PRODUCTION AND

OPERATIONS MANAGEMENT

“The very essence of any business is to cater needs of customer by

providing services and goods, and in process create value for customers

and solve their problems. Production and operations management talks

about applying business organization and management

concepts in creation of goods and services.”

Production and Operations Management ("POM") is about the transformation of production and operational inputs into "outputs" that, when distributed, meet the needs of customers.

• PRODUCT• PLANT• PROCESSES• PROGRAMMES• PEOPLE

POM incorporates many tasks that are interdependent, but which can be grouped under five main headings:

PRODUCT DEVELOPMENT & OPERATIONS FOR

GOODS & SERVICES

Goods and ServicesAutomobile

ComputerInstalled carpeting

Fast-food meal

Restaurant meal/auto repairHospital care

Advertising agency/investment management

Consulting service/teaching

Counseling

Percent of Product that is a Good Percent of Product that is a Service

100% 75 50 25 0 25 50 75 100%| | | | | | | | |

Development of Product

Problem assessment

Design specification

Idea generation

Screening and evaluation of ideas

Business analysis

Concept design

Detailed design

Production of prototype and testing

Manufacturing

Commercialization/Product Launch

General Motors

General Motors Quick Facts

Found by William Durant in 1908 World’s second largest automobile manufacturer behind

Toyota. Headquarters located in Detroit, Michigan, the hub of the

US auto. Selling its vehicles in 31 countries, GM’s largest market is

China and the US, the second largest. GM Brands: Buick, GMC, Cadillac, Vauxhall, Opel, Daewoo,

Holden, FAW, Wuling, and Jiefeng. A full service automobile manufacturer offering

General Motors Acceptance Corporation: finance and insurance

OnStar: safety, security, and information Service and Parts division: GM Performance Parts, GM

Goodwrench, ACDelco, and GM Powertrain.

General Motors (GM) India

General Motors India has its headquarters in Gurgaon, Haryana, and has two assembly plants (in Talagaon, Maharashtra and Halol, Gujarat) with a combined production capacity of 385,000 vehicles per year.

It also has a technical centre in Bangalore which focuses on research and development, vehicle engineering activities, purchasing and financial support services, and vehicle engine and transmission design.

The company first started doing business in India in 1928, assembling Chevrolet Cars, trucks and buses, but ceased operations in the country in 1954. It continued its tie-up with Hindustan Motors to build Bedford trucks, Vauxhall cars, Allison Transmissions and off-road equipment.

In 1994, General Motors India Private Limited (GMIPL) was formed as a 50-50 joint venture between GM and Hindustan Motors. GMIPL started out producing and selling Opel vehicles, and was bought over completely by GM in 1999. Till 2003, the company continued to produce Opel cars at its Halol facility. Later, it switched to producing Chevrolet vehicles at the same plant.

Joint Venture with SAIC

In December 2009, Chinese auto company Shanghai Automotive Industry Corporation (SAIC) bought a 50 percent stake in GM India. The new joint venture company is called General Motors SAIC Investment Limited (GMSIL) and is the 5th largest automobile manufacturing company in the country after Maruti Suzuki, Hyundai, Tata Motors and Mahindra.

Facts About GM- Halol

GM produces 1unit i.e. 1 car in 3hours 45minutes. Ones the car is out of the assembly line it is never

put back. Production never stops without the top authorities’

decision. The plant has 1200 workers among them the

managerial employees are also included. They have 2000 employees who are working on

contractual basis. The plant operates in 2 shifts. The plant starts its production from 8am to 2pm

then from 4pm to 10pm.

Facilities, Location & Planning

The Halol plant is not so near to the sources of raw materials but its few kilometers away from the port & airport where from where they import their materials.

Availability & cost of production Availability of power, water &fuel. Availability of skilled & productive labor. Availability & cost of capital for investments. Cost of land & construction cost Local topography & living condition Taxes benefits by Gujarat Government Acceptance by the local people

Manufacturing facilities

There is the Halol Plant in India which has a production capacity of 85,000 units while its facility in Pune which was built with an investment of 300 million dollars had a production capacity of 1.4 lakh units.

The headquarters of the company in India are at Halol and Gurgaon and a large technical center in Bangalore. The plants have a very high production capacity.

General Motors To Hike Capacity At Halol Plant

Days after General Motors (GM) increased stake in its Indian operations, the company on Saturday announced it will hike its production capacity at the Halol Plant.

GM had in October raised its stake in its Indian operations to 93 per cent by buying 43 per cent from its Chinese partner Shanghai Automotive Industry Corporation Group for an undisclosed sum. The US carmaker, which is all set to launch a new multi-purpose vehicle (MPV) 'Enjoy', said it will soon have 1.10 lakh units annual commissioned capacity at Halol. The installed capacity currently is 85,000 units.

