The Organisational Structure Of Jaguar Management Essay

Published Date: 23 Mar 2015

Jaguar over the last decade has been over taken by Ford, who have invested considerable in to to the Jaguar / Ford strategy to become the number one automative company in the world. Jaguar used WCT (world class timing) or WCP (world class process) but now have invested considerable in FPDS (Ford Product Development System). Which will reduce the time from concept to the customer.

With the advent of the supplier development and closer relationship between the supplier and the customer, it has resulted in more suitable and cost effective processes and materials been selected early on in the programme, which is resulting in Jaguar investing in more techniques and processes to maintain its competitive edge and maintain existing hold in certain markets. In this report I will be discussing the corporate level, business level and manufacturing level strategy used within Jaguar/Ford. I will also be addressing the following questions :

Current and Future impact on the organisation

Tools and tecniques used to analysy the various strategies used

How these strategies affect the upstream and downstream customer or supplier within the supplier chain

What actual part my colleagues and I play in formulating and achieing the company goals and objectives

Possible improvements in the implemtation or formulation of any ofthe companies strategies

£10000 would I i

What is the organisational structure of Jaguar ?

I will also discuss the possibility of investing £10,000 in to the company, look into the future trends and analyse the methods employed at Jaguar. I will conclude by reviewing my findings.

1.2 Background

To illustrate the principles of Manufacturing Strategy. I have selected the Jaguar Cars Limited, for which I am project engineer in Electrical Engineering. As Project engineer of the security system team in the body systems department at Jaguar Cars Limited, Whitley, Coventry.

My role and responsibility as Project engineer, consist of various task and project every year. One of many projects under my control is the security system project. This consists of selecting new suppliers, working out roles and responsibilities, setting up meetings/presentations, liaisons with various tier one and tier two suppliers, setting targets for various attributes and setting up training for staff in my team.

The current security system products are supplied by Megamos. Jaguar and Megamos relationship first started in 1982, when Megamos supplied Jaguar with a security system for the XJS vehicle. This consisted of a security ECU, remote transmitters and security sounders.

Megamos headquarters is based in Germany but they have set up a site close to Jaguar cars to build on this close relationship as required in a supplier development programme. Megamos are a subsidiary of a larger group called Delphi and Textron.

In November 1989, Ford acquired Jaguar cars Ltd. This has helped Jaguar to reduce its number of 1st tier supplier from 420 to 350, with the Ford 2000 initiative this will be reduced further, this has also helped in more common product and processes being used on both Jaguar and Ford car lines. The FPDS process is the first all new common process to be used at Jaguar and Ford simultaneously, this will help Jaguar and Ford to reduce the development cycle from concept to customer.

Ford 2000 means that we need to invest in initiative that will reduce development cycle time, to increase productivity and variability of our product range. This should result in more common parts, product and processes being used across the works, with the implementation of FPDS we have started to see the results.

CHAPTER TWO

2.1 Objective

Ford / Jaguar Stratgies :

The objective of the reprt is to evaluate FORD / JAGUAR strategy. I will be evaluating the company Mission Sttement and Comany Histiory as an overview. Tis will then be followed by a critical analysis using the SWOT matrix, PORTER's five factors and other Hills 5 step approach showinfg the inter-relationship between stratgies.

FORD / JAGUAR VISION

CHANGES GOING ON THROUGHOUT THE COMPANY:

Each of you, have the means and opportunity to positively impact Ford's quest for world-wide leadership. Our goal is to be the world's leading automotive company.

We at Ford face a challenging and exciting future. In the fall of 1994, we began a dramatic global reorganization called Ford 2000. Since that time, we have changed our structure and processes to become more efficient and responsive to the customer globally, and will continue to do so into the future.

FORD 2000 STRATEGIES

When we launched Ford 2000, we developed 7 strategies that are key to our success. It should be noted that, empowered people is at the top. We believe empowered employees, making decisions every day are instrumental in achieving our goals.

GLOBALIZATION

Ford Automotive Operations (FAO), developed as part of Ford 2000 combines our operations around the world into a single, global structure. FAO was established by combining north american automotive operations, Ford of europe, international automotive operations and the automotive components group.

At the heart of FAO are the 3 vehicle centers. These centers each have worldwide responsibility for the processes and systems that contribute to a vehicle's product development, manufacturing, supply and sales activities.

While design and manufacturing are centralized, marketing and sales operations will remain localized -- locally managed, sensitive and responsive to the needs of customers and dealers. We will become a global organization for collecting the "voice of the customer" from various markets and sources, to ensure that voice is well-represented within the vehicle centers.

ALEX TROTMAN QUOTE

Alex trotman, our C.E.O. and clearly the leader of the company's globalization initiative, has said, "to survive and prosper in the future, we cannot maintain the status quo...we want to be the best in the world; not second best, not third best, the best."

Our Ford 2000 reorganization strategies will make us the world's leading automotive company.

FORD CUSTOMER SERVICE DIVISION

The Ford customer service division are shaping themslves to become the customer service satisfaction leaders.

FPSD TO FCSD

Several years ago we transformed the Ford Parts & Service Division (FPSD) into the activity it is today, the Ford Customer Service Division (FCSD), the company's "voice of the customer". Notice the subtle but obvious change? The word "customer".

We took a look at ourselves and asked where we wanted to focus our efforts and resources over the long term. We decided we wanted to be recognized as a leader in customer satisfaction.

However; before we could start on this "change journey", we had to develop a vision of what we wanted to be and a mission which would help us get there.

VISION AND MISSION

OUR VISION IS:

To provide owners of Ford motor company vehicles or Jaguar Cars Limited an ownership experience that is so good, they will buy again and tell others how great it is to own a Ford or Jaguar product.

