Operations Management of Rolls Royce

This report delves into the operations management techniques adopted by Rolls Royce to enhance performance and quality. It covers topics such as company overview, sales revenue, products, media coverage, and more. Recommendations for improvement are also provided.

Running head: MANAGEMENT
Operations management of Rolls Royce
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Table of contents
Introduction................................................................................................................................3
Company overview....................................................................................................................3
Data............................................................................................................................................4
Sales revenue..........................................................................................................................4
Products..................................................................................................................................4
Media coverage......................................................................................................................5
Export engine.........................................................................................................................5
Turbine blades........................................................................................................................5
Air inside the big jets.............................................................................................................5
Pay offs...................................................................................................................................6
Engines...................................................................................................................................6
Long term contracts................................................................................................................6
Blend of technology...............................................................................................................7
Operations..............................................................................................................................7
Employees..............................................................................................................................7
Subsidies and incentives from the government......................................................................8
Identification of key issues with theoretical considerations......................................................8
Recommendations......................................................................................................................9
References................................................................................................................................11
Bibliography.............................................................................................................................12

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Introduction
Managing the operations is necessary for enhancing the efficiency within the
productivity. Total quality management is a vital concept, acting assistance towards gaining
the satisfaction, trust, loyalty and dependence of the customers. Tracking the results prove
beneficial for the companies and organizations to make estimates regarding sustaining the
position within the competitive ambience of the market. For this, effective labour
maintenance strategies are needed for averting the issues of inadequacies in case of resource
consumption (2). This report attempts to peek into the management techniques adopted by
Rolls Royce for upgrading the standards and quality of performance. One of the important
parameters, which the assignment would cover is “cadle to cover design”, which helps in
luring large number of clients and customers towards the brand image.
Company overview
Rolls Royce is a subsidiary company of BMW. Founded in 1998, the company has
achieved accolades and glory by serving innovative, latest and modern technologies to the
clients and customers. Widespread presence is one of the strengths in terms of increasing the
trafficking of the audience towards the brand. Hard efforts of 1300 employees reflects
collaborative approach towards catering to the needs, demands and requirements of the
customers. As a matter of specification, the company deals in manufacturing classic and
sporty cars like Phantom, Cullinan, Ghost, Wraith, Dawn among others (7). Envisioning
luxury has enabled the Company to achieve customer satisfaction. The core principles and
values of honesty, integrity and accountability acts assistance towards executing the
operations in an efficient and effective manner. Infusion of modern technologies have altered
the standards of the business operations.

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Ownership and licensing of the trademarks enhances the brand loyalty. Product
lifecycle is conducted in terms of estimating the feasibility of the current progress with the
supply and demand. Graphical representation for the production progress enhances the
awareness regarding the innovations, which have been infused within the operations (7).
Data
Sales revenue
 As per the annual sales of 2018, the total sales of Rolls Royce was accounted as 4107.
This is slightly higher than the sales of 2014, which was 4063. Mention can be made
of Asia Pacific region, where the sales revenue increased by 47%. In case of Britain,
the hike in sales revenue was 30% and for the Middle East, it was 23% (7).
Products
 2010 was the era when Ghost (4 door sedan) was launched. The decision for this
launched was made by the company in 2006. Compared to Phantom, its size was
small. As per the decisions, 20% of the documents were sourced from BMW F01 &
Series. In terms of the product innovation list, it gained the second position to
Phantom. Mach 2014 was the era when the new Ghost series 2 was launched for the
public. Geneva Motor Show was used for this launching. New LED headlights was an
innovation along with upgraded interior features (7).
 It was in the era of 2013, when Rolls Royce Wrath coupe was launched. The car
attracted the customers through its sporty, luxurious look, sleeky roof line, and a
touch of Ghost. The engine was turbo charged, connected to eight speed gearbox.
 From 2015, Rolls Royce Dawn has gained customer satisfaction by catering to both
need and luxury. The option of converting the seats is an added advantage in terms of
enhancing the convenience of the customers during travelling (7).

