Assignment on Managing Business Activities to Achieve Results

Assignment on Managing Business Activities to Achieve Results

Assignment on Managing Business Activities to Achieve Results

Introduction

Jaguar Halewood plant in Liverpool is a production facility based in Halewood. The plant has been operational since 1963 and is among the big units of the company in England. The year 2009 saw a huge job cut where the company ceased production of the X-Type leading to 300 unemployed employees for the company. With the UK government announcing £27 million grant for Jaguar Land Rover the production of Range Rover Evoque was started at this very plant by July 2011. Later on Evoque turned out to be the best seller and was acclaimed as a concept like styling. This turnaround saw an increase in employee base to 3000 people by the early 2012. The company later on went to employ an additional of 1000 staff for this plant in order to meet the growing demands of the Evoque. By end of 2012 this plant turned into a 24 hour running process (Jaguar Land Rover 2014).

Last year JLR had announced an investment of 200 million pounds at the Halewood plant for supporting the introduction of its SUV Discovery Sport. This car is slated for sale by mid of this year. With increase in production and employees the company has recently inducted 10 new management interns and plans to introduce the operations of the company to them and take their efforts to further improve. In an attempt to make these interns comfortable and well aligned with the company’s policies the following report analyses and offers in-depth to the operations management within the company.

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Task 1

1.1 Interrelationships between processes and functions at Jaguar

Mission of JLR: “We want to deliver more great products, faster than we have ever done before. We want to be leaders in the field of environmental innovation. We want to be sure our customers always come first. These are the three great passions we all share. Together, they form our mission.”

Vision of JLR:

  • Demonstrate leadership in sustainable business practices in all our activities across the world
  • Create products that meet our future customers’ needs with less environmental impact
  • Inspire future generations with the potential of technology; advancing knowledge and developing a more sustainable way of living
  • Become a leader in sustainable social development which improves lives, in our local and global communities
  • Engage our people, customers and partners in our Responsible Business vision (Jaguar Land Rover 2014).

Values at JLR: “The approach is based on a set of core values. These values help us create and manufacture premium vehicles in a sustainable way. They involve us working together with integrity and understanding, and striving to achieve excellence in everything we do.”

Business Processes: Business process is defined as the linked activities which creates values by transforming an input into a valuable product. At JLR the two different business process in practice includes:

  • Management Process: This process is responsible for strategic planning and change management to take place within the organization.
  • Value Creation Process: Value creation is the process which has 2 sections where the 1st section involves the value creation process and includes gathering and reporting the formulation or market development as well as customer acquisition bifurcation. It further goes ahead to the demand fulfilment process which involves designing of products i.e. R&D. The R&D Department coordinates with the finance department to get the adequate funding for the process (CIMA Global 2009).

The entire business process of Jaguar Halewood plant is an ideal business process which requires deployment of new technology and is aided by SAP and other ER software. To explain the interrelationships of the above two processes we can take the following example. In order to create a new product such as the new concept SUV which comes with value added features and would be beneficial to the company, the planning department coordinates with the R&D department to make them aware of a new product. R&D Department in turn coordinates with the production department for starting with the designed product which is actually designed by the R&D department. Further, the production department contacts the logistics department for checking whether they have adequate resources to start the production. In case they are not ready, they would ask the purchase department to purchase the required raw materials. Once the production completes, the next role is of the quality assurance department which checks the quality of the products as per stated standards. After all quality inspection takes place, the marketing department comes up with the strategies for promoting and launching the product. This is the cross functioning process of the JLR which has helped it to revamp its production unit and turn it into a winner. In the year 2009 the unit was reducing its workforce, but now the unit is constantly increasing its production facility and recruiting new members. Communication plays a vital role here where JLR has been able to ensure better communication within the departments and increasing the level of understanding and coordination which further facilitates a better efficiency level within the organization. The other aspect which the company had been stressing on is the constant training and monitoring of the targets as well as activities within the organization for gaining focus of doing all kinds of tasks (CIMA Global 2009).

1.2 Methodology used for map processes for organization’s goals and objectives

Process mapping is defined as a visual aid which facilitates the understanding of work process within the unit of JLR. We are aware of the fact that success of any kind of business is largely dependent on the way it can communicate their core functions along with the key activities of the business. Process mapping is the technique which is used by businesses for converting it into a visual step by step diagram.

