With Global expansion and higher levels of competition amongst the organizations, the importance of the productivity of an organization is utmost important. In order to achieve a higher competitive advantage every organization chooses to focus on the methodology or the management rather than focusing more on the output (Wagner and Hollenbeck 2014).
This report deals with the understanding of the strategies and theories that are used in the management of the supply chain and the operational divisions. As demanded by the topic, two specific areas in the supply chain and the logistic division has been adopted and elaborated. To help understand better about the theories and applications of the supply chain and operations management an automobile manufacturing organization has been cited for reference. Rolls Royce has been cited as car manufacturing company to add advantage in to the topic (Hitt, Ireland and Hoskisson 2012).
The purpose of this report is to understand, analyze and relate the principles and practices of the supply chain and operations management with reference to the Rolls Royce Company as one of the known automobile manufacturer in United Kingdom.
Rolls Royce is known as one of the reputated producers of British luxury cars as well as one of the leading companies into the aerospace industry. Rolls Royce not only manufactures cars but it is also instrumental in the production of extremely resourceful incorporated control and impulsion solutions. Its control systems are chiefly used in automobile, aerospace, marine, energy and off-highway applications. Rolls Royce is solitary of the world’s foremost producers of aero engines for big communal aircraft and communal jets and comparatively the second main provider of defense aero engines in the globe. Rolls-Royce is well established in the automotive and marine sector where the vessels and incorporate power systems are designed. Rolls Royce was initially a BMW owned subsidiary company that was later on owned by the Volkswagen group. Subsequently, there was a clash since BMW supplied Rolls Royce the engines. With the dispute finally mitigate the both companies, BMW and Volkswagen came to reconciliation and decided to work in collaboration and the final company came into the existence. Rolls Royce has set up its production plant in Good Wood, West Sussex and England that has been manufacturing the iconic vehicles for more than a century and is likely to continue its pace in the next century as well.
Rolls Royce has a typically good producing operation system within the organization. All the micro and the micro operations within the organization is completely based on the customers and the suppliers (Krajewski, Ritzman and Malhotra 2013). The required components of the entire system are directed towards the accomplishment of the organizational goals. The company aims to produce the cars with superior quality, durability including well functioning design and appeal. Rolls Royce emphasize on the relation with relationship with the suppliers and the consumers for the benefit of effective operation and superior offerings (Wheelen and Hunger 2017).
Quality is seen as the most significant and intricate component of business strategy (Goetsch and Davis 2014). It is considered as one of the main factors to a company’s success and endurance in the current spirited background. The excellence of a manufactured goods or service is its skill and capability to gratify or meet the requirements and prospect of the customers.
Rolls Royce performs with accordance to the adoption of Total Quality management strategies to achieve the desire goals (Slack 2015). The total Quality Management is a continuously evolving systematic approach consisting of values, methodologies and tools. Its aim is to increase the external and internal customer satisfaction without exhausting or exceeding the allotted amount of resources needed for the manufacturing (Dale 2015). Rolls Royce uses the Lean method that is used as a methodical advance to identify and eliminate the wastage through incessant development and improvising, regulating flow of the manufactured goods by the drag of the customers who are in hunt of excellence (Kapferer 2017).
Rolls Royce choose to focus in the excellence perfection, which is in the apex main concern in the Six Sigma and done by dipping the defects. Alongside with the other compensation, this method is also used for plummeting the lead times. Client centric manufactured goods growth helps the company to be spirited and sustainable in the global marketplace (Krajewski, Ritzman and Malhotra 2013). The exclusive and robust design strategy helps the company understand its customer better. Rolls Royce maintains its quality standards and its benchmarks with obligation to the ISO 9000 and ISO 14001 standards, which are used to ensure that the company meets the requirements of its customers and the other stakeholders of the company. The Benchmarking gives the company many opportunities to progress in over all the organizational levels (Jahanshani et al. 2014).
Rolls Royce possesses potential to provide total manufactured goods life-cycle solution from the first theoretical intend, through the filled supplies, devising, development, manufacture or production, operational trying and stipulation of the life technical support of their product. The company has the potential of devising the intend ability to meet the customary of American Society of Mechanical Engineers (ASME), British Standards and additional Europeans codes applicable for the implementation of nuclear and non – nuclear applications.
