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Alternative Approaches to meeting Peugeot Objectives

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Introduction

Ben Hampson A1: Alternative Approaches to meeting Peugeot Objectives Are Peugeot using the best methods for the line of work they are involved in? Is there a way of improving their efficiency, quality and productivity? We should be able to tell if there is by looking at the theory known as benchmarking. Benchmarking can be defined as imitating the standards of an established leader in quality and attempting to be better them. Benchmarking is a technique used by some businesses to help them discover the 'best' methods of production available and then adopt them. Benchmarking involves: - * Finding out what makes the difference, in the customer's eyes, between an ordinary supplier and an excellent supplier. * Setting standards for business operations based on the best practice that can be found. * Finding out how these best companies meeting those standards. * Applying both competitors' standards and, if possible, exceed them. What should be benchmarked? I Who should the company benchmark against? I How is the information obtained? I How should the information be analysed? I How should the information be used? These are the five main steps in Benchmarking. The first step is to identify exactly what the company intends to benchmark. Benchmarks that are important for customer satisfaction might include consistency of product, correct invoices, shorter delivery times, shorter lead times and improved after sales service. Peugeot could decide to benchmark better sales figures. What better company to benchmark against than 'Ford', the leading company in market penetration. If Peugeot were to implement the ford tactics, then Peugeot's market share and penetration could change for the better. The information can be obtained by looking at watching the customer service teams and showroom dealers in action, web sites, visiting the ford base and looking around, watching the production process, study their strategies etc. The information obtained should be analysed to see if the Peugeot team could implement these strategies in theory, to see whether the ideas are actually worth perusing. ...read more.

Middle

* Employees will not be promoted because they have a good performance record, but because they have the ability to do other job. Good performance is rewarded by bonuses. * Employees must believe they are working for the customers and not the bosses. * Managers no longer issue instructions and monitor the work of their subordinates. They assist, guide and help staff to develop. * Organisational hierarchies become flatter. Staff make decisions for themselves so there is less need for managers. Flatter organisations bring executives closer to customers and workers. Success depends on the attitudes and efforts of empowered workers rather than the actions of task orientated managers. Executives must be leaders who can influence and reinforce employees' values and beliefs. If Peugeot were to reengineer their processes, then you would see a greater responsibility attached to the production team workers. They would be expected to use their initiative, if the management aren't setting rules for the workers to follow anymore. This is because it should raise moral, thinking they are now more important as they have more responsibility, but also so they can get rid of the people in charge of the production team, so Peugeot can cut back on production costs (wages). There might not be pay rises as Peugeot expect extra responsibility as standard from its employees, but bonuses will be rewarded for excellent work. Cutting down external contact points during re-engineering is beneficial because somebody contacting the company's Finance Department, for example, would only talk to one person in charge of their enquiry and so different staff would not be able to give out incorrect information by mistake. Certainly this would improve efficiency and customers would be impressed with the accuracy of information. Through the sacking of the unneeded employees, the hierarchical structure becomes flatter and this will improve communication, as the information won't need to be passed on through so many levels or channels of the hierarchy. ...read more.

Conclusion

All dealers are equipped with DIAG 2000; a computer based diagnostic system designed especially for Peugeot. The system can 'interrogate' electronically the increasing number of control units and engine management systems used in modern vehicles. A growing proportion of Peugeot dealers also offer 'Express Fit' repair and installation of spare parts. Another example for improvement would be for the company to introduce a door-to-door service from all of its dealerships. Nissan, for example, drives a courtesy car to the customer's house, delivers it and then drives the customer's car back to the dealership for the service before returning back and collecting the courtesy car. Such a gesture is no doubt well appreciated by customers and would do much for any car company to add to their overall customer service rating and reputation. Peugeot has already taken a great number of steps to ensure their finest customer service levels are achieved consistently, but these additional suggestions can surely help to improve matters further. Benchmarking can be related to customer service as Peugeot could investigate finding out what makes the difference, in the customer's eyes between ordinary customer service and excellent. Then Peugeot could find out how the best companies meet those standards. Then Peugeot could apply both standards and their own to meet the new standard and possibly exceed that excellent customer service standard. Due to Peugeot previous innovations, they were very successful in winning awards for the company, such as the 'car of the year' award; the 206 won the 'best used car' award. Also Peugeot were able to produce a world record, producing half a million 206s in three years. As we can see from Peugeot's previous success they are very innovative and progressive in the car industry. Using every new technological advantage possible to create that competitive advantage over their rivals. And with policies like "eight airbags as standard" Peugeot are a tough act to follow. Especially with such high regards to recycling and safety to the environment. ...read more.

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