Harley Davidson's Operations Management Decisions
In this study, delve into Harley Davidson's strategies in addressing the 10 key operational decisions, including design, quality management, and supply chain optimization. Explore how the company ensures quality, efficiency, and customer satisfaction in its production processes.
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MBA 603 Production & Operations for Masters Friday Group Project www.gbs-ge.ch Switzerland | Saudi Arabia
Harley Davidson's Operation Management Questions: 1. What are the 10 strategic decisions in Operations Management? Briefly explain each. (5-points) 2 2. Discuss how Harley Davidson addresses each of these 10 strategic decisions? (15-points) www.gbs-ge.ch
10 strategic decisions in Operations Management 1. Design of Goods and Services: Defines what is required of operations and Product design determines quality, sustainability and human resources 2. Quality Management: Determine the customer s quality expectations. Establish policies and procedures to identify and achieve that quality 3 3. Process and Capacity Design: How is a good or service produced. Commits management to specific technology, quality, resources, and investment. 4. Location Strategy: Nearness to customers, suppliers, and talent. Considering costs, infrastructure, logistics, and government. 5. Layout Design and Strategy: Integrate capacity needs, personnel levels, technology, and inventory. Determine the efficient flow of materials, people, and information. www.gbs-ge.ch
6. Job Design and Human Resources: Recruit, motivate, and retain personnel with the required talent and skills. Integral and expensive part of the total system design. 7. Supply Chain Management: Integrate supply chain into the firm s strategy. Determine what is to be purchased, from whom, and under what conditions. 8. Inventory Management: Inventory ordering and holding decisions. Optimize considering customer satisfaction, supplier capability, and production schedules. 9. Scheduling: Determine and implement intermediate- and short- term schedules. Utilize personnel and facilities while meeting customer demands. 10. Maintenance: Consider facility capacity, production demands, and personnel. Maintain a reliable and stable process. 4 www.gsb-ge.ch
How Harley Davidson addresses each of these 10 strategic decisions 1. Design of Goods and Services: For instance, motorcycle designs are regularly tested to determine satisfaction of customers expectations and regulatory requirements. This brand image emphasizes Harley- Davidson motorcycles quality and high-end chopper design. 5 2. Quality Management: Harley-Davidson motorcycles are known for their unique and handcrafted designs. The company aims to maximize output quality that matches the Harley-Davidson brand image and customers expectations. The company has strict requirements for suppliers to ensure high quality motorcycles. The strategic decision always involves high quality and new technologies. 3. Process and Capacity Design: Optimal production process is an objective in this decision area. At Harley-Davidson, operations managers automate processes for maximum efficiency in producing motorcycles and related products. www.gbs-ge.ch
How Harley Davidson addresses each of these 10 strategic decisions 4. Location Strategy: the company s production facilities address demand and cost considerations in the global market. Most of Harley-Davidson s authorized dealers are located in town and city centers. Many of these dealers are involved in deciding the location of the dealerships. Thus, Harley- Davidson s operations management addresses this strategic decision area through partially decentralized decision-making for dealership locations. 6 5. Layout Design and Strategy: a standardized set of layout design requirements are implemented for authorized Harley-Davidson dealerships. Harley-Davidson maintains a Supplier Diversity policy and ensures optimal productivity and capacity of its supply chain based on the availability of a wide variety of suppliers. 6. Job Design and Human Resources:Harley-Davidson believes the key to success is to balance stakeholders interests through the empowerment of all employees to focus on value-added activities. www.gbs-ge.ch
How Harley Davidson addresses each of these 10 strategic decisions 7. Supply Chain Management: the locations of the company s warehouses are based on the locations of authorized dealers to optimize the transportation efficiency of Harley-Davidson motorcycles and related products. For company-owned facilities like motorcycle production buildings, Harley-Davidson s operations management approach for this decision area involves traditional models adjusted to suit the facility s purpose. 8. Inventory Management: operations managers focus on inventory adequacy and timeliness. Harley-Davidson uses automated inventory monitoring in company-owned facilities. The company also has an online system for orders and requests involving authorized dealers. 7 9. Scheduling: Harley-Davidson has streamlined schedules for its business activities. Harley-Davidson addresses such concern through automated schedules for the supply chain and orders involving authorized H-D motorcycle dealers. Traditional operations management approaches are also used for scheduling employees activities at Harley-Davidson s offices. Harley-Davidson s motorcycle production processes are standardized with redundancy measures. 10. Maintenance: the company coordinates the activities of production facilities, which minimize stock-outs by supporting each other during demand peaks. Harley-Davidson also has maintenance teams for buildings and equipment. www.gbs-ge.ch