GENERAL MOTORS OPERATIONS ANALYSIS

 Running head: GENERAL MOTORS OPERATIONS ANALYSIS 1
General Motors Operations Analysis
Name of Student
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GENERAL MOTORS OPERATIONS ANALYSIS 2
Outline
I. Introduction
II. Specificities of General Motors operations management
III. GM transformation processes
IV. Six Sigma and lean management as the foundation of process improvement
V. Project management strategies
VI. GM supply chain management
VII. Capacity, scheduling, and location planning at General Motors
VIII. General Motors SWOT analysis
IX. Conclusion
X. Recommendations 
GENERAL MOTORS OPERATIONS ANALYSIS 3
Operations Analysis of General Motors
General Motors (GM) is a symbol of the American automotive industry and
culture. It is known for an exceptional quality of manufactured automobiles as well as
a high level of competitiveness and significant impact on both national and global
vehicle markets. GM was founded in 1908. Since then, it has expanded operations to
more than 30 countries around the globe. Nowadays, it employs more than 250,000
workers. What made the company such a successful and influential manufacturer is
the focus on innovating its processes and operations and the stress on reducing the
negative impact on the natural environment. As a result, there are no objectives that
GM could not reach and customer needs it could not satisfy. Therefore, its
experience can be used as a guideline for both competitors and new companies
regardless of the industry and region of operation.
Specificities of General Motors Operations Management
Operations are at the heart of any company’s performance and success. In
this way, the only strategy to become productive is to develop effective operations
management. In the case of General Motors, there are several main characteristics
that make its operations management remarkable and efficient. First and foremost,
GM senior management recognizes the criticality of constant improvement of
operations. As a result, the stress is laid on the continuous introduction of the newest
technologies and the deployment of the so-called green technologies in achieving
operational performance objectives. In addition, special attention is paid to
cooperating with suppliers that share the same philosophy. Another peculiarity of GM
operations management is the focus on employees’ safety reached by high levels of
processes automation. Finally, the company is known for strict planning, controlling, 
GENERAL MOTORS OPERATIONS ANALYSIS 4
and monitoring systems, which make the conducted operations defect-free and
efficient.
GM Transformation Processes
The key to General Motors’ success is the stress on transformation processes
as the foundation of performance improvements. This objective is commonly
achieved by introducing innovations and modifying processes based on the newest
technologies. The most outstanding example of such transformations is the
implementation of smart bolts at one of its factories in the USA. The technology is
special because it helps to detect slightest detects during all stages of manufacturing
automobiles (Paula, 2013). The so-called track-and-trace technology collects all
information regarding defects so that all of them can be easily removed in case of
necessity.
Six Sigma and Lean Management as the Foundation of Process Improvement
Six Sigma is a generally acknowledged tool for operational performance
improvement. It is based on five interrelated stages. In the case of GM, the method
is deployed to eliminate defects of manufactured automobiles. The whole process of
applying the technique is as follows:
1. Define: detect the problem (ignition defects);
2. Measure: collect data necessary for determining the main cause of the
problem (failing to control the work of assembly lines);
3. Analyze: identify ways to eliminate the defect (introducing Speak Up for
Safety initiative);
4. Improve: transform currently deployed processes (implementation of
quality control measures);
GENERAL MOTORS OPERATIONS ANALYSIS 5
5. Control: constant updates on the defect (launching website aimed at
collecting customer feedback related to ignition defects).
Initially, the lean philosophy was designed by Toyota. However, it has become
popular and widely used by companies that operate in different industries and
regions. The foundation of the approach is the use and allocation of currently
available resources more effectively, which helps to operate successfully in the case
of lacking them. In the history of GM, there was only one experience of using lean
techniques – NUMMI plant (Hozak, 2012). It was a joint venture with Toyota. As for
ignoring lean management, senior management explains its position by having
enough resources (Carraciolo, 2014). From this perspective, there is no need for
developing strategies for re-allocating them.
Project Management Strategies
In General Motors, project management is a combination of three dimensions:
proje