OUR MISSION IS:

We are the company's principal source of customer support and vehicle service. Our mission, in partnership with related company activities, is to improve continuously both our own and Ford and Jaguar dealers' ability and commitment to provide superior customer service. The owners of our vehicles will determine our success. Simple statements, challenging tasks. Do you agree?

DRIVERS OF CUSTOMER SATISFACTION

In order to help us focus our attack, we comissioned extensive research and determined that the "drivers of customer satisfaction" came down to three elements:

• 58% of a customer's total satisfaction is related to the vehicle itself. Interestingly, our research pointed out that FCSD can affect 18% points of that number because of our involvement with providing quality parts for the vehicle;

• 21% of customer satisfaction is influenced by the sales experience, and................

• the final 21% is influenced by the service experience. Within the service sector, repairing the vehicle correctly on the first visit, termed fix-it-right-the-first-time contributed to 42% of the customer's service satisfaction while customer handling practices accounted for 40%.

So, in total, we established that FCSD contributes to 39% of the factors that drive customer satisfaction.

KEY STRATEGIES

There are 4 "key" strategies that support our strategic thrusts:

• Working With Dealers To Improve Fix-It-Right-The-First-Time-On-Time Capabilities (FIRFTOT).

• Maintaining a field focus (dealer support & customer handling)

• Support of the upstream engineering process

• maintaining a focus on a quicker service fix process

FIRFTOT AND FIELD FOCUS INITIATIVES

Improving dealer firtftot capabilities & field focus

As I mentioned earlier, repairing a vehicle correctly on the first visit is the primary driver of service satisfaction. The rapid advancement of technology incorporated into our vehicles has improved our quality and reliability but has challenged the dealers ability to "keep up".

Providing ongoing support as it relates to training employees, attracting and retaining quality personnel and establishing sound business practices to better handle customers are among the dealer's priorities.

Several recent initiatives have been launched that will mutually benefit the dealer and customer base simultaneously:

The FCSD field reorganization, completed last year, revolutionized the level of support afforded dealers. The MARKET AREA TEAM APPROACH PROVIDES THE DEALER WITH MORE DIRECT COMPANY SUPPORT BY:

• Placing a larger percentage (82%) of our field office personnel in dealer contact roles;

• establishing specialized dealer contact teams with defined roles; and. . .

• placing our most experienced managers in consultative, leadership roles (doms) to improve dealer operations.

REGION TO DEALER SURVEY RESULTS

Our dealers have recognized this effort by showing significant increases in satisfaction with Ford customer satisfaction support.

Another milestone accomplishment involving dealer support is the fordstar distance learning system. Currently, we are approaching 100% participation. The entire dealership network, 5000 dealers in the united states will be fordstar capable. We have committed to regular programming to support their technical and non-technical training needs. This initiative has been greeted with strong dealer support since dealers can now receive interactive training (sales, service, technical) and communicate with the company without leaving the dealership.

Long-term, these initiatives will undoubtedly have a continuous and positive impact on customer satisfaction and owner loyalty.

UPSTREAM ENGINEERING & QUICKER SERVICE FIX

I will now discuss an area where we have made significant improvement, upstream engineering and establishing a quicker service fix process.

The upstream engineering process will prove to be a competitive advantage in that it allows us to build quality into future designs.

As part of the upstream engineering process at Ford:

• Fcsd personnel have been co-located on forward -year design teams where they interpret field data, serve as the "voice of the customer" and have a measurable impact on overall quality;

• we also assigned these co-located employees with the task of developing an affordable service structure while improving the field "serviceability" of our product. Thereby, holding technology in "check".

While upstream is proactive, we must still be positioned to react to problems as they occur. That's where quicker service fix initiatives come into play. Our goal is to resolve service problems within 90 days of their assignment to engineering.

We currently achieve this standard around 72% of the time, but we are trending in the right direction. We will accept nothing short of 100% on this important area.

Last year, in support of this standard, we added fcsd members to each of the plant vehicle teams to improve resolution time and become more proactive: the role of pvt members involves:

• Analysis of current vehicles and identification of component problems

• interpretation of quality to promote quick problem resolution

• representation of the "voice of the customer" at the production level

Each strategy and initiative I discussed with you will contribute to quality improvements. But no more than fcs 2000 and policy deployment combined. Fcs 2000 contains the infrastructure which will allow us to align with the objectives of Ford 2000, while policy deployment will align objectives toward common goals and promote focus throughout the organization.

Most of you have heard or read about Ford 2000, the largest reengineering project ever undertaken by a major corporation. I'm pleased to say that we are beginning to see the results of this important initiative with products like the expedition where the use of common components (54%) control cost, quality levels are "world class" and it was designed and delivered in 37 months. This is only a start, now let me show you how our globalization initiative, known as fcs 2000 aligns with Ford 2000.

FORD 2000 ENTERPRIZE MODEL

On the Ford 2000 enterprize model, after sales service is the term that relates to fcs 2000. Let me start out by defining what aftersales service means to us. . .

It is not about repairing problems on vehicles after they are sold, it is about designing quality and serviceability into our vehciles upstream so the problems never occur in the first place. However, this is where the "real work" begins. Once the majority of reactionary problems have been eliminated, we must then provide each of our customers , world wide, with consistent, "world class" service experience so they remain loyal to us long-term. When i refer to consistency, I like to use an analogy which relates to mcdonald's restaurants. . . [add lib mcdonald's consitent quality from chicago to cologn]

FCS 2000 MANAGEMENT SYSTEM

This model displays the four process groups which make up the global and regional organizations under fcs 2000.

Briefly. . .

Business development will focus on working with dealers to improve competitiveness and customer focused practices in order to capture a higher percentage of the service business.

Parts supply and logistics will consistently deliver the right part to the dealership, on time and at a price the customer is willing to pay.

