BBUS 489 | Professor Keskin | Case 3: Volkswagen
Define Acronyms BPTO, DBC, ITSC, PMO, NRG, and explain.
In order to understand and process the case, we have to review a few acronyms heavily used. BPTO is the “Business Process, Technology and Organization” internal IT department created by Dr. Uwe Matulovic, the chief information officer (CIO) of Volkswagen of America
(VWoA). This new department composed of 23 people to engage “chief firefighter” roles in which they doused flames. A Project Management Office (PMO) also helps with efforts by prioritizing and planning prior to project execution phases, with maintenance in the form of required weekly status reports and monthly budget reviews.
A Digital Business Council (DBC) works to categorize projects and assess their business impact. The DBC is composed of representatives from the eBusiness teams. Along with these teams are the ITSC, which is the IT “steering committee” composed of senior business and IT representatives. This committee guides and approves processes related to IT project selection and prioritization. Another organizational program is the “Next Round of Growth” (NRG) made to focus on defining goals, functions, and organizational changes. Putting all of these different teams and initiatives together, CIO Matulovic and VWoA were able to define and support the new business strategy.
What is your assessment of the new process for managing priorities at Volkswagen of
America? Is the criticism justified? Is it an
Comment [MLW1]: Great job, Bianca. With your permission I would like to use this as an example for future students. GRADE: 100%
One of the world’s largest automakers, GMC has it’s roots traced back to 1908. Also known as GM, this company is a United States-based automaker with its headquarters in Detroit, Michigan. After the General Motors Company was founded, it soon became known as one of the largest car manufacturers in the world. In 1909, the Grabowsky Rapid Motor Vehicle Company (GMC) joined with GM. The trade name GMC Trucks was first exhibited in 1912 at the New York Auto Show and registered with the U.S. Patent Office eight months later. The
The invention of automobiles had been dated long back in history. From that day till now, it had not only made our lives easier but also simpler. From times back then till now many big automobile companies had came into existence, some of them were successful and some were not, thus going out of market and competition. Among them, Porsche and Volkswagen Group(VW) have emerged as one of the world leaders in automobile industry. Through years of hardwork and sheer use of technology and engineering developments, both of these companies have carved a name for themselves in their respective markets. But sometimes, bad management and several areas of conflict arise between two companies that can lead to its downfall. In this case too the CEO of Porsche, just wanted to administer each and everything according to his own ways and rules, but on the other hand the CEO of Volkswagen, even after facing huge loses wanted to continue on with his strategy because he was quite confident about his strategy and clearly had a broader outlook of the scenario. Therefore, due to having different mindsets, there was a conflict between the ideas of two which led to the decline of one of them. These conflicts can be summed up in the following couple of questions:
Ferry Porsche designed the firm’s first car, the Porsche 356. Although its body was an original design many Volkswagen parts were used to save costs. The original car was fast and very light weight, gaining attention by taking first place in the Innsbruck city race. Production was transferred from Austria to Stuttgart in 1950. The firm focused on performance and continued to reengineer and refine the car. By the late 1950’s the Porsche 356 utilized far fewer parts from Volkswagen. Figure 3 shows a 1951 split windshield 356 Cabriolet.
One of the founders’ grandsons, the young engineer Ferdinand Piëch, was forced to quit his
BMW has embarked on a mission to cut its notoriously long product development time in half utilizing a newly developed system code named "Digital Car". Senior management has decided to utilize the new process on the 7-series platform. In order to accomplish this goal, BMW is preparing to take advantage of the latest computer technology in car development. At the forefront of the new plan is a debate over the use of computer-aided-styling (CAS). We recommend that BMW implement the Computer Aided Styling system and processes into their production development program.
Why do you think Toyota had waited so long to move much of its manufacturing for European sales to Europe?
Ford Motor Company, one of the world’s largest automotive manufacturers, has worked with Penske on several Six Sigma initiatives. As its lead logistics provider (LLP), Penske’s quality team of associates are trained in Six Sigma practices and work closely with Ford to streamline operations and create and maintain a more centralized logistics network. Together, they uncovered several areas for real cost savings as a result of reducing inbound carrier discrepancies, eliminating unnecessary premium costs and reducing shipment overages. Plus, Penske implemented accountability procedures and advanced logistics management technologies to gain more visibility of its overall supply network.
BMW (U.S) Holding Corporation is a franchise of the high-end performance based global automotive company BMW. For the first time in its history, BMW is to launch its first American made car, the BMW Z3 Roadster. Having only made cars in Germany, this time the car is to be assembled in Spartanburg, South Carolina. BMW’s objective is to expand its market share in the U.S., make the brand name more global and improve its dealer network. With this in mind, the company developed a two phases launch plan for the BMW Z3 Roadster.
Tesla Motors is located primarily out of Palo Alto, California. Its main priority is to push the transition from gasoline cars to electric cars in the immediate future. Their vision states, “Create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.” In order to take on such a daunting task, Tesla is faced with the creation of an improved car that is affordable and can run solely on electric capabilities. But to begin, Tesla realized that they couldn’t begin with an inexpensive electric car because it would have been too expensive to manufacture. So Tesla began working with an expensive sports car: the Roadster. The idea behind this decision from upper management was that profits from the Roadster would pay for a less expensive car. Once the Roadster was created, about 2,500 models were sold in 2012 and 4,900 in 2013, allowing the car to be the top-selling plug-in electric car in North America. The Model S, the next cheaper version of the electric car, won the 2013 “Motor Trend Car of the Year”, the “World Green Car”, “Car of the Year”, and Time Magazine Best 25 Inventions of the Year 2012 award. With these achievements, Tesla Motors has promised to design and sell high-performance vehicles with highly efficient electric motors with no compromises. Tesla
"The mission statement up to the year 2020 is clearly defined: the BMW Group is the world 's leading provider of premium products and premium services for individual mobility."
Series, 3 Series, 5 Series, 6 Series, 7 Series, X3 SUV, X5 SUV, X6 SUV, Z4 (Roadster), and M. The
According to the case study Nissan has a pacific product line compared to its competitors. Nissan uses a build to stock method for some models of vehicle, while the rest of the methods of vehicle are building to order. This style of operations management should save the company money. There is an example of this found in the Nissan case study on page 4.
Once the undisputed leader in the luxury car market, Mercedes-Benz India (MBIL) is currently facing stiff competition from its aggressive rivals – BMW and Audi. Bernhard Kern, who recently took over as the chief of MBIL, points out that it also reflects the absence of Mercedes cars in some segments, unlike its peers. “I have a very different picture (of the rankings) because in the saloon and luxury SUVs, Mercedes is leading in India. We are not in some segments like smaller SUVs. There are some gaps but we will close the gap,” says Kern. The A-class and diesel version of the B-class are part of MBIL's play against its peers at the lower part of the premium and luxury car market.
This Case Study will look into the Volkswagen emission scandal and they key corporate issues that underline it. A case Study is a process or record of research into the development of a particular group over a period of time. I am writing this Case Study for the purpose of researching and analyzing how a company like Volkswagen, which was named no. 8 on Forbes fortune 500 list in 2014, could be involved in one of the biggest scandals in this decade.