Rolls-Royce Operations: Key Functions and Management Report

This report provides an in-depth analysis of Rolls-Royce's operations management, detailing key functions such as chassis alignment, paint jobs, coach lines, dashboard and interior construction, leather trimming, engine installation, and quality testing. It explores the application of operational approaches like Just-In-Time (JIT) and Total Quality Management (TQM) to enhance efficiency and customer satisfaction. The report highlights the importance of operational management for Rolls-Royce's growth, emphasizing resource utilization and cost minimization. It also discusses external factors affecting the business, including cultural limitations, environmental regulations, and the impact of Brexit. Recommendations include adopting a democratic leadership approach and incorporating TQM, JIT, and Kaizen methodologies. The report concludes that human effort is crucial for efficient execution and that integrating these operational management approaches can improve organizational efficiency. References to relevant academic sources are also provided.

OPERATIONS
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION
MAIN BODY
CONCLUSION
RECOMMENDATIONS
REFERENCES

INTRODUCTION
In this study the various ongoing operations by Rolls-Royce is
discussed.
Rolls-Royce is a world renowned British automobile maker,
owned by German group BMW.
Key Operations of the company include chassis alignment, paint
job, Coach line, Dashboard and interior, leather trim, and
installation of engine, spirit of ecstasy and final quality tasting.

KEY OPERATIONAL FUNCTIONS
● Chassis Alignment: All the chassis of different
automobiles are made in Germany and exported to
Good wood plant in UK. Here the chassis parts are
aligned together. The role of a manager here is too
provide a necessary scheduling for the work done.
● Paint Shop: A 5 layer of paint job is done in this step of
operations. Hand craftsmanship is of utmost importance
in this step since human painters are required to use 45
kg of paint for final finishing of the automobile.

Continuation
● Coach Line: It is the job of a single person to draw the coach line over
the body of the automobile. Hence, it the role of the manager to
maintain positive communications with the employee.
● Dashboard and Interior: Premium vinyl wood collection from around
the globe is used to make the interiors of the automobile, mostly made
by hand by skilled workers. It is the role of the manager here to provide
the workers with all the necessary wooden parts in time.

● Leather Trim: Trained professionals are used for this operation. It is the role of
the manager to recruit suitable workmen
● Installation of engine and spirit of ecstasy: Experienced mechanics assemble
the engine and the flying lady on the car. Here it is the role if the manager to
provide better scheduling of work hours.
● Quality Testing: A team if expert engineers test the quality if the car through
various tests. Here, the manager is responsible for quick execution of these tests.
Continuation

Key Operational Approaches
JIT (Just In Time): In this particular approach the waste
generated, and inventory costs are minimized. A possible
inclusion of this approach in Rolls-Royce operations
management can reduce the expenses incurred in the
manufacturing process.
TQM (Total Quality Management): In this particular approach
the main focus is on long term success through customer
satisfaction. Rolls-Royce must include this approach in their
operation management so as to built long term customer
relations.

Importance and value of operational
management
● Operational management is crucial for growth and success of Rolls-Royce as it helps in
effective utilization of various resources thereby minimizing cost and waste production.
●Operation management of Rolls – Royce supervise and monitor various function and
activities of employees in order to plan different ways that can improve performance of
individuals.
● Continuous supervision and use of innovative technology by employees helps in bringing
economic of scale and expansion of business in the industry.
●

External Factors affecting the Business
● There are various external factors that might affect the business of Rolls-
Royce such as a certain cultural limitation of aging local population and
reduction in overall manpower required.
● Imposition of strict environmental laws may also limit the drainage of waste
chemicals and paints.
● Furthermore, the exit of UK from the EU may also affect the sales of Rolls-
Royce in European countries. Having an expert team of R&D, the company
may sustain in the engine manufacturing market for a long time in future.

External factor that affect operational
management
● Corporate social Responsibilities: Rolls-Royce operational management has to perform
various function and activities by ensuring health and safety of people. It responsibility of
operation management to minimize wastage production and effective utilization of
resources for benefit of society.
●Stakeholders Expectancy: Company also have to meet expectancy of its stakeholders such
as customers, government and employees while operation its function. Operational
department by utilise resources and brining economic of scale is able to maximise
stakeholders profit.

Improvement of Operation Efficiencies
● A majority of business of Rolls-Royce depends in the luxury automobile market
and the demands of production are largely met using human efforts in
manufacturing.
● A democratic approach of leadership might be useful to gain efficiency in
operations management.
● Since, this approach focus towards the involvement of employees in decision
making process, this approach may help in long term employee satisfaction helping
in the future growth if the company.
● Also, a behavior approach of management would help to concentrate on the human
aspects of management, encouraging better participation between the employees.

RECOMMENDATIONS
For better efficiency to business objectives achievement it is
recommended that a democratic leadership approach must be used.
It is further recommended that a behavior approach to
management may also help in increased employee motivation
resulting in on time completion of goals.
It is further recommended that suitable approaches to operational
management such as TQM, JIT and KAIZEN must be used in the
organization.