Report on the Operations Management of General Motors Co

Part 1 of Operations Management of General Motors Co

            It is vital to understand that there are so many operations involved in the process of operations management for a company, which is part of the manufacturing process. The manufacturing sector comes with so many elements and each element is vital for the whole manufacturing process, and if any of these processes will not be handled properly, then manufacturing will be affected badly, and required out may not be achieved in the production. There are few decisions and processes, which are critical to achieving the objectives of a manufacturing unit so that required productivity is achieved. If it does not happen, then manufacturing tends to struggle in reaching their targets. The manufacturing firm has to make a good design for its product, and they have to develop a capacity design as well. They have to manage the supply chain process along with inventory, layout design, etc. one of the most important parts of operations management is quality management (MEYER, 2017). The quality management is the operations management process, which has been selected for the General Motors Co, one of the popular automobile manufacturing firms from the United States.

            General Motors gives intense importance to the process of quality management, and that’s why they have emphasized it in their vision and mission statement as well. They have said that the use of technology to create value is the ultimate goal of their manufacturing, and this is being achieved through quality management. The company uses a variety of input such as getting information from looking at market conditions and analyzing the expectations of customers. Then they use this input to implement a high standard of quality so that the transformation process is flawless. The company tends to apply universal quality standards so that the chances of making an error are as minimum as possible. When such standards of quality are maintained, the great output is achieved in the shape of great productivity and quality products (MEYER, 2017). If the 4Vs profile of General Motors is identified then it is evident that the company is managing Volume, Variation, Variety, as well as, Visibility. They try to keep a close eye on all four dimensions to come up with great output to sustain their position in the market (Eshelby, 2016)

Part 2: It is a fact that when the largest automobile manufacturing firms of the world are discussed, General Motor will always be there at the top of the list firms. It is critical to know how they have reached this position and how they earned such a big name all around the globe. Whatever strategy is adopted by a company, it is vital for them to identify operation performance objectives so that they can drive their manufacturing process and operations in a certain direction which ultimately leads to achieving overall strategic objectives. When operation performance objectives are analyzed for the firm, it is evident that they have certain objectives to achieve. The first major part of their operations performance is to become a leader in the quality and technology to make one of the best vehicles in the world. This objective clearly indicates that GM is very much focused on creating value with the help of quality management, which is identified as one of the most important parts of the operations management of the company.

            The issue is that when certain objectives are selected, it should be made sure that objectives are aligned with the strategic objectives, otherwise it will be hard to achieve overall organizational objectives. To be more competitive in the market, the second most important objective for the company is to come up with good speed. It means that they should have faster operations to produce more quantity; however, the quality will be made sure in this regard. The third strategic objective of GM is to be dependable. If demand is there, then the supply of vehicles should be ensured in time so that company is considered dependable. The other critical objective for better performance is having the essence of flexibility. If market conditions are changing, and competitors are using new processes or technologies, then GM should have the capacity to adopt such changes, and it can only be done with flexibility. So, the operations management process should be designed in a way that when a change is needed, it is easily integrated. The last vital objective for the company is to manage costs in a way that they are more productive than ever before. It is great to see that GM has been able to follow these important performance objectives, which have allowed them to stay competitive and strong in the market (MEYER, 2017)

Part 3 of Operations Management of General Motors Co

            Every business industry or sector comes with its own characteristics, and that’s why, when they have to select certain business processes and types, they are chosen according to a sector. If the manufacturing sector is going to be discussed, then there are a few major types of processes, which are suitable for certain manufacturing firms. Some of these process types are jobbing, project, batch, continuous, and mass or flow. Every sector will have to come up with the right choice; otherwise, it will be difficult to manage the manufacturing process. For instance, if the construction sector is looking for a process type, then the project is the major process type for this sector, and construction work is handled through projects. If there are companies associated with carpentering or engineering tools making, then jobbing will be a considerable choice for them. If clothing or machine tools making is concerned, the batch is the suitable process type. If the purpose is to generate electricity, then the best process type is continuous (Greasley, 2007)

