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The Strategic Role and Objectives of Operations

The Strategic Role and Objectives of Operations

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Published by: Bidah on Dec 29, 2009
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02/01/2013

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Chapter 2: Short case study
1
Copyright \u00a9 2006 Pearson Education Limited
CHAPTER 2
The strategic role and objectives of operations
Short case: Jaguar regains its reputation

Originally called the Swallow Side Car Company, Jaguar Cars was founded in 1922 and
became famous for its luxury and sports cars. In 1990, Jaguar was taken over by Ford and
is now a wholly owned subsidiary. At the time of the Ford takeover, Jaguar\u2019s quality
performance was something of a paradox. Aesthetically and in terms of on-the-road
performance the cars were often highly regarded, especially by a hard core of enthusiasts.
Yet even they could not ignore Jaguar\u2019s reputation for making cars which were, in
comparison to its rivals, of exceptionally poor reliability. Plagued by under-investment and
a conservative technical-led, rather than customer-led, culture, the company\u2019s old plants
were struggling to achieve even acceptable levels of conformance quality. At this time, the
JD Power survey of customer satisfaction of cars imported to the US ranked only one car
(the Yugo) lower than Jaguar.

All this changed through the 1990s. The company invested heavily in training, especially in
quality techniques such as statistical process control (see Chapter 17). Piecework was
abolished, as was \u2018clocking in\u2019 and a general productivity bonus introduced which
encouraged flexible working. Other shop floor initiatives included the introduction of multi-
skilled teams, total productive maintenance (see Chapter 19), continuous improvement
teams (see Chapter 18) and benchmarking against the best in the business (see Chapter
18). The success of this quality improvement programme was dramatic. It encouraged Ford
to invest in new Jaguar models and also had a significant impact on customer satisfaction.
The same surveys which once put Jaguar at the bottom of the league now rank it in the
very top group of luxury car makers.

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