Rolls Royce uses tough designs to appreciate its needs of the customers. Parameters and acceptance are the fundamental element of the full-bodied design that is devised. The progression also includes the assessment of the design’s sturdiness and the selection of an ostensible design (Evans and Lindsay 2013). The first step taken by the company is to collect the manufacturing information and mapping it onto the retort representation productivity. In the second step, the company ensures about the toughness of the whole assortment in the realistic vicinity. The final step taken by the company is the selection of the supposed design that fits in the middle of the manufacturing distinction segment.
The process controls of Rolls Royce are conducted in the division of the interior operations and the supply chain management. To maintain the quality and business management, the Rolls Royce organizational system incorporates stout controls that are implemented in the supply chain system, the business, customer service, the manufacturing and the design related activities. The implemented exceptional process-based arrangement and coordination is labeled as the Rolls-Royce Quality Management System (RRQMS).
In this manner, Rolls Royce maintains and devises its exclusive and intricate quality management system to gather its reputation in the global market as an exclusive automobile manufacture, also maintain a loyal set of patrons who completely rely on the company to meet their needs and demands in a compliant way.
Critical review of relevant Operation, Logistics and Supply Chain Management theories With close relevance to the quality in the manufacturing Rolls Royce uses certain strategies to boost its productivity and live up to the reputation as well as the customer needs and the demands. Rolls Royce adopts the strategies of Lean strategy, Six Sigma method and just In Time (JIT) method in its production to maintain and retain the agility in the quality and nature of the production (Agus and Shukri Hajinoor 2012).
The supply chain network is essential in the company as this helps in emphasizing both on upstream as well as downstream of the supply network. The upstream starts when there is a subscription online and the subscription of the customers goes to the distribution centre that is closest. This helps in understanding the differentiation between upstream and downstream. The information and the relationship flows across the entire company and proper structure and relationship is required in all the countries as this helps in creating proper relationship between the consumers and the employees in the entire organization. Proper information technology is essential in nature as this will help in analyzing the different issues that are faced by the company regarding supply chain network.
The Japanese companies initially introduced the lean manufacturing system in year of 1970. John Krafcik was a MIT student, who worked as a excellence check engineer for Toyota and the original introduction responsible for the prologue in the lean strategy, as it is at present. Lean production system is a manufacturing carry out, which meets the demands of the clientele with perfect and the allotted quality (Drohomeretski et al. 2014). It primly focuses on the reduction of the waste, by minimizing the non-value other behavior. Continuous improvement and improvising are the key parts of the lean philosophy (Belekoukias, Garza-Reyes and Kumar 2014). The primary benefits of the Lean strategy are the fundamental reduction in the lead-time for the customers, reduction in the inventories for manufacturers, which results in the lesser wastage and complete selling of the whole stock. It also helps in the improvement in the knowledge of management and highly emphasize on robust process, which can be measured by the less amount of errors and less number of reworks (Belekoukias, Garza-Reyes and Kumar 2014).
All the three methods are interrelated with each other in one sense or the other. The lean strategy helps Rolls Royce to reduce the inventory levels and manage it effectively by the Just in Time (JIT) product or service, thus maintaining a good customer relationship with the punctuality and the commitment (Flumerfelt, Bella Siriban-Manalang and Kahlen 2012). This is a heave manufacturing or service structure that is applicable and imposed when an order is placed. This in turn favors the elimination of wastage of the resources thus improving the quality, with the reduction in the cost and production time. As classified under the Lean Principle, there are eight wastes that is stated under the same, which are the defects, over-production, waiting, non-value added processing, transportation, inventories, motion and idle employee creativity. The lean principle effectively removes all of these wastages, in turn making the system more proactive and agile (Belekoukias, Garza-Reyes and Kumar 2014). Proper flow of information is essential in the organization as this will help in transmission of proper information from one place to another. This will help in creating proper interaction between the system as well as sub systems of Roll Royce.
Six Sigma is another strategic initiative that is used by Rolls Royce to effectively reduce the costs of the poor quality and mitigating the customer dissatisfaction due to higher malfunctions or defects. This method of manufacturing lays emphasis on the quality and the improvement along with the variation reduction (Pyzdek and Keller 2014). This is a business organization plan, which is applied by hundreds of companies globally to identify and get rid of the different causes of the defects and plummeting randomness with this process. Six Sigma is a business improvement approach that manages to find and eliminate the causes of mistakes or defects in business processes by choosing to focus on the process outputs, which are of grave significance to customers and can affect the organization if mismanaged (Pyzdek and Keller 2014).