            But there is one more important process type, which is called mass or flow. When it comes to manufacturing and processing of food, making consumer durables, as well as, car making; mass or flow is the way to go. So, the process type used by GM is mass or flow, because it is the most relevant one. If GM will choose any other process type, it will not comply with its performance objectives, which means that the company will certainly miss its overall strategic targets. So, going with a relevant process type is as important as its strategic performance objectives are. The company is involved in a manufacturing and production method, where the production process is very much continuous. The flow of production is continued without any considerable delay. There are different operations and steps, which are performed at different levels in the production of vehicles in General Motors. When the product is done at a one-step, then it is moved to the next part of the manufacturing facility to move forward for its completion. The beauty of mass or flow process type is that it will always help to be accurate in design, processes, and quality of the product being manufactured (Greasley, 2007)

Part 4 of Operations Management of General Motors Co

            Monitoring and handling the global supply chain network is not an easy thing to manage. It is critical for manufacturing firms to make sure that their operation’s supply network is as smooth as possible; otherwise, they will face issues in giving full supply as per market demand. The number of vehicles produced every year by GM is more than 10m. It is not an easy thing to produce such a huge volume of vehicles and this is what makes GM as one of the leading automobile manufacturing firms in the world. So, when the purpose is to manufacture 10m vehicles per year, a firm will need a smooth supply network to run its operations more swiftly. If a supply network of operations faces any issues, then the manufacturing and production of vehicles will be disrupted. The number of unique parts sourced by GM is 100,000. The number of supplier sites for the company is 5,500 from different parts of the world. Once the production is done, the vehicles are sent to more than 100 countries for sale (Kazemi, 2018)

            They have developed a great supplier network by building great partnerships with suppliers all around the globe. The company is having 133 locations for manufacturing operations, which are working in 16 different countries. The raw material, transportation, freight, supplies, parts, as well as, many other things handled in the supply network is worth $97bn. GM remains in touch with the suppliers to run smooth operations without any interruption (GENERAL MOTORS, 2018). They always look for innovative methods to manage their supply chain network for its operations. One recent example is the use of geographic information systems (GIS). All tiers of suppliers of the company are interconnected through GIS technology. So, if a supplier facility or operations facility catches fire, the source is traced and the destination is quickly identified with the help of technology. So, when mapping is done on the basis of GIS, the company is better positioned to manage everything related to its supply chain network (Kazemi, 2018)

Part 5 of Operations Management of General Motors Co

            The operations of a manufacturing firm should have a proper process layout to follow so that things can be managed accordingly. There are a variety of layouts available, and it is up to the firm, which layout is suitable for them. A manufacturing firm can use different layouts such as fixed position, product, functional, as well as, hybrid. It is vital to understand when the capacity of production and manufacturing is huge like GM is handling, and then it is viable to use a hybrid layout so that things can be managed without any issues. That’s why, majority of operations in the manufacturing sector opt for hybrid layout, as it helps them to customize everything. It is a fact that there are so many processes to handle in manufacturing units of GM so they will need the process of fixed layout for some steps, and when assembly will be done to come up with a final product, then the assembly process will use product layout, which means a combination was used. The good thing about this layout is that it is helping GM to conform to its performance objectives, and it also helps in using technology and innovation at its best. Looking at these elements, there is no further change recommended at this stage for GM (BrainKart, LLC, 2018)

Part 6 of Operations Management of General Motors Co

            The manufacturing process has to handle a lot of operations at different stages, and it is hard to maintain a calm situation if job design is not proper. Every firm needs a proper job design to complete its operations accordingly, not missing any targets. GM also realized that they need an appropriate job design, which is capable to meet all the requirements of human resources. The company has developed a good HR program and job design, which allows them to have enough resources for every operation. The company always makes sure that the best talent is attracted and hired so that the best man is placed for the job. For instance, the company has introduced a Technical Education Program, which is a great attraction for those people, who want to work in this manufacturing sector. Different HR programs ensure that human resource is ready to handle its tasks as per the division of labor, and every operation facility has enough resources to continue with the process (MEYER, 2017)