Technical support will provide a single, accurate, timely and common technical information process worldwide.

Vehicle service and programs will be developing upstream engineering processes which will consistently design quality and serviceability into the vehicle and when a problem occurs, it will be handled in a timely and customer driven manner.

This global structure I just reviewed will impact the 5 regions which make up the global fcsd. They include north america, europe, south america, asia-pacific, and export. This structure will allow us to think globally, but act locally.

Much of what we still must achieve requires extensive cultural change throughout fcsd.

CUSTOMER SERVICE CULTURE INITIATIVE

By benchmarking industry leaders in customer satisfaction the customer assistance center has developed a "customer service culture initiative".

There are three key areas to this initiative:

Customer service philosophy - transform customer service from a department to an attitude, embraced by all employees!

Revised new employee orientation - stress the importance of customer service on day one with you our new employees.

Continuous reinforcement - daily team meetings focusing on the importance of customer service and best practices.

By establishing customer service as a way of life, the customer assistance center will help drive our goal "to be the world's leading automotive company". Additional details of this important initiative will be covered later this afternoon.

DIVERSITY AWARENESS

A key driver in culture transformation is diversity! What is diversity in the work place? It includes all the differences that define us as unique individuals.

Differences such as: culture, ethnicity, race, gender, nationality, age, religion, disability, sexual orientation, education, experiences, opinions, and beliefs are just some of the distinctions that each of us bring to the workplace.

By understanding, respecting and valuing these differences, we can capitalize on the benefits that diversity brings to the company.

The entire staff within the customer assistance center have attended a diversity awareness session. Eeryone in the organisation has attended a session during there level 1 training process. The company wide roll-out was completed by the end of 1997.

By valuing diversity, we will be better equiped to meet the challenges presented by global competition. This challenge seems to have been embraced by most of the employees within the organisation.

We must also work together as a team to achieve and sustain a competitive advantage that will make us rise above our competition.

PLAYING TO WIN

That means having a "playing to win" versus "playing not to lose" attitude.

when you "play to win":

• you are focused on being number 1, not number 2

• you are willing to take risks, try new things that will yield the big rewards

On the other hand, people who "play not to lose" are:

• satisfied with being the close follower

• focused on "playing it safe"

• Reliant on what you know worked before

We, at Ford customer service division, are definitely "playing to win"! We have embraced that winning philosophy and developed the Ford corporate culture, known as "winning together". Ford places a premium on sharing "best practices", recognition of effort, and the setting of stretch targets. All are required to foster a "winning together" culture within an organization.

You are joining Ford motor company at one of the most exciting times in history. As you move through your career, you will be influenced by its history, but you don't have to be constrained by it.

JACK WELCH [1] 

I'd like to believe we are practicing what Jack Welch, chairman of General Electric and the dynamic force behind General Electric's renewal, has been preaching. His 3 operating principles sum up what we are trying to achieve with our entire strategic change and reorganization process:

STRETCH -

"Using dreams to set business targets -- with no real idea of how to get there. If you know how to get there, it's not a stretch target."

SPEED -

"...Allowing us to shift the center of gravity of the company." "only the most productive companies are going to win..."

SHARED VALUES-

"...Piercing the walls of 100-year-old fiefdoms and empires called finance, engineering, marketing, and gathering teams from all those functions in one room, with one shared coffee pot, one shared vision, and one consuming passion..."

As the leaders of tomorrow, you must embrace stretch, speed and shared values. All three will be critical in our fast-paced global marketplace.

I talked a great deal about change.... And you will hear even more about the importance of change, embracing change and leading change as globalization progresses.

Why is all of this so important?

DR. GOLDSBERRY QUOTE [2] 

Because our future is not secured by what we did in the past, or even what we are doing at the present...no matter how great that was or is. We have to change strategically and continuously if we are to be a global leader. Without strategic change, we will only be able to watch our competitors achieve the goals and rewards that we seek.

I challenge each of you to value our customers and think strategically, to stretch your thinking and goals, and to be proud that you are an employee of Ford motor company.

2.2 Mission Statements

Fords Mission Stement

Jaguars Mission Staements

Which Corporate strategy is right for Jaguar Cars Limited ?

There are five possible steady state (that is, non -emergency) corporate strategies.

Strategic Thinkers

ANSOFF, H. IGOR

Russian - American engineer, mathematician, military strategist and operations researcher. The model assumes that the purpose of a firm is to maximise long term profitability (return on investment) and then gives a host of checklists and charts for deriving objectives, assessing SYNERGY between different parts of the firm (functions and businesses), appraising the firm's COMPETENCE profile and deciding how to expand ( how to diversify, how to assess whether entry to an industry likely to give the desired ROI, whether to acquire or go for organic growth, and how to weight alternatives taking into account a large number of highlighted factors. He stresses the need for a 'common thread' for all a company's businesses if it is to add value to them. The ANSOFF MATRIX is definitely a useful framework for considering expansion into new areas.

The ANSOFF MATRIX shown below gives 4 options for increasing sales.

The Ansoff Matrix for business development

4

3 New

Market

2

1

Existing

Existing New

Product

Arrow indicates increasing risk

BOX 1, selling more of existing products in existing markets, is a low risk, market share gain strategy. To be useful, this must specify how this objective is to be attained, for example by enlarging the sales force, increasing advertising or cutting price. The XK8 / XKR was the first times in over a decade Jaguar started to advertise its product range, it increased its sales force in all the markets especially in Germany and the United states.

BOX 2, implies product development to sell new (or modified) products to existing customers : fine as long as the firm has a good track record of product development and provided the new product share enough costs and skills with the existing products, and do not face a very strong incumbent competitor ( see also adjacent segment). This is when Jaguar introduced the XKR the supercharged version of the XK8, the sales plan predicted sales of up to 15000 units per annum but it sold in excess of 5000 units, due to our track record and existing products sharing cost.

