Reference no: EM133540010

**Case Study - starts**

An internationally respected name in auto manufacturing, Jaguar was conceived in 1935, and since then it has had to evolve in order to meet the demands of constantly shifting market expectations. For the present day, this consists of the adoption of lean production strategies, exemplified by its Castle Bromwich factory in Birmingham, a site that, in February 2016, announced plans to grow production through a 360,000 sq. ft. logistical warehouse expansion. Central to this mode of production are ideas pertaining to continuous improvement, standardization and waste minimization. This production line improvement includes the categorization of stages as either profitable or unprofitable, so that positive processes can be maximized and negative processes streamlined. Consequently, as opposed to being asked to spend more hours working, employees are instead tasked with working more intelligently, in order to improve overall productivity.
Jaguar sourced specialist help in delivering these changes from RWD Technology UK Ltd, and these consultants built upon Jaguar's reputation for industry excellence, adding innovations in production functionality in order to develop a new approach to work. For example, as opposed to the previous 'top-down' system, whereby a supervisor would dictate targets to 30 employees, RWD Technology implemented a leaner group of seven workers. This team is designed to take ownership of any work completed, while using a team leader for guidance only. Tangible improvements have since been recorded in production line operation, and employees themselves are described as performing to a higher standard, given the greater freedom and responsibility they are now licensed to work with. Sometimes referred to as cellular working, team members were trained in new working techniques through on-the-job instruction, as opposed to the conventional classroom-style teaching, so employees were better acquainted with their part of the production line. Jaguar also implemented their Customer Relationship Management software, which encourages a lean approach to other areas of business, such as supply and stakeholder management.
Often linked with lean production methods, the just in time approach also helps production to move more quickly, without the many problems associated with excess stock and material. This is achieved through numerous central store supply operators who, when a low stock signal appears on the production line, deliver the requisite components promptly, allowing other workers to maximize their time spent manufacturing. This elimination of waste, both in terms of physical parts and workers' time, has benefits in reducing the floor space needed, eliminating harmful clutter and reducing the number of parts damaged in storage.

Just in time manufacturing functions most effectively when factory supply is synchronized with consumer demand, so to this end Jaguar have devised a system of transparent management, complete with control boards, bearing visual data. This allows different sections of the Castle Bromwich factory to be analysed in terms of productivity and performance, which, when combined with daily monitoring of production targets, tailors fluctuating outputs to the required levels. Making use of gemba ('to go see' in Japanese), factory management are advised to leave their offices and oversee the production line, so that potential problems and bottlenecks can be solved through thorough understanding of the job itself. Practically speaking, this system of control boards is manifested in the form of cord pulls, the first being pulled when a worker initially encounters an issue and the second being pulled when the more experienced team leader has been able to remedy the situation. If, however, the issue is not immediately rectified by the team leader, then the production line remains halted until the issue is overcome. Though Jaguar is known for manufacturing excellence, such scenarios cannot be eliminated altogether, and it is expected that the cord will be pulled approximately 140 times each shift. These stoppages can be analysed using on-site control boards in order to make appropriate adjustments to the manufacturing process.
The Castle Bromwich site also utilizes information centres, designed to articulate succinctly - in three minutes - the statuses of workstations and wider relevant objectives. Incorporating graphical data, which has been confirmed by management and leadership figures, this open information fosters a sense of collective responsibility and holistic understanding in the approach of Jaguar employees. However, Jaguar are also mindful that such information is processed correctly by employees, resulting in quick responses, when necessary, in the form of insertions into either new or existing meeting agendas. In conjunction, job responsibilities are standardized, so that factory workers have objective levels of quality to meet in any work completed. As a further example of Japanese influence, the element sheets completed by each team member take the form of the Yamazumi Board, in which completed processes adding value are highlighted in green, so as to contrast with those that do not, in red. This system of production analysis and revision also measures the time taken to complete various tasks in a transparent fashion, making any following redistribution of work among team members less problematic. The cooperation associated with such cellular units can also help to deliver on lean objectives and the overarching elimination of waste. Overproduction, necessitating storage and handling costs, and cumulative periods spent waiting for component delivery, can be drastically reduced in this way, while the reduced need for transportation of goods can limit costs. Such improvements to work plans, alongside revisions to takt time, can also save on extraneous steps in production, such as repair, which can follow inadequate manufacturing practices. Fundamentally, the success of Jaguar's lean production line hinges on the team ethic that cooperation and innovation contribute not only to a better product, but the improvement of working efficiency.

**Case Study - Ends**

Questions:

Q1. What are the main benefits available to Jaguar from its use of lean?
Q2. Are there any disadvantages in its use of lean?
Q3. How easy do you think it might have been to initially introduce lean working into Jaguar?