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Case

Study

Creating World Class Performance in Jaguar Assembly Plant


Group Members
Farah’s Jaguar
INTRODUCTION
Jaguar Cars Ltd., is a British luxury car manufacturer

The Ford motor company bought Jaguar shares in


November1989

Its headquarter in Coventry, England


Assembly plants at :
Halewood in Liverpool
Castle Bromwich in Birmingham

On 2nd June 2008 company was purchased by TATA with


cost of £1.7 billion 50 years with Jaguar
The name Jaguar was
July 2009 – Discontinued X-type production used for the first time in
1935. Also in 1935,
William Heynes joined
2010 – Jaguar Land Rover confirmed production of new the company as chief
LRX Land Rover at Halewood engineer
JAGUAR TRANSFORMED ITS NEW
ASSEMBLY PLANT AT HALEWOOD
Guarantee World Class Performance in its production system
In Jan 1960, Ford bought site in Halewood
In 1998, Halewood was announced as the production site for the all new
Jaguar X’ Type sports saloon
1. existing plant lacked sufficient capacity
2. good transport infrastructure
3. opportunity to develop business park
4. the ‘Britishness’ associated with Jaguar made overseas production
inappropriate
300 million pounds was set to modernize the plant
Worked on changing the ways of working & culture within the plant
Employees learned new approaches that involve empowerment & flexibility
Operations Manager David Hudson changed the mindset of the 3000
workforce, created a new spirit based on mutual respect & trust

“There are no bad plants, just bad management”, says Hudson


Halewood fact file
Ford manufactured cars at Halewood for almost 40 years; more than
six million vehicles have rolled off the production lines.

1990: New Escort launched following £600 million of investment


1993: Halewood becomes first plant in Europe to achieve ISO9000
XF
1998: Halewood selected as manufacturing site for Jaguar X-Type
Mid size executive car
2000: Last Ford Escort produced on July 21
2001: First Jaguar X-Type rolls off production line
2002, 2003, 2004: Ford auditors rate Halewood “Best body and
assembly operation in the world”
2004: Halewood wins “Environmental Business of the Year” award in
recognition of reductions in consumption of energy, raw materials
and water The Jaguar XJ- a full-size luxury
saloon and the carmaker's flagship
2005: 250,000 Jaguar X-Type produced model
2006: first Freelander 2 produced in October
2008: TATA acquired Jaguar motors
2009:Discontinued Jaguar X type
2010: LRX Land Rover production to be started

XK
Land Rover LXR
Babar’s Jaguar
The Halewood Plant before Jaguar

The decision to use the Halewood factory was seen by some to be


controversial

Plant Reputation
Militancy
Resistance to Change
Poor Workmanship

The plant was known as one of the worst car factories in the world.

JAGUAR faced massive reorganization and the task of changing


management in an existing plant with older workers and strong
unions.
Why Halewood Plant was Chosen

Existing jaguar plant in the midlands lacked sufficient capacity

The ‘Britishness’ associated with jaguar made overseas production


inappropriate

Good Transport Infrastructure

Opportunity To Develop Business Park


The Challenges Jaguar Faced

Modernization (A Total Change was required)

Weak Supply Chain

Quality Assurance

People’s Thinking

Relationship with Local Community

Environmental Protection
A Highly Efficient Manufacturing Site

Replacing almost all of the production facilities

£300 million were set aside to modernize the plant.

Overhead conveyer system. Bought all major facilities on a


single location that involves Press Shop, Body Construction,
Paint Shop, Finishing etc. each one of them new and
Improved.

Developed standardized work process for each employee

Developed Supplier Park alongside for the supplies (a 'Right


1st Approach)
Changing People's Thinking

Alter Halewood working practices and ways of thinking

Every employee was provided a 'GREEN BOOK' which has the


Company's Vision, code of conduct and operating principles written in
it

Empowering their people by giving more responsibilities to operators


that were managing the operations of the business.

Extensive Trainings

Set Performance Indicators.


Corporate Social Responsibility

They made sure that the new Car is based on Company's Standards
that prohibits the use of Substances that have an adverse effect on
environment.

Improvement and reduction in Halewood Energy consumption.

Over 800 employees spent a week involved in local community


projects like helping elders, school & Church to restore their gardens.

Higher standards of cleanliness and tidiness and minimizing waste.

Introducing waterborne processes.

Establishment of Waste water treatment plant.


