Operational Management & Development Timeline Assignment Sample

Exploring JLR's Legacy, Operations, and Challenges in the Luxury Automobile Industry

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Part 1: Review

Introduction of Operational Management & Development Timeline Assignment

A brief introduction to the topic and a brief timeline of the development of related concepts

Operation management is the administration of all business practices which creates a higher level of efficiency, it is concerned with the conversion of material and efficiency of labor in goods and services. Operational management professional incorporates tries to balance costs with revenue for maximizing the net operating profits (Anand and Gray, 2017). Operational management includes using all the available resources like material, staff, equipment, and also the most important resource which is technology. Every organization has an operational manager who has the responsibility of acquiring, developing, and delivering goods and services to customers of the company.

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Operation management is not a new concept but it is being practiced since the early 18th century. In beginning just before the industrial revolution and enduring to the 21st-century operational management has developed very well by allowing better production competence. The initial account of operational management is by Adam Smith in his book published in 1776 (Reid and Sanders, 2019). In the 19th century, advancement gave good rise to the use of interchangeable parts, in which the product was standardized on basis of precise specifications. In the 20th century, Henry Ford states about the division of labor and also the use of interchangeable parts to one step forward by creating the line method of manufacturing. The development of operational management has resulted from so many positive impacts on business and also some negative impacts.

Major research themes about your chosen topic (Quality management)

The major research theme for this report is Quality management; it is overseeing every activity and task which is needed to be maintained aanticipated level of excellence. Quality management involves the willpower of policy regarding quality and implementing the quality plan, and quality control and improvement (Ross, 2017). Quality management is also known to as Total quality management (TQM). The term quality management depends on the long-term areas through which the implementation of all short-term inventiveness.

Quality management helps an organization to achieve greater consistency in all its activities and tasks which are part of production products and services which are also known as part of operational management. It helps in increasing efficiency, reduces wastage, and also improves time usage and available resources. 

KPIs about Quality management in manufacturing or service

Key performance indicators (KPIs) are measurable indicators that show the company how to perform and whether will it be able to achieve its goals and objectives or not. Companies consider KPIs at all levels of the organization for evaluating performance as well as results. Since quality management is quite tricky to measure, the outcome of which is a lack of measurement which further leaves companies with no path to point out the issues which are needed to be solved and navigate towards improvement. The most important KPIs to measure the quality management of the company are as follows

  • The right first time (RFT) – this highly useful KPI as it helps gauge the quality level of the production process by critically looking at the final product. RFT measures the number of units out of the total production quantity which is produced from the production line without any defect and they do not require any kind of modification before reaching the market.
  • Defect rate – the defect rate is another KPI that helps the company to gauge what kind of defects are the most probable to come up in the future and from where. This KPI tells the company how many defects are expected from the particular unit (Sabbagha al. 2016)
  • Inspection pass rate – the inspection pass rate addresses the number of that inspection which are passed. This metric is very helpful to keep an eye on production and also specifies links in the supply chain performance.
  • Customer rating – the voice of the customer is the most valuable tool in gathering data on success level particularly to boost the company's brand reputation and also demonstrate concern for customers' needs.

Operational Management & Development Timeline

Figure 1:KPIs of quality management

(Source: Inspector, 2022)

Specific performance improvement techniques for Quality management in manufacturing or service

Figures 2 attached below shows the quality management improvement techniques which play an essential role in the quality management of an organization. These techniques include

  • Standard work which are documentation of recent best practices for specific tasks.
  • Catch the ball which refers to lean business management methodology.
  • the 5 ways are the procedure for going to the base cause of the problematic.
  • Digital huddle boardings are used for creating a graphic presentation of work that is being improved (Palm et. al. 2016)
  • 5S is a office organization method which is used 5 key elements.
  • Gemba walks, in this the leader observes and asks questions regarding the work.
  • Value stream mapping is a way of the path of documentation of everything which brings value to the customers.
  • PDSA stands for plan, do, study, and act.
  • And the last one is mind mapping, which is aillustration used to visually organize information.

