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    Operations Management In Business Unit 5 Level 3 CBC college


    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

    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 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 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


    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).

    More Suggestions:

    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 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


    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 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



    1. Purchase of factory, equipment’s

    2 month


    1. Recruitment of employees’

    1.5 months


    1. Supply chain initialization

    4 months


    1. Marketing

    3 months


    1. Training and Development

    2 month


    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 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
    • Presentation of thoughts top the board of directors
    • Communication to internal employee


    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


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    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 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).


    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.


    • Ahi, P. and Searcy, C., 2013. A comparative literature analysis of definitions for green and sustainable supply chain management. Journal of cleaner production. 52. pp.329-341.
    • Ates, A., and et.al., 2013. The development of SME managerial practice for effective performance management. Journal of Small Business and Enterprise Development. 20(1). pp.28-54.
    • Boehm, M. and Thomas, O., 2013. Looking beyond the rim of one's teacup: a multidisciplinary literature review of Product-Service Systems in Information Systems, Business Management, and Engineering & Design. Journal of Cleaner Production. 51. pp.245-260.
    • Brindley, C. ed., 2017. Supply chain risk. Taylor & Francis.
    • Guang Shi, V. and et.al., 2012. Natural resource based green supply chain management. Supply Chain Management: An International Journal. 17(1). pp.54-67.
    • Laudon, K. C. and Laudon, J. P., 2016. Management information system. Pearson Education India.
    • Lavastre, O., Gunasekaran, A. and Spalanzani, A., 2012. Supply chain risk management in French companies. Decision Support Systems. 52(4). pp.828-838.
    • Pagell, M. and Shevchenko, A., 2014. Why research in sustainable supply chain management should have no future. Journal of supply chain management. 50(1). pp.44-55.
    • Prashar, A., 2015. Assessing the flipped classroom in operations management: A pilot study. Journal of Education for Business. 90(3). pp.126-138.
    • Preiss, K., 2012. Shop floor control-A systems perspective: From deterministic models towards agile operations management. Springer Science & Business Media.

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