Operations, Logistics, and Supply Chain Management of Morgan Motors

Desklib provides past papers and solved assignments. This report analyzes Morgan Motor's operations and supply chain.

UNDERSTANDING OPERATIONS, LOGISTICS AND
SUPPLY CHAIN MANAGEMENT
1

Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Conclusion.......................................................................................................................................8
Reference List..................................................................................................................................9
2

Introduction
Operation department of the organization plays an important role because it helps to improve the
overall output of the organization in the market. In addition to that, operation management of the
business venture can use modern technology while manufacturing products so that quality of the
products can be maintained. At the time of producing the products in the market the operation
depart can analyze the preference and taste of the customers. In addition to that, representatives
of operation department can conduct training sessions for the employees so that their level of
skills can be enhanced. The job responsibilities need to be assigned as per the employees’ skills
so that final goods can be produced in Bulks.
In the present study, the importance of operation department has been analyzed. In addition to
ways of managing the people of operation department has also been discussed here. On the
contrary, the issues of operation department have also been discussed here. The manufacturing
process and delivery system of the organizations have also been discussed. Lastly,
recommendation has also been provided to improve the function of the organization. Morgan
Motors is considered as one of the largest sports car manufacturer of UK. The main motive of the
organization is to provide quality products to the customers. In order to expand the business
activities the organization has hired more than 1000 employees (morgan-motor.co.uk, 2019). The
organization has earned 26 Million Pounds profit. In the present study, two themes that have
been chosen are managing people and managing quality of the organization.
3

Discussion
As per the literary underpinnings of Coronel and Morris (2016), management of Morgan motors
has expanded the business activities in the global market so that profit margin of the organization
can be increased. In addition to that, they have launched 3-wheeler sports car because they have
high speed. In every year, Morgan produces more than 1300 cars and exports 70% of the overall
productivity (morgan-motor.co.uk, 2019). Thus, 40 Million Pounds have increased rate of annual
productivity. Presently, the organization produces three types of cars such as The Morgan Three
Wheelers, The Morgan Classics and The Morgan Aero. Morgan produces sports cars that are
costly. Hence, it can be mentioned that Morgan targets upper class people to sell their products.
In addition to that they mainly targets Teenagers, youths, Young Adults and adults (morgan-
motor.co.uk, 2019).
As per the comment of Coronel and Morris (2016), the management of the organizations need to
maintain the quality of the products by providing quality raw materials so that more number of
customers can be attracted towards the organization. In addition to that it has been noted that the
organization. They have launched a model of car known as American V twin, which is of 500 kG
and 197 CC. The concerned model has a bullet style body, fly screens and aircraft gear. Further,
in order to strengthen the body the car was made up of steel body. Since last 12 months 1300
units of American V twin has been sold. Moreover, Morgan classics are also considered as one
of the most famous model in the market. The concerned product is considered as the backbone of
the company because of its iconic style. The car consists of 1600-4800 CC mileage (morgan-
motor.co.uk, 2019). However, it has been noted that the members of the operation department
faces work pressure. In addition to that some of the employees lack efficiency which of which
the product may get affected. The organization at times faces resource crisis because of which
the overall quantity and quality of the cars also get affected. In order to maintain business
sustainability 3 pillars of sustainability model can be implemented within the organization. The
model has been discussed below:
As per sustainability model, the management of the organization needs to fix the price of the
products as per the purchasing power of the customers so that more number of customers can get
attracted towards the organization. In order to achieve the social pillar of sustainability the
management of the organization needs to treat all the employees so that they can get motivated.
4

In addition to that, they also give importance to the customers by solving their issues in an
effective manner (Kato et al. 2015). For instance, Morgan has launched online feedback system
so that they can cater the requirement of the customers at right time in order to increase the
customers retentively rate. In order to promote environmental sustainability, the management has
reduced the carbon emission. They have also introduced solar car batteries so that level of air
pollution can be reduced (Stark, 2015).
The management of the organization has launched mobile application so that the customers can
book the cars as per their convenience level. They have launched online payment system so that
the customers can conduct bank transactions.
In order to maintain the quality of the product the management of Morgan has signed a contract
with the engineers of BMW. In addition to that, the management has prepared a team known as
development Team so that the design of the cars can be enhanced. Before launching the car,
Morgan initiates engine test for a month. They have also conducted training session for the
employees so that their skill level can be enhanced (Mijumbi, 2015). The in-house design
department is responsible for building the cars. The management use design efficiency
technology to increase the rate of output (Sarkis, 2016). ; Lastly, they conduct physical testing to
ensure the quality of the products.
In order to improve the manufacturing system the organization need to train their employees in
an effective manner. For instance, they can conduct a training of 1 month so that the technical
skills of the employees can be enhanced. They can also introduce test drive facilities so that
customer’s preference can be analyzed. Moreover, before launching products an online market
analysis needs to be conducted so that taste and preference of the customers can be analyzed.
The organization, which will be chosen for this study, is Morgan Motors Company, which is
personal family oriented company established in the year 1910 by Henry Frederick Stanley
Morgan. It is one of the British motorcars manufacturing companies (Shelton et al., 2016). The
headquarters of this company is situated in the Malvern, United Kingdom. They have more than
two hundred employees by their manufacturing is huge in relation to the motor cars. As they
produce more than 1200 motors cars every year. The CEO of the company is Steve Morris and
Morgan motor is a private company, which have only family members running their operations.
They have so much of demand because if their attractive design of their motor cars that many
refer of car are in the waiting list for six months. They have unique elements used in their
5

