Report on Functioning of BMW
Looking at the present condition of corporate market, it is important for the firms to manage their activities or operations in suitable manner so that desired aim and objectives can be achieved. Herein, report focuses on functioning of BMW an automobile company operating all over the world. The BMW group has really grown in the UK as it employs around 8,000 people directly in the UK and an additional 11,000 in its retailer network. Further, it is the fourth largest sales market in the world. The company has invested over £1 Billion into UK operations since the year 2000 and a further £760 Million is being invested between 2012 and 2015 (BMW Automobile Company UK, 2015). This report aims to evaluate the efficiency of the planning and management systems of BMW Automobile Company. In order to do so various aspects has been focused upon like importance of business processes in delivering outcomes based on business goals and objectives, developing suitable strategies to carry out operations, monitoring the systems and managing the health and safety at workplace.
Identification of the 2 core organisational functions of BMW and evaluate its interrelationship
Business function can be defined as the process or operations that are performed on the regular basis to achieve the corporate aim and objectives of business enterprise. In context to BMW, the sales process starts with the marketing and production of vehicles, the production input will also involve in the functioning of company’s supply chain e.g. labour supply, and this will involve the accounts i.e. handling the invoices (Hammer, Michael and Champy, 2001). This shows that BMW’s sales process has involved the whole organisation. In BMW, functions are important because they ensure that all its business activities are carried out effectively. In this regard, sales and marketing functions are required to achieve targets linked to developing new markets for our BMW cars thereby increasing the number of cars sold.
Considering the both the functions it can be said that, finance manager has the duty to allocate adequate amount of budget for each of the operations, especially to the marketing department because operating in such competitive market of automobile, promoting products plays crucial role in attracting customers and enhancing sales (Belcher, Placeand Conole, 2000). Marketing manager has to prepare the costs of all the activities that are being employed to promote and market the products so that finance manager of BMW can pass the budget and accordingly provide the funds to carry out the activities. Therefore, both marketing and sales department work parallel in order to carry out the operations of business.
Methodology used to map processes to organisation’s goals and objectives
Business processes can be defined as the collection of related, structured activities that are employed to produce as specific product or services for a defined customer segment or market. A business process has the purpose and importance of helping to realise business goals. This is how process mapping links to organisational goals and objectives. While on the other hand, process mapping is the structural analysis of a process flow by distinguishing how work is usually done from how it should be done, and what functions a system should perform from how the system is built to perform those functions (Ehlers, 2009).
There are several methods of business processmodel that are used by different organizations according to their suitability. Herein, BMW undertakes Manufacturing and Shipping Business Process Model. The main purpose of using this model is that it helps cited firm in carrying out its production process in more effective way (Handy, 1976). Along with this it ensures that, each and every activity from procurement of raw material to the shipping of finished cars to the end users is executed in the best possible manner.
Evaluation of the outputs of the process and quality gateway of BMW
Quality gateway is an organisational point through which all requirements must pass. The importance of having this gateway into the specification is to trap all incorrect requirements as early as possible, therefore preventing incorrect requirements from passing into the design and implementation. This therefore proves that the quality gateway is important for achievement of organisational goals since it makes sure that good quality products are produced and this therefore increases the sales and also facilitates customer satisfaction (Foss, Wolland Moilanen, 2012).
In order to achieve the quality requirements senior authority of BMW undertakes various measures or steps such as:
- Analysis: In this step, front line manager of each department of BMW analyse the functioning and accordingly determine whether the requirements or the operations of business are completed in context to corporate aim and objectives.
- Representation: After analysing the functions, it is the duty of front line managers to present information to top level management in proper documented way (Hoyle, 2007).
- Elicitation: Under this, market research is conducted by BMW to understand the expectations and needs of target market so that modifications can be brought appropriately.
- Validation: This final step for ensuring the quality as in these mangers of cited firm checks the validity, consistency and accomplishment of activities which ensures that finished cars are of good quality.
Furthermore, BMW Automobile Company uses the balance scorecard approach to business process measure. The performance measures are;
- Customer satisfaction: Seeks to find out if the customers are satisfied with the quality of vehicles.
- Learning, growth and expansion: Seeks to find out if BMW is improving its cars and expanding the overall business and the customer base.
- Financial status: Seeks to find out if BMW’s sales have increased, if the costs of production have been reduced and if the net profit has increased (Hareand Cameron, 2012).
- Internal processes: Seeks to find out if BMW has improved the key business processes so that it can improve the quality of car manufacturing.
Designing a plan which promotes goals and objectives of own responsibility
Planning is a basic management function involving formulation of detailed plans to achieve balance of needs or demands with the available resources. Being the project manager it is important to carry out each and every activity in effective and efficient manner there are various responsibilities which are required to be carried out in appropriate and reliable manner (Baldissin, and et. al, 2013). Areas of responsibility are the tasks or duties that a certain manager should carry out.
Areas of responsibility of a project manager:
- Establishing and justifying why a project is necessary.
- Establishing project requirements.
- Securing funds for the project.
- Creating a management plan for the project.
