You have been called in as a management consultant to JAB who manufacture a range of heavy plant, construction and agriculture equipment. You have been asked to analyse the business with respect to certain areas and compare the company against it competitors (Competitive Benchmarking) with a view to identifying ways in which profits can be increased. The market sector is very competitive.
They are a medium sized company with a hierarchical structure as shown in Figure 1. This structure often results in delays in communicating plans, schedules and new developments down to the shop floor management and employees. They have 3 teams that work a day shift with three breaks during the day. Their production lines for large equipment produce backloaders, telehandlers, excavators and forklift trucks on a make-to-order basis with one team responsible for making the entire vehicle. The production lines typically operate on a just-in-time (JIT) supply basis. Some parts such as; cabs, engines, hydraulics systems are built in house to ensure continuity of supply. Other parts required for production are supplied by a network local suppliers as well as a team of global suppliers.
When an order is placed, the parts are checked in the warehouse and assigned to the relevant production line. Any missing parts not available are then ordered in and usually arrive in less than 7 days. This sometimes results in production delays and late delivery. The team members are utilised during these delays with cleaning and maintenance and the manager and the supervisor do administrative tasks. An example of the activities involved in making a vehicle is shown in Figure 2.
You have been asked to write a project report detailing your recommendations for improving the efficiency and profits of JCB Ltd.
In your report you should consider the following aspects: –
1. Organisational structure; what kind of organisational structure(s) would you recommend, with reasons given for chosen this structure?
2. At what stage in the product lifecycle would you consider the products in the case study to be with an explanation of the reasons for your choice? Your analysis should look at the product range within each of these categories.
3. Critically discuss the importance of communication in project management and how JCB could benefit from improved communication in the project.
4. Critically evaluate how you would undertake making the proposed changes so that the effects of the changes on the workforce as minimised
5. Discuss the potential risks in the business at present by making reference to the case study and what risk management tools and techniques can be used to mitigate their effects.
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