Executive summary
This report provides in depth analysis of Rolls Royce operations, focusing on lean operations and its competitive priorities, along with technological management. With the help of polar diagram. 4V analysis and important performance matrix. It is observed that the organisation has higher score in precision and reliability. But there is a significant room for improvement in the context of innovation. Lean operations application enhances the efficiency and alignment of restructuring the objectives to reduce cost by $500 million annually for Rolls Royce. Therefore, the emphasis on just in time approach and pull system emphasises the responsiveness of the organisation in restructuring in operation management aspect. While it also helps in reducing the cost with 16%. The recommendations stresses on the sustained lien management and lean implementation for operational excellence, ensuring Rolls Royce’s continuous innovation and leadership in aerospace and power system.
Table of Contents
Clean operation is an important and indispensable part of an organisation which makes it more flexible in terms of enhancing its operations and attain future growth. Rolls Royce is one of the iconic British engineering company renowned for its excellence in aerospace and power systems. And also stand for compelling choice in examination in the realm of lean operations (Al-Ashaab et al., 2013). With legacy dating back over a century, Rolls Royce has continuously evolved to meet the dynamic market changes and industries epitomising the precision innovation and luxury. The application of lean operations derived by a philosophical aspect rooted in minimising the waste and maximising the efficiency has become an essential part of the company stature and complexity.
In the context of Roll Royce’s operations, the significance of lean operation is quite huge. The implementation of lean principles that aims not only to streamline manufacturing and processes, but also to enhance the overall operational efficiency (Browning and Treville, 2021). This is a particularly crucial in the context of aerospace and power system sector, where precision and reliability are majorly important. Lean operations as a strategic choice aligns with the company’s commitment to deliver high quality product and services.
In the course of operational scenario, Rolls Royce is intricately woven into the overarching strategy and the operation strategy has manifested multifaceted approach that directly influences the company’s competitiveness (Netland and Powell, 2017). The aspects of operational objectives and other factors have become instrumental in maintaining the strategic edge in the market (Financial Times, 2016). This report has significantly focused on evaluating the theoretical aspects involving polar diagram 4V analysis in order to serve the different perspective towards the dissected and comprehended aspects of Rolls Royce’s lean operation (Hejazi et al., 2020). The report intends to delve deep into the exploration of different aspects Interrelated between Indian operations and the organisational performance of Rolls Royce.
While discussing the operation strategy goals and objectives, the theoretical frameworks and models needs to be implemented in this regard. One of the major theoretical aspects is polar diagram. Rolls Royce’s operational strategy is intricately tied with the concept of qualifiers and winners, which elucidates through tools such as polar diagram (Hejazi et al., 2020). Mainly polar diagram helps in examining the performance and competitive success of an organisation. And in terms of Rolls Royce, it operates in aerospace and power system sector, where the polar diagram may highlight critical factors such as precision, reliability and innovation (IG, 2018). Based on the aspects, the below puller diagram has manifested five dimensions such as precision, reliability, innovation, cost effectiveness and time to market.
Figure: Polar Diagram for Rolls Royce
Source: self-created
To interpret the polar diagram above, it is observed that precision and reliability has received highest codes, emphasising that Rolls Royce commitment towards delivering High quality services is precise and reliable in specifically aerospace and power system products. This makes Rolls Royce a crucial qualifier for the industry (Slack et al., 2022). On the other hand, innovation is also valued, but it is slightly lower than reliability and precision, which indicates that Rolls Royce could focus on innovation along with precision and reliability (Jaeger and Upadhyay, 2020). Most importantly, cost efficiency received a moderate score reflecting a balance between delivering high quality products and managing cost effectively. Time to market has given relatively high score than cost efficiency, which indicates the room for improvement for Rolls Royce in developing product that are cost efficient for the consumer market.
4Vs Analysis for Rolls-Royce's Operations
Dimension | Description | Score (1-5) |
Volume | High, reflecting the demand for aerospace systems. | 4 |
Variety | High, due to the diverse range of aerospace products. | 4 |
Variation | Moderate, managing fluctuations in demand. | 3 |
Visibility | High, emphasizing the need for transparent processes. | 5 |
In the context of analysing 4Vs, the aerospace industry has a prominent possibility where Rolls Royce encounters both high volume and high variety. With focus on the precision engineering, the company has managed the complexity by achieving delicate balance between mass production and customization (Nagai and Silveira Torres Junior, 2021). Apart from this, the analysis has manifested the aid in aligning operational decisions with customer expectations, and also ensuring Rolls Royce’s ability to meet diverse demands while maintaining efficiency and quality (R. Jadhav et al., 2014). The high visibility score advocates the importance of transparent processes, while highlighting the intricate details of aerospace system production.
