Operation management refers to that branch of management which deals with developing, monitoring and controlling the process of production and also bringing improvements in the processes if deemed necessary with new trends in market and technology. It involves ascertaining and adopting those techniques that result in achieving high efficiency while conducting operations of company. Supply chain management is the process of flow of products and services from the point of origin to point of consumption including activities like transportation and storage of raw materials and work-in-progress inventories. On the other hand, logistics refers to the process of planning, monitoring and executing the flow of goods and services from origin to destination in an effective and efficient manner in order to meet consumer needs and preferences. The present report is based upon Jaguar Land Rover which is a multinational corporation situated in United Kingdom. This company is involved in carrying out Research and Development, manufacturing and assembling of vehicles and its parts. This report mainly assesses two issues that are faced by company while carrying out its operations. These are namely, new product or service development and process along with logistic mix. Also, this report includes solutions to the identified problems along with recommendations for the same.
Selected Business Organisation
In this, the selected organisation is Jaguar Land Rover which is an automotive company involved in designing, development, assembly and distribution of vehicles. The company offers luxury cars along with sports cars, four wheel drive off-road vehicles and many other related vehicle parts and services.
Two selected areas of Operations and Supply Chain Management
The two operational areas of selected in context of Jaguar Land Rover are:-
- New product or service development and process
- Logistic mix inclusive of channels, networks, transportation, managing inventory and capacity
Supply chain management refers to all those activities that take place while transforming the raw materials into finished goods. This concept deals with the development of products of Jaguar Land Rover in a way that it reaches the market and gain widespread acceptance and satisfaction from customers. Also, it includes activities like procurement of raw materials, using them for production, transportation, storage and shipping of final product. It is a representation of the time and efforts of suppliers for designing and developing and then executing the supply chain which is effective as well as economic for the product or service. Supply chain is all about manufacturing, product development and using information technology to direct the vehicles of Jaguar Land Rover towards the customers company plans to target and are themselves willing to make the purchase. Automotive supply chains are complex as each vehicle of Jaguar Land Rover comprises of a huge number of parts that come from various suppliers. With the aid of technology, company utilises this to develop and design cars that best suit the needs and requirements of consumers appropriately.
Theories and techniques that should be applied
Product Development Toolkit Model include a set of tools that are used for development of product from the stage of ascertainment of consumer needs to development of product accordingly to monitoring and controlling of product development plans. It includes stages like Control Plans, Failure Modes and Effects Analysis, Design for Manufacturability/Assembly Assessment and Quality Function Deployment. This model is implemented while Jaguar Land Rover makes new products. Herein, the company is planning to launch a new car with the name Jaguar Land Rover Blue Zinger. Company is developing the car with the aid of technology and innovation. Also, to make this car reach the market, company is utilising right set of distribution channels and warehouses so that it can meet the demands of consumer. Company used two techniques while carrying our the product development process, namely, Just-in-time (JIT) and Lean Production. While JIT involves processes that aim at minimising the time between procurement of raw materials (vehicle parts) and converting them into finished goods (cars), Lean Production refers to the conduct of business operations in a manner that result in cutting of costs as well as maintenance of high quality work along while ensuring the efficiency of work.
Potential areas of improvement
- The sales and revenue has not grown much in UK and other European Markets. Company has the capacity to take actions or bring innovations to increase the product reach and consequently, the sales.
- Company is capable of bringing improvement in the features of car so as to meet the requirements and preferences of customers.
- Also, there is a scope of improvement in terms of margins and profitability as company's cash flow after investment is negative.
New Product Development is concerned with the process of designing developing the product so as to meet the needs and requirements of consumers. This process involves the launching of a new product in market to gain acceptability in market and to increase the name and brand position of entity in industry. Jaguar Land Rover (JLR) is also launching a new car model named JLR Blue Zinger. This car is equipped with high security feature where the access to car could be given to 5 persons by connecting the mobile phone with JLR Blue Zinger and scanning their fingerprints. Thus, during the time that the car is locked, if any unauthorised person tries to open the gate of car, the sensor will identify it and their hands will be electrified and thus, they will not be able to free their hands from the door handle. Also, alarm systems of the car would ring, thus, deploying to inform the bystanders and owner of car about the attempt of theft. For designing and developing this car with high-tech security and innovative features, Jaguar Land Rover uses Product Development Toolkit Model. It involves many stages discussed below.
