Understanding Operations, Logistics and Supply Chain Management

This essay explores the issues of new product development and logistic mix on Jaguar Land Rover Automotive Limited. It covers theories of operations management, such as just in time and lean manufacturing, and provides recommendations for resolving the issues.

Understanding Operations,
Logistics and Supply Chain
Management

Essay: An investigation on issues of New Product Development and Logistic
Mix on Jaguar Land Rover Automotive Limited
INTRODUCTION
Operations management is referred to be an approach which mainly focuses upon
production and distribution of products and services generated by the company. It involves
optimum utilization of resources in the process of manufacturing. Supply chain management is
concerned with administration of products and services flow and involves all the activities and
practices that converts raw material into finished goods (Arunachalam, Kumar and Kawalek,
2018). Logistics management is the administration of supply chain element which is utilized to
mitigate demands of customers by planning, controlling and executing movement and storage of
associated products, services and information from descent to destination in an effective manner.
This essay is based on Jaguar Land Rover Automotive Limited which is a multinational
automotive company of Britain. The company was established in year 2008 and its headquarters
is located in Whitley, United Kingdom. The two areas of operations, supply chain and logistics
management chosen for this project are new product development and process and Logistic mix.
This report covers approaches like total quality management and just in time as the company
faces issues in operations and supply chain management. Use of these approaches helps company
in resolving the issues associated with new product development and logistics. This report covers
identification of operational issues and the way it functions and supports the market. Apart from
this, theories of logistics, operations and supply chain management are review and apply on
issues. Application of these theories helps in resolving the operational issues. At last, solutions
are provided with relevant recommendations and conclusions in this essay.
MAIN BODY
Overview of organisation
Jaguar Land Rover Automotive Limited is one of the leading automotive firm of Britain.
It is a subsidiary of Tata Motors which is an Indian automotive company . The company was
established around 11 years ago in year 2008 in Whitley, UK. The primary operations of
business includes designing, development, production and sales of vehicles the bearing the
marques of Land Rover and Jaguar.

Selected issues
The operational areas which are selected in Jaguar Land Rover Automotive Limited are
New product development and process and Logistic Mix that includes networks, transportation,
channels, capacity and managing inventory (Banks and Stanton, 2016).
Review of theories
There are some theories of operations management that requires to review as these helps
company in managing its operations, supply chain and logistics activities effectively. Some of
the theories that firm can employ are mentioned below:
Just in time: This is the management approach that aligns orders of raw material from
suppliers straight away with manufacturing schedules. This strategy is applied by business entity
to maximize its efficiency and declines the waste by ordering raw materials only when they are
required in the process of production, thus reduces cost of inventory (Ziebart and Rover, 2014).
For proper application of Just in time approach, managers of company requires to predict the
demand of car accurately.
(Source: How does Just-In-Time work in the car industry?, 2019)
In context of Manufacturing Automobile, It works largely on the principles of
manufacturing cars considering their requirement. This process begins one the order is placed by
Illustration 1: Just in time

consumer to the business. Later keeping in mind the demand, raw materials and input are
procured and manufacturing is done. This process will be helpful in fulfilling demands of the
consumers and simultaneously avoiding wastage.
Lean manufacturing: It is the method utilize by company to eliminate the waste in
systematic way from manufacturing process. Application of lean production approach helps
company in determining those activities that do not add any value in the process so that those
can be eliminated. This approach is efficient to customer relationship as it attempts to meet the
needs and requirements of customers (Christopher, 2012).
Total Quality management: This is the method which is used by company in detecting
and eliminating errors that occurs in manufacturing process, streamlining administration of
supply chain and enhancing the experience of customers. This approach focuses of improving
the quality of product by making constant improvements in practices. It is a customer oriented
approach as it a ensures manufacturing of high quality products to ensure satisfaction of needs
and desires of customers (What Is Total Quality Management (TQM)?, 2019).
Critical discussion and solutions to operations management
New product development is referred to a concept which revolves around conceiving and
and designing a product that will help an organisation in the market. Companies are required to
engage in this procedure as the preferences of consumers are changing constantly and the
technological advancements and increasing market competition makes it necessary for an
organisation to remain engage in the NPD process in order to maintain its sustainability in
market (Christopher, 2016). By launching a new product in market, firm can gain acceptability
and maintain its strong position in industry. For developing a new product, Jaguar Land Rover
Automotive Limited requires to maintain the areas of its operations, supply chain and logistics.
While manufacturing new car, company may face various issues associated with technology,
pricing, sustainability etc. The organisation is launching a car in which high end technology is
used and is equipped with security feature the access could be provided to other person by
fingerprint scanner or connecting to mobile phones. The benefit of this high technological feature
is that if the car is locked once, then an unauthorised person can not open it (Clegg and et. al.,
2013). To develop this car, product development toolkit model is use by company. Highly
innovative features are added in this car which reduces the chances of its theft. The model
involves some phases which are mentioned below:

