This given case of Leyland trucks which manufactures truck under brand name DAF and their strategy is to achieve set goals by implementing elements such as continuous improvement plan and maximizing production capacity.
- Provide effectiveness of operations management principles in Leyland trucks
- Develop application of continuous improvements concept in Leyland trucks
- Explain project life cycle and its application in Leyland trucks
- Analyze and evaluate the application of PLC in Leyland trucks.
Operation management deals with day to day tasks as well as business activities in systematic manner. On the other hand, project management deals with planning, organising, motivating and controlling resources in order to achieve set goals and objectives. Leyland trucks is one of the leading truck manufacturing company in United Kingdom and its headquarters is situated in Leyland, Lancashire, England (Tsai and et al, 2011). Leyland manufacture trucks under the brand name of DAF. Strategy of DAF's is to achieve its objectives by implementing two main elements and they are continuous improvement and maximising production capacity from 18,000 to 25,000. Leyland believe in 'Kaizen' which stands for continuous improvement and encourages everyone to get involved in decision making. This assignment will focus on operational management principles and preparation of improvement plan based on this principle. It also includes product life cycle and its applications.
P1 Implementation of operation management principles within organisational context
Operation management is referred to the implementation of business activities to create highest level efficiency possible within organisation. It is mainly concerned with planning, organising and supervising related to production, manufacturing or the provision of services. It helps in converting inputs into outputs in efficient manner (Rolstadås and et al, 2014). Leyland trucks focuses on each activities carried out by their employees and ensure regular monitoring of those activities. They plan their tasks in systematic manner and implement activities according to prescribed procedures. They implement different principles of operation management and some of them are mentioned below:
Reality: In this principle, operation management focuses mainly on problem instead of techniques. Leyland focus on their problems and try to resolve it as soon as possible in order to avoid any serious damages and losses.
Organisation: Procedures in manufacturing are inter related, so it should be predictable and consistent in order to achieve profits. Manufacturing process of Leyland trucks are designed in systematic manner, so employees and managers are aware about their procedures and carry out efficiently so that they can maximise their profits.
Accountability: In this, managers are expected to set rules and assign responsibilities to their subordinates as well as perform regular checks whether goals are met or not. It is important aspect of Leyland trucks as they monitor their activities and check the progress (Gupta and et al, 2011). Managers are proficient enough to assign duties and responsibilities to their staff members according to their talent.
Causality: It is necessary to eliminate possible problems as if not removed, they can appear again. Leyland trucks try to resole their problem as fast as possible in order to prevent any harm to the company.
Managed passion: It is an important aspect for company as this can lead company to its desired success. Leyland have enthusiastic staff which have the zeal to perform their duties with excellence. This help them to achieve their short term and long term goals within specified time.
Success: Success is not constant, it changes with time. More important is to focus on customer demands and preferences and make that a priority and revise all other principles on occasional basis (Aaltonen, 2011). As Leyland trucks is one of the leading auto mobile company, they have to perform their tasks with same pace and excellence in order to retain its market position, otherwise, many competitors can take its place and Leyland will loose its market share as well as loyal customers and clients.
Change: There are new changes that are arising everyday. So, it is not important to stick on a particular point but embrace change and manage it for better stability in long term. Leyland are aware about different changes that are arising in the market. They prepare themselves by formulating alternative strategies and techniques that can be implemented at the time of new change. Most importantly, they do not stick to traditional methods, they always implement new changes or modifications as soon as possible and also guide their employees and staff members about the change.
Continuous improvement: It is the key point to the success of Leyland trucks as they believe in continuous improvement. They try to serve their customers with best and durable trucks with excellent design and that is the reason they are one of the leading company. They keep on changing their processes, designs, efficiency, productivity, etc. which result in greater profits and building great relations with loyal clients and customers.
Organise resources: In this, priorities are set by organising business resources in order to avoid wastage of them. This will reduce the cost incurred while purchasing raw material and will enhance productivity by focusing only on what's required.
Above are some key principles of operation management which is implemented by Leyland Trucks in order to manage and monitors daily routine as well as manage unpredictable changes in effective manner (Tsai, And et al, 2011). They have also implemented six sigma and lean principles in order to maintain quality standards and encouraging continuous improvement within organisation.
Six sigma is an approach that focuses on quality improvement by analysing defects that are present in process and eliminating them (Rolstadås and et al, 2014). It helps in reducing process variability where as, lean principles is a five step thought process which focuses on providing value to customers. These five steps are: identifying value, mapping of value stream, create flow, establishing pull and perfection seeking. Leyland establish these approaches in order to maintain quality of the products and provide value to its customers and clients.