Rolls-Royce Operation Management

The assignment focuses on the operation management of Rolls-Royce, covering various aspects such as logistics, operations, and supply chain functions. It also explores the importance of quality management in products and services, citing theories and approaches from renowned authors. Additionally, it touches upon the company's consideration of economic, environmental, and social factors in its business environment.

Understanding
Operations,
Logistics &
Supply Chain
Management

Table of Contents
Introduction to Operations Management, logistics, supply chain Management..............................3
Introduction to company - Rolls-Royce Motor Cars.......................................................................3
Analyse all the areas of operations, logistics and supply chain management in Roll-Royce for
New product ....................................................................................................................................4
Managing Quality............................................................................................................................5
Economic, Environmental and Social consideration approach of Rolls-Royce..............................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction to Operations Management, logistics, supply chain Management.
The operations, supply chain and logistic management are the functions which play an
important & essential role in each and every organization where these helps the management in
controlling & managing the material & services in business organization. The operations
management is a method of managing, designing and process of transformation of raw material into
the required finished products as it is a value of creation process which allows and which allows to
develop and create the competitive advantage from profitable market for business organization. If it
is talked about supply chain management it is an process of managing and controlling the
movement of materials and flow of goods (Xu and Lei, 2015). As it includes designing, planning,
executing, controlling as well as monitoring of supply chain activities or channel of distribution and
focuses on fulfilling the demands of customer. The logistic management is a process which
considers the collection or accumulation of resources & material from beginning to the last stage of
delivering the final goods to its end user. As these are very helpful and useful tool for the
management of products and resources of company.
Introduction to company - Rolls-Royce Motor Cars.
Rolls-Royce Motor Cars limited is a British auto mobile manufacturing company, founded
in 1998 by Peter Schwarzenbauer. As it is a subsidiary company of BMW AG. The current cars
which is manufacture by this business organization are Phantom, Cullinan, Ghost, Wraith, Dawn.
The management of company has adopted effective tool for proper management of operation as
well as logistic and supply chain management function in business.
As Rolls-Royce Motor Cars and TNT companies are working together for their mutual
benefits, as TNT is a international courier delivery services company, accordant to that preparation,
implementation activities of providing effective services, company helps the Rolls-Royce to
overcome with lack of visibility and controlling of in proper shipping and movement of good which
is effecting as well as leading to shortage of resources or production material.
The management of Rolls- Royce is using proper supply chain management with effective skills
which consistently delivers the services and product on-time and high quality product to each
customer. The keeping everything running smoothly is a main objective which helps in in changing
in proper practical and strategic understanding of Rolls-Royce (Rumane, 2017) .
The management of Rolls-Royce is also focuses on considering and focusing on managing
the quality of their products and services and continuous improvement of process. As they are
operating on process and procedure which helps in enchaining the quality as well as safety of

products. For measuring the quality of their product, management uses the total quality
management approach in their business organization.
Analyse all the areas of operations, logistics and supply chain management in Roll-Royce for
New product .
The leading business organization that is Rolls-Royce is focusing on introducing the new
product i.e. Dusk in emerging and profitable market which is United States. This is being
considered as one of the crucial market , where company had made its existence and earned high
profits and generated heavy revenue. The manager of Rolls-Royce think that, market of US is very
effective & profitable for their new product. The management focuses analysing all the areas of
operation, logistic and supply chain management within their business organization for launching
new products.
Operations Management, Rolls-Royce is focusing on using operations management tools
in their business. As manager of Rolls-Royce considering optimum utilization of their resources as
well as focusing on quality of products and services they are serving(Ross and Sanders, 2015).
The operational manager of Rolls-Royce is also focusing on all different concepts and
applications as well as areas of operation management in their business such as capacity planning,
ordering of raw material(iron, aluminium, glass, rubber) , inventory management (Tyres, engine, car
parts), measuring of performance, supply chain design (transportation), storing of goods
(warehouses), quality management, converting raw material into finished products (cars, air crafts),
as they are very critical to analysing and managing all areas while introducing new innovative
product that is Dusk.
The manager of Rolls-Royce is considering some practices of operations management for
analysing & measuring all areas of operations area, for quality manager is using total quality
management approach, Just in Time Approach, Kaizen. If it is talk about inventor management and
capacity planning the manager is to ensure that raw materials and finished products should be
maintain at effective & optimum level.
Logistics Management, the manager of Rolls-Royce is also considering and focusing on all
areas of logistic management, as this helps effective supply of products to customers effectively and
efficiently (Pugh, 2015). The key areas of logistic management are Inventory planning and
management(quantity of raw material, tyres, engine, car parts, glasses), order processing, material
handling(management of raw material & retrieval, focusing on space utilization), maintenance,
warehousing(storing of raw material & finished products i.e. car ) , transportation(movement of
goods by road ways, air, rail, water ways), customer services(customer support number, online
connectivity, help line number, service centres), logistic packaging.

