Creating World Class Performance in Jaguar Assembly PlantCreating World Class Performance in Jaguar Assembly Plant

Case Study

Group Members

Farah’s Jaguar

INTRODUCTION

Jaguar Cars Ltd., is a British luxury car manufacturerJaguar Cars Ltd., is a British luxury car manufacturer

The Ford motor company bought Jaguar shares in The Ford motor company bought Jaguar shares in November1989November1989

Its headquarter in Coventry, England Its headquarter in Coventry, England Assembly plants at :Assembly plants at :

Halewood in LiverpoolHalewood in LiverpoolCastle Bromwich in BirminghamCastle Bromwich in Birmingham

On 2nd June 2008 company was purchased by TATA with On 2nd June 2008 company was purchased by TATA with cost of £1.7 billioncost of £1.7 billion

July 2009 – Discontinued X-type productionJuly 2009 – Discontinued X-type production

2010 – Jaguar Land Rover confirmed production of new 2010 – Jaguar Land Rover confirmed production of new LRX Land Rover at HalewoodLRX Land Rover at Halewood

50 years with JaguarThe name Jaguar was

used for the first time in 1935.  Also in 1935,

William Heynes joined the company as chief

engineer

JAGUAR TRANSFORMED ITS NEW ASSEMBLY PLANT AT HALEWOOD

Guarantee World Class Performance in its production systemGuarantee World Class Performance in its production systemIn Jan 1960, Ford bought site in HalewoodIn Jan 1960, Ford bought site in HalewoodIn 1998, Halewood was announced as the production site for the all new In 1998, Halewood was announced as the production site for the all new Jaguar X’ Type sports saloonJaguar X’ Type sports saloon1.1. existing plant lacked sufficient capacityexisting plant lacked sufficient capacity2.2. good transport infrastructuregood transport infrastructure3.3. opportunity to develop business parkopportunity to develop business park4.4. the ‘Britishness’ associated with Jaguar made overseas production the ‘Britishness’ associated with Jaguar made overseas production

inappropriateinappropriate300 million pounds was set to modernize the plant 300 million pounds was set to modernize the plant Worked on changing the ways of working & culture within the plant Worked on changing the ways of working & culture within the plant Employees learned new approaches that involve empowerment & flexibilityEmployees learned new approaches that involve empowerment & flexibilityOperations Manager David Hudson changed the mindset of the 3000 Operations Manager David Hudson changed the mindset of the 3000 workforce, created a new spirit based on mutual respect & trust workforce, created a new spirit based on mutual respect & trust

“There are no bad plants, just bad management”, says Hudson

Halewood fact file

Ford manufactured cars at Halewood for almost 40 years; more than Ford manufactured cars at Halewood for almost 40 years; more than six million vehicles have rolled off the production lines. six million vehicles have rolled off the production lines.

1990: New Escort launched following £600 million of investment 1990: New Escort launched following £600 million of investment 1993: Halewood becomes first plant in Europe to achieve ISO9000 1993: Halewood becomes first plant in Europe to achieve ISO9000 1998: Halewood selected as manufacturing site for Jaguar X-Type 1998: Halewood selected as manufacturing site for Jaguar X-Type 2000: Last Ford Escort produced on July 21 2000: Last Ford Escort produced on July 21 2001: First 2001: First Jaguar X-Type Jaguar X-Type rolls off production line rolls off production line 2002, 2003, 2004: Ford auditors rate Halewood “Best body and 2002, 2003, 2004: Ford auditors rate Halewood “Best body and assembly operation in the world” assembly operation in the world” 2004: Halewood wins “Environmental Business of the Year” award in 2004: Halewood wins “Environmental Business of the Year” award in recognition of reductions in consumption of energy, raw materials recognition of reductions in consumption of energy, raw materials and water and water 2005: 250,000 Jaguar X-Type produced 2005: 250,000 Jaguar X-Type produced 2006: first Freelander 2 produced in October2006: first Freelander 2 produced in October2008:2008: TATA acquired Jaguar motorsTATA acquired Jaguar motors2009:Discontinued Jaguar X type2009:Discontinued Jaguar X type2010: LRX Land Rover production to be started2010: LRX Land Rover production to be started

XF

The Jaguar XJ- a full-size luxury saloon and the carmaker's flagship model

Mid size executive car

XK

Land Rover LXR

Babar’s Jaguar

The Halewood Plant before Jaguar

The decision to use the Halewood factory was seen by some to be The decision to use the Halewood factory was seen by some to be controversialcontroversial

Plant ReputationPlant ReputationMilitancyMilitancyResistance to ChangeResistance to ChangePoor WorkmanshipPoor Workmanship

The plant was known as one of the worst car factories in the world.The plant was known as one of the worst car factories in the world.

JAGUAR faced massive reorganization and the task of changing JAGUAR faced massive reorganization and the task of changing management in an existing plant with older workers and strong management in an existing plant with older workers and strong unions.unions.