Core Processes

Key Activities

Finance Department

Managing finance as well as formulate growth strategies

R&D Department

Producing new products each year

CRM department

Developing direct links between customers and staying connected with them

Marketing Department

Identifying the potential markets and increasing the promotional activities

Sales Department

Increasing sales

Production Department

Producing high quality and cost effective products

HR Department

Recruiting efficient and responsible employees

Planning Department

Developing new strategies

Logistics Department

Inventory Management

Quality Assurance Department

Ensuring zero defective products

The above diagram lists down the key core processes and analyses the key activities of JLR Halewood plant. The 1st column offers the core processes of the company while the next column offers the key activities of each process. These processes are mapped to the goals and objectives of the organization especially the R&D department as it leads to achieve the objectives of introducing new and better products each year which is the primary objective. The other processes are mapped to the goals and objectives are the CRM department. The company has installed effective and highly advanced ERP software leading to achieve the activity for creating a direct link with the customer and improving the customer satisfaction levels. The last mapping is with the Sales Department where the organization focuses on achieving the goal of increasing sales as well as profits for the organization (Land Rover 2010).

1.3 Output of the process and quality gateways of JLR Halewood

JLR has been known to have made attempts for achieving all the factors related to the mission statements of the organization. The products of JLR are among the premium car segment and is high on quality as well as services. The company has been coming up with new products and services and constantly upgrading its technologies. The efforts have always been made for fulfilling the criteria of SMART objectives. Moreover, the objectives of the business processes is based on the goals as well as critical success factors of the organization. The key critical factors within the company for bringing specific quality output measures that has resulted in meeting its output requirement are:

  • ERP and other advanced software solutions: The introduction of advanced ERP and technologies to aid the production process within the organization had been a revolution. The use of advanced 3D drawings and better equipped R&D team has been able to transform the offerings of the unit. Moreover, the company has been able to handle the customer data with a greater visibility as well as been able to predict results of the customers. With limited products and a specific section of market which the company caters to they have leveraged upon these areas for quality output requirement.
  • Lower Turnaround time: The demands for the products by JLR have been on the rise and the unit had been facing issues to cater to the rising demands over the years. To facilitate this need the unit has been converted into a 24 hour unit while the logistics process has been constantly ensuring that there is no shortfall of raw materials which can affect the production. The company is moving towards reducing the throughput time and trying to have a timescale of the delivery process to meet demands in a much quicker manner (Strategic 2010).

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Task 2

2.1 Plan for promoting goals and objectives of own area responsibility

The own area of responsibility at JLR Halewood plant is of product development which includes planning process as well. The purpose of product development would be to draw new customers and maintain the existing customers. The company had already come up with its best seller Evoque in the year 2010 which contributed largely towards development of the production base. Presently the company has been expanding and beefing up its investments for increased production as well as launch of the brand new SUV Discovery. The product development strategy helps the company for gaining new potential customers. Planning plays a crucial role for achieving the key milestones of the business where the functions includes organizing, leading as well as controlling to carry out the decisions of the planning process. The 4 elements of planning for JLR Halewood plant are:

  • Objectives: It is an integral part of the plan as it specifies the future conditions which the management would need to consider.
  • Actions: These lists down the chose means for achieving the objectives.
  • Resources: Resources are the factors for production which facilitate the implementation process as well as helps in getting acquainted with the latest technologies used within the organization.
  • Implementation: In the implementation process it would include the assignment as well as direction to the personnel for carrying out the plan.

The plan here for promoting goals and objectives of the own area of responsibility is to improve the CRM process within the organization by the help of the above elements which would enable them to gain a competitive advantage. The steps of the planning process would be as follows:

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2.2. Smart Objectives for the CRM Department for aligning along with other resources

  • Specific: Developing a direct link with the customers
  • Measurable: Increasing the sales of Evoque models by 20% in 2015 and selling over 1000 units of the SUV Discovery.
  • Achievable: Improve the customer satisfaction levels and increase the scalability of the unit.
  • Realistic: Standardizing the sales discovery process.
  • Time Based: To Improve the CRM process by the help of Oracle systems in 2015.

2.3 Implementing systems for achieving the objectives in an efficient manner, on time and budget while meeting these standards

For implementing appropriate systems in the most effective manner and on time for budget and meeting the organizational standards the following project management tools need to be used. The Work break Structure of CRM process and Gantt chart tool would implement the systems.

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The above diagram reflects the Work Breakdown structure which would help in conducting the customer relationship of the SAP process within the organization. It would help them in knowing which tasks need to be performed and what are the important tasks.

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The above Gantt chart provides the project milestones for giving a clear idea of the duration of the activities and the time which each need to be done within. It would enable an easier understanding for the activities which would be carried out in the entire implementation process.