Quality Function Deployment is a powerful tool used for doing planning about the product and characteristics which the product would be equipped with. Jaguar Land Rover by capturing the Voice of Customer (VOC) and performing the competition and market analysis is launching JLR Blue Zinger with high security features by the aid of technology and sensors. In this feature, no unauthorised person is provided the access to this car unless allowed by the 5 persons who are identified as owners or users of car. This features helps the company in building its corporate by providing security to them from the threat of theft.
Target Costing is a strategy developed by companies keeping in consideration the market situations and then deciding upon the price of product such that desired sales volume can be achieved. Jaguar Land Rover decides a fixed price (non-negotiable) for the car. The target audience of company while launching this car is mainly middle and elite class individuals who will be able to afford the car easily. Cost of the car is decided by company after taking into account all the factors like security, features and quality. Furthermore, JLR prepares a cost sheet while designing and developing the car and includes finance utilised in relation to material cost, manufacturing cost, overheads, fixed cost and scrap.
Design for Manufacturability/Assembly basically are those principles considered while designing assemblies such that they can manufacture even more. This process helps in reducing the cost of manufacturing the product along with the cost of fabrication and assembly. Jaguar Land Rover's new car is equipped with features like alarms and sensors thus, the company ensures that all the parts of car are assembled at a fixed place which will reduce the cost of transportation which adds to the product development cost. Enterprise is entering into a period of automotive revolution wherein factors like political, legal, environmental and social challenges are continuously posing threats to company so that it can develop new ways of design and development of cars. Thus, JLR is seeking new solutions around the electrification of powertrains. Company uses software for carrying out the assembly of car.
Failure Modes and Effect Analysis (FMEA) is a method used to ascertain and analyse the probable issues related to reliability of product development cycle so that necessary actions can be taken in timely manner to combat these. Jaguar Land Rover uses this as a powerful tool to determine the major issues while designing and developing the new car, JLR Blue Zinger. In this car, company is bringing reflection of Artificial Intelligence and high-tech practices so as to provide the security feature in car. Also, using this analysis, company can ascertain failure modes and then ascertain such actions that can reduce chances of failure while introducing the product in marketplace.
Control Plan is a set of actions that are necessary at each step of process development so as to ensure that the outputs in terms of product is in control. Jaguar Land Rover develops control plan to present in a written form and communicating the plan for development of JLR Blue Zinger. Company makes this plan to make sure the quality of components, features and final product (Blue Zinger) so that it can meet the needs and requirements of consumers in marketplace.
Logistic mix is an essential element of supply chain management and consist of a number of components. These are, namely, production planning, inventory management, storage, transportation, forecasting demand, material handling, packaging, distribution, customer services and after sales activities. In relation to JLR Blue Zinger, company procures vehicle parts from such suppliers who assure about the delivery of high quality components. Also, Jaguar Land Rover uses Direct Distributors as a medium of distribution. These dealers directly come in contact with customers so as to communicate the features and components of car in an effective manner such that more people can be influenced to purchase the new car launched by enterprise. Transportation adopted by company is such that it is feasible with all of the mediums such air, sea ports, road etc. All of these are effective ways through which company can make the car reach the market and customers. Jaguar Land Rover equips the car with high-tech features like alarm, sensors, electrification. Also, to manage the inventory properly, company uses two techniques, namely, Just in Time and Lean Production. JLR uses Just in Time approach to minimise the time lag between the procurement of parts of car and executing the final production and development. By this, company aims at eliminating any time that is wasted from the sourcing of raw materials to completion of finished good.
Furthermore, Lean Production technique is utilised by entity to reduce the overall cost of production, design and development of car. With the help of this tool, company tries to eliminate the wastage during process along with ensuring the quality quotient of new car. Also, by using this approach, Jaguar Land Rover eradicates any activity that does not add value to the process of production like repairs of faulty components, holding back of stock etc. The major focus of this enterprise is upon ascertainment of needs and requirements of consumers and then introducing products that develop solutions for the needs.
