Operations Management at Rolls Royce

Automobile sector is wiz of the most competitive and technological driven sector of the world, taking an advantage edge on fundament and technology the automobile companies such as Ford, Honda, BMW etc. have successfully implemented these changes into its ingathering as well do work and introduced differentiated product in the market. To remain competitive, it is important for the organization to focus on its operations and supply management with which they are equal to achieve competitive advantage over the anformer(a)(prenominal) company.The CEO of Rolls Royce has strongly focused on enhancing the operations management in 2006 so as remediate on its production. Facilities In 2006, the company commenced its operations at Derby, Hucknall, Barnoldswick and Bristol. These facilities are equipped with the modern working facilities along with the old repair and overhaul workforce in Montreal. With this the operations and the productiveness of the company testament alter which wi ll help the company is producing more effective cars in 2007. Inventory The inventory of the company was change magnitude in 2006 because of the growth and demand of the products.The company needed raw material to build the end product . The inventory is to a fault expected to increase further in 2007 which will help in amend on the productivity of the company. For this it is important for the company to manage its working capital adequately. Information The company intensify on technology as well as learning in 2006. The company used its process excellence programme so as to continue to improve on its quality and production. With this the company was qualified to improve on its quality by 20% in 2006 as compared with 2005.Read also trial Operations ManagementWith this the company will be able to further enhance quality and productivity of the company. The company also implemented and standardised ERP system to its building block in Europe, this is going to expand to the other units as well in 2007 which will help in improving the operations of the company. The company will be implementing its remaining IT ERP across its facilities which will help in enhancing its global supply chain management. Sourcing With a strong focus on building supply chain management, the company is able to improve on its sourcing and having low cost production.With the enhancement in the supply chain the company will be able to further improve on its supply chain, operations and cost. Pricing Even with the increase in the prices of the force out and some metals, the company has aligned its operations and activities with such a way that it has been able to focus on reducing the overall cost of overhead as well as value activities. The company also increased the number of employees so as to increase the productivity of the company. Even despite of all these measure, the per unit cost of the product is expected to increase in 2007 which might affect the sales of the company.