VAUXHALL REPORT 19
VauxhallCar Manufacturing Company Report
TheVauxhall got consideration as one of the game-changers regardingvehicle manufacturers because they managed to make great sales in thetwenty-first century even though the market were congested. However,there were numerous challenges in the automobile that requiredcritical assessment. First, it utilized lean thinking aim atinfluencing manufacturers to do more activities with fewer resourceswhile also ensuring that they meet the desire of the consumers byadding value to the products without increasing waste production.Secondly, the company aimed at improving its quality leadership andthe central questions in assessing such concept include theircontinuous transformation, customer satisfaction, and variationreduction(Raab, 2008).Furthermore, awareness of environmental degradation and other relatedconsequences have increased in the recent past making Vauxhallcompanies obligated to regulate impacts of the resources and endproducts to the surrounding(Bettley & Burnley, 2008).Themanufacturing companies also embarked on off-sourcing and outsourcingto decrease the production costs of the firm while promoting itsperformance.
Executive Summary 2
Vauxhall Car Manufacturing Company Report 4
Scope of the Report 4
Assessment of the Learned Lessons on UK/EU Automobile Organization Performance 5
Lean Thinking 5
Vauxhall Application of Lean thinking on production 5
Challenges that Vauxhall Experienced when Utilizing Lean Thinking 6
Quality Leadership 7
Environmental Sustainable Leadership 9
The Challenge and Pressure that Car Maker Face 10
Sourcing from Low-Income Countries and Leaning Down Trend 10
Cultural Differences 11
Effects from Infrastructure and Exchange Rates 11
Challenges of Information Dissemination and Language Barriers 12
Balance Scorecard Strategy as a Guide to Car Manufacturers 12
Recommendation on the Performance Objectives 14
VauxhallCar Manufacturing Company ReportScopeof the Report
Themarket and supply chain in different nations including the UK and theEuropean Union have experienced dynamics due to increased tradesacross the borders as well as global production. In the recent past,the Vauxhall industry which has its headquarter in Britain has fallenwhile other companies in Japan make the car at a cheaper cost andless time (Radnor& Bucci, 2011).Besides, the financial crisis of 2007 affected the productivity ofVauxhall Company as it reduced the capacity of the industry to globaldemands and prices of the raw materials(Twede & Clarke, 2004).
Theautomotive got applause as one of the game-changers regarding vehiclemanufacturers because they managed to make great sales in thetwenty-first century even though the market were overcrowded.However, the company has experienced challenges as such asdisconnection between its suppliers and consumers due toglobalization. In such scenario, scholars advised the company to cutthe number of its suppliers so that it could maintain the closeconnection with its clients without experiencing the cost burden(Cooper & Griffiths, 2014).
Thereport, therefore, focuses on the learned lesson of the EU automobileorganization performance through the analysis of lean thinking,quality leadership, and environmentally sustainable management.Furthermore, it evaluates the challenges that Vauxhall faced whilesourcing from the low-income countries(Charter et al., 2001).
Assessmentof the Learned Lessons on UK/EU Automobile Organization PerformanceLeanThinking
Thephilosophy of lean concept was built by the Japanese to cope with thedynamic economy, and its primary focus was to reduce waste productionamong industries including a manufacturer of cars in different partsof the world (Barnes,Kaplinsky & Morris, 2004).Precisely, lean thinking aim at influencing manufacturers to do moreactivities with fewer resources while also ensuring that they meetthe desire of the consumers by adding value to the products withoutincreasing waste production. Vauxhall has utilized the concept oflean thinking in many scenarios, but a critical issue is whether leanthinking only applies to cost reduction(Tidd & Bessant, 2013).
Itis notable that the company did not take advantage of the inclusiveapproach to lean think because concentration on waste reduction maynot be sustainable when the consumers require sophisticated changes(Cooke & Galt, 2010).Scholars argue that the principles of lean encompass valueidentification regarding the consumers as well as the value streammanagement to which the first aspect connects the lean and supplychain(Chambers & Johnson, 2010).