Why Halewood Plant was Chosen

Existing jaguar plant in the midlands lacked sufficient capacityExisting jaguar plant in the midlands lacked sufficient capacity

The ‘Britishness’ associated with jaguar made overseas production The ‘Britishness’ associated with jaguar made overseas production inappropriateinappropriate

Good Transport InfrastructureGood Transport Infrastructure

Opportunity To Develop Business ParkOpportunity To Develop Business Park

The Challenges Jaguar Faced

Modernization (A Total Change was required)Modernization (A Total Change was required)

Weak Supply ChainWeak Supply Chain

Quality AssuranceQuality Assurance

People’s ThinkingPeople’s Thinking

Relationship with Local Community Relationship with Local Community

Environmental ProtectionEnvironmental Protection

A Highly Efficient Manufacturing Site

Replacing almost all of the production facilitiesReplacing almost all of the production facilities

£300 million were set aside to modernize the plant. £300 million were set aside to modernize the plant.

Overhead conveyer system. Overhead conveyer system. Bought all major facilities on a Bought all major facilities on a single location that involves Press Shop, Body Construction, single location that involves Press Shop, Body Construction, Paint Shop, Finishing etc. each one of them new and Paint Shop, Finishing etc. each one of them new and Improved.Improved.

Developed standardized work process for each employeeDeveloped standardized work process for each employee

Developed Supplier Park alongside for the supplies (a 'Right Developed Supplier Park alongside for the supplies (a 'Right 1st Approach)1st Approach)

Changing People's Thinking

Alter Halewood working practices and ways of thinkingAlter Halewood working practices and ways of thinking

Every employee was provided a 'GREEN BOOK' which has the Every employee was provided a 'GREEN BOOK' which has the Company's Vision, code of conduct and operating principles written in Company's Vision, code of conduct and operating principles written in itit

Empowering their people by giving more responsibilities to operators Empowering their people by giving more responsibilities to operators that were managing the operations of the business.that were managing the operations of the business.

Extensive Trainings Extensive Trainings

Set Performance Indicators.Set Performance Indicators.

Corporate Social Responsibility

They made sure that the new Car is based on Company's Standards They made sure that the new Car is based on Company's Standards that prohibits the use of Substances that have an adverse effect on that prohibits the use of Substances that have an adverse effect on environment.environment.

Improvement and reduction in Halewood Energy consumption.Improvement and reduction in Halewood Energy consumption.

Over 800 employees spent a week involved in local community Over 800 employees spent a week involved in local community projects like helping elders, school & Church to restore their gardens.projects like helping elders, school & Church to restore their gardens.

Higher standards of cleanliness and tidiness and minimizing waste. Higher standards of cleanliness and tidiness and minimizing waste.

Introducing waterborne processes. Introducing waterborne processes.

Establishment of Waste water treatment plant.Establishment of Waste water treatment plant.

Samad’s Jaguar

Evaluation Of Jaguar Success

THREE PILLARS FOR SUCCESSFUL CHANGETHREE PILLARS FOR SUCCESSFUL CHANGE

Quality PillarQuality Pillar

Centre of Excellence PillarCentre of Excellence Pillar

Culture Change PillarCulture Change Pillar

1- Quality Pillar

Jaguar have transferred its existing quality standards to the Jaguar have transferred its existing quality standards to the Halewood plant. .Halewood plant. .

consistency across the production process, for example, every consistency across the production process, for example, every shift would be working the same way. shift would be working the same way.

Identifying continuous improvements processes. Identifying continuous improvements processes.

Organized into smaller teams with group leader.Organized into smaller teams with group leader.

2- Centre's Of Excellence Pillar

key driving force in changing people’s thinking .key driving force in changing people’s thinking .

Manufacturing improvements. Manufacturing improvements.

Close co-operation and team work. Close co-operation and team work.

Better Cleanliness and tidiness at workplace.Better Cleanliness and tidiness at workplace.

Increases productivity and commitment within the workforce.Increases productivity and commitment within the workforce.

3- Cultural Change Program

Create an environment where employees take ownership. Create an environment where employees take ownership.

workshops for managers, union representatives and line workers.workshops for managers, union representatives and line workers.

Increasing participation and empowerment.Increasing participation and empowerment.

Improve decision making processes.Improve decision making processes.

Clearly define roles and responsibilities and adopt a ‘no blame’ Clearly define roles and responsibilities and adopt a ‘no blame’ culture.culture.