In planning about the car and its characteristics, quality function deployment tool is used.
The company is performing market and competition analysis so as to determine the trends of
market and preferences of customers (Ellram and Cooper, 2014). In the new car, Jaguar Land
Rover Automotive Limited is adding high security feature in car by using sensors and
technology. This feature provides security to customers from the theft of car as no unauthorized
person can access it without the permission of its owner.
By considering the situations of market, company develops target costing strategy and
set the price of car in such a manner the desired volume of sales can be attain. While setting the
price of product, company may face the issue related to cost as if the cost of production is high
then it ultimately impacts on the pricing of product. As the company is dealing in luxury and
sports utility vehicles and has good market position, it sets a fixed price for the product. The
selected target group for this car is high class people who are able to afford this car. After
considering the various factors like quality, security and other features, the cost of product is
decided. Apart from this, managers develops a cost sheet when designing the car and developing
it. Various costs are taken into consideration like manufacturing, material, fixed costs etc.
Principles like design for assembly is considered so that company can manufacture in more
quantity. Application of such principle helps in minimising the car manufacturing cost and other
costs including assembly and fabrication (Earley, 2015). As the car is equipped with high
security feature, business entity makes sure that a fixed place is use to assemble parts of car. This
helps in minimizing the transportation cost that incur in movement of parts from one place to
another. Change in legal, social, environmental and political factors pose threat for the company
that put pressure on it to create new ways of designing and developing cars. A software is use by
company for assembly of parts in car.
In order to determine and analyse the probable problem or issues associated with product
development cycle's reliability, FEMA (failure modes and effect analysis) approach is used so
that appropriate measures can be taken on time to address the issues effectively. At the time of
developing car, this tool is use by Jaguar Land Rover Automotive Limited. High end technology
and artificial intelligence is use by company for adding security feature in it. By FEMA analysis,
firm enables to determine failure modes and the measures that required to be taken for
minimising the probability of failure when launching the car in market. A control plan is
developed that includes set of activities which are crucial in the development process to make

sure that all the activities are on track and output is in control. This plan is develop to ensure that
product can satisfy the needs and desires of customers (Ganescu, 2012).
Logistics can be referred as the process of planning and implementing product's
transportation and storage in an efficient way from the origin point to final point. This process
aims to meet the needs of consumer in timely and cost effective way. In supply chain
management, logistic mix is one of the crucial element that includes production planning,
forecasting demand, inventory management, material handling, customer services, storage,
transportation, packaging, after sales activities and distribution. For manufacturing new car with
high security feature, the assembly parts are procure from such suppliers who a provides parts
with high quality. The distribution system use by company is direct distributors who come in
contact with consumers directly. They communicate the features of car directly to the customers
in order to convince them to buy the car launched by Jaguar Land Rover Automotive Limited.
For ensuring the reach of car to market, various transportation modes are used by firm such as
roads, air and sea (Jacobs, Chase and Lummus, 2014). For managing inventory in appropriate
way, operations management approaches like lean production and just in time is use by
company. In order to reduce the time lag between procurement of assembly parts and
implementing final production, Just in time strategy is use by firm. This supports in reducing the
time of raw material sourcing.
Moreover, for minimising the overall production cost, company utilize lean production
approach. This aids in eliminating wastage that incur in production process and ensure that high
quality car can be manufactured. Application of this approach helps Jaguar Land Rover
Automotive Limited to make optimum utilization of resources without compromising with the
quality of car (Mangan, Lalwani and Lalwani, 2016). By utilizing the Lean production approach,
company eliminates the activities that are not adding any value to production process. Company
mainly emphasize on determining the customer's needs and developing products that satisfy
them.
At the time of managing supply chain and carrying out production process, numerous
issues are face by company including location, cost, overstocked inventories. Apart from these
issues, some ethical and environmental concerns are also requires to consider by company. The
issue of overstocked inventory is associated with keeping more stocked than required.
Sometimes, firm keeps more stock than its actual need due to which the problem of overstocked