VauxhallApplication of Lean thinking on production:Thecompany used toolkit that was vital for the in the manufacturing ofcar and one of the aspect of lean thinking they utilized in creatinga suitable workplace was the 5S methodology. Furthermore, theypracticed Kaizen which helped in planning and supporting the burst ofconcentration in cases of breakthrough actions. Vauxhall also didvalue stream mapping which assist the managers in choosing the mostfundamental objective and implement it in a particular project.Moreover, Vauxhallused the method of pull to enhance the movement of materials whilealso aiming the reduction of all categories of waste production tozero rates as a way of promoting production flow capacity(Johnston, 2003).
Challengesthat Vauxhall Experienced when Utilizing Lean Thinking:Do lean production systems have the capability to cope with dynamicsin supply chains of the company? It was evident that the start-upapplication of the lean thinking experienced steady demand onVauxhallcar makingbecause thevolumeand the constant demand was consistent with the pull method(Cusumano & Nobeoka, 2012).On the other hand, the application had limited flexibility in caseswhere demand brought about numerous challenges thus many researchersand other contributors in the Vauxhall Company preferred flexiblesolutions as opposed to the lean principle(Jones & Robinson, 2012).
Agileproduction of good such as cars can effectively cope with marketsituations that are predictable which are fundamental in handling theneeds of customers as well as developing a comprehensive IT virtualchain. The scenario, therefore, proves that Vauxhall did not exploitall the advantages by adopting lean concept since the company neededan agile methodology to become flexible according to the desire ofthe customers(Hill & Hill, 2012).
Furthermore,the company applied the lean thinking with the aim of enabling theemployees to advance their expertise in the manufacturing of vehiclesand supply chain(Heike, 2000).The directors of the industry claimed that operation systems requiredextensive and diverse skills which are consistent with the tasks toeliminate significant barriers to the achievement of the intendedresults and lean thinking was of great assistance(Camuffoo & Volpato, 2002).Vauxhall, therefore, understood and supported strategies which madethe workers gain skills and capabilities of improving the expertiseand knowledge in relevant fields. However, how did such conceptrecognize the employees as thinkers considering that it became boringdue to its inflexibility to changes? Scholars assert that thereshould be respect to every employee and the emphasis on theirthinking capability, but it is sad because both elements are absentin lean rational(Desmet, 2000).
Moreover,lean thinking made some workers to experience stress andintensification due to limited teamwork in such scenario thus leadingto negative results. Some researchers also studied workers inVauxhall industries and concluded that majority of them are againstchange patterns and corporation processes(Levy & Rothenberg, 2002).In summary, the company should incorporate diverse strategies such asrapid and lean production, statistical quality control as well asmanagement of supply chain to improve its flexibility(Drury, 2000).Furthermore, the processes are relevant in meeting the dynamic needsof the customers while also reducing the management cost required inbuilding an intense relationship with the clients.
Inthe present time most automobile industries in the U.K and theEuropean Union experience complexity and unpredictability which callfor advancement in leadership(Cantner, Krüger & Söllner, 2012).Vauxhall directors argued that global competition has increased theopportunity of a consumer to choose cars with different features, forinstance, size, colour, and lifespan. The company therefore aimed atimproving its quality leadership and the central questions inassessing such concept include their continuous transformation,customer satisfaction, and variation reduction(Raab, 2008).
Itis notable that Vauxhall improved the quality of its products throughthe encouragement of all teams of workers to cooperate andcollaborate. Furthermore, stakeholders adopted quality leadershiptools and procedure to promote performance strategies and inputs(Camuffoo& Volpato, 2002).The management principles helped to a company to reduce cost byavoiding errors through efficient production and supportingcorporation among employees on projects implementation.
However,some scholars criticized the capacity of Vauxhall to adopt qualityleaders because its vision and values are not in line with the toolsand techniques that are fundamental to quality management(Netland & Sanchez, 2014).The advancement of global quality and high competition has forced thecompany to adopt high-quality standards however the managementdepartment does not control such strategies. Vauxhall has also notequipped its managers and workers with quality leadership skills andknowledge therefore it `s hard to determine how the companyinfluence the operation without a capacity building(Nykvist & Nilsson, 2015).
Scholarshave long asserted that information dissemination and training onquality management strategies are vital in sustaining continuousquality leadership.