"We plan to roll out Enjoy in the next couple of months. The capacity at Halol was short, so it is being expanded. With the inauguration of a press shop, it is now an integrated manufacturing plant," said vice-president (corporate communication) P Balendran. The company has invested over $ 1 billion in India so far, an official statement said.

According to Times of India

Corporate Strategy

At GM, we are focused on a single global vision: To design, build and sell the world’s best vehicles. This powers the development of world-class products that are winning in the marketplace, and is helping to transform our business and fortify our balance sheet.

This business model also creates a self-sustaining cycle of reinvestment that drives continuous improvement in vehicle design, manufacturing discipline, brand strength, competitive pricing and margins.

Here’s how we bring the insight, drive and vision of our business model to the market every day to yield positive results for our investors, employees and customers worldwide: Design Build Sell Reinvest

The New GM Business Model

Design

• Focusing on core brands; leveraging global resources to create the most compelling vehicles and technologies, leading in the research and development of advanced technologies to reinvent the future of transportation.

Build

• Optimizing our global footprint to cost-effectively develop best-in-segment vehicles. Maximizing the efficiencies of operating our facilities in an environmentally and socially-responsible manner.

Sell

• Maximizing revenues with a focused brand strategy; delivering world-class vehicles to the marketplace that offer our customers higher residual value, with lower incentives and appropriate pricing.

Reinvest

• Consistently reinvesting cash and profits into vehicle and technology development at strategic points in the business cycle. Putting our financial strength to work to ensure the economic viability of our company.

A Global Perspective

Today, General Motors is the world’s largest automotive company – with operations in more than 120 countries worldwide. In 2011 we sold 9.0 million vehicles.

Our business is diversified across products and geographic markets. We meet the local sales and service needs of our retail and fleet customers with a global network of independent dealers. Of our total 2011 vehicle sales volume, 72.3% was generated outside the U.S., including 43.4% from emerging markets, such as Brazil, Russia, India and China (collectively BRIC), which have recently experienced the industry's highest volume growth.

Product Development

People seem to be very interested in the new GM environmentally friendly line and this strategy seems to work fine due to the raising cost on gas a more environmentally conscious population. Therefore it is extremely necessary to address issues like availability of alternative fuels and revise current infrastructure to estimate feasibility of the strategy in the long run.

I will recommend a two-phase plan to improve product development: Phase I- Pre-launching. Phase II- long-run.

Phase I- Pre-Launching GM is already producing some environmentally vehicles but

it will good to run a national survey to address the customers and understand which fuel-efficient vehicles are most likely to be purchased.

Before launching any new model, the product development team, especially designers, must align with the marketing department in order to develop a marketing (business) plan for the new vehicle, identify market needs, segment it properly and target potential costumers accordingly.

It is necessary to guarantee energy supply for cleaner energy vehicles. GM should partner with energy providers and government agencies to make these fuels more available. Laws for cleaner fuels need to be passed in congress, public infrastructure needs to be built to support new developments and relationships with private energy providers (hydrogen, ethanol, etc) have to be developed to guarantee supply.

It will also be pertinent to start discussion forums with customers in order to address these issues and lobby for a change in legislation to make cleaner fuels and electricity available for this new generation of cars.

Phase II- Long-Run

GM should partner with energy providers, universities and research companies to develop new technologies and reduce costs when developing environmentally friendly cars.

GM should maintain a small quantity of profitable brands at least for the next 3 years and expand to new markets after that. Leveraging this strategy with a strong customer based revenues from current profitable models.

Future Opportunities

Beyond the initial operational efficiencies and cost savings gained from the PFCN solution, GM expects to leverage the Cisco-based platform to support a range of new technology initiatives and enhancements. These include:

Enhanced Mobility Applications. PFCN is an ideal platform for deploying advanced mobile technologies on the plant floor, including wireless handheld devices that will connect front-line engineers with design engineering teams at a distance. Such technologies will expand the types of information that can be shared over mobile devices to include CAD drawings and other high-bandwidth content.

More Standards-based Applications. GM plans to further reduce complexity and costs by replacing even more proprietary manufacturing applications with standards IP-based, “plug-and-play” solutions that are easily integrated into the PFCN architecture.

Collaborative Engineering Solutions. Connecting the plant floor to the right resources to solve problems is the goal of collaborative engineering. PFCN’s native connectivity capabilities including support for VoIP and video – will make it possible for GM to bring together engineers from diverse locations and organizations, including suppliers, to rapidly troubleshoot issues and devise solutions.