BOX 3, takes existing products and sells them to new markets or customers. This is clearly sensible if the new markets can be cultivated at relatively little extra cost, but can be risky if a new market requires investment in fixed cost (for example, a new salesforce), if the customers have different requirements, or if there are entrenched competitors.

BOX 4, new products to new markets - is the highest risk strategy : the segments being entered are not adjacent to the existing business and it is almost like starting a new business from scratch. The presumptions that Box 4 strategies are inherently unsound and should only be taken either in desperation or because there is a compelling short term opportunity not being exploited by others.

PORTER, MICHAEL

Porter defines two kinds of competitive advantages : Low cost, or differentiation. He places a firm in the context of its industry (see PORTER'S FIVE COMPETITIVE FORCES) and identifies the firm's own value chain (all the ways it adds value from start to finish by activity) systematically.

Porter Competitive strategy codified how to gain competitive advantage. His analysis suggests four diagnostic components of looking at any specific competitor : (1) Future Goals: what are they trying to achieve, including their ambitions in terms of market leadership and technology : (2) Assumptions : how does the competitor perceive himself, and what assumptions does he make about the industry and his competition ? (3) Current Strategy ; and (4) Opportunities : what do they think they have ? Armed with this framework, one can then construct scenarios about competitors' possible reactions to any action by one's firm.

Porters five competitive forces

Porter was an innovator in structural analysis of markets, which previously, even with BCG (Boston Consulting Group) , tended to focus largely on direct competition in the industry, without looking systematically at the context in other stages of the industry VALUE CHAIN. Porter's five forces to analyse are :

Threat of potential new entrants

Threat from substitutes using different technology

Bargaining power of customers

Bargaining power of suppliers

Competition amongst existing suppliers.

The interactions amongst the five forces are shown below. From this porter builds a useful model of industry attractiveness and how this might change over time, both because of objective economic changes and also because of the ambitions of the players themselves.

Michael Porter's Five Competitive Forces

Potential

New

entrants

Threat from

new entrants

Competitors in the industry

Bargaining

Power

Suppliers

Bargaining

Power

Customers

Competition among exising companies

Threat from substitutes

Substitutes

Jaguar History .............. .............. ................ .............. ............... ........... ........... .......... ............ ............... ................ ............... .............. ................ ................

Within the automotive industry there is a trend towards, only five - six major players within this field. The customers voice is been heard and been acted upon. There has been a tread towards more customers wanting luxury vehicles and this segment is growing very fast and all projected figures show that this tread will continue. This is one of the drives behind the set up of the new Luxury vehicle team " Premier automotive Group" being set up by Ford and Jaguar. The premier automotive group is made up of Jaguar, Aston Martin, Volvo and Lincoln. It is envisaged that together, these four brands will ensure that Ford will progressively become a leading force in the global luxury car market. This is being headed by Dr Wolfgang Reitzle, who was previously the Chief Executive Officer (CEO) at BMW. A key qualifier and undoubtedly an order winner for Jaguar is the brand image, the image of quality , wood finish and leather seats. Dr Reitzle stated "we need to continue our commitment to become the world's leading consumer company for automotive products and services" [3] and "Jaguar, Aston Martin, Lincoln and Volvo are powerful brands and by grouping them in this way it allows us to bring a laser-like focus to these products and also allows us to preserve the diversity of these vehicles in terms of customer appeal and cultural heritage." The objective of the Premier Automotive Group will be to develop strategies to leverage and grow our premium and global brands.

Driven by the statement "........ to always meet or exceed the customers needs " Jaguars strategy has been geared towards providing the customer with surprise and delight features. This direction is a major contributor to higher gross sales and profit. This is clearly shown in Jaguar sales as it reached 50,000 units for the first time in its history.

How will this strategy affect downstream and upstream companies in the supply chain ?

Jaguar strategy in terms of offering a vehicle with individual style and elegance is the way forward in the luxury market segment. A supercharged Jaguar is one vehicle that was under estimated by sales and market and the press, but as soon as it hit the market it was such a success Jaguars downstream supplier were unable to keep up with the demand. It was predicted to sale only 1500 units but it actual sold in excess of 5000 units.

In order to implement this strategy greater investment is required along with training and developing the skill base, the core competence both from within the group and buying in expertise. A recent example of this has been expanding the veneer workshop and carrying out all the work in-house, were as at one stage this work was going to be out sourced for the S-type. Down stream the subcontractors reaction has been understandably negative.

Jaguar and Ford only use Q1, QS9000, ISO14001 approved supplier for all its components and parts. This will no doubt result in larger price increases as supplier try and achieve there customers goals.

SWOT Analysis

STRENGTHS

Good training / education programmes

Good communication : weekly or daily feedback

Broad customer base

Brand image nd heritage

High quality

Potential for Growth - internally and externally

Good team work and support from other platforms or car lines

WEAKNESSES

Loss of customer goodwill - low resale value

Under resourced

Information systems weak - too many new electronic process that have not been fully de-bug

Limited product range

Delivery times gon average >90 days

OPPORTUNITIES

Expansion of core business

Many more product lines (e.g. X400, X350 etc.)

Joint customer supplier development

New territory

For more X-car line features or functions

THREATS

Mergers - Premim Automative Group - BMW

Globalisation strategy of customers, especially customer wants and needs

Shorter times from concept to market from our competitors.

The SWOT analysis clearly highlights the overall position of the company in the market place. Jaguars future strategy can clearly derived from the strengths and opportunities available.

Jaguars long history for providing the customers with a vehicle with an individual style, quality wood finish and leather and at a price a customer is willing to pay is defiantly a strength that will lead it to achieve or exceed it corporate strategiy for the future and meet all the future business plans (business strategies) for the next decade.