Contribution to Competitive Priorities
In relation to concentrate on the contribution of competitive properties per priorities. It could be stated that Rolls Royce’s commitment towards competitive priorities has an integral role to play in developing operational strategies (Rolls Royce, 2019). Evaluating the company’s alignment with its operation shed light on the market positioning and utilizing the importance performance matrix for operation management and technology strategy helps in understanding the systematic assessment of the operations and actual performance.
Aspects | Importance | Performance |
Precision | High | High |
Reliability | High | High |
Customization | Medium | High |
Innovation | High | Medium |
The matrix helps in understanding Rolls Royce’s priority in the areas of aerospace and power system as crucial as it helps consumers having a higher importance and areas of improvements (performance gaps) (Tyagi et al., 2015). Therefore, Rolls Royce ensures that its operational strategy aligns with its competitive priorities, maintaining a standard aspect in leadership in the precision engineering and innovation.
Expectations and objectives:
For Rolls Royce Operation and technology management, beer the critical responsibility of delivering operational excellence and technological innovations. On the other hand, operation management is expected to ensure the Seamless execution of manufacturing processes. This emphasizes on the aspect like precision reliability efficiency in producing aerospace and power system products (Vallon et al., 2015). Additionally, technology management is tasked with driving innovation staying upfront with advancement and integrating with cutting edge technologies that contribute into new product developments. Moreover, these functions are anticipated to elevate Rolls Royce’s competitiveness by maintaining high quality standards and fostering continuous improvements.
Area of focus:
The area of focus is directed by the analysis of operation and technology management. And it is observed that the precision and reliability are highlighted in the polar diagram calls for a concentrated focus on optimizing the manufacturing process (Stevenson, 2021). On the other hand, it has also manifested the low score in innovation, which directs towards the fact that technology and operation management needs to be strengthened in terms of incorporating innovation in the aerospace and power system products (Yumpu.com, 2023). Moreover, it also suggests that the technology management needs to priorities research and development initiatives which would provide the current trends and future trends to address the innovative requirements that the company needs to carry out.
While discussing about the application of lean operation in Rolls Royce, it is important to understand that lean operation is rooted in the Toyota production system revolves around eliminating waste, optimizing processes and maximizing value for the customers (Yumpu.com, 2023). Apart from this, its principles include continuous improvement, respect for people and focus on efficiency as well. Lean operation beholds an immense importance in operation management of Rolls Royce by focusing on the cultural efficiency and continuous improvement (Al-Ashaab et al., 2013). It ensures a streamline process, which entails the waste reduction enhanced responsiveness to customers needs and align with the core tenants of operation management.
Figure: production facility with lean management at Rolls Royce
Source: Aerospace Manufacturing and Design (2011).
The application of lean operations in Rolls Royce is highlighted through its operational excellence that is boosted by the lean operation to enhance its manufacturing of aerospace and power system products. By minimizing the waste and optimizing the workflows. Rolls Royce has been able to achieve precision and reliability Delivery and services. Browning and Treville, (2021) revealed that implementation of lean principles in production lines helps in continuously improving the initiatives and streamlining the processes in Rolls Royce. The impact of lean operations on Rolls Royce is transformative, and it enhances the overall performance by reducing lead times and production cost.
Therefore, lean operations at Rolls Royce had driven a substantial reduction in fixed cost A key element in restructuring the strategy. The company aims at cost cutting around 500 million annually, and representing about 16% reduction. On the other hand, its endowers alliance with lean principles by focusing on efficient resource utilization, optimizing processes and enhancing cash flow (Financial Times, 2016). As a result, Rolls Royce’s adoption of pull system and just in time manufacturing advocates, its commitment towards lean operation and highlighted one billion free cash flow in 2020. The implementation of pull system allows the compared to produce good based on actual customer demand and reducing excess inventory while the just in time approach exemplify the streamlining of production process and reduce lead time.