inventory is arise. For reducing this issue, company needs to keep well stocked inventory,
instead of overstocked. Firm needs to manufacture cars when there is demand for it
(Rebolledo-Mendez and et. al., 2014).
The another issue associated with cost and location, firm requires to analyse all the costs
associated with the production process and eliminate those which are unnecessary. It also needs
to ensure that all the resources are utilize optimally so that wastage can be minimised. The cost
requires to be ascertain in such a manner that majority of people can afford the car. Moreover, in
order to resolve the location issue, the alternatives like relocation, setting up factory at such
location where transportation cost is incur less etc. can be consider by company (Thai, 2012).
Recommendations
It is essential for a business to deal with its issues/challenges so that sustainability in the
market could be ensured. Considering the issues which are faced by Jaguar Land Rover
Automotive Limited while managing its operations, logistics and supply chain. Managers are
require to consider those issues when introducing new product so that appropriate measures can
be taken on time and improvements can be made in the process of new product development. In
order to resolving the issues of production and supply chain, it is recommended to company that
it should employ total quality management approach in its processes as it helps it in maintaining
quality of its car and ensuring that the operations are performed effectively. Apart from this, in
order to maintain sustainability in market for longer duration, company should adopt the ethical
and sustainable practices while conducting its manufacturing and selling operations. These
practices involves waste reduction, carbon footprints, waste recycling, sustainable development
etc. Application of all these practices can help company in ensuring that its manufacturing
operations will not harm the environment. Moreover, manager of human resource department of
Jaguar Land Rover Automotive Limited skilled and competent professionals who are able to
manage the complex issues or challenges effectively takes business to greater heights. Firm
needs to ensure that raw materials should be ordered only when it is required. In addition to
these, the managers must ensure that all the activities and operation are performed as the laws
and set standards. This can supports in running operations smoothly and ensuring long term
sustainability in market.
In order to bring enhancements in process of new product development, six sigma
approach should be adopted by company. Application of this approach assists company in

reducing the cycle time of production and managing its supply chain in more effective way. The
dimensions of triple bottom line should be considered by Jaguar Land Rover Automotive
Limited in order to ensure sustainability in practices of business. Values, traditions, attitudes,
lifestyle, norms, behaviours of customers are involved in social factors. While developing and
launching product, these factors needs to be consider by company. The economic factors like
customer's purchasing power, inflation and interest rates etc. should also taken into consideration
by company while setting price of product. These are the measures that can be taken by business
entity for effectively addressing the issue associated with operations, supply chain and logistics
management.
CONCLUSION
As per the above mentioned report, it has been concluded that logistics and new product
development are the two areas of issues that are face by firm. These issues needs to be address
timely so that long term sustainability can be gain in market. Moreover, in order to reducing the
waste and improving quality of product, company requires to adopt operations management
approaches like six sigma, lean production, total quality management etc. all these will assist
organisation in maintaining quality of its products and ensuring sustainability in market.
Managers are also requires to consider the dimensions of triple bottom line which includes
social, environmental and economic aspects to make sure sustainability in its business practices.
The attitudes, behaviours, traditions and values needs to be consider by organisation in order to
run its business successfully and attain success in market. Apart from this, company requires to
offer products to customers as per their needs and preferences in order to satisfy them. The
second aspect of triple bottom line is economic factor that highly impacts the purchasing
behaviour of customers. Company needs to consider this factor and set prices of products
accordingly. The environmental factor is the most crucial one as customers are more concerned
towards environment and companies requires to perform their operations in such a manner that it
will not harm the environment.

REFERENCES
Books and Journals
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capabilities in supply chain management: Unravelling the issues, challenges and
implications for practice. Transportation Research Part E: Logistics and
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Banks, V. A. and Stanton, N. A., 2016. Keep the driver in control: Automating automobiles of
the future. Applied ergonomics. 53. pp.389-395.
Christopher, M., 2012, January. Managing supply chain complexity: Identifying the requisite
skills. In Supply Chain Forum: An International Journal (Vol. 13, No. 2, pp. 4-9).
Taylor & Francis.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Clegg, B. and et. al., 2013. Governing inter-organisational R&D supplier collaborations: a study
at Jaguar Land Rover. Production Planning & Control. 24(8-9). pp.818-836.
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Online
What Is Total Quality Management (TQM)?, 2019. [Online]. Available through:
<https://asq.org/quality-resources/total-quality-management>
How does Just-In-Time work in the car industry?. 2019. [Online]. Available
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