If it is talk about logistic packaging the company Rolls-Royce is using reusable material for
packaging of their product as which saves and do not harm to the environment. Along with this the
important area is warehousing, which plays an vital role in logistic operations, and the manager, use
it for storing of raw material as well as finished goods until they are sold. The manager made some
effective and important decisions regarding warehousing such as its location, layout, size, design as
well as the ownership which are too important to know for storing. Warehousing are the key
decision area in supplying logistic so they can properly store there products effectively and
efficiently manner(Xu and et. al., 2015) .
Supply chain management, including Logistic and operations management the manager of
Rolls-Royce is also considering the functional areas of supply chain management of their business
organization. Such areas are product designing (size, design), operations, purchasing (purchasing
and sales of goods), manufacturing (production for goods), inventory management (management of
raw material & finished goods), demand analysing (sales & demand forecasting), warehousing,
transportation as well as customers & supplier relationship management and returning of goods
(exchanging of goods) which are very beneficial for their business organization. As manager of
Roll-Royce has adopt marine, as well as road ways transportation for transporting & supplying their
new product i.e. Dusk in United States.
Managing Quality
Total Quality Management is a continuous process of checking and detecting as well as
reducing errors and issues occur in different areas of business such as production, manufacturing
unit, supply chain management and many more areas of business. As it focuses on ensuring and
improving the quality of output of an business organization products and services through
continuous improvement planning and approaches. In other words, TQM ensures that each and
every individual employee is focuses on working with improvement of work culture, procedure,
goods & services, system, management which helps in achieving the long term achievement and
success (Noe and et .al., 2017).
As total quality management has different several theories in business which helps in
guiding TQM practice, such as Deming’s theory, Crosby’s Theory, Joseph Juran’s Theory, The
EFQM Framework, Ishikawa’s Theory. Some of them are described in brief under below.
Joseph Juran’s Theory, according to this theory, the outcome is known as quality Trilogy,
which is consists of quality planning and improvement & controlling. When the focuses on the
quality improvement is proper then all actions are carefully planned and controlled effectively. If
the operation manager of Rolls-Royce used this theory effectively and focuses on managing
controlling the quality in their products it leads to positive impact and if it is talk about other sector

organization that is Marriott hotel, the operational manager do not considers and analysis the quality
of work and services they are giving to their customers at it leads to negative impact to hotel
(Meindl, 2016) .
For improvement of quality Juran introduced ten steps that are discussed as follow. In first
stage analysing the awareness of opportunities as well as needs for improvement and then in second
step focuses on improvement of determined goals then the business organization is required for
achieving the objectives and goals. In the forth stage the training is to be provided and then
initializing of projects and then in sixth step the monitoring stages starts with side by side in seventh
stage of process, it analysis and recognizing of performance is done then report is to be created and
in second last stage that is ninth stage tracking of achievements of improvements is to be considers
and last is to be considering the feedback.
Ishikawa’s Theory, this theory is introduced by Dr. Kaoru Ishikawa, he introduce this
theory for the benefit of companies, so that they can handle and manage their quality in their
products. If the operations manager of both the companies the Marriott Hotel & Rolls-Royce
company considers and effectively deals with effective tool and techniques of this theory it is
beneficial for the company to analysing the quality of products and services providing to their
consumers it leads to positive impact towards the company. On the other hand if manager do not
considers it properly to give the negative impact and result to both the business organization.
As while considering all the threats and opportunities and impact, Ishikawa’s introduced the
seven important basis tools which helps in improvement of quality and tools. Such as Pareto
Analysis, this tool of Ishikawa’s theory helps in identifying the biggest issues and problems in
process. The next tool is Cause and Effect Diagrams which helps in overcome with the roots
grounds or causes of issues as well as problems arises. Next tool is Stratification which focuses on
analysing how the resource and information can be collected. The Check Sheets is an approach is
analysis how often an issue or the problem occurs. Where as if it is talked about Histograms, It is a
bar chart which monitors the different variations (Nemet, Y. and Brand, E., Varcode Ltd, 2015).
Scatter Charts is a tool which focusing on helping in demonstrating and elaborating the
relationships between the various factors. Last tool of Ishikawa’s theory is Process Control Charts
helps in helps in determining the variations on which company has to focuses on.
Deming’s theory, this theory identifies the system knowledge and shewart cycle which
means PLAN-DO-CHECK-ACT. It considers that the ratio of quality as well as output of work over
the total cost is equal. This theory is consist and deals with four main points that is system
appreciation, variation knowledge, information and understanding of theory, psychology knowledge
and experience. It give negative impact to business when the operation manager do not focuses on