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 Phantom is one of the cars, which was exhibited by Rolls Royce in The Great Eight
Phantoms Exhibit. The sales started in 2018, assisting the personnel to encounter
noticeable growth.
 It was in the era of 2018 when Rolls Royce launches Cullinan to the clients and the
customers. This 5 door SUV car is an epitome of luxury.
Media coverage
 News channels operates 24 hours for popularizing the business operations of Rolls
Royce. This reveals the public relations between Rolls Royce and the media agencies
in Derby (7).
Export engine
 One of the striking facts of Rolls Royce is that 85% of the revenue shares come from
abroad. The major drive behind this is the initiatives of Sir John Rose, the CEO
towards enhancing the efficiency within the business operations. White bodied
passenger jets and single aisle aircraft reigns the production line.
Turbine blades
 The cost of the turbine blades is $10000, however, it is convenient enough for the
engineers to handle.
Air inside the big jets
 The temperature inside the big jets are controlled efficiently and effectively. In some
places, the air inside the jet reaches 1600 degree Celsius, which is 400 degrees hotter
than the melting point for metals, from which the turbine blades are composed (7).

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Pay offs
 The employees are paid for selling the spare parts and repairing them. According to
the reports, the gross profit margin through the sale of the spare parts is accounted as
35%. Investing in this aspect is beneficial for the investors. This is because the
investors would receive seven percent hike in the revenue.
Engines
 Rolls Royce is spared from designing a new engine, whenever a new aircraft is
launched in the market. This is a huge advantage as there is balance between the
supply and demand. The company achieves accolades and glory by practising “sell on
board”, which enhances the practical knowledge of the clients regarding the
transparency in the business operations (7). Three main engines, whose designs are
under development are Boeing 787 Dreamliner, Airbus 380 and a new version of
Airbus 350. One of its specialities is it uses 45 out of 50 engines. This sustainable
planning towards using the resources make it one of the leading airlines.
Long term contracts
 Profits earned from rebuilding the engines is accounted as 35%. Indulging in long
term contracts proves beneficial for Rolls Royce in terms of estimating the profit,
which would be earned in the upcoming financial years. Calculating on average basis,
selling of the engines increases the profit margin.
 More than half of the engines are marketed through contracts. 80% of these contracts
are sold off to the clients (7).

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Blend of technology
 Technological innovation has enabled Rolls Royce to enjoy competitive advantage
over the contemporary brands. Counselling the clients has assisted the personnel to
gain an insight into their specific needs, demands and requirements. Seeking financial
assistance from the clients is an initiative towards strengthening the financial stock.
According to the claims of the investment analysts, promise to repair the damage, loss
and defects assures the clients that their investments are valued and respected (7).
Operations
 The managers, take into account, the performance of 35000 engines for estimating the
business value generated. Field surveys at the time of operations helps in predicting
the faults and defects, which might arise at the time of actual processing. Expert
advice in this case is assistance towards seeking the required changes as per the
organizational requirements (7). Contracts with the research and development team
has added innovative touch to the engines. This innovation has proved beneficial for
the personnel in terms of gaining trust, loyalty and dependence from the clients and
the customers. Typical evidence of this lies in improvising on fuel efficiency, which
has increased the shelf life of the engines by tenfold.
Employees
 40% of the employees of Rolls Royce are employees in outlets other than Britain. The
story was not the same two decades ago, when the employee rate was merely 7%. As
half of the new engines are imported from abroad, the employees are provided with
technological training. This is in terms of maintaining the pace with the contemporary
brands for aligning with the competitive pace. Presence of factories across the world
is advantageous in terms of coping up with the competitive pace of the market (7).