Recent innovations and disruptive technologies
Disruptive innovation occurs when the traditional value in the existing market gets knowingly altered. A new player tries to enter the market with a new business model and innovative technologies that add up to the values which are so different from the current market offering.

(Source: Julia Kylliäinen, 2019)

Disruptive technology includes innovation that enhances a product or service in a way that is unpredictable by the market. Some important characteristics are:

  • Reducing prices to attract more customers
  • It has high risk as the solution disrupts the current market or either generates a whole new market (Nagy et. al. 2016).
  • It measures the value of fundamental change.
  • This involves new innovative technologies and models of business.

Directions for future research

From the futuristic point of view, the need for evolvement seems to be very high, and direction for the future research regarding quality management is very specific. Quality management will be needed to adopt digital transformation, and shift from leftover to helping organizations design and risk assessment systems. The future goals for quality managementare to translate big data into real value in terms of escaping from failure and also looking out for find solutions to complex problems will effectively influences the targets of the company.

Part 2

Introduction of Jaguar Land Rover: A Legacy of Luxury and Innovation

Jaguar land rover is one of the popular automobile brands in the automobile market of the parent company Jaguar Land Rover (JLR). Headquarters of company are in Whitley, Coventry, England. the company’s first model was launched in late 90s known as SS ½ litre sports saloon, and after some time the company has also launched its SS Jaguar 100 a two-seater sports model with 3 ½ litre engine (Dzhioev, 2015). In January 1, 2012 the company fully merged with the Land Rover and formed a totally new corporation which is popularly known as Jaguar Land Rover (Mukherjee, 2016). The company is involved in manufacturing of cars, some of the most popular cars JLR manufactures are XF, F-Pace, I-Pace, XE, F-Type, Jaguar R, E-Pace and SVR models. JLR is also involved in manufacturing of huge range of sports cars which are also part of formula E racing. Company has recently announced its cars which is fully electric in upcoming future probably up to 2025 (Thorley, 2016). Strategic intent of company is to offers a sustainability-rich imagination of luxurious, uniquely experience and a positive social impact. JLR is one of the popular leading car brand in the automobile market with the all giant competitors like Audi, Porsche, BMW, Ferrari, Lamborghini, and many more (Chapman, 2021).

An overview of the company’s operations

JLR has gone through so many challenges because of globalisation, since these challenges the company has totally changing its all procedures and old structures for fighting the globalization challenges. JLR is always looking forward to expands its market to global boundaries and gain competitive advantages.

The company’s operation and distribution activities includes launch of its Ford 2000 which includes seven strategies to gain success in the international market. The company encourages its employees to take decision regarding achievement of organisational as well as individual goals and also motivates them to work with full potential. Company’s Ford automotive operations were developed as part of elements of its Ford 2000 in order to combine its business operations into global organisation structure (Dzhioev, 2016). CEO of company has suggested that the company remains globalized through actual designs and manufacturing, marketing operations, and also satisfying the requirements of its customers.

The company has recently launched supremo, Barbara Bergmeier appointment of supply chain for the post of executive director, of industrial operations. This responsibility is split between the manufacturing, supply chain team, and purchasing team (Jaguar Land Rover, 2022). This change in the company consolidated accountability for the company’s production of vehicles.

There are several software which is used for process mapping for the company, the best is pipefy which is a low-code business process automation (BPA) tool that helps in supporting process mapping with all its visualization features.