2.4 Effectiveness of Work Breakdown Structure, Gantt chart, Critical Path analysis for effectively planning, implementing and monitoring as well as controlling the project operations

Work breakdown structure would facilitate in conducting customer relationship SAP process within the organization for helping them in knowing the important tasks which are required to be performed and the important tasks. Without them it would mean an entire failure. Further based on the WBS the Gantt chart is prepared which offers a clear idea of the activities which need to be performed and the duration each activity needs devoted time for. It makes it clearer to understand the order of activities which have to be carried out and hence make it possible for the employees and management for identifying the total duration (Martin Dougherty 2009).

Task 3

3.1 Quality systems which can manage and monitor the quality standards at JLR

Systems for managing and monitoring quality standards at JLR are given by quality policies of its top management. They include:

  • Producing products which meets the required standards and compliments the brand value of JLR
  • Constantly improve the process for understanding the changing tastes and preferences of its customers
  • No tolerance to substandard or low quality design and product
  • Organize the entire job processes for doing the job right each and every time
  • Continuously improve its product and service quality (Martin Dougherty 2009)

At JLR the company has adopted control methods which include:

For developing a quality system for improving the effectiveness within the Halewood plant of JLR, the following 5 steps are critical:

  • Developing Quality Characteristics: This would need the quality control systems for assuring that the products are delivered as per the needs of the customers.
  • Establishing the standards: Here the unit needs to set standards for the quality which must be prevalent for the customer defined characteristics
  • Creating a quality review process: It would help in ensuring that quality is maintained by implementing specific quality standards
  • Building quality commitments: The supervisors need to make sure that the employees are motivated and committed in a manner that they achieve the set and desired quality standards (Business Case Studies n.d.)
  • Designing a reporting system: The Company needs to offer quality information which is channelled to the employees for taking corrective action (Nii Armah Addy 2013).

3.2 Quality Culture for ensuring continuous monitoring, evaluation and development process

Presently, Jaguar adopts a three process system for monitoring, evaluating and developing the TQM within the organization. The process is divided into three different steps, that is:

  • Dispersion
  • Adjustment
  • Packaging

Evaluation: The present systems of TQM process is quite effective but Jaguar needs to work effectively for ensuring that TQM is performed in the best possible manner. The different factors which Jaguar would need to focus upon includes:

  • Prevention
  • Inspection
  • Correction

The reason for increasing the focus on the above three factors is the fact that it would facilitated the company for manufacturing better quality products without having any wastage of its resources. In case of inspection, it would help the unit for reducing the number of rejection entries for developing a particular product as hiring of the inspect officer would reduce the rejection as well as error entry within the production process. This would facilitate the company for achieving quality policy of accepting zero defects. With respect to correction right machines and technology would help in delivering the best quality goods to the customer. It would also help the labourers to stay aware of any mistakes which they might be doing while the process is being performed (Business Case Studies n.d.).

3.3 Recommendations for improving the alignment of organizational goals and objectives

The best thing which can be recommended to Jaguar for improving its systems would be adoption of Six Sigma theory. The reason to say this is the fact that it would help in improving the output quality process. The theory instigates for reaching goals and objectives, measure performance, improve processes, etc. It can be easily integrated to the business process which would help in moving towards the policy of zero defects. In case the company adopts this tool it would improve the business process within the organization and remove any defects prevalent within the unit. Thus the company would move towards a much more productive as well as efficient process for meeting the customer requirements. Six Sigma has different layers which are:

  • Yellow
  • Green
  • Black
  • Master Black
  • Champion

The critical success factors which are an essential element for improvement in the business processes are:

  • Commitment and leadership skills of the top management
  • Customer Management System which is well implemented
  • Education and the training systems
  • Development of competitive benchmarking systems
  • Developing a strong strategic planned system
  • Information and analysis system which is well organized
  • Equipped with all quality tools
  • Developing the supplier management systems (Simon Moger n.d.)

3.4 Effects and Wider Implications of the proposed changes

Adopting the above changes would lead towards the following positive implications:

  • It would reduce the cycle time
  • Enhance time management
  • Reduce wastages
  • Offer sustained gains as well as improvements
  • Reduce number of customer complaints
  • Introduce standard operating procedures
  • Align the processes with vision, objectives and values of Jaguar
  • Theories and concepts would be integrated with regular business processes

However, a few negative impacts which Jaguar might have to face would include:

  • Difficulty in gathering sufficient data and interpreting while its use in big tactical decision making
  • Increase the costs
  • Limited experience might lead to decrease in profits and quality measurements

