Operational Project Management in Automotive: A Rolls Royce Analysis

This report provides a detailed analysis of operational project management at Rolls Royce, focusing on the transformation model and its components (inputs, resources, transformation process, output, environment, customers), the 4Vs of operations (volume, variety, variation, visibility), and the five performance objectives (quality, speed, dependability, flexibility, cost). It explores how Rolls Royce achieves these objectives, including examples of strategic trade-offs and societal performance objectives (profit, people, planet). The report also discusses order-winners and order-qualifiers, highlighting Rolls Royce's brand identity and product quality as key competitive advantages. Furthermore, the report identifies and addresses two operational challenges faced by Rolls Royce, offering suitable solutions. The analysis is supported by diagrams, charts, and real-world examples from the company.

operational project management

Table of Contents
EXECUTIVE SUMMARY..................................................................................................................3
TASK 1.................................................................................................................................................3
Topic 1 - The Transformation Model and 4Vs.................................................................................3
Topic 2 - Performance Objectives....................................................................................................6
Topic 3 - Order-winners and order-qualifiers..................................................................................8
TASK 2.................................................................................................................................................9
Discuss TWO challenges related to Operations within your Organisation.....................................9
Provide Two Suitable Solutions for these two challenges:............................................................10
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................12

EXECUTIVE SUMMARY
In this report the focal point was operations management.Basically, operations management
is the entirety of business practices to design the highest possible efficiency in a company. The
process of converting labour and materials into services and goods refers to operational
management, in which this process leads to increasing the profitability of the organization.
The following report consists of company’s transformation model and 4 V’s of the operations. After
that the 5 major performance as well the strategic objectives has been discussed and also
Thechallenges faced by rolls Royce and they have overcame them.
Rolls Royce is known as the best manufacturer of cars. The Rolls Royce CEO has focused primarily
on improving operations management. The excellence program has been used by the company to
improve both technology and learning.
INTRODUCTION
Operations management is basically the set of the practices of business to design the highest
possible level of efficiency in a company. The process of converting the labour and material into
services and goods refers to the operations management this process result in to the increased
profitability of the organisation. The team of operations management tries to make a balance
between the costs and revenue to accomplish the high net operating profit. It includes the utilization
of resources from the staff, materials, technology and equipment. This respective replot is based on
the automotive industry rolls Royce. It is a British manufacturer of luxury cars as well as the aero
engines at the time of the first world war. The company was established in the year 1904 in
Manchester. They have quickly developed the company's reputation for engineering by designing
and manufacturing the best car in the world. The CEO of rolls Royce has majorly focused on the
improving the operations management. The excellence program was used by the company to
enhance the technology as well the learning (Lee, 2018). This report will cover up the
transformation model and the 4 v's of operations, further the report discussed the two major
challenges of the company and the solutions to overcome these challenges.
TASK 1
Topic 1 - The Transformation Model and 4Vs
Discuss the theory/framework for all elements of the Transformation Model.

 Inputs – rolls Royce products are made up of complex material as well as aluminium metal.
They use the 6.6L V12 engine. which are essential for them to enable to perform in a
efficient and safe way. They apply strict rules and processes to material sourcing (Parida,
and et. Al, 2019).
 resources – rolls Royce have a inclusive and different workforce. Diverse workforce bis
essential to achieve the high productivity and enable new innovations. To reduce the
environmental impact of their operations, they choose to invest in the art manufacturing and
production environments.
 transformation process – physical transformation refers to the material which are used in
the operations. For instance, switching from one engine to another. Whereas Location
transformation means change in the location of customers or materials.
 output – in the previous year, rolls Royce have delivered the highest annual sales of 5586
units in the marque's 117 year history.
 Environment – their values drive their culture and how they operate the business. They
have a workforce with talents and experiences. They try to maintain a lean, agile and high
performance culture within the organisation.
 customers – rolls Royce customers include the government as well as the world leading
corporations. They also supply their products tot the royal navy and British airways etc.
(Potekhin, Selivanova, and Katalinič, 2022).
A Diagram showing all these components of the Transformation Model.

