Rolls Royce Operations: Hayes and Wheelwright Model and Strategy

This report provides a comprehensive analysis of Rolls Royce's operations management, focusing on the application of the Hayes and Wheelwright model to assess the company's operational strategy. The report evaluates Rolls Royce's market position, highlighting its success in various sectors such as aerospace, marine, and energy. It examines the company's market share, key products, and services, including 'Power by the Hour' and its new engine family. Furthermore, the report provides strategic recommendations for Rolls Royce, emphasizing the importance of energy efficiency, renewable energy sources, and water usage optimization to reduce environmental impact and costs. The report also stresses the importance of research and development for innovation and maintaining a competitive edge in the market. The study concludes that Rolls Royce's operations are heavily reliant on research and development, which is crucial for innovation and market leadership, while also emphasizing the need for environmentally friendly manufacturing procedures.

Running head: OPERATIONS
Operations
Name of the Student:
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Author Note:

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Table of Contents
Introduction......................................................................................................................................2
Rolls Royce operations based on the Hayes and Wheelwright model............................................2
Evaluation of Rolls Royce market...............................................................................................3
Recommendation and operation strategy and market requirements................................................4
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................7

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Introduction
Operations management can be described as a business practice that aims to create high
level of efficiency which is possible within an organization. Operations management is entirely
concerned with the conversion of labour and materials into services and goods as efficiently as
possible so that the profit of the organization can be increased. Operations management is an
attempt towards the balancing the revenue with the costs so as to achieve high net profit.
Operations management also includes utilization of the resources from technology, equipment,
materials, staff. The operation managers deliver goods to the clients that are entirely based on the
abilities of the companies and clients demands [1]. This study is based on the operations
management of Rolls Royce and recommendations on how Rolls Royce can embrace an
effective strategy for its future and what does the company need to make the organizational
capabilities remain aligned.
Rolls Royce operations based on the Hayes and Wheelwright model
The Hayes and Wheelwright model consists of the four stages model and it is used in the
assessment of contribution and role of the operations management within the business strategy. It
is important to mention that there are certainelements of operation strategy and these elements
have played a vital role in achieving the business strategy. In designing of the production system,
Rolls Royce had placed a production system that focuses on the production of the high quality
products. During the 1960 Rolls Royce was the sole company that was supplying engine to the
US aerospace company named Lockheed Martin. During those times the engines were advanced
and were the successful turbofan aero engine lines. Rolls Royce planned to make it to make it
fuel efficient and lighter. As far as the service and product design goes, Rolls Royce had put a lot
of effort in the setting up of a research and development team [2]. At the same time Rolls Royce

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had invested big amount of money into the research and development team so that it has the
support of what the team requires. Rolls Royce selects the best technology in the process
development and due to this the company always uses the latest technology which always have
helped Rolls Royce to emerge as a market leader. The market leader is highlighted to be in the
part of engine design and motor vehicles. Previously a proper research and development was
lacking and the lack of funds were evident during the 1960s. The operation strategy of also
includes allocation of the resources and it is ensured by Rolls Royce operations management that
resources must be exploited so as to ensure the business operations are effective. The other
elements that of the operations management are the layout planning, capacity, facility. Currently
Rolls Royce has the production facilities that are spread in various countries and these are ideal
for the conduct if its operations [3].
Evaluation of Rolls Royce market
America remains as one of the profitable market for Rolls Royce and it has increased by
12 percent. Both the European and the Asian markets has seen the surge in growth by 28
percent. and 5 percent respectively. The other markets that seen record growth are the Japan (51
percent), and Germany (30 percent) [4].
The main markets of the Rolls Royce (in service remote engine monitoring, power by the hour,
and new engines).
Components Markets Evaluation
New engines Aerospace market,
Marine, and energy
sector
In the civil and defence sector Rolls Royce engine
powers 30 different aircrafts and it includes the Airbus
A330s. The wide body fleet consists of the 31 percent of
the share and 7 percent of the Turkish Airlines fleet. The
existing engine base includes 150 engines along with the
T56 engines, C-130 and M250. The Yacht builders,
shipbuilders, designers, ship-owners are provided service
for the marine equipment and they are sold and

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commissioned exclusively in Turkey. The Rolls-Royce
energy’s 2 RB211 and 4 Avon gas turbines facilitate the
compression power for the gas and oil pipeline
companies called BOTAS [5].
Power by the hour Business aviation It offers flexibility to the cons-effective and maintenance
program. The offers are available for the AE 3007, Tay
AE 3007, BR710 and BR725 engines. The operators are
provided with financial benefit, reduced capital
investment, maintenance becomes predictable [5].
In service remote
engine monitoring
Business jets Rolls Royce has built an engine which targets the
Bombardier’s Business jets and it includes the Global
6500 aircraft and the Global 5500 aircraft. The name of
the engine is Pearl 15 and it has the ability of monitoring
remotely through the Engine Health Monitoring System.
This technology comes with bi-directional
communications, advanced remote diagnostics [6].
The order winner are the products that affect Rolls Royce directly while the order
qualifiers are the not so important in the competitive market but have other benefits. The order
winner products or the innovations are the power by the hour services. This is a service which
has made Rolls Royce a market leader in the aviation industry. This service is meant for the
customer that seeks for support and service of the Rolls Royce engines. While the order
qualifiers are the Pearl 15 engines because they are relatively new in the aviation industry and it
has made the entire product line a bit costly with respect to the other engines. The engines offer
remote monitoring and it helps in active monitoring of the engine condition [7].
Recommendation and operation strategy and market requirements
Understanding the energy usage helps in the identification of the opportunities and the
inefficiencies for its improvement across the global business arena. It is important to note that the
consumption of energy for the year 2016 is found to be 97 MWh/million pounds and it excludes
the product test and product development. This highlights a 17 percent reduction over the year
2014. Thus, Rolls Royce must put their most of the effort on the meeting global target of

