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he case study below is about Jaguar. You are required to use this case study to answer both Task 1 and POE sections of this document.

Jaguar

Introduction

This case study focuses on the way in which Jaguar, one of the worlds most prestigious car manufacturers, has employed lean manufacturing processes. These lean manufacturing processes underpin the success of the new Jaguar S-Type. The Jaguar S-Type production line is located at its Castle Bromwich factory in Birmingham. This specific vehicle competes against the mid/top end of the BMW 5 Series and Mercedes E class.

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Jaguar is part of the Ford Group. Ford has for a number of years been improving its production methods, particularly by introducing manufacturing methods developed in Japanese industry. This includes lean manufacturing.

Jaguar S-Type target market

Once a market segment has been identified, more specific targeting can then take place.

This involves developing a marketing mix aimed at particular groups of individuals. The Jaguar S- Type is targeted at a younger average age of customer than the current XJ Series.

There are three distinct target groups:

Professionals in the 30-45 age range (singles and couples).

Executive families in the 40-50 age range (2+ children).

Third agers (couples aged 50+, childless or the children have left home).

Research has shown that the target groups identify certain criteria when buying a car. An ideal new car should be:

Stylish

Fun to drive

Safe

Secure

High quality

High performance

Technologically advanced

Lean Manufacturing

Lean manufacturing is the process of eliminating waste in production in order to guarantee quality and maximise efficiency. Lean production involves the standardisation of work processes to cut out waste. The key to lean production is to identify which processes within the organisation add value to the production process. Processes which do add value can then be reduced or eliminated so that labour and machinery can focus on added value activities.

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This does not mean that production line workers and machinery have to work harder - rather they need to be able to work smarter.

Matching supply to demand Just in time

One of the most significant changes has been creating a continuous flow system of production, based on a just-in-time approach. Previously, groups of employees had focused on specific processes in the production of Jaguar cars, using batches of component on these processes.

The work area for a particular process would then be cluttered with these batches of components. This resulted in a cramped working environment and less floor space.

The new approach is to cut down stocks of components in the workspace, to only what is required to keep production flowing smoothly. Teams press a signal button to call for fresh stocks when they are required. A quick response from a central store enables new parts to arrive at work stations just-in-time for them to be used.

This cuts out waste in a number of ways, for example:

Less floor space is required.

Cells are able to work in an uncluttered work area.

Walking (physically moving about between operations) is minimised.

Fewer components are damaged from standing around in batches on the workspace floor.

One of the greatest measures of improved working systems at Jaguar, has been to match the supply of new cars coming off the line at the Castle Bromwich plant, to the demand from Jaguar customers. Given the demand for Jaguar cars, production managers are able to calculate the volume of cars that need to come off the production line in any one week. Produce too few and you will not be able to meet demand; produce too many and you have the waste of rising inventory levels. The solution is to run the production line at the speed necessary to match demand patterns while retaining quality.

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Visible management/visual factory

A system of visible management has been introduced at Castle Bromwich to enable everyone involved in the process to understand how individual parts of the plant are performing in order that they can contribute to meeting performance requirements. An important part of this initiative is the use of Control Boards (i.e., visual screens) which everyone involved in the production process can read at a glance to check on the production performance of their production line. The Control Board reveals the daily production target for each production line and the performance of the production line against this target. At any one time, anyone on the production line can see where they are in relation to the target, or where bottlenecks are occurring. These bottlenecks are then targeted as priority areas for troubleshooting of problems and implementing improvements.

On the Jaguar production line, cars flow along a line, with teams processing the work on the car in an ordered sequence. It is essential that each line worker completes their specialist tasks to the highest quality before the car moves to the next position on the line. If a worker is having problems, they pull a cord which alerts their team leader who will provide assistance. If the team leader, who is more knowledgeable and multi-skilled than other production line workers, is able to quickly solve the problem he pulls the cord a second time and the line continues to flow forward.