A Table with specific examples from your company for each element of the Transformation
Process – Table can include images or writing of examples.
TRANSFORMATION MODEL
INPUT 6.6L V12 engine and aluminium metal
RESOURCES Inclusive and different workforce
TRANSFORMATION PROCESS Physical and location transformation
OUTPUT 5586 units in 2021
ENVIRONMENT Lean, agile and high performance
CUSTOMERS Governments, royal navy etc.
(Hussain, and et. Al, 2022).
A discussion of the 4Vs of operations (volume, variety, variation, visibility)
 Volume – it refers to the quantity of the product that needed to be produced to satisfy the
all-over demand of the customers. It basically refer to the number of units or the items
produced in a company. In context to rolls Royce, they supply a wide range of luxury cars
around the world and the supply chain of rolls Royce have a high degree of consistency in
their delivery service and the cars they supply.
 Variety – it refers to the various variety of goods and services needed to be produced and
sold. This V is basically about the diversity. If a organisation sells many variety of product
then it results them in increase productivity and profitability. In context to rolls Royce, they
have a wide range of luxury cars and having a wide variety gives the company more
flexibility to produce goods and services.
 Variation - this refers to the fluctuation in the level of demand due to the external factors.
Some of the factors make it tough to predict the variation. If the processes fails to follow the
designed pattern then it can cause quality issues. In context to rolls Royce, during the time
of pandemic most of the companies were drowned and some faced the great losses, which
resulted in the low demand of luxury cars.
 visibility - this refers to the value chain of the operations of the company which are aligned
together. In comparison with the manufacturing industries the level of visibility is high in
the services industries. Company should assure it that their collection is clear and visible so
that the buyers can locate it easily (Foor, and et. Al, 2022). In relation to the rolls Royce,

they have built a GPS system in their cars to track the location easily.
Create a 4V diagram/chart to illustrate the magnitude of each V for your organisation. You
can include some photos / images from the organisation
Topic 2 - Performance Objectives
Discuss what are the 5 performance objectives (quality, speed, dependability, flexibility, cost).
 Quality – in the list of performance objectives, the quality is the top most priority as it is the
predominant factor to continue to meet the standard and the specifications to remain in the
market.
 Dependability – in terms of the delivery of service and product, the dependability is high.
For rolls Royce it is very essential to be effective in engine delivery.
 Speed – rolls Royce have a high speed in responding to the customers orders and services
which is also a competitive advantage. It has been positively perceived by the companies
who are likely to widen the engine support and come back with more new orders. the
 flexibility - because of the complexity of the services and the product which are getting
delivered to the airline companies. The flexibility to align the operations in a way to cope
with the fluctuation in the demand or the introduction to the new products is also a difficulty.
 cost – the cost factor is the less crucial then the other performance objectives for rolls
Royce, but still it is also essential to be competitive in the marketplace (Vegter, van
Hillegersberg, And Olthaar, 2020).

Explain how your organisation tries to achieve these 5 objectives – give real examples from
your company.
There are few steps by which rolls Royce can achieve these 5 objectives, which are
discussed below: -
 share the business targets and measures of success - it is the right of each employee to
know how they are contributing to the success, vision, and mission of company. Rolls Royce
have a proper record of each employees work and achievements.
 Set the employees up for success – to make sure a successful results of each of the
performance objectives, it is essential to address the potential resources, barriers, capabilities
and stakeholders. Rolls Royce do a regular analysis and check up on their resources, barriers
etc.
 following a general format - the format ensures all the major elements of the performance
objectives. “ what to do, for whom, by when, under what conditions”. Rolls Royce have a
proper format of working.
Draw a polar diagram to illustrate the size of each five objectives at your organisation.

Discuss any objectives trade-off your company selected.
Taking cost-quality as the objective trade off for the rolls Royce. These are required when
the company tries to minimize the cost and maximize the quality of the product. It is challenging
problem for a consumers goods industry where both the cost as well as the quality are demanded
together. The cost quality trade off in manufacturing industries are analysed through measurable
value of quality model (Tanner, Chang, and Elwood, 2020).
Briefly discuss the Societal Performance objectives (Profit, People, Planet).
 Profit – this refers to the financial performance of a company.the financial status is the one
which should be shared by the companies. By looking from the bottom line perspective, the
profitability of rolls Royce assist in empowering and not only flow to the CEO and
shareholders.
 people – the social impact which a company have on people, internally as well as externally.
Rolls Royce mainly focuses on their employees and provide them flexible working options
and encourage them to volunteer.
 planet – it refers to the impact an organisation causing to environment. Companies try to go
green to be more profitable in the long run business. In context to this Rolls Royce design
their cars which cause less pollution (Iter, and et. Al, 2020).
Briefly discuss the Strategic Objectives ( Cost, Revenue) from your company.
Cost is one of the crucial factor of rolls Royce company. As in the competitive market, rolls
Royce never compromise with their quality weather it requires high cost or not. They will always
serve the best quality product to satisfy the needs of their customers. Whereas the revenue will
increase as they are serving the best which will result in fix customer base and high rate of revenue
(Gheibi, Kazaz, And Webster, 2021).
Topic 3 - Order-winners and order-qualifiers
Discuss what is an Order Winner and give one example from your company with justification