Rolls Royce implements the sigma strategy, which is considerably a never-ending process. It includes the stages of Definition, Measurement, Analysis, Improvement and Control, which a considered as the most essential fundamental of this methodology (Pyzdek and Keller 2014).
Roll Royce uses this method, which is considerably one of the most applicable methods in improving the quality. The company adopts this methodology to denote the spread value of one standard deviation. Under the influence of the Six Sigma quality, the Rolls Royce Company makes about only 3.4 defects per million opportunities and manufactures it does in terms of production, since the sigma strategy only ensures and guarantees 99.99966% perfection in the output (Kabanov et al. 2013).
Analytic discussion with relevant and similar example(s) and applying appropriate solutions of Operations Management
The operations management of Roll Royce means the function of business that is conscientiousness about organizing, planning as well as controlling of resources that are required in order to properly generate services and products of the organization. The Roll Royce Motor Cars is good producing operations and the micro and macro operations in Roll Royce is based on the suppliers and the customers. The components that are required in the whole system are to fulfill the mission of the company and the entire company aims to produce the different goods with excellent quality and durability. Roll Royce Motor Cars is emphasizing on the relation of the suppliers as well as customers for proper operations in the company more effectively in nature. This will help the company in offering the customers high quality motor cars.
In order to form a proper operations system, proper supply chain network is essential in nature as this will help in analyzing the issues as this will help in adding value to the customers. The supply chain network of the Roll Royce has to properly identify the different issues that are faced by the company and implement that will help in resolving such issues as well. The upstream of the supply network is essential in nature in Roll Royce as this will help in attracting customers and this will help in achieving profitable outputs.
For example- In Roll Royce, proper operations management is followed in the organization as this will help them in maintaining proper planning for performing the different tasks in the organization and this will help in satisfying the customers as well in the organization as well. The upstream of the supply chain network in Roll Royce Ltd starts while the customers subscribe online and this helped them in differentiating the products from their competitors as well. Roll Royce has to properly identify the supply chain network in the organization. This will help in analyzing the proper issues that are faced by the company and this will help in resolving the issues as well.
Conclusion
With the help of this report, it can be concluded that the tools and methodologies related to the quality have been discussed previously which clearly states about the efficiency of the theoretical application in the real life by choosing to focus on the Rolls Royce managerial and operational practice. The corporation uses the tools and methodologies, which is instrumental in providing excellent products according to needs of the customers. Rolls Royce is functioning with excellence and distinction management from a sustainable perspective and they are endlessly trying to recover their products and the services quality as well as their processes with consideration to sustainability in mind. Most of their achieved goals can be associated with the huge network and the close collaboration with its suppliers. Rolls Royce has made investments in energy saving technologies and managed to come up with innovative solutions, especially in the aviation industry, the quality, which is an indication of their superior efforts. These innovations and resourceful ideas have contributed to the market leading position in automobile industry and in this manner, shaped a huge competitive advantage. However, most of the credit goes to its quality products and services which managed to fulfill its needs of the customers, both before and after sales. Rolls-Royce pays high attention to its all kinds of benchmarking, to keep their in general presentation in the lead. Concluding from this, Rolls Royce is one of the leading automobile producing companies that have made equal reputation in the aerospace industry due to its operations and managerial performance.
References
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Belekoukias, I., Garza-Reyes, J.A. and Kumar, V., 2014. The impact of lean methods and tools on the operational performance of manufacturing organisations. International Journal of Production Research, 52(18), pp.5346-5366.
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Drohomeretski, E., Gouvea da Costa, S.E., Pinheiro de Lima, E. and Garbuio, P.A.D.R., 2014. Lean, Six Sigma and Lean Six Sigma: an analysis based on operations strategy. International Journal of Production Research, 52(3), pp.804-824.
Evans, J.R. and Lindsay, W.M., 2013. Managing for quality and performance excellence. Cengage Learning.
Flumerfelt, S., Bella Siriban-Manalang, A. and Kahlen, F.J., 2012. Are agile and lean manufacturing systems employing sustainability, complexity and organizational learning?. The Learning Organization, 19(3), pp.238-247.
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