However, if the problem cannot be immediately solved the whole line will halt and wait, while the problem is solved. It is estimated that typically there will be 130 - 150 pulls of the cord per shift. The running total is recorded on Control boards indicating the performance of each line. This makes it possible for production managers and supervisors to identify problems more easily.

Ownership of work

Under the new working arrangements at Jaguar, work teams have been encouraged to take responsibility for their own work. Work must be standardised so that everyone knows what they are accountable for and can ensure quality standards in their respective areas of responsibility.

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purpose of work teams is to discuss their work in order to identify ways of reducing the time spent on non-value-added related activities, i.e., to cut out waste - the purpose of lean production. Lean manufacturing requires thinking at all levels within the organisation.

The seven key opportunities for cutting down waste are:

1. Removing over-production. Producing too much, too soon takes up storage space, and involves extra handling. Parts and products which have to wait to be used can be damaged, or become obsolescent, leading to wasteful scrap.

2. Cutting out time spent waiting for parts to arrive.

3. Reducing conveyance (i.e., moving things around the factory). Some conveyance is

necessary, but it does not add value to the product.

4. Eliminating over-processing that is processing which goes beyond what the customer

requires or processes, and which does not add value to Jaguars product. Cutting inventory - i.e., the build-up of stock. Only the minimum amount is required to get the job done. Having too large inventories causes interest charges and storage costs, uses up space and creates extra handling.

5. Cutting down on wasteful movement by improving work plans and the management of parts and production facilities and human movement.

6. Eliminating the need for repair. Not getting it right first time is wasteful.

Production of the Jaguar S-Type

Castle Bromwich is a very impressive facility with a world-class plant and processes. Jaguar has completely refurbished three whole blocks in the factory. E-Block is the body construction facility. The manufacturing in E-Block takes place in a giant U-shape. It follows the logical progression of car manufacturing, starting with under-body assembly, followed by body-sides being fitted, welded, and validated for alignment, before going on to be fitted with closures - the doors, bonnet and boot - and also the bumpers and front wing assemblies.

The vehicle is washed and inspected before going to the Paint Shop. The painted bodies then enter D-Block on an overhead conveyor system for the trim and final assembly. This involves the fitting of the bumper cover, seat assemblies and instrument panel. The vehicle is glazed and partially trimmed before the fuel tank is fitted.

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The regeneration of an old derelict brownfield site rather than using valuable green space.

Energy management - a new gas-fired boiler house has replaced the old coal fired one,

saving significant amounts of money.

Recycling - the new X200 is 85% recyclable by weight.

Emission reduction - the new plant has eliminated ozone depleting CFCs and 111

trichloroethane from the manufacturing processes and the product. The new Powerhouse

has led to a 95% reduction in sulphur dioxide emissions.

An environmental management system - Jaguar is committed to the international

environmental management system standard (ISO 14001). This standard ensures that processes are in place to identify the impact of corporate activities and formulate measures to improve and, where possible, eliminate harmful or wasteful practices.

Paint process improvements - Old fashioned colour coats contribute 40-50% of solvent vapour emissions. Jaguar has therefore begun using new water-based colour coats (which use water instead of solvent). This has immediately reduced factory emissions. Jaguar has engaged in a 65 million investment in paint shop refurbishment. The key theme is environmental improvements to all processes.

Conclusion

Lean production is all about reducing waste. Lean production has enabled Jaguar to cut out waste in the production of the Jaguar S-type at Castle Bromwich. Ford is now seeking to spread the message about lean production by incorporating a total of 400 of its Halewood employees into working at Castle Bromwich. The successful implementation of lean production at Jaguar will form the benchmark for the systems introduction at Halewood.

Adapted from http://businesscasestudies.co.uk/case-studies/by- topic/operations.html#operations-new-product-development Date of Accessed: 22 February 2022.

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PART 1 100 Marks

Question 1 (Marks: 10)

Jaguar makes use of the transformation process to manufacture vehicles using inputs to transform these into outputs.

