Case Study

Creating World Class Performance in Jaguar Assembly PlantGroup Members

Farahs Jaguar

INTRODUCTIONJaguar Cars Ltd., is a British luxury car manufacturer The Ford motor company bought Jaguar shares in November1989 Its headquarter in Coventry, England Assembly plants at : Halewood in Liverpool Castle Bromwich in Birmingham On 2nd June 2008 company was purchased by TATA with cost of 1.7 billion July 2009 Discontinued X-type production 2010 Jaguar Land Rover confirmed production of new LRX Land Rover at Halewood

50 years with Jaguar The 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 HALEWOODGuarantee World Class Performance in its production system In Jan 1960, Ford bought site in Halewood In 1998, Halewood was announced as the production site for the all new Jaguar X Type sports saloon 1. existing plant lacked sufficient capacity 2. good transport infrastructure 3. opportunity to develop business park 4. the Britishness associated with Jaguar made overseas production inappropriate 300 million pounds was set to modernize the plant Worked on changing the ways of working & culture within the plant Employees learned new approaches that involve empowerment & flexibility Operations Manager David Hudson changed the mindset of the 3000 workforce, created a new spirit based on mutual respect & trust

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

Halewood fact fileFord manufactured cars at Halewood for almost 40 years; more than six million vehicles have rolled off the production lines. 1990: New Escort launched following 600 million of investment 1993: Halewood becomes first plant in Europe to achieve ISO9000 XF 1998: Halewood selected as manufacturing site for Jaguar X-Type Mid size executive car 2000: Last Ford Escort produced on July 21 2001: First Jaguar X-Type rolls off production line 2002, 2003, 2004: Ford auditors rate Halewood Best body and assembly operation in the world 2004: Halewood wins Environmental Business of the Year award in recognition of reductions in consumption of energy, raw materials The Jaguar XJ- a full-size luxury and water saloon and the carmaker's flagship 2005: 250,000 Jaguar X-Type produced model 2006: first Freelander 2 produced in October 2008: TATA acquired Jaguar motors 2009:Discontinued Jaguar X type 2010: LRX Land Rover production to be started

XKLand Rover LXR

Babars Jaguar

The Halewood Plant before JaguarThe decision to use the Halewood factory was seen by some to be controversial Plant Reputation Militancy Resistance to Change Poor Workmanship The plant was known as one of the worst car factories in the world. JAGUAR faced massive reorganization and the task of changing management in an existing plant with older workers and strong unions.

Why Halewood Plant was ChosenExisting jaguar plant in the midlands lacked sufficient capacity The Britishness associated with jaguar made overseas production inappropriate Good Transport Infrastructure Opportunity To Develop Business Park

The Challenges Jaguar FacedModernization (A Total Change was required) Weak Supply Chain Quality Assurance Peoples Thinking Relationship with Local Community Environmental Protection

A Highly Efficient Manufacturing SiteReplacing almost all of the production facilities 300 million were set aside to modernize the plant. Overhead conveyer system. Bought all major facilities on a single location that involves Press Shop, Body Construction, Paint Shop, Finishing etc. each one of them new and Improved. Developed standardized work process for each employee Developed Supplier Park alongside for the supplies (a 'Right 1st Approach)

Changing People's ThinkingAlter Halewood working practices and ways of thinking Every employee was provided a 'GREEN BOOK' which has the Company's Vision, code of conduct and operating principles written in it Empowering their people by giving more responsibilities to operators that were managing the operations of the business. Extensive Trainings Set Performance Indicators.

Corporate Social ResponsibilityThey made sure that the new Car is based on Company's Standards that prohibits the use of Substances that have an adverse effect on environment. Improvement and reduction in Halewood Energy consumption. Over 800 employees spent a week involved in local community projects like helping elders, school & Church to restore their gardens. Higher standards of cleanliness and tidiness and minimizing waste. Introducing waterborne processes. Establishment of Waste water treatment plant.