The opportunities that are available to Jaguar suggest that heavy investment and process competence would allow it to focus on its customer base also allow for the provision of supplying more variety of vehicles to the customers.

Although this clearly highlights where Jaguar weak points are. These should be easily addressed by projects such as the BLI initiative, were teams/group of people will set upon a resolution to a concern or issue to allow us to become the number one automotive manufacture in the world.

The total company focus in this area of the business led to the revealing of rocks, which had, lay hidden. High level of old processes, high number resources still working on a project at Job #1, high level of fire fighting.

Due to the high level of communication everyone is aware of all the various project and are always shown feature products and present products, annual sales market pressure customer surveys results, good and bad press reports at the executive communication meetings throughout the year. These are then supported by weekly team meeting at a local level and weekly project meetings.

The training needs of the individual and the team are met by either the individual selecting what training he/she needs to compete the job or for future development and secondly by the manage or supervisor, who will select appropriate training to compete the future tasks or to aid new processes for example FDVS (Ford Design and Development System ) , FPDS (Ford Product Development System) and WERS (World-wide Engineering Release System) etc..

With the advent of the FDVS the system V diagram shows that all the test, development and verification work should be carried out prior to conformational prototype build and only the calibratable features work should be carried out on the conformation prototypes. This results in a high utilisation of resources early on in the development cycle and thus freeing up resources need the end of the project. This free resources are now available for the next project, which means an overall shorter cycle form concept to customer.

On a product / customer basis achieving and exceeding our customers expectations individual product engineers had to gain full product knowledge with cross functional responsibility in order to help realise the aims as set out in the mission statement. This has been achieved successfully to an extent on certain products, for example the X-car line navigation system ad the X-car line integrated key are two of many products which has resulted in the engineer working on several car lines each with there own needs/wants but its the job of the engineer to meet all of these and to achieve a product the will clearly has the Jaguar identity. To the engineer the various car lines are all customers with there own needs, he is supplier to them, whereas his supplier will be the supplier of the product and its the job of the engineer to clearly communicate the corporate strategy for brand identity and the business strategy of have one corporate key for all Jaguar car line in the case of the integrated key. The integrated key business strategy is that the key should be unique to Jaguar, in terms of style and features, with reduced complexity and reduced cost for certification for the RF portion of the key, and finally the manufacturing strategy that the key should be easily to assemble and with minimum number of part number to keep inventory as low as possible.

Hills 5 Step decision tool for manufacturing strategy

1

2

3

4

5

CORPORATE

OBJECTIVES

MARKETING

STRATEGY

ORDER

WINNERS

MANUFACTURING

STRATEGY

MANUFACTURING

STRATEGY

Growth

Survival

Profit

ROI

Financial measures

Product market & segment

Mix

Volume

Standardisation

Innovation

Market leader -PALS matrix

Price

Conformance

Quality

Delivery

Brand image

Technical Support

PROCESS CHOICE

Alternative processes

Inventory

Process position

Capacity

INFRASTRUCTURE

function support

Manuf. planning & control

quality assurance

Clerical procedures

Organisational structure

Payment methods

Hills 5 step process for moving forward is a useful tool in analysing Jaguar's position and its strategies.

Corporate Objectives

Over the last decade Jaguar has grown as a business by increasing its customer base. Fords acquisition of Jaguar was similar to that of any other (BMW of Rover, Ford of Volvo). However what was not apparent, were its objectives . Possibly it was a vehicle for market entry, Jaguar was an established company but losing money. Its geographic location was not strategic in any manner lying in Coventry and Birmingham. Another theory was that Ford was seeking to become a major player in the luxury car market segment, especially Jaguar who already had a high prestigious brand image. Return on investment would be slow unless a radical shake up was undertaken (Ford corporate polices and processes).

Marketing Strategy

It should be noted that Jaguars largest market is the USA and German market. All the products are manufactured using a standardised process but the vehicles are configured to the market requirements. Jaguar volumes are not very high and therefore can control a fairly level schedules which all of its supplier can meet. Jaguar offer 3 standard car the XK8, XJ8 and the S-type, but add a premium to the product for specials or supercharged vehicles. The additional cost to produce a supercharged is insignificant compared to the mark up of the price the customer has to pay for the vehicle. The supercharged vehicle has a greater profit margin.

Order Winners

Jaguar had no shortage of order but because of its failure to align its marketing strategy with its manufacturing strategy and as Hill suggests realising the interdependency of each step and the cross communication required therein to bring about success. Once such example was the XKR the XK8 supercharged vehicle which marketing predicted as 1500 units but was actually in excess of 5000 units which manufacturing and our supplier found very difficult to meet.

On evaluation this meant that market need to make sure they under stood what the customer really want, clinics were set up and special events which invited existing and potential new customer to attend. This gave the customer a better insight into Jaguar and Jaguar a clearer picture of what the customer really wants on the XJ8 and the XJR this was clearly visible as sales and marketing predicted sales of 35,000 plus for the XJ8/XJR and 15000 units of the XK8/XKR. The results speak for them selves as we sold in excess of 50000 units last year a record for Jaguar. The lessons learnt here were improved on the new S-type vehicle, with expected sales of this vehicle alone in excess of 40,000 units and to increase further on the introduction of the supercharged S-type in 2002MY. The communication between manufacturing, engineering and marketing has improved significantly with the introduction of the FPDS process and matrix management structure for each vehicle programme. The results of matrix management and introduction of the cross functional teams has lead to vehicles being introduced to the market in significantly less time compared to the old Jaguar process, this was apparent on the S-type. The S-type was the fastest complete new vehicle from concept to the customer Jaguar and Ford has every introduced todate.

