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Operations management

Essay Topic:

The current operations management strategies being employed by the two companies namely Ford Motors as well as Hard Rock can be characterized as an innovative way of putting quality and profitability in sheer balance. Both companies operate in an international setting and employ a diverse workforce with mixed cultures. Even if these factors hold for both companies, it is a operational wonder how both manage to have sizeable amounts of profit.

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For instance, Ford Motors established an automobile park wherein various factories dedicated to specific assembly lines have been established side by side. The factories lie close to the existing 80-year old facility in Southern Chicago. Each facility in this complex puts the assembly line in the various Ford automobiles closer. This strategy copied from low-cost vehicle assembly plants in Latin American countries saves the company up to $15 million annually in lost transportation costs.

Before, it takes about a day in order to transport automobile parts from Ford’s component suppliers to the main assembly plant in Southern Chicago. Although initial costs are up to $250-million, the automobile company prioritized the quality of their supplier parts that would now take only 15-minutes in transport from one factory to the other within the park. According to Brown, “operations have been promising within the park” since it opened in early 2004. On the other hand, operations management innovations in Hard Rock have been similar to that of other companies such as Starbucks.

This time though, Hard Rock has been successful in benchmarking itself as a fashionable and trendy bar restaurant serving great food, updated music as well as sold-out events. Hard Rock also became known in recent years by breaking into new territories by opening new Hard Rock Hotels in Bali, Indonesia, Pattaya, Thailand, Las Vegas, Nevada, among others. This has proven that the company amidst stiff competition. In general, Ford and Hard Rock have been perfect examples of how operations management principles can still improve quality even under profit maximizing measures.