Samads Jaguar

Evaluation Of Jaguar SuccessTHREE PILLARS FOR SUCCESSFUL CHANGE Quality Pillar Centre of Excellence Pillar Culture Change Pillar

1- Quality PillarJaguar have transferred its existing quality standards to the Halewood plant. . consistency across the production process, for example, every shift would be working the same way. Identifying continuous improvements processes. Organized into smaller teams with group leader.

2- Centre's Of Excellence Pillarkey driving force in changing peoples thinking . Manufacturing improvements. Close co-operation and team work. Better Cleanliness and tidiness at workplace. Increases productivity and commitment within the workforce.

3- Cultural Change ProgramCreate an environment where employees take ownership. workshops for managers, union representatives and line workers. Increasing participation and empowerment. Improve decision making processes. Clearly define roles and responsibilities and adopt a no blame culture.

Arifs Jaguar

Need of World Class PerformanceCompanies are getting edge over their competitors by adopting modern trends Efficient and standardized processes helps the business to balance profitability along with quality Companies are spending heavily on Research and Development to introduce revolutionary products Traditional management styles are being replaced with the modern team-based styles

World Class Performance at JaguarJaguar has a brand image of Quality, Style, Speed and Status Halewood plant is developed in such a way to meet consumers expectations For exceptional quality cars the plant needs to have state of the art technology Existing production process is replaced to reduce the duplication and unnecessary delays

World Class Performance at JaguarWith all facilities within a same premises, the management has more control over production process then ever before Premium quality products are always backed by standardized work processes Keeping the pace with latest trends is necessary for Jaguar New features, stylish design, performance, safety etc. all leads to customer satisfaction

Rasss Jaguar

Comparison of Jaguar Halewood to Honda Car Manufacturing Plant in PakistanThe first car rolled off the Honda Cars Plant assembly line in 1994. Currently manufacturing Honda CIVIC 1800cc and Honda CITY 1300cc cars. Industrial activity at Honda Cars Plant includes: Import of engine and other critical components of car Components sourcing from local suppliers Fabrication of car structure Assembling of engine and associated components Final car assembling Painting and final testing

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

Jaguar HalewoodProduction capacity of 100,000 cars per year Max. value of Jaguar X-Type car approx Rs. 3.3 Million Nearly 3000 employees with high level of automation Production Facilities: Press Shop, Body Construction, Paint Shop, Final Trimming Lines Overhead conveyor based production line

Honda Cars PakistanProduced more than 150,000 cars from 1994 till 2008. Max. value Honda CIVIC car approx Rs. 1.8 Million Nearly 1000 employees with Low level of automation Production Facilities: Press Shop, Body Construction, Paint Shop, Final Trimming Lines 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

Ashars Jaguar

Case SummaryCase theme is development of world class production system for Jaguar Cars through restructuring. Deployment of modern equipment and facilities by putting huge investments Creation of highly efficient business processes and lean production systems through Business process re-engineering Changing peoples thinking and enable them to create a world class product by providing education, training and counseling to employees and empowering them through Halewood difference program Used benchmarking technique by creating Centers of Excellence and replicated the procedures developed therein to entire factory. Developing relations with Environment and wider community by creating environmentally efficient and cleaner production processes Employee volunteering in local community projects

Pakistani Case Parallel Restructuring in PSOAll equipment at retail outlets replaced with modern ones from global suppliers. Retail Automation, SAP, Email, Video Conferencing Vision, Mission, Values, Business Principles and Ethics developed. Fresh outlook and new colour scheme deployed. Human Resource development by providing training and counseling to existing employees Introduction of COCO outlets (Company Owned Company Operated) to serve as benchmarks. Results: Largest domestic oil market share, ever increasing revenues, Satisfied customers, happy employees!

Pakistani Case Parallel Restructuring in PSO Continued

Pakistani Case Parallel Restructuring in PSO Continued

Thank You! Questions