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Vauxhall Motors was founded by Alexander wilson in 1857 originally named as Alex Wilson and company. Later on the company renamed to Vauxall Iron Works, which built pumps and marine engines. In 1903, the company built his first car having 5horse power model with two forward gear and no reverse gear. The company start expanding his business and move the production to Luton in 1905. The company used the same brand name until 1907 and renamed to Vauxhall Motors. The vauxhall celebrated his centenary in 2003, and continues to be the forefront of British Motors Engineering.
This assignment assesses the Vauxhall strategy by describing its production system
19.1b) A companies concerned to satisfy its customers' requirement with fast and dependable services at reasonable cost, as well as helping its own suppliers to improve services they offer. There are five basic strategic objectives and they apply to all types of operation:
These operations performance objectives are analysed here in accordance to Vauxhall Motors.
Doing right things by providing error free goods and services, which will satisfy the customers, termed as 'quality'.
According to the case study, Vauxhall Motors consistently rank near the top in third-party customer-satisfaction surveys. Being voted by many market research and surveys as it shows that, Vauxhall has a successful record worldwide because of it's good quality. Also, Vauxhall has produce a good quality cars that do not emit unpleasant fumes, such as more than 40 emission-control systems and dozens of technologies that have improved passenger-car safety.
Speed means doing the things fast, to minimise the time between the order and the availability of the product or services that gives the customer speed advantage.
The Vauxhall techniques are focussed operations that reduce complexity by using simple and small machines, which are robust and flexible.
Dependability means doing things in time for customers to receive their gods or services when they are promised.
Vauxhall includes 'Just-in-time' (JIT) production system with multi skilled worker that work as a team whichb allowed them to deliver products on time. Improving efficiency and quality is a concern not only of managers and technical experts but also of all employees. So, by doing this, Vauxhall gives a dependability advantage to its customers.
A clear result of responding to a dynamic environment is that the organisation change their products and services and changes the way they do business. This is known as 'flexibility'.
(Peters, T., 1998) argues that we must learn to love change and develop flexible and responsive organizations to cope with the dynamic business environment. In Vauxhall plant it means the ability to adopt its manufacturing resources so that it can launch new models. The Vauxhall was able to achieve high level of flexibility, producing relatively small batches of different models with little or no loss of productivity or quality. Vauxhall during the years has provided a range of options that customers are able to choose.
One major operations objective, especially where companies compete with prices is 'cost'. Low price is a universal attractive objective to customers, which can be achieved by producing goods at lower costs. In order to 'do things cheaply', Vauxhall seek to influence the cost of goods and services, so for the future Vauxhall has planed to shift their production of multipurpose vehicles and on different countries around the world
By using and improving quality, speed, dependability, flexibility and cost operations performance, Vauxhall has seen a global growth and high percentage of customer satisfaction. Because of the success of these operational objectives of manufacturing and product developments. To keep its production at the high quality, maximum speed, on time delivery, flexibility and at the lowest cost, Vauxhall works with its suppliers to make sure that they are also the best suppliers in the industry. Shifting its operation in different countries searching for cheap inputs (raw material and labour) makes it easier to produce products at a lower cost and good quality. Operating continentally also gives dependability advantage to its customers by making it easy to deliver its production in the market place. Using these operational objectives, Vauxhall has managed to keep its customers happy and compete successfully with others companies in global market.
Strategy is a number of decisions and actions that an organization uses to achieve its long-term goals. A strategy has its content and process (Slack, N. et al, 2001). Specific decisions which are taken to achieve specific objectives is known as content strategy and the procedure which is used within a business to formulate its business is known as process strategy. Companies around the world use different contents and processes. Company's objectives and successes are depends on choosing the right operation strategy.
According to the case study Va4xhall was one of the few car manufactures in the world that was consistently profitable. This made competing manufactures to visit Vauxhall to discover the key to that company's success in a bad market. What they discovered was ' teamwork' that uses scientific management principles (Huczynski, A., Buchanan, D., 2001).
Vauxhall is another name used for 'teamwork' that refers to a particular form of work in organisation that stresses 'lean production'. Lean production is an approach that combines 'just-in-time' (JIT) production, work standardisation, continues incremental process improvement, problem solving teams and powerful first-line supervision (Huczynski, A., Buchanan, D., 2001).
JIT (just-in-time) production system tries to meet demand instantaneously with prefect quality and no waste. It differs from traditional operations practices as it stresses waste elimination and fast throughput, both of which contribute to low inventories.
The Vauxhall's operation strategy has become a world-wide phenomenon and there are reliable reports from the number of firms of considerable cost saving and efficiency gains (Bradley, K. & Hill, 1994). They uses the 'bottom-up' operational strategy, which is a process that emerges from day-to-day operational experience. Philosophers of this strategy continue to make the case that Vauxhall's production system is a method of best practice and can be successfully implemented in different industries in any country. They argue that the ability to deliver just-in-time not only saves working capital (through reducing inventory levels) but also has a significant impact on the ability of an operation to improve its intrinsic efficiency. JIT production system not only has maximise profit and growth, but also Vauxhall's vehicles rank near the top of third-party customer satisfaction surveys. JIT production system has allowed Vauxhall to have high reputation of being highly efficient and producing high quality cars.