Tiara Shinta R-Harley
Tiara Shinta R-Harley
Tiara Shinta R-Harley
CASE STUDY
Harley Davidson's Operation Management
Harley-Davidson, Inc. is the fifth biggest player in the global motorcycle market. Established in 1903, the
company is known for manufacturing heavyweight motorcycles. For example, the company focused on
motorcycle enthusiasts, especially those who are interested in the chopper biking culture. However, as its
mission statement now indicates, Harley-Davidson now offers more products. The mission statement
shows the company’s aims and approaches to develop its business. Also, Harley-Davidson’s vision
statement emphasizes leadership in stakeholder management.
Harley-Davidson’s vision statement is as follows:
“Harley-Davidson, Inc. is an action-oriented, international company, a leader in its commitment to
continuously improve our mutually beneficial relationships with stakeholders (customers, suppliers,
employees, shareholders, government, and society). Harley-Davidson believes the key to success is to
balance stakeholders’ interests through the empowerment of all employees to focus on value-added
activities.”
Harley-Davidson’s operations management (OM) ensures that the company maintains effective and
efficient business activities to support resilience and competitiveness. Harley-Davidson’s managers must
determine the best options for the 10 strategic decision areas of operations management. These 10
decisions cover the key business areas that involve suitable operations management approaches. To
optimize the productivity of its facilities, Harley-Davidson continues to develop its operations
management practices to suit evolving business needs. For instance, motorcycle designs are regularly
tested to determine satisfaction of customers’ expectations and regulatory requirements.
Harley-Davidson motorcycles are known for their unique and handcrafted designs. In this strategic
decision area of operations management, the company’s objective is to support its brand image based on
available resources. This brand image emphasizes Harley-Davidson motorcycles’ quality and high-end
chopper design. 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. 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. Also, 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. In addition, 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. Also, 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. operations managers focus on
inventory adequacy and timeliness. Harley-Davidson addresses these concerns through automated
TIARA SHINTA R - 2106663723
inventory monitoring in company-owned facilities. The company also has an online system for orders and
requests involving authorized dealers. 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. For example, 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.
Questions:
1. What are the 10 strategic decisions in Operations Management? Briefly explain each.
2. Discuss how Harley Davidson addresses each of these 10 strategic decisions?
Answers :
1. 10 Strategic Decisions dalam Manajemen Operasi :
1) Desain Barang dan Jasa : Melibatkan perencanan produk dan layanan yang akan
ditawarkan. Misalnya, desain produk biasanya menentukan volume biaya terendah dan
tingkat kualitas yang lebih tinggi serta fitur lain dari keberlanjutan dan sumber daya
manusia yang dibutuhkan. [Pauline, 2016; Anil, 2009; Brooks, 2014].
2) Pengelolaan Kualitas : Penentuan kualitas didapatkan dari sudut pandang konsumen
untuk meningkatkan kualitas. [Pauline, 2016; Anil, 2009; Brooks, 2014].
3) Desain Proses dan Kapasitas : Bagaimana barang atau jasa yang mengacu pada
kualitas, sumber daya manusia, [Pauline, 2016; Anil, 2009; Brooks, 2014].
4) Strategi Lokasi : Keputusan tentang seberapa dekat perusahaan dan produkdengan
konsumen, pemasok, dengan mempertimbangkan biaya, infrastruktur, logistik, dan
pemerintah [Pauline, 2016; Anil, 2009; Brooks, 2014].
5) Strategi Tata Letak : Proses integrasi dari kapasitas, SDM, dan kebutuhan perusahaan,
dan teknologi untuk memastikan bahwa material, SDM, dan semua struktur menjadi lebih
efisien bagi perusahaan [Pauline, 2016; Anil, 2009; Brooks, 2014].
6) Sumber Daya Manusia dan Desain Pekerjaan : Keputusan tentang bagaimana
merekrut, memotivasi dan mempertahankan karyawan dengan keterampilan dan
kemampuan yang diperlukan oleh perusahaan. SDM adalah aspek penting dalam
perusahaan [Pauline, 2016; Anil, 2009; Brooks, 2014].
7) Manajemen Rantai Pasokan : Proses integrasi rantai pasokan ke dalam strategi
perusahaan. [Pauline, 2016; Anil, 2009; Brooks, 2014].
8) Manajemen Inventaris : Pemesanan dan penyimpanan inventaris dan bagaimana
mengoptimalkan proses untuk memastikan kepuasan konsumen, meningkatkan
kemampuan pemasok, dan jadwal produksi yang efektif. [Pauline, 2016; Anil, 2009;
Brooks, 2014].
9) Penjadwalan : Keputusan tentang bagaimana menentukan dan menerapkan jadwal
jangka menengah dan jangka pendek yang dapat dimanfaatkan secara efektif dan efisien
baik oleh personel maupun fasilitas dalam rangka memenuhi tuntutan konsumen
[Pauline, 2016; Anil, 2009; Brooks, 2014].
10) Pemeliharaan : Keputusan tentang maintenance fasilitas perusahaan dengan efektif dan
efisien [Pauline, 2016; Anil, 2009; Brooks, 2014].
TIARA SHINTA R - 2106663723
Referensi Jurnal :
Fotis Kitsios, Maria Kamariotou, Michael A. Talias. (2020). Corporate Sustainability Strategies and
Decision Support Methods: A Bibliometric Analysis
Said Elbanna, Ioannis C. Thanos, Rob J. G. Jansen. (2020). A Literature Review of the Strategic Decision-Making
Context: A Synthesis of Previous Mixed Findings and an Agenda for the Way Forward.
Referensi Buku :
Anil, K., S and Surech, S. (2009). Operations management. New Age International Published: New Delhi, India.
TIARA SHINTA R - 2106663723