            GM has this realization that human resources are their most important assets, and if they are struggling, then it automatically means that the company will struggle. If they have a great job design to enjoy, and they are encouraged by the company to work hard with full motivation and commitment, then results will be more positive. That’s why GM has been able to sustain its workforce and achieve more success as compared to many other competitive brands. They always come up with job design along with HR programs, which is aimed at boosting the morale of employees so that they are more productive in their assigned tasks. They have adopted adequate scheduling and compensation methods, which are good enough to keep things in the right direction (Alden, Burns, Costy, & Hutton, 2006)

Part 7 of Operations Management of General Motors Co

The general motors utilize the lean manufacturing approach in the corporation which allows the organization to reduce waste and smooth the production process. The lean manufacturing approach not only allows to maintain quality in the production process but also allows the organization to reduce cost up to a lot of extents. Through lean manufacturing tools that the organization utilizes in its operations the organization able to forecast its demands accurately and then meets the needs of its customers. Meeting the demand I highly essential because if the organization is unable to meet the demand then not only the revenue will decrease but also the profitability will decrease up to a lot of extents.

The lean tools improve the quality of the operations at the general motors. The general motors use scientific methods and lean principles for forecasting the demand. The lean approach allows the organization to use its resources efficiently. The organization kept the inventory which is required for production. the organization does not keep excess inventory because not only it will increase the cost of the inventory but also the quality of overall operations and supply chain activities will decrease up to; a lot of extents (Cordón, Hald, & Seifert, 2013).

For managing the capacity the systems such as enterprise resource planning (ERP) are used at general motors. Through the latest technology, the organization keeps the data regarding which resources are limited in the organization, and when new material is going to order. The latest inventory management or warehouse management software is also being in use in the organization which helps the organization to monitor its resources efficiently. The organization as discussed earlier allocate its resources efficiently thanks to the lean manufacturing approach. With this approach, the organization has kept the standard of its operations quite high.

Forecasting the demand plays an important role in the lean manufacturing setting. Because the organization kept the inventory after forecasting the demand for its products. The organization produces the goods which are demanded by the customers it means that the organization does not create goods in excess. Through this approach, the organization reduces its cost and the quality of its production remains high. The technologies such as ERP and MRP allow the organization to manage its capacity effectively. In short, the approaches which have been implemented in the organization have helped the organization to experience growth over the last few years.

Part 8 of Operations Management of General Motors Co

The organization maintains high-quality management through its lean-approach. The general motors maintain their inventory effectively and utilize inventory management software. Lean manufacturing also helps the organization to maintain its inventory in such a way that the cost of inventory remains lower. The corporation kept minimum inventory which is required for the production of goods. Through such a mechanism the production process does not experience a shortage of goods. As general motors are vehicle manufacturing firm various parts are required for the production of the vehicles. Maintaining inventory is important in vehicle manufacturing because if only one part gets short than the whole production process can suffer (Campbel, Edgar, & Stonehouse, 2011).

The ERP system and MRP system in the organization play a key role in managing the inventory of the corporation. Through these systems, the organization knows which materials are needed to be reordered and how many products have to be produced. The quality of organizations' inventory management is maintained through the implementation of the latest technology and various quality standard. The organization keeps on upgrading its technologies so that not only it can maintain the quality of its operations but it also can achieve a competitive edge over its competitors. High quality and low production costs allow the corporation to get a competitive advantage.

The organization has approximately 70 suppliers which provide various components of the vehicles to the organization. Some of the key suppliers of the organization include Lakeside Plastics, Johnson Controls, Dynamic Manufacturing, Mitsubishi Electric, NGK Spark Plug, Bose Corp, and Mold Master Etc. as discussed earlier the corporation needs different components for manufacturing of the vehicles and the above-discussed suppliers provide parts for the manufacturing of the vehicle. The organization has a string relationship with its suppliers which allows the organization to negotiate with its suppliers effectively. The organization's relationship with its suppliers helps the organization to maintain high-quality production standards.