Using practical examples through an illustration, demonstrate your understanding of the transformation process in relation to Jaguar.

Question 2 (Marks: 15)

The customer is critical to the success of a product or service and therefore needs to be the core focus when designing the goods or services.

(12)

Q.2.1

In your own words, explain any four guidelines Jaguar could use as to the importance of the customer being part of the product and service design.

Note:

Marks will be awarded for theory as well as application to Jaguar

Q.2.2 In your opinion, what is the likelihood of Jaguar customising its products in the (3) future? Explain your answer by discussing at least 2 key points.

Question 3 ____ _(Marks: 15)

(8)

(7)

Q.3.1

There are 4 different Process structures for manufacturing. Explain which process structure is used by Jaguar; ensuring you fully discuss the process structure and giving one (1) fact to justify your answer in relation to Jaguar.

Q.3.2

Forecasting is important as it addresses broad-spectrum commerce, competitiveness, marketplace tendencies, behaviour of demand to name a few. Using an illustration, identify the 6 steps Jaguar would use to forecast for the new S- Type Jaguar.

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2022

Question 4

(Marks: 20)

The product life cycle concept is applicable to both products and services experiencing life cycle phases with defined characteristics.

In your own words, summarise the product life cycle in relation to Jaguar products. You must use an illustration or diagram to help construct a well-rounded answer.

Question 5

Jaguar will be in possession of various types of inventories.

(Marks: 20)

Q.5.1 There are various reasons Jaguar would hold inventory, state any four (4) reasons (4) why Jaguar would be holding inventory.

Question 6 (Marks: 20)

Q.6.1 To ensure accurate records for inventory, continuous audits are done which are (5)

known as cycle counting. List any five advantages of cycle counting.

Q.6.2 Differentiate between Economic Order Quantity (EOQ) and Economic Production (5) Quantity (EPQ).

Q.6.3.1 Discuss what is Vendor Managed Inventory (VMI). (6)

Q.6.3.2 Provide 2 advantages and 2 disadvantages of VMI. (4)

END OF PART 1

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Q.5.2

Discuss the four (4) different types of inventory Jaguar would possess then include in your answer at least two (2) examples of each of these types of inventories in relation to Jaguar.

(16)

Q.6.3

Cohesive supply chains inventory management can be achieved through the continuous improvement of inventory performance. This may be achieved by using two (2) initiatives namely Vendor-Managed Inventory (VMI) and collaborative planning, forecasting, and replenishment.

(10)