In conclusion, Lean operations in the context of Rolls Royce has played a pivotal role in generating a sustainable growth and a precision in product delivery. This report has focused on explaining the different aspect of lean operations into Rolls Royce and concentrated on evaluating the aspects from theoretical point of view. The 4V analysis and the polar diagram, along with importance performance matrix, have significantly delivered that the organization needs to focus on its innovation aspects that left room for improvement in future, while precision and reliability are at the top for the organization, which helps in strengthening its growth rate.
Aerospace Manufacturing and Design (2011). Rolls Royce to Hosts Lean Manufacturing Training. [online] Aerospace Manufacturing and Design. Available at: https://www.aerospacemanufacturinganddesign.com/news/aerospace-manufacturing-design-rolls-royce-lean-amd-112111/.
Al-Ashaab, A., Golob, M., Attia, U.M., Khan, M., Parsons, J., Andino, A., Perez, A., Guzman, P., Onecha, A., Kesavamoorthy, S., Martinez, G., Shehab, E., Berkes, A., Haque, B., Soril, M. and Sopelana, A. (2013). The transformation of product development process into lean environment using set-based concurrent engineering: A case study from an aerospace industry. Concurrent Engineering, 21(4), pp.268–285. doi:https://doi.org/10.1177/1063293x13495220.
Browning, T.R. and Treville, S. (2021). A lean view of lean. Journal of Operations Management, [online] 67(5), pp.640–652. doi:https://doi.org/10.1002/joom.1153.
Financial Times (2016). Rolls-Royce designs a revolution on factory floor. Financial Times. [online] 10 Feb. Available at: https://www.ft.com/content/9c8b8148-cf9d-11e5-831d-09f7778e7377.
Hejazi, A., Bhuiyan, N. and Othman, M. (2020). Performance measurement of a lean product development process. Concurrent Engineering, 28(3), pp.198–209. doi:https://doi.org/10.1177/1063293x20958916.
IG (2018). Rolls-Royce restructuring to create a lean, mean fighting machine. [online] IG. Available at: https://www.ig.com/en/news-and-trade-ideas/shares-news/rolls-royce-restructuring-to-create-a-lean--mean-fighting-machin-180619.
Jaeger, B. and Upadhyay, A. (2020). Understanding barriers to circular economy: cases from the manufacturing industry. Journal of Enterprise Information Management, 33(4), pp.729–745. doi:https://doi.org/10.1108/jeim-02-2019-0047.
Nagai, R.A. and Silveira Torres Junior, A. (2021). Lean Product and Process Development and Set-Based Concurrent Engineering in the Dining Industry: the experience of an American-Asian fusion restaurant. International Journal of Action Research, 16(3-2020), pp.202–224. doi:https://doi.org/10.3224/ijar.v16i3.03.
Netland, T.H. and Powell, D.J. (2017). The Routledge companion to lean management. New York Routledge.
R. Jadhav, J., S. Mantha, S. and B. Rane, S. (2014). Exploring barriers in lean implementation. International Journal of Lean Six Sigma, 5(2), pp.122–148. doi:https://doi.org/10.1108/ijlss-12-2012-0014.
Rolls Royce (2019). How to Improve Workstation and Process Design to Minimise Waste Value Chain Competitiveness (VCC). [online] Available at: https://www.rolls-royce.com/~/media/Files/R/Rolls-Royce/documents/sustainability/value-chain-competitiveness/16-vcc-how-to-improve-workstation-and-process-design-to-minimise-waste.pdf.
Slack, N., Brandon-Jones, A. and Burgess, N. (2022). Operations Management. 10th ed. Cape Town: Pearson.
Stevenson, W.J. (2021). Operations management. 13th ed. New York, Ny Mcgraw-Hill Education.
Tyagi, S., Choudhary, A., Cai, X. and Yang, K. (2015). Value stream mapping to reduce the lead-time of a product development process. International Journal of Production Economics, 160, pp.202–212. doi:https://doi.org/10.1016/j.ijpe.2014.11.002.
Vallon, R., Wenzel, L., E. Brüggemann, M. and Grechenig, T. (2015). An Agile and Lean Process Model for Mobile App Development: Case Study into Austrian Industry. Journal of Software, 10(11), pp.1245–1264. doi:https://doi.org/10.17706//jsw.10.11.1245-1264.
Yumpu.com (2023). Manufacturing Capability - Rolls-Royce. [online] yumpu.com. Available at: https://www.yumpu.com/en/document/view/25834234/manufacturing-capability-rolls-royce [Accessed 22 Dec. 2023].