Arif’s Jaguar

Need of World Class Performance

Companies are getting edge over their competitors by adopting Companies are getting edge over their competitors by adopting modern trendsmodern trends

Efficient and standardized processes helps the business to Efficient and standardized processes helps the business to balance profitability along with qualitybalance profitability along with quality

Companies are spending heavily on Research and Development Companies are spending heavily on Research and Development to introduce revolutionary productsto introduce revolutionary products

Traditional management styles are being replaced with the modern Traditional management styles are being replaced with the modern team-based stylesteam-based styles

World Class Performance at Jaguar

Jaguar has a brand image of Quality, Style, Speed and StatusJaguar has a brand image of Quality, Style, Speed and Status

Halewood plant is developed in such a way to meet consumers Halewood plant is developed in such a way to meet consumers expectationsexpectations

For exceptional quality cars the plant needs to have state of the art For exceptional quality cars the plant needs to have state of the art technologytechnology

Existing production process is replaced to reduce the duplication Existing production process is replaced to reduce the duplication and unnecessary delaysand unnecessary delays

World Class Performance at Jaguar

With all facilities within a same premises, the management has With all facilities within a same premises, the management has more control over production process then ever beforemore control over production process then ever before

Premium quality products are always backed by standardized work Premium quality products are always backed by standardized work processesprocesses

Keeping the pace with latest trends is necessary for JaguarKeeping the pace with latest trends is necessary for Jaguar

New features, stylish design, performance, safety etc. all leads to New features, stylish design, performance, safety etc. all leads to customer satisfactioncustomer satisfaction

Rass’s Jaguar

Comparison of Jaguar Halewood to Honda Car Manufacturing Plant in Pakistan

The first car rolled off the Honda Cars Plant assembly line in The first car rolled off the Honda Cars Plant assembly line in 1994. 1994.

Currently manufacturing Honda CIVIC 1800cc and Honda CITY Currently manufacturing Honda CIVIC 1800cc and Honda CITY 1300cc cars.1300cc cars.

Industrial activity at Honda Cars Plant includes:Industrial activity at Honda Cars Plant includes: Import of engine and other critical components of carImport of engine and other critical components of car Components sourcing from local suppliersComponents sourcing from local suppliers Fabrication of car structureFabrication of car structure Assembling of engine and associated componentsAssembling of engine and associated components Final car assembling Final car assembling Painting and final testingPainting and final testing

Comparison of Jaguar Halewood to Honda Car Manufacturing Plant in Pakistan Continued…

Jaguar HalewoodProduction capacity of 100,000

cars per year

Honda Cars PakistanProduced more than 150,000

cars from 1994 till 2008.

Max. value of Jaguar X-Type car approx Rs. 3.3 Million

Max. value Honda CIVIC carapprox Rs. 1.8 Million

Nearly 3000 employees with high level of automation

Nearly 1000 employees withLow level of automation

Production Facilities:Press Shop, Body Construction,

Paint Shop, Final Trimming Lines

Production Facilities: Press Shop, Body

Construction, Paint Shop, Final Trimming Lines

Overhead conveyor based production line

Combination of Overhead and Floor based production line

Does Honda Car Manufacturing Plant in Pakistan have World Class Facilities?

More Robots at Jaguar Halewood

Manual Working at Honda Cars Pakistan

Does Honda Car Manufacturing Plant in Pakistan have World Class Facilities? Continued…

Jaguar Halewood Honda Cars Pakistan

Ashar’s Jaguar

Case Summary

Case theme is development of world class production system for Case theme is development of world class production system for Jaguar Cars through restructuring. Jaguar Cars through restructuring.

Deployment of modern equipment and facilities by putting huge Deployment of modern equipment and facilities by putting huge investmentsinvestments

Creation of highly efficient business processes and lean production Creation of highly efficient business processes and lean production systems through Business process re-engineeringsystems through Business process re-engineering

Changing people’s thinking and enable them to create a world class Changing people’s thinking and enable them to create a world class product by providing education, training and counseling to employees product by providing education, training and counseling to employees and empowering them through “Halewood difference” programand empowering them through “Halewood difference” program

Used benchmarking technique by creating “Centers of Excellence” Used benchmarking technique by creating “Centers of Excellence” and replicated the procedures developed therein to entire factory.and replicated the procedures developed therein to entire factory.

Developing relations with Environment and wider community by Developing relations with Environment and wider community by creating environmentally efficient and cleaner production processescreating environmentally efficient and cleaner production processes

Employee volunteering in local community projectsEmployee volunteering in local community projects

Pakistani Case Parallel – Restructuring in PSO

All equipment at retail outlets replaced with modern ones from All equipment at retail outlets replaced with modern ones from global suppliers.global suppliers.

Retail Automation, SAP, Email, Video Conferencing… Retail Automation, SAP, Email, Video Conferencing…

Vision, Mission, Values, Business Principles and Ethics developed.Vision, Mission, Values, Business Principles and Ethics developed.

Fresh outlook and new colour scheme deployed.Fresh outlook and new colour scheme deployed.

Human Resource development by Human Resource development by providing training and providing training and counseling to counseling to existing employeesexisting employees

Introduction of COCO outlets (Company Owned Company Introduction of COCO outlets (Company Owned Company Operated) to serve as Operated) to serve as benchmarksbenchmarks..

Results: Results:

Largest domestic oil market share, Largest domestic oil market share,

ever increasing revenues, ever increasing revenues,

Satisfied customers, happy employees! Satisfied customers, happy employees!

Pakistani Case Parallel – Restructuring in PSO Continued…

Pakistani Case Parallel – Restructuring in PSO Continued…

Thank You! Questions