An Introduction To The Operations Management Concepts Business Essay

An Introduction To The Operations Management Concepts Business Essay Operations Management has been defined by Krajewski, et al. (2007) as the control and direction of the processes of the organization that changes its input materials to products and/or services for its customers. This report will compare how Mercedes-Benz and Honda manage their operations. The comparison might be useful because it would help identify various ways an organisation could be run in order to meet its goals and objectives. The report will give a brief background of the two organizations mentioned above and then would move on to the comparison of their marketing strategies and competitive priorities. Finally, the importance of frameworks such as capacity planning, inventory management, supply chain design, Total quality management and performance measures, would be discussed and how they could be useful in helping an organisation function efficiently and effectively. A) COMPANY BACKGROUND OF MERCEDEZ BENZ [MERCEDEZ-BENZ U.S. INTERNATIONAL, inc. (MBUSI)] and HONDA [HONDA MA NUFACTURING OF ALABAMA, LLC. (HMA)]. MERCEDEZ-BENZ (MBUSI) Mercedes-Benz U.S. International, Inc. (http://www.mbusi.com) was established for the main purpose of manufacturing the M-Class. The M-class was such a huge success that they decided in August 2000 to expand the facility not only to manufacture more units of It, but also to include the R and GL-classes to its product list. The expansion not only doubled the plant size but also the labor force. The plant consists of a body shop, paint shop and two assembly shops. MBUSI receives orders from their 135 worldwide markets. MBUSI uses the â€Å"Just-in-Time† (JIT) philosophy which implies that they do not stockpile large amounts of the inventory they use to assemble their cars. HONDA (HMA) HMA (http://www.hondaalabama.com) manufactures the odyssey, ridgeline and pilot models for the world wide market. HMA’s investment in Alabama is over $1.4billion with the construction of a new Honda Engineering facility, on-site con solidation center and steel blanking operation. One of their goals is to be able to produce goods with high quality and sell at a reasonable price. HMA can be referred to as a Zero Landfill Facility due to the fact that they are committed to the principle of â€Å"Reduce, Reuse and Recycle†. They have made efforts in curbing energy use during their production processes, and this has earned them an energy star award from the U.S. Environmental Protection Agency (EPA). A.1) OPERATION/TRANSFORMATION PROCESS OF THE ORGANIZATIONS MERCEDEZ-BENZ (MBUSI) The manufacturing process for both models begins in the Body Shop where the components that comprise the metal body are welded together. From the body shop, they are taken to the ultra-clean Paint Shop where the cars are painted. Finally, they end up in the Assembly where it becomes a new Mercedes-Benz M, R, or GL-Class ready for shipping. From beginning to end, these vehicles are created with style, functionality, and quality in min d (http://www.mbusi.com). HONDA (HMA) Honda Manufacturing of Alabama (HMA) has the largest output for Honda light trucks. It has the capacity to create over 300,000 odyssey minivans, pilot sport utility vehicles, Ridgeline pick-up trucks and V-6 engines annually (http://www.hondaalabama.com).