It is evident that a good relationship with suppliers allows the organization to negotiate with them and by doing this the organization can purchase supplies at less cost. The organization supply chain activities are playing an important role in enhancing the revenue and profitability of the organization. The corporation has set quality management standards through which the quality of the supply chain activities are maintained. The supply chain network of the organization is quite vast because the organization has a presence in many parts of the world. The organization has a presence in developed and developing economies around the world (Kourdi, 2015).

Part 9: The lean tools improve the quality of the operations at the general motors. The general motors use scientific methods and lean principles for forecasting the demand. The lean approach allows the organization to use its resources efficiently. The organization kept the inventory which is required for production. the organization does not keep excess inventory because not only it will increase the cost of the inventory but also the quality of overall operations and supply chain activities will decrease up to a lot of extents.  Overall it can be said that lean manufacturing has allowed the organization to maintain high quality in its operation.

The general motors utilize the lean manufacturing approach in the corporation which allows the organization to reduce waste and smooth the production process. The lean manufacturing approach not only allows to maintain quality in the production process but also allows the organization to reduce costs up to a lot of extents. Through lean manufacturing tools that the organization utilizes in its operations the organization able to forecast its demands accurately and then meets the needs of its customers. Meeting the demand is highly essential because if the organization is unable to meet the demand then not only the revenue will decrease but also the profitability will decrease up to a lot of extents (Campbel, Edgar, & Stonehouse, 2011).

The ERP system which has been implemented in the organization has various benefits for the organization. Through the ERP system not only the quality of its operation have remained high but also the organization has the gain competitive advantage. One of the major advantages of the ERP system in the organization is that it has reduced the cost of the organization. The ERP system in the corporation enhances customer service quality. The planning and reporting function of the corporation gets improved. Enterprise resource planning software provides a complete customization feature to the organization (Spender, 2014).

The MRP system which has been implemented in the organization has also various benefits for the organization. Through the MRP system not only the quality of its operation have remained high but also the organization has gained a competitive edge over its competitors. The key advantage of the MRP system is the work schedule. Through MRP the organization can schedule its work more efficiently. Through MRP the corporation performs purchase planning and production planning. Through MRP the corporation maintains its inventory levels and quality of inventory management improves. The MRP helps the organization in economical ordering. The overall operational efficiency of the organization increases through the MRP system (Campbel, Edgar, & Stonehouse, 2011).

Part 10: The organization focuses on lean principles that help the organization to maintain high-quality standards in the organization. The lean tools such as six sigma allow the corporation to maintain high quality. Obtaining ISO standards regarding quality management is another way through which the organization has maintained high-quality standards. The latest software and systems have also played an important role in improving the quality of various operations in the organization. The quality control system in general motors is in place and the organization monitors the quality through continuous check and balance mechanism (Kourdi, 2015).

The lean approach allows the organization to increase the quality of inventory, production, supply chain, and other operations in the organization. The management of the organization also maintains quality through continuous monitoring. The quality of the product is to check at every stage to ensure that no failure will occur in the product. The products which the organization creates are tested before going into the market. The organization has recruited skilled labor to reduce the chances of errors in the organization. The training and development of the employees is another way through which the corporation maintains high-quality standards in the organization. The employees are trained to maintain high-quality standards.

If the quality control system is not in place then the best way to ensure the quality in the organization is to focus on lean principles. If the organization is going to focus on lean principles than it will become easy for the corporation to maintain significant level quality in its operations. The lean principles such as reducing waste and maintain inventory will help the organization to produce goods with low cost and high quality. The organization should focus on continuous improvement for maintaining high quality in the organization (Cordón, Hald, & Seifert, 2013).

