Given the demand for the 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 the demand, produce too many and you will have the waste of rising inventory.
On assembly lines each team or cell simply press a signal button at each work station to call for replacement stocks when required this leads to a quick response from central stores.
Introduction to team working in small cells has dramatically improved performance within both Halewood and Castle Bromwich plants. The teamwork approach encourages a far greater degree of co-operation and communication between operators and cell leaders.
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 so 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 and 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 line against the target.
This is viewed as a positive movement towards open communication between differing levels of employee.
Part of changing the management approach is to introduce regular formal and informal cell meetings. Upward communication is vital with cell leaders now regarded as supporters to the cell rather than the autocratic dictators who merely pass on instructions from the management.
At Halewood, centres of excellence were created where teams took responsibility for generating improvements. This included in one centre the team or cell completely changing the line to bring more efficient layout, which included computerised conveyor systems.
Management information systems calculate production rates as each car is manufactured, so operators can visibly see at all times the targets for a particular shift (remember line speed varies in relation to demand) and what the actual production is at any given time for that shift. Measurements against targets are made and where necessary the line may be speeded up if behind schedule.
CAD systems used by Research and Development and Design Engineers in design of new models. Marketing department can instantly receive information so they can upgrade marketing materials to include latest features of each type and model of car.
External Communications
The use of the Internet have enabled Jaguar to open up a new and exciting marketing tool by having a colourful website which contains details on many issues and functions within the company.
Details on ALL types and models of car are included and this in many different languages which highlights the globalisation of Jaguar. A detailed list of its dealership network in every country, which it currently exports cars to, be a strong marketing tool.
The announcement that Jaguar sold over 100,000 cars in a year for the first time ever, in 2001 can in part be attributed to its strong marketing communication through its website, which extend globally and is user friendly in many different languages.
The high tech plants at Halewood and Castle Bromwich are geared towards close supplier relationships. Compatible computer systems enable instant production requirements to be sent to local suppliers who operate a just – in – time system of delivery.
A supplier of seats will receive the production requirements a couple of hours ahead of production and will automatically distribute the required style and pattern of seat so that it arrives at the side of the line just prior to it being needed. A close working relationship where Jaguar have worker to establish quality requirements in advance with the supplier, enables such methods of delivery to happen. Penalties on suppliers for late delivery or quality problems are severe and written into contracts.
The compatibility of such computerised systems enable Jaguar to make vast savings by eliminating the need to hold stock – any stock held is at the supplier’s factory and at their costs.
On a regional basis Jaguar dealerships are linked to the Jaguar HQ sales division and daily sales of new cars are recorded via a computerised ordering system. Information from the sales division at HQ is then passed on to the planning departments at each plant – depending upon the make of the car being ordered i.e. X – Type at Halewood, and S – Type at Castle Bromwich. Planning department then schedules in the production based upon the customer requirements.
Analysis
Improved communications with suppliers enable the stock reduction programme to save Jaguar on inventory cost – supplier is responsible for the stock holding costs.
Internet has assisted sales, as information on the detailed and colourful website is available and can reach many millions of people around the globe. The Jaguar brand is sold in over 60 different countries so it is a truly globalise brand and the website information supports this. It is seen as the first port of call for many potential customers.