A critical analysis of the operations transformation processes

A transformation process in operation management refers to changing some parts of the operations for further improvement. For example for making more effective. Reliable, faster, and less expensive. The transformation process in operation management includes:

  • Change in physical characteristics of the material used in operations.
  • The shift in the location of material or customers
  • change in information regarding material

The company endures to implement its product and technological plans, which further include the launch of new Land Rover Defender sales, the Discovery Sport plug-in hybrids and the launch of Range Rover Evoque. The company also looking forward to updating its current product series with leading design and also with advanced technology. The industry continued to offers challenges in the financial year 2020, with all pandemic, tariff, and trade issues, and the most important factor is the rapid technological change which is related to electrification, connectivity, and automation. As a consequence, company’s financial presentation has been unpleasantlyaffected but the business always responds in conclusive action with its project charge. Project charge had even now exceeded £2.5 billion which was targeted, delivering around £2.9 billion of cost.

Performance management and KPIs in the company

Jaguar Land Rover corporation boasts several divisions. The performance management of company includes several management departments like production, operation, supply chain, etc which all associate their efforts to allow manufacturing high-quality vehicles which can fulfil the requirements of customers. The operations are all about offering products and services which are provided while maintaining efficiency. The operational purpose of JLR ensures that the resources are available for the production process for building products according to the needs of customers. A company's operational management also plays an important role in performance management as it involves converting inputs into useful outputs that can fulfill customers' needs.

The company says that change has been a constant feature, as they are successful in having clearness of the determination at all levels by emerging the systems for supporting performance, dividing into teams, and also cheering talents to be used for good. Simplification and standardization of the system helpsin delivering company’s strategy and change adaptation. Around 60 KPIs have been advanced into 18 KPIs which drive the operations all across JLR sites.

An evaluation of the company’s operations

  1. Jaguar land rover is known for its popular ownership knowledge in strategic vision Inc (SVI) and total quality index (TQI). The quality management of the company is measured by the TQI which includes total ownership experience, it also accounts variety of features including customers committed to vehicle loyalty. Every car of the company is to order, so each car of the production line is pre-booked and owner waiting.
  2. JLR's supply chain management refers to all business actions which include the purchasing of raw materials, distribution of products, production and the most important part which is the managing of goods and services. Supply chain management is part of operational management as it comprises of the optimization of operations for making the proper utilization of speed. Supply management of the JLR makes sure that the management of the corporation is updated to value for its customers and also gain advantage over competitors (Wisner al. 2015).

An application of appropriate tools and techniques to analyze the complex operational issues

JLR has outlined its goals to each operational department, which they must achieve for running the company's activities. Operational management handles the resources management which drives to the production of goods and services. Tools and techniques used to recognize the complexity of operational issues of the company are as follows:

  • Speed Performance -- It states the rate at which the company generates its sales quotes and the method of delivering vehicles. Speed involves issues like the time required for making the cars and also the specific time the company needs to build a new product. JLR is very good at understanding the importance of speed, by which the company produces and is able provide vehicles on time to the market.
  • Logistic mix – company is looking forward to enlarging its relationships with logistics providers for the benefits of effective logistics and to keep its quality consistent. Growth at a high level all over the world needs the logistics to be accurate and responsive. JLR comprised more technological methodsfor focusing on its logistics operations, by whichdevelopment in technology could further help in increasing efficiency (Stare?ek al. 2018).

An analysis of current operational challenges

The major challenge that the company is facing is that retail sales for the past three months continue to be controlled by a shortage of semiconductors. The company's retail sales decreased by 36% to 79008 units as compared to last year. The retail sales of last three-month were constrained by the shortage of semiconductors on global level. the company was looking forward to do improvement in supply which further leads to improve production and also the wholesale volume in comparison to the previous quarter and is also to continue in the upcoming fiscal year. JLR sales for the time under review were calculated at 14, 574 units which are reduced to 38% from a year ago (Business Standard, 2022).

In spite of the effect of the shortage in semiconductor sales and production, the JLR continues to have a huge demand for its products with the global trade orders through which the company is setting new records in the fourth quarter.

