CO RPO RATE P RO F I LE
This long-term effort is just one
example that demonstrates how GM
has applied operations research (O.R.)
methods to change the way it leverages O.R. and advanced analytics on
a continuing basis. The importance
of activities like this in a company the
size of GM cannot be fully measured.
For plant throughput alone, the savings
are estimated at more than $2 billion
over the past two decades. But just as
important as the economic benefits is
the mindset – the scientific approach
to problem-solving, decision-making,
scheming the business, and identifying
new opportunities.
O.R. AT GM TODAY
Given the success of the work described above, the R&D operations research team broadened its mission
about five years ago and today provides
a research capability within the company
focused on tackling long-term strategic
challenges. With the wide-ranging scope
of potential assignments, the O.R. team
is composed of Ph.D. and master’s-level
technical experts, along with subjectmatter experts with hands-on and executive leadership experience in key areas
of the business, such as manufacturing, supply chain, engineering, quality,
planning, marketing, and research and
development.
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A N A LY T I C S - M A G A Z I N E . O R G
Projects are aligned with top company
priorities, which are based on a combination of business performance drivers and
senior leadership input. The work may
start with targeted questions, e.g., what’s
the opportunity of (fill in the blank), or it
can focus on improving operational effectiveness through process improvements
in areas such as manufacturing productivity, capital or supply chain management, or dealer inventory management.
Many opportunities to improve revenue
management exist through the application of tools and systems that help decision-makers optimize portfolio planning,
reduce complexity, target incentives, or
optimize content and packaging. In addition, given the large new data streams
coming from the intelligence available in
today’s vehicles, new emphasis is being put on improving vehicle efficiency,
quality and diagnostics, as well as more
deeply understanding customers so GM
can provide differentiated value through
new automotive products and services.
The team’s implementation model comprises a mix of:
• analysis by internal consultants to
understand the issue,
• capability development, including
analytical principles, math models
and tools, and
• partnering with stakeholders and
decision-makers early to scope and
W W W. I N F O R M S . O R G