Rolls Royce produces luxury automobiles in low volumes using a mass customization production approach. They implement just-in-time inventory practices and produce vehicles according to individual customer specifications and orders. This results in high production costs per vehicle but allows Rolls Royce to meet demand for customized luxury cars starting at $250,000 each. Quality is heavily emphasized through processes like hand painting body panels and rigorous inspections.
3. Rolls Royce
Rolls-Royce Motor Cars is a British Manufacturer of
luxury automobiles.
Based at the Good Wood plant in West Sussex, England.
4. Rolls Royce Motors
Rolls- Royce Limited was a car and later aero-engine
manufacturing company was founded in 1906.
Rolls-Royce was nationalized in 1971 and the present.
The automobile company was separated in 1973.
Rolls-Royce plc was re-privatized in 1987.
In 1998 BMW acquired Rolls Royce Motors
5. Rolls Royce Motors
Rolls-Royce is one of the most famous brands in the world
The Rolls Royce started with a partnership between two of the most
innovative minds of the moment. Henry Royce, a successful
engineer and Charles Rolls, owner of one of the UK’s first motor car
dealerships
Charles Rolls Hennery Royce
6. Brain Behind the Brand
When Henry Royce was designing the first
Rolls-Royce, a friend advised him to “turn out a
reliable car at a low price”. But Royce had other
ideas. He sought to turn out “the best motor car in
the world regardless of cost”
•“Strive for perfection in everything you do.
Take the best that exists and make it better.
When it doesn’t exist, design it.”
7. Mission
“To provide mobility with comfort, style and
speed anywhere be it on land, water or air.
To delight customers by providing excellent
sales and after sales service.”
8. Vision
“Strive for perfection in everything you do.
Take the best that exists and make it
better. When it does not exist, design it.”
9. Strategy
No co-branding endeavors
Dealers are chosen based on their common
interest with customers
Customers are invited to exclusive dinners
Buyers receive personalized letter from the
CEO
Focus on repeated purchase.
RESULT
Nearly 1/3rd of business comes from repeated
customers.
14. Rolls Royce Phantom
The Rolls-Royce Phantom is a luxury car made in United
Kingdom (GB).
It was launched in 2003 and is the first model introduced during
the BMW era.
Rolls Royce Phantom
Engine Specification Performance Specification
Cylinders V12 Top Speed 149 mph OR 240 km/h
Displacement 6749 cm3 Acceleration 0-100Km/h in 5.9seconds
Torque 531 lb-ft @ 3500 RPM Fuel Consump. 11 L/100Km (Highway)
Fuel System Direct Injection Transmission Specifications
Fuel Gasoline Drive Type Rear Wheel Drive
CO2 Emissions 385 g/km Gear Box Automatic, 6 Speed
Brakes specifications Weight Specifications
Front Ventilated Discs Unladed Weight 5666 lbs OR 2570 kg
Rear Ventilated Discs Gross Weight Limit 3030 kg
26. Rolls Royce uses three
techniques as to Inventory
Management
Just In time
ERP
Cycle Count
27. Just in Time
Rolls Royce uses Just in Time inventory system
because of following reasons:
Build to order production
High value inventory
Decrease Lead Time
Customized Products
29. Before ERP Rolls Royce was using
MRP
MRP is used specifically to plan the
resources that are used during the
manufacturing process and can
include quoting, work orders, bills of
materials, and purchasing or shop
floor management
30. ERP
A management software that allows an
organization to integrated applications to manage
the business.
A typical ERP system will use multiple components
of computer hardware and software to achieve the
integration.
A key ingredient of most ERP systems is the use of
a unified database to store data for various system
modules.
31. Broken down into business processes
◦ HRM
◦ Distribution
◦ Financials
◦ Manufacturing
◦ Inventory
◦ CRM
◦ Supply Chain
33. Design Process of Rolls Royce
1: Idea development:
Rolls Royce develops idea from two ways:
34. Internal source
Internal sources are the great
way to find new ideas for Rolls
Royce. Internal sources can be
divided into two parts. They are
as follows:
Research and development Department
Employees
35. External Source:
The Rolls Royce phantom process
is based upon built to order. In
external source company ask from
its (Distributors, Suppliers,
Competitors). It especially ask from
its customers because it uses focus
strategy.
36. 2) Idea Screening:
In this step, company reject
those ideas which are not match
with the Rolls Royce Standard.
The best ideas are choose in
Internal and External sources.
37. 3) Preliminary Design:
In this step company
high level design concept
is created, which will
implement the
requirements of
customer demand.
Design of Rolls
Royce in the following
ways:
38. Final Design
Our production process starts
at this point. The whole car is
manufactured in two countries
German and England.
39. Production Process of Rolls Royce
Chassis:
The car space frame chassis is build in
German
at two cities (Unterhollerau and Dingolfing).
Phantom has one of the largest chassis cars
which have 200 hundred sections of aluminum
300 parts.