Along with the continuous improvement approach, the organization can train its employees for increasing the quality of the corporation. The employees are the ones who create products in the organization. If the employees are going to be skilled than it won’t be difficult for the corporation to create such goods that are high in quality. The skilled employees focus more quality and can help the management in creating a quality management strategy in the organization. If the quality control mechanism is not placed in the organization than the organization should create such a strategy through which the organization will become able to monitor the quality of its operations (Gupta, 2016).

Part 11: The balanced scorecard approach is utilized by the organization to measure the performance of the organization. The general motor can utilize a balanced scorecard approach for knowing the performance of the corporation. The balanced scorecard not only provides the details regarding the performance but also enhances the quality of the operations. In short, it can be said that a general motor can utilize a balanced scorecard approach for increasing the performance of its production and other operations (Beheshti, 2010).

The lean approach allows the organization to increase the quality of inventory, production, supply chain, and other operations in the organization. The management of the organization also maintains the quality through continuous monitoring. The quality of the product is to check at every stage to ensure that no failure will occur in the product. The products which the organization creates are tested before going into the market. The organization has recruited skilled labor to reduce the chances of errors in the organization. The training and development of the employees is another way through which the corporation maintains high-quality standards in the organization. The employees are trained to maintain high-quality standards.

The operations of a manufacturing firm should have a proper process layout to follow so that things can be managed accordingly. There are a variety of layouts available, and it is up to the firm, which layout is suitable for them. A manufacturing firm can use different layouts such as fixed position, product, functional, as well as, hybrid. It is vital to understand when the capacity of production and manufacturing is huge like GM is handling, and then it is viable to use a hybrid layout so that things can be managed without any issues. That’s why, majority of operations in the manufacturing sector opt for hybrid layout, as it helps them to customize everything. GM has been able to sustain its workforce and achieve more success as compared to many other competitive brands. They always come up with job design along with HR programs, which is aimed at boosting the morale of employees so that they are more productive in their assigned tasks. They have adopted adequate scheduling and compensation methods, which are good enough to keep things in the right direction (Cordón, Hald, & Seifert, 2013).

References of Operations Management of General Motors Co

Alden, J. M., Burns, L. D., Costy, T., & Hutton, R. D. (2006). General Motors Increases Its Production Throughput. Interfaces, 36(1), 6-25.

Beheshti, H. M. (2010). A decision support system for improving performance of inventory management in a supply chain network. International Journal of Productivity and Performance Management, 59(5), 452-467.

BrainKart, LLC. (2018). Types of layout - Introduction to Operations Management. Retrieved May 13, 2020, from http://arts.brainkart.com/article/types-of-layout---introduction-to-operations-management-1105/

Campbel, D., Edgar, D., & Stonehouse, G. (2011). Business Strategy: An Introduction. Macmillan International Higher Education.

Cordón, C., Hald, K. S., & Seifert, R. W. (2013). Strategic Supply Chain Management. Routledge.

Eshelby, P. (2016). The 4 Vs of Operation Management. Retrieved May 13, 2020, from https://www.linkedin.com/pulse/4-vs-operation-management-philip-eshelby

GENERAL MOTORS. (2018). OUR MANAGEMENT APPROACH TO SUPPLY CHAIN. Retrieved May 13, 2020, from https://www.gmsustainability.com/manage/supply.html

Greasley, A. (2007). Operations Management: SAGE Course Companions series. SAGE.

Gupta, S. M. (Ed.). (2016). Reverse Supply Chains: Issues and Analysis. CRC Press.

Kazemi, Y. (2018). How GM Maps and Manages Supply Chain Risk. Retrieved May 13, 2020, from https://www.esri.com/about/newsroom/publications/wherenext/gm-maps-supply-chain-risk/

Kourdi, J. (2015). The Economist: Business Strategy 3rd edition: A guide to effective decision-making. Profile Books.

MEYER, P. (2017). General Motors’ Operations Management: 10 Decisions & Productivity. Retrieved May 13, 2020, from http://panmore.com/general-motors-operations-management-10-decisions-productivity

Spender, J.-C. (2014). Business Strategy: Managing Uncertainty, Opportunity, and Enterprise. OUP Oxford.