Implications of Brexit, Quality, and Environmental Challenges on Rolls-Royce Motor Cars

Running head: OPERATIONS MANAGEMENT
Operations Management
[Rolls-Royce Motor Cars]
Name of the student:
Name of the university:
Author note:

1OPERATIONS MANAGEMENT
Executive summary
The main purpose of this project is to discuss the implications of a range of issues being faced by
global automakers in the United Kingdom. Brexit is being discussed as one of the issues in this
project. The impacts can be observed in different aspects of the businesses like labour shortage,
increased exports and import tariffs, the unstable political state of the country and instability in
the UK's economy. The study has recommended feasible solutions for Rolls-Royce to counter
these issues. Managing quality is also being presented as one of the challenges to the
automakers. Rolls-Royce is being recommended to follow lean-practices as adopted by Toyota at
the global level. Environmental challenge is a growing burden for auto manufacturing brands.
Rolls-Royce is being recommended to follow “Go Green” to be able to reduce its carbon
footprint impact and also the other forms of wastes. Rolls-Royce is being recommended to
follow the “Lean Thinking” And “Quality Leadership” as adopted by Toyota. Rolls-Royce is
also being recommended to follow “Being Green” and “Being Lean”. These policies as
suggested in this study can be helpful for Rolls-Royce in reducing its adverse environmental
impact.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Key issues being faced by UK car-makers through Brexit, quality and environmental
challenges........................................................................................................................................4
Key issues through Brexit:...........................................................................................................4
Key issues through quality challenges:........................................................................................5
Key issues through environmental challenges:............................................................................8
2.1 Implications of these issues on the competitive performance of Rolls-Royce Motor Cars...8
3. Learning from Japanese car-makers and its implications in setting up operations and supply
chains in BRICS countries for Rolls-Royce Motor Cars...............................................................11
Learning:....................................................................................................................................11
Good Practices related to Operations:...................................................................................12
Good Practices related to supply chain operations:...............................................................14
Implications for Rolls-Royce Motor Cars:................................................................................15
4. The usefulness of "Green business is good business" on the environmental performance of
Rolls-Royce Motor Cars................................................................................................................19
4.1 Identifying a relationship between ‘being green’ and ‘being lean’.....................................20
5. Based on your analysis, list some recommendations to Rolls-Royce Motor Cars....................21
References......................................................................................................................................22

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1. Introduction
The main purpose of this project is to analyse the impact of Brexit, quality of the process
and environmental factors on the UK car industry. As per industry leaders, permanent
devastation can happen to the car industry if a deal is not being made between the UK and
Europe (Fortune, 2019). The trade association for the UK car industry released scary statistics
showing a near-halving of new investments in 2018 (Fortune, 2019). The production rate has
also fallen down by 9.1% (Fortune, 2019). According to the Society of Motor Manufacturers and
Traders (SMMT), a no-deal closure between the EU and UK can affect two-thirds of the global
auto trades in the United Kingdom (Fortune, 2019). These pieces of information suggest that UK
car manufacturers are on the verge to face the adverse impact of Brexit.
Quality is an essential part of operations management. The key principle of operations
management is to bring down the pricing to a maximum possible extent and delivering a quality
product. Quality is required in every single aspect of a business. Revenues can be boosted with
better sales tactics and enhanced pricing. On the other hand, costs can be minimised by
empowered productivity, efficiency and the use of capital. From safety checks to compliance
audits, a robust quality management system (QMS) help car manufacturers perform every aspect
of their business with utmost perfection. QMS helps automakers maintain good sales, avoid and
counter ethical dilemmas and efficient handling of the cost (Ross, 2017). This shows that
maintaining quality in every aspect of the business is important for car manufacturers in the
United Kingdom.
Achieving the appropriate balance of social responsibility, economic progress and
environmental care has been the prime concerns for the automotive industry (Smmt.co.uk, 2019).
There is no way to escape away from this aspect of the external business environment as there is

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increased consumer and media awareness of environmental issues. Therefore, the main purpose
of this project is to analyse the global car manufacturers in the United Kingdom from various
aspects and identify challenges being faced by them. Moreover, learning from global car
manufacturers such as Toyota, and applying its lean thinking and quality management in the
operations of Rolls-Royce Motor Cars in BRICS countries.
2. Key issues being faced by UK car-makers through Brexit, quality and environmental
challenges
Key issues through Brexit:
The car manufacturers in the United Kingdom rely hugely on their connection with the
European Union. Both imports and exports of finished goods are exchanged between the EU and
the UK. It is very difficult to ascertain about what will happen to the car manufacturers once the
UK separates out from the EU. Some facts denoting the dependency of the UK car manufacturers
for a healthy business can help to understand the expected impact on the car manufacturers. It is
expected that a no-deal situation after Brexit will have a severe impact on the UK automotive
industry. It is understandable also as there is no other industry than the automotive industry,
which has such a tight integration between the EU and the UK. They share a highly complex
supply chain. Moreover, the production of cars relies on just-in-time delivery (Acea.be, 2019).
What will happen to these complex supply chains and how all those things will be
managed if there is no deal between the UK and EU to keep things going as it is now. Notably,
51% of the total cars manufactured in the United Kingdom were exported to the European Union
in 2017 (Acea.be, 2019). These were bought by customers residing in different parts of the
European Union. In fact, passenger cars made in the UK and exported to other parts of the