Samad’s Jaguar
Evaluation Of Jaguar Success

THREE PILLARS FOR SUCCESSFUL CHANGE

Quality Pillar

Centre of Excellence Pillar

Culture Change Pillar


1- Quality Pillar

Jaguar have transferred its existing quality standards to the


Halewood plant. .

consistency across the production process, for example, every


shift would be working the same way.

Identifying continuous improvements processes.

Organized into smaller teams with group leader.


2- Centre's Of Excellence Pillar

key driving force in changing people’s thinking .

Manufacturing improvements.

Close co-operation and team work.

Better Cleanliness and tidiness at workplace.

Increases productivity and commitment within the workforce.


3- Cultural Change Program

Create an environment where employees take ownership.

workshops for managers, union representatives and line workers.

Increasing participation and empowerment.

Improve decision making processes.

Clearly define roles and responsibilities and adopt a ‘no blame’


culture.
Arif’s Jaguar
Need of World Class Performance

Companies are getting edge over their competitors by adopting


modern trends

Efficient and standardized processes helps the business to


balance profitability along with quality

Companies are spending heavily on Research and Development


to introduce revolutionary products

Traditional management styles are being replaced with the modern


team-based styles
World Class Performance at Jaguar

Jaguar has a brand image of Quality, Style, Speed and Status

Halewood plant is developed in such a way to meet consumers


expectations

For exceptional quality cars the plant needs to have state of the art
technology

Existing production process is replaced to reduce the duplication


and unnecessary delays
World Class Performance at Jaguar

With all facilities within a same premises, the management has


more control over production process then ever before

Premium quality products are always backed by standardized work


processes

Keeping the pace with latest trends is necessary for Jaguar

New features, stylish design, performance, safety etc. all leads to


customer satisfaction
Rass’s Jaguar
Comparison of Jaguar Halewood to
Honda Car Manufacturing Plant in Pakistan
The first car rolled off the Honda Cars Plant assembly line in
1994.
Currently manufacturing Honda CIVIC 1800cc and Honda CITY
1300cc cars.
Industrial activity at Honda Cars Plant includes:
Import of engine and other critical components of car
Components sourcing from local suppliers
Fabrication of car structure
Assembling of engine and associated components
Final car assembling
Painting and final testing
Comparison of Jaguar Halewood to Honda Car Manufacturing Plant
in Pakistan Continued…

Jaguar Halewood Honda Cars Pakistan


Production capacity of 100,000 Produced more than 150,000
cars per year cars from 1994 till 2008.
Max. value of Jaguar X-Type Max. value Honda CIVIC car
car approx Rs. 3.3 Million approx Rs. 1.8 Million
Nearly 3000 employees with Nearly 1000 employees with
high level of automation Low level of automation
Production Facilities:
Production Facilities:
Press Shop, Body Construction,
Press Shop, Body
Paint Shop, Final Trimming
Construction, Paint Shop, Final
Lines
Trimming Lines
Overhead conveyor based Combination of Overhead and
production line Floor based production line
Does Honda Car Manufacturing Plant in
Pakistan have World Class Facilities?

More Robots at Manual Working at


Jaguar Halewood Honda Cars Pakistan
Does Honda Car Manufacturing Plant in Pakistan have World Class
Facilities? Continued…

Jaguar Halewood Honda Cars Pakistan


Ashar’s Jaguar
Case Summary
Case theme is development of world class production system for
Jaguar Cars through restructuring.
Deployment of modern equipment and facilities by putting huge
investments
Creation of highly efficient business processes and lean production
systems through Business process re-engineering
Changing people’s thinking and enable them to create a world class
product by providing education, training and counseling to employees
and empowering them through “Halewood difference” program
Used benchmarking technique by creating “Centers of Excellence”
and replicated the procedures developed therein to entire factory.
Developing relations with Environment and wider community by
creating environmentally efficient and cleaner production processes
Employee volunteering in local community projects
Pakistani Case Parallel –
Restructuring in PSO
All equipment at retail outlets replaced with modern ones from
global suppliers.
Retail Automation, SAP, Email, Video Conferencing…
Vision, Mission, Values, Business Principles and Ethics developed.
Fresh outlook and new colour scheme deployed.
Human Resource development by providing training and
counseling to existing employees
Introduction of COCO outlets (Company Owned Company
Operated) to serve as benchmarks.
Results:
Largest domestic oil market share,
ever increasing revenues,
Satisfied customers, happy employees!
Pakistani Case Parallel –
Restructuring in PSO Continued…
Pakistani Case Parallel –
Restructuring in PSO Continued…
Thank You!
Questions

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