The case study below in about laswor, vow are nessiced to whe thin sare study to answer both Tark 1 and POC sections of this document. Introduction This case study focuses on the way in which fagur, ane sf the wertf s mork prestigious cart manudacturens, has employed lean manufacturing procenses. Theseleam manhaching processes underpin the success of the new iaguar b-fype. The labar S-fyse groduction line a located at its Castle frommich foctery in Eirmingham. This specife vetide tan setes agairst the midfep end of the BMW 5 Series and Mercedes E dass. There 3 a 13 laguar is part of the Ford Geoup. Ford hars for a namber of years teen improving ta production methodu, particularfy by introdactimanufacturing methods develioped in lapanese industiry. Thin includes ifan manufacturine. laguar s-Type target market Dnce a market degmeet has been isentest, more sotofic targetind can then take piace This ifvolves developirg a marketien mix aimed at particular goucs of individuals. Thie laguar 5 . Type is targeted at a younger average agt of customer than the current ci Series-. There are three distinct target rroupl: - Profestionals in the 30-a5 age ranee (inglen and cooplesi). - Erecutve familes in the 40.50 agn rance 0 o diterenl * Third ages fcouples aped spe, chisteas or the chatren have lett homel. car thould be: - Styarish - Funto drive - Sale - Secure - Stvish - Fun to dive - Safe - Secure - High quality - High performance - Technologically advanced Lean Manufacturing Lean manulacturieg in the process of eliminat ing wase in production in or dee to fuaramere quality and maximise efficiency. Lean peoduction inwlves the standardisation of arork procersen to out out waste. The key to lean production is to identiy which proceises = thin the oreanisation add value to the production peocess. Frocesses which do add value can then be reducts ar efininaced so that labour and machinery can focus on added value activities. This does not mean that peoduction line workers and machinery have to mak harder o racher they need to be able to work "Mmarteer". Matching supply to demand - Just in time The work area Hor a particular process wosld then be cluttered with these batises of conmoconens. This resulted in a oramped working enwironment and less 4 loor space. The new apgeoach is to cut down stocks of components in the atarkeace, to a-ly what iu recied ed to keep production tilowing amoothly. Teams press a signal button to mall for thesh gescis at en they are regured. A quick tesponse frow a central stoce enales new parti to arrive at work stations 'fust-in-eine' for then ta be unded. This cuts out walte in a number of ways, foe ecample: - Lers floor upace in recudred - Cels are able to work in an undumered wok area. - Walking (physically moving about between operatione) is minimuat - Vewer components are damaged from standing around in buthes on the wonispace foor. One of the greatest measures of improved working spsems at lapwar, has been to mucth the supply of new cars coming off the line at the Cantle Bromwich pant, to the demand from lacar custamers. Given the demand for lapuar cars, production mangers une uste to calalest the volume of cars that need to come off the prodoction ine in any one week. Froduce too few and yoed will not be able to meet demand, produce too many and you have whe ante of rimp This cuts out waste in a number of aray, lor teample: - Less floor space in required - Celis are able to work it an uncluthered wort arna. - Walking ishrpically moving about between operationa is minimisedf. - Fewer components are damaged trom standing arsud in batches an the werispace foor. One of the greatest meanures of improved wohing sntents at Aguar, has been to match the wholy of new cars coming of the line at the Curth bromaich plant, to the demand from lagar custorters. Given the demand for laguar carn, production managers are able to calculate the volume of cars that need to come off the prodoction line in any one week. Produce too few and vou will not be able to meet demand; prodace toe many and yoy have the wante of mirs inventory levely. The solution is to fun the praducten line at the toeed necetary to match denand pattern while retainieg duality. Pawe 3 a tia Visible manabement\}vilieal factony A sritem of visible maragrment" has toec ittrodoced at Castle Bromwich fo enable everyone involved in the process to understand how indisutuel parts of the plant are performine in ardet that they can contribute to mectinc performance trounementi. An important part of thin poduction process can read at a glance ta chech on the production performance of their production line. The Conteot Board reveals the daly prodoction earcot ior each production lime and the performance of the production lite acaing this tartet. Ah any one time, anpene on the production line can wee where they are in melution tis the taret, or whare botilentcks are occurring. Theie bottlenechs are then tarkettd as prionty areas for troubleshooting of problems and implementing improwements. Dn the tacuat production line, cars fiow alowe alter, wh teams peccessing the work on the car in an ordered sequence. If is essential that each line work er completes thes specialst tavks to the highest quality before the rar moves to the mest pesison on the liee. If a worker is having leadet, who in more knowedecable and muliskiled than other groduction line worken, abie to quekly solve the problem he puilk the cond a second time and the line continues to flow 