production of their car as wood id one of the elements used in the car. The Morgan motors has
been operating for years still they get special attention for producing new design cars, which are
remarkable. The company started when Morgan itself designed a car for his own use and ten he
kept on designing new cars, which cater to the needs of the elite customers.
Areas of Operations and supply Chain management
In case of the departments of operation for the company, Morgan Motors is the manufacturing
and designing department, which are further divided into three major parts of their operations.
There are mainly two departments in a motorcar company, they can be as follows They have
produced unique designs in cars and have mainly three divisions in their variety of cars like the
three wheelers they have produced in the year 1935 ,and then came the second version of three
wheelers which was invented in the year 1952. They even have four wheelers department and
their car has a specialty that it is made of wooden frame, which makes it very different from
other cars.
They have huge marketing with the production of more than 1300 cars, which stay in waiting list
for more than 6 months. They have many unique design cars and innovative ideas used in
designing their products, which make them, gain more profit and revenues.
In the commercial sectors the Supply Chain Management is the chain or the free flowing of the
goods and services used in the company. For example, Morgan motors have distributes,
manufactures and the automobile engineers who help in the production of the cars .The total
thing is a supply chain as the work and the materials come in chain of peoples. The supply chain
management generally enunciates the point of production to the point of sell (Christopher, 2016)
Triple Bottom Line is a financial structure, which is divided in three parts they are the Social,
Environmental, and Financial. The Morgan motor also follows the triple bottom line theory to
operate systematically and much productively. The model Concept id followed for analyzing
their strengths and weaknesses of the company and the way they can bring out their best setting
aside their flaws and make the business develop in a much-expanded way. John Elkington the
management and business writer has stated and defined the Triple Bottom Line concept.
The areas, which need to be improved, are that the cars should be less complicated so that all
types of customers can handle the cars operations. They should also make changes in relation to
their improvement in decreasing the Car weight and apply innovations. They should make more
environment friendly cars and emission less cars as these has become of the factors in pollution.
6

Many automobile companies are making it an important factor to make their company more
inclined towards sustainability and make the company socially responsible. They can make more
sports car as they already have that brand name but they can make initiatives to make the cars
less complex and easy to handle
The Morgan motor has a specialisation in designing their cares very minutely and that the reason
why they have differentiated themselves from other car manufacturing companies. They are very
reluctant to change their style as they think that they will lose their uniqueness. They have
created their own fields of market and made themselves different from others, the car is designed
for months to make it perfect. The employees hired in the production house are trained for
minimum of three years to get the perfect outcome. The cars are in the waiting list for more than
six months for this reason. Morgan Motors has thus maintained the quality of their products and
services (Maxcy and Silberston, 2017).
The management of the people is maintained very well as they train their employees for 3-4
years to the level of being perfect as they make the cars by hand and it takes a lot of time. The
management of employees is very nice and they are very patient with them. They target the
customers who are elite and can afford the cars, the car system is very complex and only people
who can handle the cars give orders to make it. They have created such an impression by
designing high quality cars that the customers are also willing to wait months to get the perfect
car and they even wait for years. They even have partnerships with companies like Ford, Austin
Rover to get quality parts for their car design.
7

Conclusion
Thus, in the present study the management of quality and people has been analyzed. In addition
to that, the products that are being produced by the organization have also been highlighted.
Further role of marketing has also been conducted. Their delivery process along with
manufacturing process has also been highlighted. Lastly, three pillars of sustainability theory
have been analyzed in order increase future growth of the organization. The study has
emphasized on the various operations departments of the company Morgan Motors and the way
they have developed their business in their unique way. The supply chain management in
relation to the company and the three-line model is also emphasized in the study.
8

Reference List
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Coronel, C. and Morris, S., 2016. Database systems: design, implementation, & management.
US: Cengage Learning.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
Kato, T., Nakajima, T., Saito, T., Okitsu, J., Shiga, Y. and Miki, Y., Hitachi Ltd,
2015. Operations management methods and devices thereof in information-processing systems.
U.S. Patent 9,128,704.
Maxcy, G. and Silberston, A., 2017. The motor industry. Routledge. Ijbhtnet.com. (2019).
[online] Available
at: http://www.ijbhtnet.com/journals/Vol_1_No_3_November_2011/6.pdf [Accessed 17 Jan.
2019].
Mijumbi, R., Serrat, J., Gorricho, J.L., Bouten, N., De Turck, F. and Boutaba, R., 2016. Network
function virtualization: State-of-the-art and research challenges. IEEE Communications Surveys
& Tutorials, 18(1), pp.236-262.
morgan-motor.co.uk 2019 about us Viewed on 28 December 2018 < https://www.morgan-
motor.co.uk/>
Rodger, J.A. and George, J.A., 2017. Triple bottom line accounting for optimizing natural gas
sustainability: A statistical linear programming fuzzy ILOWA optimized sustainment model
approach to reducing supply chain global cybersecurity vulnerability through information and
communications technology. Journal of cleaner production, 142, pp.1931-1949.
Sarkis, J., 2017. Greener manufacturing and operations: From design to delivery and back.
Abhinton: Routledge.
Shelton IV, F.E., Ouwerkerk, J.N., Morgan, J.R. and Swayze, J.S., Ethicon LLC, 2016. Motor-
driven surgical cutting and fastening instrument with tactile position feedback. U.S. Patent
Application 15/094,174.
Siebert, S. and Martin, G., 2016. Managing people and organizations in changing contexts.
Routledge.
9

Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (Volume
1) (pp. 1-29). Springer, Cham.
10