- Leading and motivation of the project team.
- Constant communication with the project stakeholders (Davis, 2012).
- Assessing and managing the risks.
Management by objectives is a management practice which is aimed at increasing organisational performance by aligning goals and objectives throughout the organisation.
Objectives are normally statements of the achievements the organisation envisions and should fulfil the SMART criteria. Furthermore, Efficiency of BMW relates with the input and output. The less the input used to obtain a given output, higher the efficiency of operations. While on the other hand, effectiveness is the degree to which something is successful in producing a desired result i.e. success.
Specific: The specific aim of BMW is to produce more number of fast cars within the plants of Goodwood for Rolls Royce and in Oxford plant for MINI so that customers can offer more speed in luxury and hatchback segment (Schein, 2004).
Measurable: Objective of producing fast cars can be measured as by increasing monthly production of cars to 500 units as well as reducing the weight of the care to 1000kg or less so that new experience can be given to the users.
Achievable: It can be achieved by increasing the number of skilled and capable employees as well as through the change of metal weight can also be reduced.
Result Oriented: Through the means of this, top level management of BMW is planning to increase the sales by 7% for the Rolls Royce and 3% for the Mini.
Time bound: Operating in such a competitive market it is important to launch new products within suitable period of time so that position in the market can be maintained. Herein, management of BMW is planning to launch both cars with new and attractive features within a year and half.
Identify and explain how systems are implemented by BMW to achieve the objectives
In general, business system can be defined as the process or method used as the delivery mechanism for providing specific goods and services to the end users. Herein, it is essential for the top level management of BMW to undertake suitable business process so that desired results and outcomes can be achieved. Further, system implementation can be defined as the process based approach through the help of which management can integrate the business requirements with the functioning capabilities (Handy, 1976). There are several business systems such as lean production system, accounting system etc.
BMW undertakes lean production system because through the help of this model, senior authority can easily eliminate the non-value added activities and make sure that enhance quality of products are delivered to the customers with greater efficiency. Offering luxury cars it becomes more crucial for BMW to ensure that they avoid waste materials and undertake quality of raw materials to prepare the cars so that highest quality of product can be delivered to the customers.
Importance of Project management tools
Project management is the application of processes, skills, methods, knowledge and experience to achieve the project objectives. Project management is essential in achieving BMW’s goals because it manages and addresses issues such as the project scope, budget and timeline. This leads to the achievement of project goals for BMW if all issues are handled correctly and diligently (Davis, 2012). There are several tools of project management that can be used by the top level management of BMW to make sure that project are carried out in effective and efficient manner:
Work Breakdown Structure (WBS): A WBS document list identifies all activities required to produce the final project. It helps to make the management of the project easier because it breaks activities into smaller tasks. It sequences, schedules and estimates the duration of tasks. It also estimates the resource costs.
Gantt chart: This is a bar chart that shows a project schedule, showing the start and finish dates of the project (Belcher, Place and Conole, 2000).
Critical Path Analysis: This is a path in the project schedule that represents the shortest total length of the project and the longest continuous time period from start to finish. This analysis determines the shortest project duration.
The main purpose of these tools it that they assist in monitoring the activities of the project in effective way. As with the help of critical path, manager can easily understand the significant activities that are essential for a project to be conducted (Davis, 2012). While breakdown structure assist in showing which activities will be followed by whom so that proper strategies can be employed at each stage. Following is WBS for BMW’s Management Information system:
Design a quality system that can used to manage and monitor quality standards at BMW
In general, quality system can be defined as the aggregate of the organisational activities, plans, policies, procedures, resources and the responsibilities required in implementing a total quality management approach. Further, TQM can be defined as the process through the means of which management ensures quality at each and every level of the business functioning. However, it undertakes strategy, data and effective communications to integrate the quality discipline into the culture and activities of the business. There are several principles of TQM that it produces quality of work, always focuses on customers’ needs and expectations, undertakes strategic approach for the improvements and constantly enhances the functioning of business enterprise.
BMW Automobile Company defines quality as:
- Manufacturing the best product without irregularities. Recalling of cars is not acceptable.
- Simplifying the manufacturing system so as to cut out waste.
- Creating environmental management systems that guarantee good relations with the community and the regulatory authorities.
Obtaining TQM for BMW:
- Obtain the CEO’s and Board of Directors’ commitment towards focusing on quality.
- Introduce and educate the upper-level management.
- Establish a TQM team and committee (Neill, 2013).
- Outline quality in the BMW vision and mission statements.
- Introduce a quality training program for the employees.
- Spread awareness in the company about the benefit of TQM.
BMW implements ISO 9000 quality standards that define and maintain quality assurance system for manufacturing and service industries. ISO 9000 can help The BMW Group satisfy its customers and meet the regulatory requirements. The goal of ISO 9000 is to increase productivity and reduce unnecessary costs while still ensuring quality process and products.