While carrying out the production and supply chain management, Jaguar Land Rover faces a number of issues. These are overstocked inventories, cost and location issues along with environmental and ethical concerns.
In issue related to overstock inventory is that firm Vauxhall firm should keep its inventory well- stocked not overstocked. From changing in the technology, there will be impact on existing stock of company. By changing in demand of consumers, firm will make the new product and will enhance its quality. For track as well as measure the data regarding inventory, Vauxhall can use the software and through this firm can know about the most requested items. In cost and location issue, manufacturing intensity of Vauxhall firm enhances because of consumer demand, technology, innovation, manufacturing of vehicles. If the demand of consumers will be change, then firm should develop the new cars by providing unique features and rapid changes in technology can enhance the manufacturing cost of firm. In order to resolve the location issue, company can examine different factors such as financing, relocation, maintaining the client production etc.
These all are the issues related with supply chain management, operations and logistics which are faced by the supply chain manager of Vauxhall company. So, it is necessary that manager should be focus on all these these and work on resolve them so that process of new product development and managing quality of cars can not be impacted. For the company, managing quality and new product development are the two important concept.
It is necessary that manager of Vauxhall should be focus on overcome from the supply chain and operational issues. At the market place, there are large number of competitors those use high quality of technology and innovation in their cars. So, it is necessary for Vauxhall business firm to focus on enhance its capability, hire qualified workforce so that problems can be solved in a proper manner and firm can give the better products to consumers. From the issues, company is not capable to expand its business in other market. In context to supply chain issues, overstocked inventory will impact on the cost of business because if the stock will be over then from this inventory will be wasted because the demands of consumers are enhancing with in short period of time. If in case firm will have proper data and keep only the required inventory then firm will have the proper stock and existing inventory will not be wasted. It will be helpful in enhance the productivity as well as operations of business (Hugos, 2018). On the other hand, environment and ethics are necessary issues and under this regulations and quality standards are included which are responsible for ethical, environmental and safety impact on business as well as its operations. For protect environment, it should focus on make its manufacturing process better that can not harm environment, produce pollution free cars, provide the innovative and unique features in cars etc.
Through this, large number of consumers will be attracted towards firm and company can expand its business operations in the other countries. At the time of conducting any business, firm should follow the rules and regulations, norms, values etc. It helps in develop the positive impact on operations along with business at competitive market (Seuring, 2013). These all are the effective ways to overcome from all the issues. On the other hand, there were different operational issues for an instance cost, technology, resources etc. In order to develop any new product in business, it is necessary that company should have all the resources that will be require for manufacturing the car so that firm can not face any kind of difficulty. For check the quality of manufacturing process or car, it is necessary that Vauxhall company should use the Total Quality Management, Just in Time, Six sigma. These all are the effective quality tools which help in make improvement in quality as well as managing it in an effective manner. On the other hand, cost is a main concern for an organisation. If firm develop new product, adopt advanced technology and using the quality tool, firm can manage the quality of its cars and use the better quality of tools.
Service Delivery system is configuration of organisational and technological networks design to provide the services which can satisfy requirements and aspiration of consumers.
There are three different dimensions for sustainability of business can use by Vauxhall business firm and these are economic, environmental and social factors. In economic factors include tax rate, rate of inflation, deflation, exchange rate etc. It is necessary that cost of car should be economic so that consumers people can purchase them without facing the cost issue. On the other hand, in social factor includes attitudes, behaviour, taste of consumers etc. IT is necessary that product of car should not be harm to people or on their health and it should provide the benefits to them so that they can purchase as well as use in a significant manner. The main focus of Vauxhall company is to make the environment pollution free so that health of people can not be harm. It uses the effective environmental standards in its business.
It has been concluded from above mention report that new product development and managing quality are the two main elements that help firm to enhance performance and gain the competitive advantage. Under this mention report studied about the issues related to operations, logistics and supply chain which supply chain manager face in Vauxhall. There has been discussed about the environmental, economic and social factors in sustainability of business.