as why you think this is an order winner. You can include images.
Order winners are the competitive advantages such as quality, delivery speed, reliability,
product design, flexibility and image that cause a company’s customers to choose the company’s
products or services. It is the main reason customers buy a company’s product. A company’s ability
to win orders in the market depends on its competitiveness. A competitive company wins orders in
the market, which positively affects its sales performance. Order placement criteria are those criteria
that make a difference to the customer when deciding between qualifying products on offer. In
relation to rolls Royce they have good brand identity in the market also they have designed and
produced many luxury cars like rolls Royce phantom, rolls Royce ghost and many more. They also
have a good delivery speed which attracts the consumers and Increase the revenue rate of the
company.
Discuss what is an Order Qualifier and give one example from your company with
justification as why you think this is an order winner. You can include images.
Order qualifiers are the competitive advantages that a company must demonstrate in order to
be competitive in the business world. For instance, if Roll-Royce products do not meet minimum
standards for ordering criteria, customers will ignore or reject their products and services. In terms
of operations, a company only has to meet the minimum criteria to be considered part of the
competition. Quality is considered a defining feature of Rolls Royce. For instance, the Rolls-Royce
industry encounters consumers who take quality for granted and do not perceive it as an order
winner. If quality issues or recalls are reported to them, the business becomes undesirable and is not
considered part of a consumer’s choice (Zighan, Bamford, And Reid, 2018).
TASK 2
Discuss TWO challenges related to Operations within your Organisation
 A new challenge arose in 2018 when a member of the Trent engine family, the Trent 1000,
required upgrades sooner than expected. “The intermediate pressure (IP) compressor blades
in the Trent 1000 engine began to wear out, primarily due to certain flight profiles exciting
the blades,” says Rolls-Royce Customer Operations Manager. According to Airworthiness
Authority requirements, all jet engines must be inspected regularly and signs of wear
carefully examined. Rolls-Royce therefore acted decisively as soon as the need for upgrades
was recognized. However, this presented challenges for some Rolls-Royce customers. These
airlines were faced with the unforeseen task of replacing part of their fleet with Trent 1000-
powered aircraft and then replacing the affected rotor blades with an improved version. Of

course, developing these Trent 1000 upgrades presented their own challenge.
 Rolls-Royce shares fell 3.7% as the aircraft engine maker warned the pace of recovery from
the ongoing challenges of the Covid pandemic remains uneven. The company said its
restructuring program is ahead of plan, allowing it to generate free cash flow in the third
quarter and put it on track to meet its £2 billion (2.6 $) for the full year surpassing year. It is
expected to have shed more than 8,500 jobs by the end of the year and meet its £1.3bn
savings target by the end of 2022.
Provide Two Suitable Solutions for these two challenges:
 The challenge was quickly mastered. Essentially, the shape profile of the affected
compressor blades had to be redesigned. There were also some additional upgrades. Now
the challenge was to get the upgrades for all the engines they needed around the world.
When we had the durability issue with the Trent 1000 last year, a lot of the engines came out
of the wing. The high volume slowed things down. To remove engines from a wing, we
typically take them to an overhaul facility. At these facilities we would pick up the engine
with a crane – we have some very complicated tools for that – and it works very well in a
workshop environment, but it’s not very portable (Yang, and et. Al, 2021).
 However, the improvement into 2021 is partly due to the deferral of £300m of liabilities to
next year, in line with delayed deliveries of Rolls-Royce-powered aircraft. The company
said its engine flight hours are currently about half of 2019 levels, but that large engine
flight hours recovered as key travel corridors, particularly transatlantic routes, reopened. In
commercial aerospace, both installed engine sales and store visits activity were lower year-
on-year, while actual arms trade was in line with expectations. They have achieved good
results with a fundamental restructuring program, cutting costs sustainably and creating a
leaner and more efficient company
CONCLUSION
According to the above report, it has been concluded that The process of converting the
labour and material into services and goods refers to the operations management this process result
in to the increased profitability of the organisation. The elements of the Transformation Model of
rolls Royce consists of output which was 5586 units in 2021, input which includes 6.6L V12 engine
and aluminium metal, transformation process which have physical and location
transformation,environment which is lean and agile, customers which includes Governments, royal
navy etc. And lastlyresources in which there isInclusive and different workforce. The 5 performance

objectives which is quality, speed, dependability, flexibility, cost and be achieved by sharing the
business targets and measures of success, Set the employees up for success and follow a general
format.

REEFERENCES
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Hussain, and et. Al, 2022. Developing resilience in disaster relief operations management through
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