Vauxhallalso focused on supplier quality management to improve the qualityleadership significant in the organization. The company argued thatpurchase of raw material for manufacturing cars was one of thegreatest obstacles due to the increase in procurement costs as wellas improvement of quality purchase of resources(Hoog & Khare, 2003).It orders to meet its goals the company has made notable moves in theestablishment of long-lasting relationships with loyal suppliers tooffer high-quality products on a continuous basis.
Moreover,Vauxhall adopted Six Sigma methodology to enhance the reduction ofdefects and promote customer value regarding performance processesthat heighten quality leadership(Alhalabi, Ali, & George, 2010).It started by identifying the points that required optimization bythe use of measurement system analysis. The concept also enabled thecompany to categorize necessary characteristics to the clients whilealso promoting their needs as a way of ensuring quality management(Petrov, 2007).However, research claimed that the firm had less advanced processcontrol which is vital determining disparities associated with amaximum output of the processes and faults before the settlement onproduct quality(Morris & Steiner, 2010).
Itis, therefore, necessary for Vauxhall to ensure an elaborate trackingof process implementation to guarantee quality management concerningmanufacturing of cars. Furthermore, it should assess failure modesand analyzes effects within the company to diagnose the origin ofdifferent problems and curb future issues which could deter qualityleadership(Foley, 2003).
Awarenessof environmental degradation and other related consequences haveincreased in the recent past making manufacturing companies obligatedto regulate impacts of the resources and end products to thesurrounding(Bettley & Burnley, 2008).The feature has caused numerous challenges to the automotiveindustries as prices oil fluctuates while most government implementpolicies geared towards reducing climate change. It worth noting thatVauxhall made a lot of strides concerning sustainable environmentalleadership since it holds ISO 14001 environmental managementspecifically for production areas and warehouses(Roberts, 2008).
However,some researchers claim that holding ISO 14001 is not an overallindication that a company is aimed at improving environmentalquality. Specifically, Vauxhall used ISO 14001 as a standard forcompliance with sustainable development rather than aligning itsmission to the company needs(Fai & Morgan, 2007).Furthermore, implementation of the ISO 14001 lacks the idealrequirements for environmental sustainable leadership therefore,such certification is mainly concerned about meeting thearrangements. The feature that one should analyze to understandwhether Vauxhall met the environmental sustainable leadershiprequirements include life cycle of their products which involveevaluation of the products and services repercussions. Moreover, mostpolicies in the UK and EU have pressurized the manufacturingindustries to assess the whole life cycle of their end products(Sturgeon & Biesebroeck, 2010).
Theaspect that is necessary in determining such case is the supply chainoperations because it is directly related to a social life of peoplewhile also encountering long distance activities. Vauxhall moved tocountries moved nations that had less restriction and wages regardingenvironmental quality adherence(Kaplan &Norton, 1996).However, such move raised numerous questions concerning the impactson both the society and ecology. First, how do transportation ofgoods and services affect the environment and society as a whole?What are the effects of the increased small orders to thesurrounding? Scholars argued that increased small orders led totraffic jams as due as the industry needed a frequent supply ofmaterials. The supply chain of Vauxhall thus had a high potential ofcausing pollution to the environment as well as leading tounnecessary energy consumption. The company should, therefore, adoptlogistics that favour environmental quality leadership by reducingtheir supply chains(Howell & Hsu, 2002).
TheChallenge and Pressure that Car Maker FaceSourcingfrom Low-Income Countries and Leaning Down Trend
Mostcompanies battle to enhance their productivity in different parts ofthe world due to global competition. Manufacturing companies such asVauxhall thus embarked on off-sourcing and outsourcing to decreasethe production costs of the firm while promoting its performance. Onthe other hand, different researchers claimed that there werenegative impacts and limitation when Vauxhall implemented thetransfer of goods and services from low-income nations(Boddy, 2011).
Thischallenge relates to the supplier selection due to the dissimilarityon cultural, geographical as well as relative proximity to the carmanufacturing company. It is notable that most suppliers prefer towork with companies of similar cultural setting because suchindustries demand limited control and change of skills and expertise.On March 14, 2014, Vauxhall faced a lot of cultural pressure as oneof its biggest supply chain referred to as open did not meet thesocial standards of the population neighboring the company (Howell& Hsu, 2002).