40. 5 way process Process at Dingolfing
Enter Chassis in the water where it moves 360 degree in the
water mixing 7 chemicals. The car stays 45 minutes in each of
the water save from corrosion.
Then it passes Nickel, Manganese and Zinc for cleaning and
saves from rust to body.
And then it will be transfer in last step of paint where Electric
coding provide support in absorbing painting process.
41. Bake in oven:
After passed from five steps,
chassis is transferred in the oven
at 340 degree FH for 70 minutes.
42. Painting:
After reaching Goodwood the
first step is painting, Assembly
line for paint consist of 5 station
that perform all the works of
painting process. Almost 45 kg
paint used the body in five steps.
43. Five steps are follows:
Two technicians paint the car at
the most challenging areas like
engines.
44. Paint through Robot:
Robots paint the
Rolls Royce upto 35
Minutes. They paint
100 Milliliters paint
in 1 minute.
45. Clear and shine coating:
Once the color process is complete
then it will be clear and shine with
buffers and this process will be
complete within 5 hours. This is done
by the workers.
46. Coach Lines:
This is done by one person. Three
millimeter line draws onto the body of
the car. This process takes 3 hour to
complete. There is no replacement of
this person.
47. Dash board.
For making dashboard 42 wood veneer
pieces assemble. After assembling
these parts, kept for heat press on the
compressor for assembling. After
pressing it will be send for shaping.
48. A wood piece made by hand assembles with
tape and blue paper joint on it. A piece of paper
goes for cutting. A plastic is placed on the top of
the sheet and cuts the pieces. These piece joint
on the dashboard panel and paint on it wood
color and blue tape also placed on it. And then
place on vacuum frame press .Here it is
compress 45 mints and then plastic sheet
removed.
49. And then any area defect then it will be good and
paint and then it will be polish with power
buffer.
50. The next step is electrical components
fitted. This panel is part of control system.
First the wiring is connected then parts are
assembled. Now dashboard is ready.
51. Leather for Seats and head rests:
Clean side of leather is highlight and waste
(Mosquito bites and stretch lines) are separate.
Computerized cuttings table the pieces to be
cut, selecting from computer. The laser project
to pattern onto the leathers.
52. Internal Design:
5 LED’s use in the Rolls Royce.
Spirit of Ecstasy on one touch.
Automatic door close button.
Back camera
Umbrella in the door.
53. V12 Engine (453 Horse power
A V12 engine is a engine with
12 cylinders mounted on the crankcase in
two banks of six cylinders each. Through
this engine car become very high speed,
it can cover 100 Kilometer distance
within 5.9sceonds.
54. Merge Process:
First 2 workers assemble the front and back
excel and engine gear box joint on front
excel. After this radiator kept on the front of
the engine then merged engine with them.
After set the engine it will be merging with the
body of the car. This is called merge process.
55. Grill:
Once the inspection is complete grill will
be attached. The Rolls Royce radiator
Grill is entirely by hand. There is no use
of instruments. It takes one man one day
to make a Grill and then five hours are
spent polishing on it.
56. Spirit of Ecstasy:
Spirit of Ecstasy is designed by Charles Robinson
Sykes, It is attached with the Rolls Royce since 1911.
Its price is (2800 Dollars)She is on the top of the
radiator since 1911 and become
most attractive and best
known mascot in the
world.
57. Car Tests
Water Test
Engine check
Shock Check
Speed and Engine Check
Final Design:
After completion of and testing process the car
will be ready for selling.
59. Issues in Design Product
Robust Design:
Rolls Royce use robust design for control
the voice of engine of its car. When car
was run 60 miles an hour create loudest
noise create. Engineers use Isight
software to control the noise of RR
engine.
60. Modular Design:
Rolls Royce use different type of
modules like tires, engine, Grill,
and Dashboard equipment and
Spirit of Ecstasy.
61. Computer Aided Design:
Rolls Royce uses CAD to design Car and
prepare engineering documentation. Rolls Royce
use (3-D) models and (2-D) Model. Designers
sketch designs by hand, (3-D) translate this
sketch to the
computer.
62. CAM:
Rolls Royce use CAM for leather
cutting, Wood cutting for dash board,
water checking, speed and gear
checking and shook checking, reboot
painting.
63. Virtual Techniques:
Rolls Royce use CAD/CAM for virtual
techniques (allow peoples to see finished
design before a physical model design) like
3D Models for design.
Engine design, Body
Dashboard design
Tires, Grill,
64. Ethically and environment friendly
designs:
Rolls Royce follow the ethics in proper way, pay taxes on time, not
reuse its repair parts. Rolls Royce production processes are
designed to minimize waste too.
Over 60% of RR waste – cardboard, paper, plastic, tires is
recycled.
The leather off cuts is re-used in the fashion and footwear
industries.
RR donates the surplus wood veneers to a local charity that
makes furniture and other fundraising products from them.
65. Methods of Job Design
Rolls Royce has hired more than
55000 employees more than 50
countries and 15500 engineers.