Conclusion

From above report facts and figures of the leading luxurious car manufacturing brand JLR is concluded. By the help of qualitative and quantitative research the report has developed a better understanding about the launch and merger of the company jaguar with other popular company land rover which is now known as Jaguar Land Rover. The key goal of company is to offer a great experience, modern luxurious car to its customers, which further focus on sustainability and a have a good social influence on society and its customers. according to the recent evaluation and analysis, the company is working with very effective organisational structure. The main benefit of this structure is that it provides managerial expansion of departments of company which further focuses on company’s main goals of global expansion. In addition to all the information, the report highlights and explains how company operational management is playing an important role in supporting the goals and objective of company. The report assesses the JLR’s internal and external factors analysis and evaluates current operational challenges and recommends suitable solutions.

Reference

Anand, G. and Gray, J.V., 2017. Strategy and organization research in operations management. Journal of Operations Management53, pp.1-8.

Business Standard, 2022. Jaguar Land Rover sales decline 36% in Q4 as semiconductor woes continue. (Online). :<https://www.business-standard.com/article/companies/jaguar-land-rover-sales-decline-36-in-q4-as-semiconductor-woes-continue-122040801048_1.html>. (Accessed on 6/12/2022).

Chapman, G., 2021. Jaguar Century: 100 Years of Automotive Excellence. Motorbooks International.

Dzhioev, A., 2015. Market Position Global Brand: the Case of the Jaguar. In ?????????????????????????????????? ? ?????????????????? ? ?????? ? ????????? (pp. 173-175).

Dzhioev, A., 2016. The evolution of the global corporate brand. ???????????? ? ?????????-??????????????????, (3), pp.73-75.

Jaguar Land Rover, 2022. BARBARA BERGMEIER JOINS JAGUAR LAND ROVER TO TRANSFORM END-TO-END SUPPLY CHAIN AND INDUSTRIAL STRATEGY. (Online). :<https://www.jaguarlandrover.com/news/2022/06/barbara-bergmeier-joins-jaguar-land-rover-transform-end-end-supply-chain>. (Accessed on 6/12/2022).

Jaguar land rover, 2022. NEWSROOM JAGUAR LAND ROVER. (Online). :<https://media.jaguarlandrover.com/en-us>. (Accessed on 7/12/2022).

Julia Kylliäinen, 2019. Disruptive Innovation – What is It and How Does It Work? (Online). :<https://www.viima.com/blog/disruptive-innovation>. (Accessed on 6/12/2022).

Maggie Millard, 2022. 9 Brilliantly Simple Continuous Quality Improvement Techniques. (Online). :<https://blog.kainexus.com/continuous-improvement/continuous-quality-improvement/9-simple-continuous-quality-improvement-techniques>. (Accessed on 6/12/2022).

Mukherjee, D., 2016. Case analysis: Tata Motors' acquisition of Jaguar Land Rover. The Business & Management Review8(3), p.48.

Nagy, D., Schuessler, J. and Dubinsky, A., 2016. Defining and identifying disruptive innovations. Industrial Marketing Management57, pp.119-126.

Palm, K., Lilja, J. and Wiklund, H., 2016. The challenge of integrating innovation and quality management practice. Total Quality Management & Business Excellence27(1-2), pp.34-47.

Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John Wiley & Sons.

Ross, J.E., 2017. Total quality management: Text, cases, and readings. Routledge.

Sabbagha, O., Ab Rahman, M.N., Ismail, W.R. and Hussain, W.M.H.W., 2016. Impact of quality management systems and after-sales key performance indicators on automotive industry: A literature review. Procedia-Social and Behavioral Sciences224, pp.68-75.

Stare?ek, A., Bachár, M., Hor?áková, N., Cagá?ová, D. and Makyšová, H., 2018. Trends in automatic logistic systems and logistic market in Slovakia. Acta logistica5(1), pp.7-14.

TATA, 2022. Jaguar Land Rover. (Online). :<https://www.tata.com/business/jlr>. (Accessed on 7/12/2022).

Thorley, N., 2016. Jaguar-All the Cars. Veloce Publishing Ltd.

Wisner, J, Tan, KC, & Leong, G 2015, Principles of supply chain management: a balanced approach, Cengage Learning.

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