Effectsfrom Infrastructure and Exchange Rates
Theproblem here concerns the transportation costs due to extendeddistances as well as adjustment of shipment to reach an appropriatedestination(Reid & Sanders, 2013).Vauxhall experienced a lot of difficulties while aiming at efficientand consistent delivery of goods to various destinations. Thecompany had challenges operating in Brazil because of the fluctuationof currency value, for instance, the Brazil Real in increased instrength by 17% in the 2011 but later weakened by 45% in 2015.Furthermore, Vauxhall reduced most of its operations in Japan sincethe currency was erratic and weakened by 70% within a span of fouryears (Howell& Hsu, 2002).
Challengesof Information Dissemination and Language Barriers
Thethird challenge was that most foreign worker in the low-incomecountries was not aware of the market situation of the company aswell as the business strategies that the car manufacturing industryneeded to compete in the global market(Mangan et al., 2012).Besides, the Vauxhall required less money to recruit many workers,but they would also experience additional cost regarding knowledgetransfer to other staff members. The other problem that the companyexperienced is language barriers and insecurity on the technology asthe manufacturing industry started to operate in low-incomecountries. The organization risked its intellectual propertiesbecause it revealed its operation strategies to foreign nations byoutsourcing expertise. SupplyChain Processes Challenges
Vauxhallalso get challenges when considering the most cost effective way ofdelivering goods and services, for instance building local suppliers,opening other warehouses and deciding on the shipment processes.Furthermore, the company must weigh the best method of reducinglogistic cost, consolidating dealers and increasing capacity (Manganet al., 2012).
BalanceScorecard Strategy as a Guide to Car Manufacturers
Thestrategy of balance scorecard is a planning and management approachwidely used in industries to ensure that all the business actions arein line with the organization vision, and there is enhancedcommunication as well as orderly monitoring of performance(Niebecker,Eager & Moulton, 2010).In the car manufacturing industry, the method is required to guidethe otherwise complex production system regarding automobileassembly. Hence, Vauxhallcan utilize scorecard approach to streamline the challenges relatingto tactical, operational, and strategic resolutions. In tandem withthat, demand fluctuations, unbalanced capacity, the varieties ofprocessing steps, the issues of alternative machines which haveunequal capacity, and jobs that feature diverse product forms andpriorities can be handled by Vauxhallwith a lot of ease (Niebecker,et al., 2010).Figure 1 shows the general areas of consideration using the scorecardstrategy.
Vauxhalladopted Six Sigma methodology to enhance the reduction of defects andpromote customer value regarding performance processes that heightenquality leadership. It started by identifying the points thatrequired optimization by the use of measurement system analysis. Itis also worth noting that Vauxhall made a lot of strides concerningsustainable environmental leadership since it holds ISO 14001environmental management specifically for production areas andwarehouses. However, some researchers claim that holding ISO 14001 isnot an overall indication that a company is aimed at improvingenvironmental quality.The company should therefore develop a balance scorecard and motivatethe workers to achieve the objectives and tackle different challengessuch as foreign currency exchange fluctuation and supply chainprocesses.
Recommendationon the Performance Objectives
VauxhallIndustry should understand the global dimensions of a supply chain aswell as a fresh vision of different car manufacturing industries toimplement a flexible, lean principle. In other words, it must takeinto account customer and staff oriented values, for example,teamwork, motivation and social satisfaction of the clients andemployees.
Furthermore,the company should overcome cultural challenges by ensuring thatpeople get involved in lean production which requires generalawareness. Vauxhall should also focus on five operation performancessuch as quality, cost, flexibility, dependability and speed tomaintain its competitiveness in the low-income countries.
Besides,the company requires dynamic models of the assembly line which areuseful in countering the market uncertainties while also promotingexcellent productivity. The car manufacturing industry should thusincorporate the active principle in its lean operations to enhanceflexibility as it customer requirements.
Finally,the industry should strengthen its production systems by linking thehighly skilled employees with pull control which offers dependabilityservices to the consumers. Lastly, the company should upholdsustainable environmental leadership by implementing electric carmanufacturing in line with the plans of Japan and China.
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