The Jaguar brand image for quality is defiantly a order winner, and this is what Jaguar aims to build upon to increase share of the luxury car market.

Manufacturing strategy

Step 4 highlights process choice. Jaguar was fortunate to be ale to offer variety of different vehicles. However some poor decisions were made, decisions based on experience phraseology such as 'yes we can do that'. Such arrogance did not take into consideration process capability and cross functional team suggestions. Poor decisions making in this area could result in lost sales. For example if a dealer tells a customer he can have his vehicle in pink, with pink leather seats, the spray shop will have a major problem to paint the vehicle pink, even though the Jaguar paint shop is the best in the Ford empire. The manufacturing team have devised a strategy with marketing which state what the colour options are for a Jaguar. Jaguar has retained several of its manufacturing strategies and adopted several new processes such as lean manufacturing and Ford Production Systems (similar to the Toyota Production System).

With the advent of the new processes the manufacturing planning control systems are up todate and are well maintained. The process sheets, data collection sheets are clearly displayed by every machine or operation and its the operates job to maintain these sheets.

Jaguar still operate a limited quality assurance and control group call NOVA C, but now its engineering and the suppliers job to make sure that it is right first time. With the advent of the supplier development program and closer supplier development relation quality has improved significantly. The quality of each product/ component, module or part will improve again as Jaguar have started the Full Service Supplier (FSS) program, which mean the supplier is accountable for his part from cradle to grave. It is his job to design, develop, implement and verify that the part meets all of the Ford/Jaguar standards. He/she will be call to show progress, concerns , issues and guarantee a quality product to the customer, not just Jaguar but also Jaguars customers. This has meant more residential engineers during development and launch.

All of Jaguars product and processes are available on the web to all works irrespective of level to view and comment upon. The shop floor maintain there own process instruction sheets, they also maintain control charts and any process sheets relating to the part or sub assembly they are assembling to the vehicle. They have a cash incentives for any cost savers or process improvements that can be made. The shop floor works are encouraged to suggest ideas to reduce build times.

Organisational structure and payment systems were part of an initiative to improve the overall company performance and effectiveness. Financial changes included making track supervisors into group leader and changing the pay structure from hourly paid to salary staff.

The corporate strategy of Fords to invest in Jaguar has started to pay off, with profit rising every year, record sales, increased market share and the introduction of a new vehicle line. There is still more good news as Jaguar will be increasing its market share further with the introduction of the X400 in 2001.5MY. The predicted sales of X400 are 100,000 units this should bring Jaguars total predicted car sales for 2002MY in the region of 220,000 unit, compared to today's figures of only 50,000 units. There is scope for future improvements in the luxury car segments and the corporate objective is to gain as much as the market share as possible.

The Jaguar Difference

The Jaguar difference is the latest mission statement we try to achieve

Strategic decisions

Strategic decisions are concerned with the scope of an organisations activities, that is they define what the organisation will and will not do

Strategic decisions match the activities of an organisation to the environment as far as this can be forecasted

Strategic decisions match the activities of an organisation to its resource capability

Strategic decisions have major resource and hence financial implications

Strategic decisions affect operational decisions and the way in which operational decisions are made

Organisational strategy, is affected by the values and expectations of those who have power in the organisation

Strategic decisions affect the long term direction of the organisation

Strategic decisions are often complex in nature, due to the high degree of uncertainty.

The three levels of strategy

Highest level

Corporate strategy specifies all areas of overall interest to the organisation : the definition of the businesses in which the corporation will participate .... and the acquisition and allocation of key corporate resources to each of those businesses.

Second Level

A business strategy specifies (1) the scope (product/market/service segment) of that businesses in a way that links the strategy of the business to that of the corporation as a whole, and (2) the basis on which that business unit will achieve and maintain a competitive advantage.

Third Level - functional strategies

A manufacturing strategy consists of a sequence of decisions that, over time, enables a business unit to achieve a desired manufacturing structure, infrastructure and set of specific capabilities.

The Ford / Jaguar level of strategy is clearly illustrated below [4] :

Ford Headquarter

(Corporate Strategy)

Aston Martin

(Business Strategy)

Volvo

(Business Strategy)

Jaguar

(Business Strategy)

Lincoln

(Business Strategy)

Jaguar

(Manufacturing Strategy)

Product Development

Sales and Marketing

Logictics and Distribution

Production

Finance and Purchase

Human Resources

Definition of Strategy [5] :

'Strategy is the direction and scope of an organisation over the long term : ideally, which matches its resources to its changing environment, and in particular its markets customers or clients so as to meet shareholder expectations.'

Corporate Strategy

This defines the overall purpose and scope of the organisation, this may involve consideration of diversification and acquisition, but also how the organisation is to be run in structure and financial term, and how the resources are to be allocated. Being clear about this level of strategy can be very important : it is the key basis of other strategic decisions.

Ford Corporate Strategy

The latest corporate strategy is the Ford 2000 strategy. The mission statement for Ford 2000 is as follows ' maximise the shareholder value over time and ford to become the worlds leading automotive company.

The ford 2000 vision has seven key steps which are described below

world wide growth

Business strategy

Here strategy is about how to compete successfully in a particular market : the concerns are therefore about the advantage over the competitors can be achieved; which products or services should be developed in which markets; and the extent to which these meet customer needs in such a way as to achieve the objectives of the organisation, like long term profitability, market growth or measures of efficiency.