40 rowat However, if the pecblere cannet be imenes afrly dolved tow whole fine will hall and wait, while the problem is volved. it is ectimated that typecally tree ail be 130150 palls od the coed per shatt. The rurning fotal is recorded on Controt boards indicating the performance of each trae. This This cuts out waste in a number of aray, lor teample: - Less floor space in required - Celis are able to work it an uncluthered wort arna. - Walking ishrpically moving about between operationa is minimisedf. - Fewer components are damaged trom standing arsud in batches an the werispace foor. One of the greatest meanures of improved wohing sntents at Aguar, has been to match the wholy of new cars coming of the line at the Curth bromaich plant, to the demand from lagar custorters. Given the demand for laguar carn, production managers are able to calculate the volume of cars that need to come off the prodoction line in any one week. Produce too few and vou will not be able to meet demand; prodace toe many and yoy have the wante of mirs inventory levely. The solution is to fun the praducten line at the toeed necetary to match denand pattern while retainieg duality. Pawe 3 a tia Visible manabement\}vilieal factony A sritem of visible maragrment" has toec ittrodoced at Castle Bromwich fo enable everyone involved in the process to understand how indisutuel parts of the plant are performine in ardet that they can contribute to mectinc performance trounementi. An important part of thin poduction process can read at a glance ta chech on the production performance of their production line. The Conteot Board reveals the daly prodoction earcot ior each production lime and the performance of the production lite acaing this tartet. Ah any one time, anpene on the production line can wee where they are in melution tis the taret, or whare botilentcks are occurring. Theie bottlenechs are then tarkettd as prionty areas for troubleshooting of problems and implementing improwements. Dn the tacuat production line, cars fiow alowe alter, wh teams peccessing the work on the car in an ordered sequence. If is essential that each line work er completes thes specialst tavks to the highest quality before the rar moves to the mest pesison on the liee. If a worker is having leadet, who in more knowedecable and muliskiled than other groduction line worken, abie to quekly solve the problem he puilk the cond a second time and the line continues to flow 40 rowat However, if the pecblere cannet be imenes afrly dolved tow whole fine will hall and wait, while the problem is volved. it is ectimated that typecally tree ail be 130150 palls od the coed per shatt. The rurning fotal is recorded on Controt boards indicating the performance of each trae. This Jaguar makes use of the transformation process to manufacture vehicles using inputs to transform these into outputs. Using practical examples through an illustration, demonstrate your understanding of the transformation process in relation to Jaguar. Question 2 (Marks: 15] The customer is critical to the success of a product or service and therefore needs to be the core focus when designing the goods or services. Q.2.1 In your own words, explain any four guidelines laguar could use as to the importance of the customer being part of the product and service design. Note: Marks will be awarded for theory as well as application to Jaguar Q.2.2 In your opinion, what is the likelihood of Jaguar customising its products in the future? Explain your answer by discussing at least 2 key points. Question 3 (Marks: 15] Q.3.1 There are 4 different Process structures for manufacturing, Explain which process structure is used by laguar; ensuring you fully discuss the process structure and giving one (1) fact to justify your answer in relation to laguar. Q.3.2 Forecasting is important as it addresses broad-spectrum commerce, competitiveness, marketplace tendencies, behaviour of demand to name a few. Using an illustration, identify the 6 steps Jaguar would use to forecast for the new S. Type laguar. 22, 21,34 22? Question 4 (Marks: 20) The product life cycle concept is applicable to both products and services experiencing life cycle phases with defined characteristics. In your own words, summarise the product life cycle in relation to faguar products. You must use an illustration or diagram to help construct a well rounded answer. Question 5 (Marks: 20) laguar will be in possession of various types of inventories. Q 5.1 There are various reasons laguar would hold inventory, state any four (s) reasons why laguar would be holding imentory. Q.5.2 Discuss the four (4) different types of inventory laguar would possess then include in your answer at least two (2) examples of each of these types of inventories in relation to jaguar, Question 6 (16) Q.6.1 To ensure accurate records for inventory, continuous audits are done which are (Marks: 20) known as cycle counting. List any five advantages of cycle counting. (5) Q.6.2 Differentiate between Economic Order Quantity (fOQ) and Economic Production Quantity (EPQ). Q.6.3 Coheswe supply chains inventory management can be achieved through the continuous improvement of inventory performance. This may be achieved by waing two (2) initiatives namely Vendor-Managed imventory (VMi) and collaborative planning, forecasting, and replenishment. Q.6.3.1 Discuss what is Vendor Managed tiventory (VMi). Q.6.3.2 Provide 2 advantages and 2 disadvantages of VM. (6) END OF PART 1 Faqe 14 an 13