Task 4

4.1 Risk Assessment as per the legislation, regulation and organizational requirements to ensure appropriate action

The efforts put in by the organization for identification of the workplace hazards and thus reducing the number of accidents or exposure to harmful elements is defined as Health and Safety legislation. Jaguar would need to have proper training systems for personnel to prevent accidents and keep them well equipped to react in appropriate manner in case of emergencies. The company would need to align its business as per the law set by the government for environment, labour relations, quality standards, etc. Simple yet important measures would enable the employees to be ready to manage all kinds of risks. For instance fire safety drills which might be done every 6 months would be a very good practice. Advised 5 step plan for risk assessment within the organization would be as follows:

  • Identification of the possible hazards
  • Assessing and prioritizing the risks to the employees and associated members
  • Developing the risk reduction plan and establishing the objectives for improvement
  • Developing effective monitoring as well as measurement systems
  • Reviewing the results

The above process is a continuous process and is repeated in circles on a regular basis. Jaguar is known to be quite professional and well equipped with fire alarm systems, appropriate sign boards, proper ventilated areas, etc. The company also hands out health and safety document when employees join the company and proper training is done to make them acquainted with the health and safety regulations of the organization (Simon Moger n.d.).

4.2 Health and Safety regulations and legislations for effective application in certain specific scenarios

The different laws and legislations which are applicable in specific scenarios at Jaguar are:

Purpose

Acts and use

Health and Safety Act

It includes the ways in which industries need to incorporate systems of approved codes of practices. The employee as well as the employers have specific duties and responsibilities which are governed by laws of acts like Health & Safety at Work 1974.

Facilities and conveniences, welfare, safety standards, etc. 

As per this act it makes sure that adequate safety measures are in place for promoting health and welfare of the factory workers. The laws include the Factories Act 1961 and Factory Act 1833.

Accidents such as slip or fall

Governs the most common injuries like slipping or falling within the factory. It is governed by Fatal Accidents Act 1976.

First Aid and Casualty

It is used for showing immediate attention and reacting adequately to casualties and accidents within the workplace. It is governed by the Health & Safety Act.

Fire and Explosion

Relates to issues like obsolesces of machines and causing fire or flammable substances during the production process. The act which specifies the norms is Workplace Fire Safety (Land Rover 2010)

Noise

High noises leading to hearing damages which includes the constant noise from production departments which can be a cause of concern for employees. It is governed by control noise at work regulations.


4.3 Systematic review of health and safety policy and processes for assessing if they are effective

For carrying a systematic review of the organizational health and safety policies as well as procedures, it is essential to list down the health and safety polices which Jaguar follows. Jaguar has always been known to accept the change and forge for the changes within their organization. The different sections for evaluation are:

  • Slipping or fall: The Company has ensured a proper department which takes care of cleanliness which includes cleaner and dryer floors. It would be advised that proper cleaning machines is adopted for a scheduled cleaning during different hours of the day.
  • Working Equipment & Machinery: It includes the computer systems, software, machines, and other equipment. These have potential risks which is more or less depending on the usage of each. It is recommended to have proper maintenance of the machineries and replacement of them when they become obsolete. A proper guideline of operating these machines should also be readily available.
  • Fire and Explosion: The production process uses electricity, cylinders, gas, and other hazardous elements which could result in fire and explosion. The company has installed fire alarms and firefighting systems at each division. It would be advised to have regular servicing of fire extinguisher so that it works in event of uncertainty (Jaguar Land Rover 2014).

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References

Business Case Studies, Creating world class performance in a Jaguar assembly plant, available at http://businesscasestudies.co.uk/jaguar/creating-world-class-performance-in-a-jaguar-assembly-plant/introduction.html#axzz3RzfgjRqv
CIMA Global (2009), Embedding sustainability through enterprise governance Jaguar Land Rover Case  studies
Jaguar Land Rover (2014), JLR Company Information, available at http://www.jaguarlandrover.com/media/23076/jlr_company_information.pdf
Land Rover (2010), Jaguar Land rover Sustainability Report 2009-10, available at http://www.landrover.com/content/gb/en/pdf/sustainability-report.pdf
Martin Dougherty (2009), Supply Chain Optimization, available at http://www.dhl.com/content/dam/downloads/g0/logistics/case_studies/DHL_Optimisation_Casestudy_Jaguar.pdf
Nii Armah Addy (2013), Leading Change in Management: A Case Study of Jaguar/Halewood, Sikkim Manipal University, Ghana, International Journal of ICT and Management
Pinnington, A. (2010), Comparative and Organizational Perspectives on IHRM, available at http://www.uk.sagepub.com/upm-data/36579_02_Harzing_Ch_01.pdf
Simon Moger, UK supply chain growth: An OEM’s perspective, available at http://www.smmt.co.uk/wp-content/uploads/sites/2/Meet-the-Funder-Presentation-SM-1911121.pdf