Whereas corporate strategy involves decisions about organisation as a whole, strategic decisions here need to be related to the Strategic Business unit (SBU)

Premium Automotive Group - Jaguar Business Strategy

The Jaguar business strategy is derived by the Jaguar Executive Committee (JEC) and this strategy will follow the Ford corporate strategy. The Jaguar business strategy is formulated with the Jaguar difference and mission statement in mind. The JEC was monthly meetings were they have to establish polices and direct development of plans (strategic and tactical), procedures and practices necessary for operation of the Jaguar business. To agree Total Business financial commitments for Business Plan, Budget and Forecast. To monitor results of operations and recommend/implement actions to meet/exceed commitments. The JEC will liase with the Sustainable Development Strategy Committee (SDSC) , whole meet up 5 times every year. The SDSC are set up to provide strategic direction and policy guidance in line with the Jaguars commitment to continual improvement in environmental performance and the philosophy of sustainable development.

The JEC is chaired by the Chairman and chief excutive and the other member of the committe are as follows :

Director of Finance,

Director of Human Resources,

Director of Manuafacturing Opertaions,

Director of Product Development,

Director of Purcahse,

Priesident of North Americian Operations,

Direcor of Sales and Marketing,

Director of Communications and Public Affairs,

Group Chief Engineer Power Train Engineering,

Director Production Operations,

Operations Manager Halewood Body and Assembly

Jaguar has restructured its corporate sales and services department due to the expansion of its product range and to further increase sales. "Jaguar already enjoys a strong position in the corporate market in the UK," said Christine Downton [6] , head of the new department. "The new organisation will enable us o build on our traditional market and product strengths and, at the same time, take advantage of new opportunities created by the expansion of our luxury vehicle range."

Manufacturing (operational) strategy

Which is concerned with how the component parts of the organisation in terms of resources , processes, people and their skills are pulled together to form the strategic architecture which will effectively deliver the overall strategic direction.

The key characteristics for evaluating a (manufacturing) strategy are its consistency with corporate, business and other functional strategies and its contribution to competitive advantage. There are four stages according to Hayes and Wheelwright in the evolution of manufacturing's strategic role :

Stage 1 - internally neutral

The modest objective here is to 'minimise manufacturing's negative potential', essentially a damage limitation exercise.

Stage 2 - externally neutral

Here the objective is to 'achieve parity with competitors', a goal which traditionally one feels is as far as many companies would be willing or able to go.

Stage 3 - internally supportive

If one takes on board the fundamental ideas of operations strategy then to 'provide credible support to the business strategy' becomes a minimum objective.

Stage 4 - externally supportive

The ideal situation is seen to be to 'pursue manufacturing based competitive advantage', that is operations is positive and proactive in the contribution which it makes.

Terry Hill [7] uses a framework for linking corporate and manufacturing decision making. This is briefly outlined in the following five stage model :

Define corporate objectives

Determine marketing strategies to meet these objectives

Determine how products win orders in the market place

Choose the most appropriate process

Provide the manufacturing infrastructure to support production.

Of note here is the importance given to the formal expression of marketing strategies (step 2) and the determination of qualifying and order winning criteria (step 3). These are used very directly as support for steps 4 and 5 and thus clearly show the interrelationship between corporate and functional strategies.

Objective

The objective of this report is to discuss the Ford / Jaguar corporatre level, business level and manufacturing level strategies and examining the cureent and future impact on the organisation and its stakeholders.

The report will illustrate the various stratedgies by utilising the most approprate tools avilable to analse these strategies. it will then concentrate on the upstream and downstream affects on the supply chain.

CHAPTER THREE

3.1 Work and cost breakdown systems

Ford 2000 has challenged us to rethink the way we do our business, including how we provide world class products that are affordable for both Ford/Jaguar and our customers. So that is what we are doing - rethinking the whole issue of investment efficiency!

We believe the solution could be making our product and manufacturing processes compatible is the only effective way to become investment efficient while meeting customer expectations. Product and process compatibility is the methodology to simultaneously optimise product value and minimise investment requirements.

We need disciplined cross functional pre- program efforts.

We need a set of specific tools that a product team can work on to drive investment efficient actions.

We know this approach works, as teams such as CW170, V184 and WIN12, but we also know that we have only scratched the surface of the true potential of this technique.

CHAPTER FOUR

4.1 Empowerment

As empowered people we have the responsibility, accountability and authority to plan, organise and implement decisions about our work within agreed upon guidelines and boundaries [8] .

Making competent decisions and becoming more knowledgeable about our jobs gives us a sense of ownership and pride in accomplishment. It also provides an opportunity to expand our authority. Working together allows us to build on the abilities of our team-mates and ourselves to :

Impact cost, quality, timing and the environment

Provide products from our operation that exceed expectations.

We've seen these benefits with Simultaneous engineering, plant vehicle teams, integrated manufacturing teams and total productive maintenance work groups.

The Programme Steering team, PMST leader and PAT members review various targets or aspects of the project. As I am the security PAT leader I have several target which I will have to meet. I have to assess the time to drive away a vehicle, time to gain entry to the vehicle. With the assistance of the chief programme engineer or PST leader, I am empowered to make major capital spend proposal or design changes which will improve the teams chances of achieving these targets and it will then have to be approved by the board. The helps speed up the decision process especially as now the development time has been reduced since the introduction of the FPDS process. The matrix structure allows direct communicate to your direct line manger and to the chief programme engineer, which aids with the developments cycle.

4.2 Training and Human Factors.

Jaguar allows their employees to learn at their own pace; provide opportunities for hands on experience; make training relevant to the job; have line managers project manage training. The staff view is that the training is good, but they are not always able to put it into practice.

Jaguar use different learning approaches; respect and use peoples experience; allow people to solve problems and utilise their solutions. The core team for any project will attend a team building exercise. This will take them through the various stages of team building, which consist of the forming stage, the storming stage, the norming stage and the performing stage. It is also common to have the parting stage were the team splits up after the project has been completed. This is were the programme chief engineer will congratulate the team and this is usually were the team would already have started the next project and would be starting this cycle again.