Demonstrate how quality culture is developed
Performance measurement can be defined as the process of gathering, analysing and reporting the data related to the performance of organisation, department or individual. The main purpose behind measuring performance for the top level management of BMW is that it assists in improving the management and delivery of products and services. Constantly monitoring the performance leads to develop quality culture within the cited firm which directly and indirectly ensures that all the departments, stakeholders etc. are working in positive manner as well as generating desired results and outcomes for attaining the corporate aim and objectives (Belcher, Place and Conole, 2000). Various methods of measuring performance are as follows:
ISO 9000:2000: It states that quality is the degree to which a set of intrinsic characteristics fulfils the requirements. Quality is relative to what something should be and what it is. It can be a service, product, information or any other output from a process.
Total Quality Management (TQM): It focuses on quality throughout a company, business or organisation. Its main aim is to deliver complete customer satisfaction and it results to high quality products and services. Following are the principles of TQM:
- Training and education
- Strategic planning
- Continuous improvement
- Statistical methods
Risk for a business can be defined as the adverse situation which is affecting the course of functioning as well as creating hindrance in generating desired results and outcomes. Therefore, it is important for the managers to undertake risk assessment which is defined as the process of evaluating the potential risks that are associated with the functioning of business enterprise. Following are the five steps for assessing the risk at BMW:
Identify the hazards: In this phase, department manager can walk around and determine the expected risks and its causes. Along with this, managers can also look back at the accident and ill-health records which are appropriate sources of identify the less obvious hazards (Davis, 2012).
Decide who might harm: For each hazard manager of BMW need to be clear about who might be harmed; it will help in identifying the best way of managing the risk. Further, cleaners, visitors, contractors, maintenance workers etc., who may not be in the workplace all the time could be the major culprit for the injury or accident.
Evaluate the risks and decide on precautions: Switch to a less hazardous chemical -keep escape routes unblocked as well as provide proper clothing, footwear, gloves, goggles, etc. to the workers in the production area so that they can be secured of accidents (Neill, 2013).
Record findings for future implementation: few cheap or easy improvements that cane done quickly, perhaps as a temporary solution until more reliable controls are in place.
Review risk assessment: Constantly reviewing the risk assessment will assist in bringing proper modifications within the work which leads to generation of better results and outcomes.
Identify different laws and regulations
There are several laws and regulations that senior authority of BMW has to undertake that are as follows:
- Health and Safety at Work Act 1974: The main purpose of abiding this act is that it assists BMW in ensuring better health and safety measures within the firm, especially at the production and junkyard areas where engineers and other staff members carry out their work.
- Health and Safety (First Aid) regulations 1981: This act provides the guidance on managing the provision of first aid such as having first aid kit, equipment’s and rooms etc. so that people working at BMW can quickly get the temporary treatment until major steps are not made (General safety measures, 2012).
- The Workplace Regulations 1992: The main purpose of this act is that it covers wide range of health, safety and welfare related issues so that better environment can be provided to the employees.
Review of Health and Safety measures in BMW
BMW Automobile Company UK complies with internal Health and Safety Policy, which outlines the measures taken to reduce risks. Managers in BMW are responsible for implementation of the policy and all employees should observe these safety precautions. Employees involved in manufacturing should be briefed weekly on their health and safety. Contractors should also be reviewed to find out if they are aware of the health and safety regulations before they are let into the sites. According to the Royal Society for the Prevention of Accidents (ROSPA), the process of reviewing organizational health and safety policies and procedures includes the following:
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- An assessment of current policies and procedures
- An assessment of the effectiveness of the current safety management system
- An overview of any areas which do not comply with legal requirements
- In-depth analysis of specific areas of risk
- Training needs analysis (Schein, 2004)
- Recommendations and an action plan prioritising next steps.
Carry out practical application of health and safety policies and procedures
One of my prime and essential responsibility as the manager in charge of H/S policies and procedures at BMW is to ensure that they are effectively/adequately complied with. It is crucial that BMW puts in place H/S policies and procedures in compliance with health and safety regulations and legislations, but it are even a greater challenge to ensure that they are applied accordingly. The confirmation of the practical application of health and safety policies and procedures is through the process of verification (General safety measures, 2012). Verification can be explained as the process of physical examination of the health and safety policies and procedures to ensure that they working as they should. Following are the methods that are employed by the management of BMW to carry out practical application of health and safety policies and procedures:
- Health and safety inspection
- Health safety audit
This report illustrates the importance of planning and managing work activities. It also illustrates the significance of the health and safety regulations. It shows that efficiency and effectiveness can be improved by proper design, implementation and change of operational systems. This makes sure BMW Automobile Company maintains the highest level of quality cars produced so as to increase customer satisfaction.
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- Hammer, Michael and Champy, 2001. Reengineering the Corporation: A Manifesto for Business Revolution. HarperCollins Publishers.
- Handy, Ch., 1976. Understanding Organizations. University Press.
- Hare, B. and Cameron, I., 2012. Health and safety gateways for construction project planning. Engineering, Construction and Architectural Management.
- Hoyle, D., 2007.Quality Management Essentials. Elsevier Ltd.
- Schein, E. H. 2004. Organizational culture and leadership (3rd.). Jossey-Bass Publishers.