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This is something obvious for automobile manufacturers like Rolls Royce in terms of
regulating the labour maintenance costs.
Subsidies and incentives from the government
 Subsidies and incentives from the government helps in upgrading the standards and
quality of the manufacturing process. In 2001, Britain lent 250 pounds to Rolls Royce
for the development of bigger engines. 2006 was the era when agreements were
released for granting 47 million pounds to Rolls Royce for introducing environment
friendly engines. Joint venture with Germany assisted in coverage of 30% in the
capital costs (7). Assistance of 57 million from the state and local government assisted
in setting a factory in Virginia.
Identification of key issues with theoretical considerations
Scientific management theory can be used for identifying the issue of defects within
the spare parts of the engine. According to the case study, commonality is exposed about
lightning, which results in wreckage for the engines. This led to the concerns regarding the
need for inspections. The related concerns and worries are the delay in flight services, adding
to the inconvenience of the customers. These concerns and worries reflects lack of scientific
approach towards enhancing the product quality in terms of luring the customers. The major
drive behind this lack is the ongoing process of data collection for adding innovation into the
design of the engines (3). This approach assisted in collecting the relevant information on
adding innovation into the engines. However, it aggravated the complexities in handling the
human resources. Incapability towards controlling the temperature of the turbine blades also
contradicts the application of scientific management theory.
Bureaucratic management theory can be implemented for specifying the absence of
knowledge within the employees. This absence indicates disruption within the organizational

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structure. These disruption, in turn, aggravates the complexities towards regulating the
performance of the employees. Incapability towards controlling the performance of the
employees adds interrogative parameter to the roles and responsibilities of the managers (4).
According to the critics, Weber’s theory is exempted from simplification to a systematic
approach towards management of the human resources. Countering this, systematic approach
towards organizing technological training is assistance in terms of maintaining the
competitive pace of the market. This approach proves beneficial in terms of sustaining the
market position.
One of the relevant theories in this context is human relations theory. According to
the utility capability of the employees, the systems are personalized. Autonomous operation
of Rolls Royce acts assistance in unleashing the creativity of the employees (5). Strategic
approach towards this direction is the introduction of mutual benefits policies. However,
defects within the engine contradicts the true essence of human resource management.
Relationship between the humans and systems is enhanced through the means of design
thinking regarding upgrading the standards and quality of the engine designs.
Systems theory can be applied for delving deeper into the complexities regarding
planning the designs and conducting journey mapping for assessing its feasibility. Using the
systems for conducting offshore management is assistance towards gaining an insight into the
sources from where profit margin would be increased (6). Infusion of technology within the
business operations acted assistance for the company towards achieving high edge
competitive advantage over the contemporary brands.
Recommendations
 One of an important recommendations in this context would be to organize frequent
quality control tests. This can be done through the consideration of positive and

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negative standard deviations. For this, the normal distribution of the engines is to be
taken into account for predicting the supply and demand curve. Prediction of this
curve would be effective if Rolls Royce personnel gain an insight into the variations
within the design of the spare parts of the engine. Within this, one of the related
aspects is conducting capability analysis for the systems and the personnel.
 Cradle to cradle design can be implemented by Rolls Royce for manufacturing eco-
friendly engines and aircrafts. Zero emission of fuels would be effective in terms of
making noticeable contribution towards regulating the pollution levels. One of the
important aspects for implementation of these designs is the framework, which would
act assistance for the Rolls Royce personnel towards mitigating the error rates.
 Analysing the productivity rates, on-time deliveries and quality would act assistance
for the personnel of Rolls Royce to identify the major defects in the engines. This
identification would be crucial for upgrading the standards and quality of automobile
services.
 Conducting open forums and discussions would help Rolls Royce personnel to
generate ideas for improvising on the manufacturing process. Consistency needs to be
maintained in executing these discussions for unleashing the creativity and
imagination of the stakeholders and shareholders.
 Tracking the input and output of the business activities and the value generated
through the automobile services would prove beneficial for Rolls Royce to align the
current trends with the needs of the customers. This approach would enhance the
awareness towards triple bottom line.
 Judicious use of the organizational resources would act as a cornerstone towards
averting the inadequacies at the time of project operations. For this, Planning,

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Designing, Controlling and Assessing (PDCA cycle) would be effective for enhancing
the efficiency in the production of Rolls Royce.
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