Category: Production - Production Methods
This article describes the way that Jaguar introduced
“lean manufacturing” in an attempt to increase production volumes and meet customer demand
When the S-Type Jaguar was launched, the interest was so great that the waiting list gained almost legendary status. People were able to sell their place on the waiting list well above the £500 deposit to
Jaguar car lovers.
However the marketing team had set the production team a huge challenge. The excess demand implied the long waiting list had to be satis fi ed without compromising Jaguar’s brand reputation.
Their answer was bold and at the cutting edge of production methods and people management. It had to be because the car business is extremely competitive.
Jaguar’s factory at Castle Bromwich, Birmingham had already seen some advances, with an increase in production of 50,000 cars in 1998 to 80,000 a year later. The S-type technical challenge was to increase the volumes of production and maintain high quality.
In effect they had to change from a one shift system
(e.g. 8am to 4pm), to two shifts. The advantage of a two shift system is that twice the number of man hours can be used, but on the same amount of equipment.
So Jaguar introduced the concept of ‘lean’ growth and a different style of shop fl oor people management.
Production employees were given ‘ownership’ of the production processes and equipment, operating in small “work groups”.
Lean growth means reducing the amount of waste, time and materials in the production process. It requires the whole staff to work together to ensure that each stage of the production process is working “right fi rst time”.
The planning process was started with a “Blue Sky” vision. All the work force, including the management, were involved in coming up with ideas on how to achieve the production levels required. It was called
“Blue Sky”, because the ideas needed should not be constrained by other restrictions such as lack of money, technology and training.
The task was broken down into four areas: People,
Method, Materials and Machinery.
The traditional approach of “tell and do” was replaced with the management supporting the new 6-7 member work groups. The team leader would work to help ensure the smooth running of this operation.
Within the work groups, each team member was given the responsibility to work out when they would complete each standardised task. There was also a system of job rotation in the group. In focusing on the method, the work groups could better eliminate waste and fi nd ways of improving productivity and quality.
S-type production was to use single piece material fl ow.
The key was a “pull” system of work, where stock is ordered when it is needed by the worker who needs it, and in the case of Jaguar it used a Kan Ban system.
Car production now uses some of the most sophisticated computer-guided machinery in any industry. However it still operates using a production line, where the car is built up piece by piece.
In Jaguar’s case, they used “production envelopes” , where a group would work in an “envelope of time” as the car moved into its area.
Each group had their own budget to create any new tools they felt were necessary to improve productivity.
There was also a system of help for times when the production line had to stop, for instance if a piece of machinery was not functioning correctly.
An empowered work force, well trained and well equipped, with a lean production philosophy were able to meet the deadlines for production of the S type. In fact they were 10% above the planned production volume.
With demand outstripping supply, the faster a car can be produced and sold, then the better the cash fl ow can be for the business.
Lean manufacturing
Lean manufacturing is an approach to organising manufacturing activities.
It requires a closely synchronised flow of production activities, with production activity only occurring when a customer “pulls” (or demands) it. Lean manufacturing encourages continuous improvements to the production process. Central to this approach is a focus on waste reduction and a high level of engagement of all employees in implementing and improving the manufacturing process.
Sources used in this article: Jaguar Website (Press Releases);
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