importance, applications and impact of this theory, as it is very beneficial for the both the
organisation Rolls-Royce as well as Marriott Hotel, as the operations manager do considers and
have proper knowledge of shewart cycle in their business while checking the quality of product and
services as it leads to positive impact to both companies(Ishikawa and Lu,1985).
Economic, Environmental and Social consideration approach of Rolls-Royce.
Economic Factor, there are ample number of elements within economic factors, which
Rolls-Royce is considering. Along with this, a few approaches in the operations of business that are
coming within this factor can be anything from exchange rates, inflation rates, interest rates and
more that basically helps Rolls-Royce in attaining specific goals and objectives in specified time
frame. These are very beneficial for the both economy as well as the business organization. These
are very helpful to Rolls-Royce, when its focuses on expanding their business. If the exchange rates
and inflation rates are low of country and in favour of Rolls-Royce, then this could help the
business organization in reaching to new heights.
Environmental Factor, the Rolls-Royce is considering various environmental elements in
their business such as weather, changing climate, laws & regulation in environmental Pollution,
recycling of waste material. As this could be considers as the advantageous and helpful for both
environment and the business organization. As it leads to making the effective and clean
environment and also the Rolls-Royce is contributing towards the environment. By this contribution
of Rolls-Royce, the society also helps and supports the organization against this(Hugos, 2018).
Social Factor, from the social factor, the ROLLS-ROYCE company is considering the
numbers of effective elements in their business organization which are very beneficial for business
organization. As these elements are Leisure interests, educational level standard in Rolls-Royce
holdings, cultures, attitude of society, although its helps in achieving the desired objectives within
the specific time. As these considered elements helps society as well as the Rolls-Royce in attaining
the advantages form the society and the organization. As employed and skilled candidates give
effective productivity in their performance as it leads to beneficial for company and against the
performance employee get compensation and reward as it is beneficial for employee.
Recommendations
As per the above analysis, its could be recommend to the Rolls-Royce that manager should
analysis and measures the quality of all different areas and department within the company such as
sales & purchasing department, operations & logistic, human resources, supply chain, research &
development, marketing department, accounting and finance department. As all the department
work in company and focuses on their quality has the manager should check the quality of work as

well as their product and services providing to their customers. Along with this, operation manager
should considered effective as well as profitable tools and techniques in their organization while
analysing the quality of their products and services. In addition to this, it is recommended that the
operation manager of Rolls-Royce should focuses on considering the political, technological as well
as legal factor of macro environment in their business.
Conclusion
From the above assignment, it is concluded that, the manager of Rolls-Royce is effectively
focusing on logistic, operations, supply chain functions of their business. As they have launched
new product in United States market i.e. Dusk as believing that US market is beneficial and
profitable market for their new innovative product. Along with this, the manager is also considering
the management of quality in their products & services. In context to quality, it is beneficial for both
organization as well as customer as consumer is getting good quality products and with is company
is attracting customers effectively. As manager also focusing on the different theories of quality
management of analysing and measuring quality in their products. In addition to this, Rolls-Royce
is also considering the different approaches of economical, environmental, social factor of their
business environment which are beneficial for their business organization.

References
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Heizer, J., Render, B. and Munson, C., 2017. Operations management. Pearson Education Limited.
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Ishikawa, K. and Lu, D.J., 1985. What is total quality control?: the Japanese way (Vol. 215).
Englewood Cliffs, NJ: Prentice-Hall.
Meindl, S.C.P., 2016. Supply Chain Management--Strategy, Planning and Operation. Tsinghua
University Press. wheat soybean others land for no use.
Nemet, Y. and Brand, E., Varcode Ltd, 2015. System and method for improved quality management
in a product logistic chain. U.S. Patent 8,967,467.
Noe and et. al., 2017. Human resource management: Gaining a competitive advantage. New York,
NY: McGraw-Hill Education.
Pugh, P., 2015. The Magic of a Name: The Rolls-Royce Story, Part 2: The Power Behind the Jets .
Icon Books Ltd.
Reid, R.D. and Sanders, N.R., 2015. Operations Management, Binder Ready Version: An Integrated
Approach. John Wiley & Sons.
Ross, J.E., 2017. Total quality management: Text, cases, and readings. Routledge.
Rumane, A.R., 2017. Quality management in construction projects. CRC Press.
Xu and et. al., 2015. Evolution of Rolls-Royce air-cooled turbine blades and feature analysis.
Procedia Engineering, 99, pp.1482-1491.