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reduction in the energy usage by a margin of 30 percent. This will normalise the revenue by the
year 2020. The progress can be visualised with the persistent investment in the improvement of
the energy efficient projects. This will together include the heating, lighting systems and building
the management systems. In the year 2016, Rolls Royce have done an investment of 10 million
pounds and in to the energy improvement projects [8]. Thus, Rolls Royce need to cross that mark
and beat their own record. Similarly Rolls Royce can also invest in the renewable energy sources
and other related energy resources to reduce the emission of the greenhouse gases. This will
positively reduce the cost of mitigating the risk associated with the energy volatility. Rolls Royce
can also install the solar power into the at the UK, Bristol and the Singapore manufacturing sites.
The drive towards the energy efficiency can be increased by inclusion of the tri-generation of the
power systems of solar projects, combined heat and power systems. Majority of the water usage
is found within the activities of processing areas. Large amount of water is used in the wet
processing unit, such as the surface plating and component cleaning. Thus, Rolls Royce must
invest in the counter-flow rinsing techniques and monitoring equipment techniques so that the
bath lives can be extended and it will significantly reduce the need of replenishment [8].
In order to maintain an organizational capabilities and the market requirements, Rolls
Royce can emphasise on supporting the customers by reducing the impact on the environment
though the usage of products and the services;Development of the technologies that are have the
capability of low emission services and products; continuously moving towards the reduction of
the environmental impact on all the business activities. Thus, it is necessary for Rolls Royce to
monitor the performances so that a global policy and a global footprint policy can be framed,
targets and the procedures get aligned with the production activities. It is important to mention
that the knowledge and skills play a major role in the delivery of the efficient services and

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products. Thus, Rolls Royce must invest in the research and development to increase reliability,
efficiency and performance. This step will positively reduce the environmental impact on the
services and products. While at the same time improve the environmental performance on the
services and products with special emphasis on the noise, emissions and lowering the fuel
consumption [9].
Conclusion
From the above discussion it can be concluded that, the operations management of Rolls
Royce is dependent heavily on the research and development department. It is important to
mention that a lot of effort is put into the research and development for new innovative products
and this helps Rolls Royce to stay ahead of the market competition. However, majority of the
environmental pollution occurs during the usage of the product and also during the
manufacturing process. Thus, it is necessary for Rolls Royce to take into account of the
environmental friendly manufacturing procedures.

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Reference
1.Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain management
(pp. 533-535). New York, NY: McGraw-Hill/Irwin.
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manufacturing effectiveness based on Hayes and Wheelwright's model. Journal of
Manufacturing Technology Management, 24(6), pp.812-829.
3.AshwiniNand, A., Singh, P.J. and Power, D., 2013. Testing an integrated model of operations
capabilities: an empirical study of Australian airlines. International Journal of Operations &
Production Management, 33(7), pp.887-911.
4.Forbes.com, 2019. Rolls-Royce Announces Second Highest Sales Record In Its 113-Year
History. [online] Forbes.com. Available at:
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sales-record-in-its-113-year-history/#2faff49e6192 [Accessed 17 Jan. 2019].
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https://www.rolls-royce.com/worldwide-presence/turkey/markets-and-products.aspx [Accessed
17 Jan. 2019].
6.aero-mag.com, 2019. Rolls-Royce launches new Pearl engine family – Aerospace
Manufacturing Magazine. [online] Aerospace Manufacturing Magazine. Available at:
https://www.aero-mag.com/rolls-royce-pearl-engine-family-bombardier-global-5500-6500-
aircraft/ [Accessed 17 Jan. 2019].

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7.worldfinance.com, 2019. Rolls-Royce is driving the progress of the business aviation market.
[online] worldfinance.com. Available at: https://www.worldfinance.com/markets/rolls-royce-is-
driving-the-progreshttps://www.worldfinance.com/markets/rolls-royce-is-driving-the-progress-
of-the-business-aviation-markets-of-the-business-aviation-market [Accessed 17 Jan. 2019].
8.Rolls-royce.com, 2019. Operations and facilities. [online] Rolls-royce.com. Available at:
https://www.rolls-royce.com/sustainability/operations-and-facilities.aspx#/ [Accessed 17 Jan.
2019].
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https://www.rolls-royce.com/sustainability/engineering-and-innovation.aspx#/ [Accessed 17 Jan.
2019].