With respect to the human factors of the various employees Jaguar operate training courses to help individual progress in there own development and Ford offer child care facilities for all of its worker.

CHAPTER FIVE

5.1 Implementation strategy and Planning techniques

Target process

The target process translates future Customer and business expectations into the best package of product attributes which give satisfaction and value to the customer at an acceptable return on investment to Jaguar.

The process is embedded in the Milestone process.

Targets are developed from program goals, market research, benchmarking and stretch (which will excite and delight the customer in the future). For example, in a given segment, target development focuses on what styling, package and functional performance is needed for future customer satisfaction and can be delivered within the Affordable Business Structure (ABS).

5.2 Resource Allocation

The predicted resources allocation of each department are fed back to the JEC prior to the ABS been calculated. This is then reviewed at every gateway. Resources are tracked to make sure the project is within budget. The resources being utilised are monitored by individuals completing a PAF form. The form is used to track the predicted man hours against actual man hours used. These forms are submitted every week. The new PAF form system is now computerised and is called Jasper. This is all automatically fed into the Leap team who produced pie charts which are fed into gateway reviews. This data can then be used on future products to give a more realistic prediction of resources required by each department.

5.3 Project review methods/ Project Appraisal and Change management

The project is reviewed at every gateway, by the PST presenting a formal statement of the project status. All the various targets which were cascaded from the vehicle to the sub systems are tracked. The actual against the predicted status is reviewed. Jaguar use the 18 panel chart also to track the project status.

The electronic target tracking system called Jasper is also used also to track actual against predicted. The PMST leader would track each target on a weekly basis and input the status to allow the leap team to produce charts for the programme chief engineer.

The project status is monitored against pre-set targets/metrics. Each target is given a RED, AMBER or GREEN [9] status. Whereas red status means that the metric is not on target and there is no recovery plan, amber is, we have not met the target but we have a recovery plan in place, and green is, we have achieved the target. The overall status of the project is reviewed at the gateway (11 gateways in total), and if it deemed the overall risk is minimal or recoverable then the programme is allowed to pass through the gateway else the programme is terminated.

Jaguar monitor all the changes in each programme, via the change management process. The World-wide Engineering Release system (WERS) is used to raise a change notice, which is passed on the gate keeper who will in turn pass it on to the relevant section to review and approval or reject. The WERS will contain details of the change requested , the weight, cost, time, date of introduction, scrap cost, rework cost if necessary. It will have all the relevant part number, specification and drawing numbers. A WERS is usually raised if a AIMS is raised which has highlighted a concern and to resolve the concern a change is require, therefore the WERS should also contain the AIMS number and brief description of the concern and proposed resolution.

The WERS is then passed on to the change Management meeting (CMM) they will sit twice a week at the initial stage of the project and will then make the meeting daily as the project gets closer to Job #1. The CMM consist of the chief programme engineer and representatives from all the various departments. It will also have a strong representation from the launch team, who will have to implement any late changes which will effect manufacturing. If the change is approved this will be electronically signed off to allow the engineer can pursue the change. If it is reject then additional work may be required. The process was introduced on the S-type and seems to have worked very well and Jaguar intends to used on all future car lines.

The final project is reviewed at the <PS> programme status gateway - 6 months after Job #1 - lesson learnt review.

Program Teams, PMT's, PMST's and PAT's progressively develop and translate targets and feasibility into an integrated deign by <PD> (PD - Program Definition), verify components and systems by <PR> (PR-Prototype Readiness ) and sign off the vehicle using Confirmation Prototype (CP).

CHAPTER SIX

6.1 Budgeting and Budgetary Control

In developing a new vehicle, it is important to cost on the fundamental drivers of investment to better decide on the characteristics that are most important

Historically Jaguar product programs have struggled to meet the Affordable Business Structure (ABS). This resulted in wasted time and resources as product direction changed to meet affordability guidelines. The investment efficiency process allows the team to remain within reach of the ABS, improve profitability and minimise wasted resources.

Once the Jaguar Executive Committee (JEC) has agreed on a product strategy, with the assistance of the programme office, marketing and finance, then the ABS is calculated as shown below [10] .

Revenue

Volume

Price

Less

Profit

Return on Sales

Drives

Cost

Variable Cost

Investment

This will assess whether we can utilise common parts from various platforms, carryover software or hardware, and see if we need to have unique parts. They will review data from benchmarking analysis. All of the above needs to have data associated with it, this consists of resources required with cost, tooling cost, capital expenditure and predicted return on sales.

Each project has a programme chief engineer (i.e. Dave Szczupak for the S-Type), and his team will consist of various other chief engineers from the various Product Development area such as Body, chassis Electrical, finance sales and marketing etc. Who make up the Programme Steering Team.

The ABS is passed to the PST (Programme Steering Team), who will produce a Product Development Letter (PDL), which gives engineers the authority to work on to a programme and introduces various features. The PDL is used to calculate a more realistic number of resources required, estimated facilities, tooling, parts, vehicles to deliver the programme, this then form part of the WBS, which is a live document throughout the programme because assumption change which have an affect on the various departments. This is tracked weekly and is reviewed at every gateway.

CHAPTER SEVEN

7.1 Sensitivity , Risk Analysis

CHAPTER EIGHT

8.1 Project Contract strategy

CHAPTER NINE

9.1 Conclusion and Summary

To conclude my findings, this assignment can be considered as a very good project management exercise, as it has taught me more about Jaguar Cars Limited in all aspects of its product development departments and manufacturing department and how they contribute to the smooth running of a development programme.

Supplier development has shown, us that, if the supplier and customer are willing to share the risks and rewards, then this will result in a shared destiny. Supplier development is a continues improvement process and mutual trust.

We are aware the survival of Jaguar depends on the weakest link in the chain. We have seen Mazda produce the fastest vehicle from surface freeze