame design
of product development and in last phase organisation should start the development of product in
effective manner. Critical path analysis is a network examine and the approach is not so longer is
used. Through it methods firm will draws down a logical diagram that involves two things such
as the Nodes and the Arrows.
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Illustration 1: Critical path
(Source: Critical path analysis)

3.3 Justification for needs of operational planning and control.
The Volkswagen are automation industry begin to carry out some fundamental task: in
order to transform their raw material in to final goods (Burke, 2013). In respect to bring this task
in present business condition firm needs to come with struggle in order to develop the efficiency
of operational. They should polish their process of production to garb excellency and to
minimise the costing of material and manual labour. Creation of the decision is focused on
trying to finish these goals is the task of the operations. All activities are needs to be in planed
manner and there should be more control over entire process such:
Production planning: At some phase in the production planning, firm set up on the way
car will be delivered the place where lubricant will happen and the manner manufacturing to be
leads out.
Production control: in this phase all the production procedure in in lead or progress. Firm
needs to regularly programme and keeps their eyes on the project which involves that particular
progression. Volkswagen have top leading for and operation in response to all criticism and
frame some modifications where they feel for the needs to correct. At this point, they also
provide supervision on buying of reserve and arrange the inventory.
Quality control: in the last, the manager of operation is caught up in trying to ensures
their cars is made in accordance to their requirements and that quality benchmark is uplifted.
TASK 4
4.1 A set of clearly defined operational outcome for Volkswagen
The strategy explains the five major operational destinations in context to supporting the
filling of the prominent target in a very short and medium term duration (its approx three to five
year) the objectives of operations are accompanying:
 To powerful effect essential national, universal and related techniques. Working in
suitable tending to land corruption and desertification and related season issues.
 To make the information of encouraging the situation for having outcome for alternative
impact of related seasons.
 To turn in to a globe power on specialized and logical information which are related to
techniques of the automatics and moderation of the effects of the season.
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 To differentiate and limits of location needs to be avoided and conserve the
desertification and concern impact of season.
 To activate and boost the concerning on and coordination all asset which are effective
and have viability.
For each and every operational target, a set of outcome is additionally characterized in the
strategy.
 In the mid of the rang, the main difficulty focusing the operational destination and
outcomes are very different.
 There is no general characterized collaboration between the attainment of the operational
objective and the fulfilment of the vital target.
 The operational place are explains as activities as possess to time bound outcome.
 The exact importance of the outcome and their collaboration with operational objective
is not generally clear in the image.
 The definition of numerous operational target and outcome can be show with out mistake
in concerting of the normal exercise and shareholder which is important that is majorly
in change of the all activity, majorly those whom come to higher level.
4.2 Network plan showing the result critical path.
New product presentation is vary vital part in the development of the collaboration in
concentrated market (,Baboli,2014). This wider capacity is turn in to a major obligation in order
to promote administration. In case of an organisation, the procedure of raw material involves
different stages and it can be detailed as follows such as:
TASK ACTIVITY ESTIMATED DAYS
TIME PREDECESSOR
A prepare storage and search suppliers 0 -
B quotation and approval 20 A
C Placing order 5 B
D inform the accounts department 10 C
E receipt for goods 20 H
F receipt for invoice 15 A
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G check products 5 F,C
H payment 15 A
The network diagram for the above said activities can be depicted as follows:
therefore, calculation of the time duration for different paths as follows in order to determine the
critical path for Volkswagen.
For ABCG end, 20+5+5=30
For AFG end, 15+5=20
For AHE end,15+20= 35
For ABCD end, 20+5+10=35
hence there are two critical path (the longest one) in this case as A-B-C-D END and A-H-E END
are both will take 35 days to complete the operations of product development in Volkswagen
4.3 justification of how quality management techniques that apply to improve operation in
Volkswagen.
Quality management is very essential in each and every firm as it helps in arranging the
product quality in an organisation through the application of various techniques which provide
assistance to the Volkswagen in order to frame best quality product. There are several manner
that helps in boost up the operation in the Volkswagen, are detailed as:
 Statical procedure control: firm are able to take a rage of techniques and tools in order
to recognise region for enhancement. A wide spread manner in respect of production can
be known as the Statical procedure control. This techniques look after the quality of
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Illustration 2: Network diagram
(Source: Network diagram)

production through the helps on testing a model of productivity on order to receive if the
cars in progression is just completed in accordance with the pre determine needs and
requirement.
 Benchmarking: now and then it higher assets to looking external to the business in
order to frame a manner of development operations and to define the ways of business
which contrasts to other ones (Branch, 2012). Business generally undertakes
benchmarking in order to make judgement on the performance of their employees in
various aspects with the helps of presentation of another companies that are doing really
well in the development of cars or automations.
 International quality standards: it is a techniques utilizes in order to seek out the firm
that are able to garb the stranded quality which are match the benchmark of the
automation industry . The applications of quality measures are about various quality
marks which ensures that the businesses can have the prominent excellence in the
manufacturing.
CONCLUSION
Form the above report it has been summarised that Operation management is generally
refers to the practises of business to frame the sound level of efficiency that are possible in the
company. Basically operation management is focused with converting raw material and labour in
to final goods or services which are ready to sell. Volkswagen is an German firm which are
dealing in the cars and automations hence they are leaders of auto makers in entire globe. This
report reflects the importance of operation management and their function also depicts process
model in Volkswagen. Significance of three E's and effects of cost minimization and quality
maximization. There are five objective of performance which are also listed. A critical path is
draws for Volkswagen.
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