Following are the methods of job
design of Rolls Royce:
66. Labor Specialization:
Rolls Royce Company hires
specialized labor that does just
specific work. Mark Court is the
example of special labor in Rolls
Royce.
67. Job Expansion
Job Enrichment:
Rolls Royce use job enrichment. RR provides
its employees for more responsibility on
job and decision making authority for
encouraging the employee with their task.
Through this employee turnover reduce and
more talented people attract.
68. Job ration:
Rolls Royce rotate job of its new
employees. This process run 6 to 12
months, through this employees
know the culture of the company and
learn about work.
69. Self Directed Teams:
Rolls Royce make Self directed teams
almost all departments who check the
quality of the products and standards
that they are achieved or not.
70. Motivation and incentives system:
Rolls Royce motivates its employees
by giving incentives and rewards
every year for better performance.
RR behave equally all the employees.
It gave 5% every year of its profit to
the employees.
71. Ergonomists:
Rolls-Royce Motor Cars engineers and
ergonomists have worked closely with the
medical profession to establish the
optimum seat position that relaxes the
body most whilst in motion.
73. Process:
Rolls Royce, producing 1500
automobiles a year, charges $250,000
a year using a similar process. There
are the products that go straight off
the assembly line and a segment that
is customized to meet individual
needs. The cost is more and the
waiting is longer.
74. Customers:
Rolls Royce catch the buyer who
are the following
Royal Class
High level of Earning
Car lover
Comfort Required
75. Mass customization:
As Rolls Royce make production
on the demand and according to
the customer desire the following
the process called mass
customization. Mass
customization is the process in
which produce good and service
to meet the individual needs.
76. Large Variety:
As Rolls Royce made production
on customer demand so the
variety of the product is high
every customer has its own
priorities and place a order
according to own taste and
demand so the variety of product
is high.
77. Skilled Suppliers:
The supplier shall access their Quality
management system against the applicable
Requirements and make the necessary updates.
The high skilled and perfect on their jobs like we
all know The Rolls Royce choose the best man
for the job. Supplier shall complete the design
and Development quality plan. The supplier shall
operate as define within the design and
Development quality plan and be ensuring that
design and Development quality plan is up to
date.
As the variety of the car is very high the supplier
must be
78. Instructions:
Rolls Royce made production according to
customer order so every order required many
instructions.
Just In Time:
Work in process inventory is driven drown by just in
time because when customers place an order
then production is start so just in time inventory
system can be used.
79. Movement of Goods:
Good are moved swiftly through facility. Each chassis is
mounted on a trolley and pushed from station to station, with the
majority of tasks being achieved using hand tools rather than robots.
Finishing Goods:
In Mass customization goods are often produce in order not to store same
as in Rolls Royce goods are produce in order not to store.
Cost:
In the production of Rolls Royce goods produce to meet individuals needs so the
cost of the goods is also very high its fixed cost is very high every person must
pay $250000 and variable cost is low depend upon the customer requirement
80. Quality:
Quality is customer satisfaction, Quality is fitness for us. Rolls
heavily focus on their Quality because they know Quality is the
best tool to enhancing the customers. Rolls Royce know quality is
important because it is defined by the customer, and
understanding the voice of the customer is essential to focusing
the performance improvement effort.
Quality Paint:
A typical Rolls Royce build starts when the bodies and panels
arrive at the Good wood factory from a plant in Bavaria. The first
step is the paint shop, where each aluminum body gets a hand-
sprayed coat of primer to ensure it reaches and protects all the
places an automated spray robot can't reach. He uses brushes with
a specific mix of squirrel and badger hair, and paints them
81. Achieving the flawless, Rolls Royce color and
piano-shine finish is nothing short of extraordinary.
After at least five layers of paint – two of which are
a high-gloss clear coat – our inspectors spend up
to five hours rigorously checking the surface of
each motor car.
82. Quality Leather:
The leather hides come from herds kept at higher altitudes and
without barbed wire fences keeping them in. The altitude
eliminates mosquito bites which, along with the barbed wire, can
cause marks and damage in the hides. The hides are then laid out
on a cutting table before being cut by a computer controlled
scalpel - which gives a better finish than a laser cutter - to make
the relevant pieces. Amazingly, ten hides are needed per
Phantom, but these come from bulls and are a byproduct of the
food industry rather than killed just for the leather. They are then
sewed, embroidered, finished and made ready for the car.
83. EngineV12:
Speaking of technology, I can’t miss this opportunity
to talk about the engine. Rolls Royce use V12 engine
Its twelve cylinders of high capacity, low stress,
classically Rolls Royce power. If ever the relationship
between technology and the driver was clearly defined
in the Rolls Royce brand, it was in the decision to
remove the tachometer, and replace it with a ‘power
reserve’ meter instead.
84. Rolls Royce, extensive testing was part of the
deal.
• Every car was tested for a week in the test shop,
• Every car was road tested three times and all faults were
immediately fixed.
•Half an hour under simulated levels of rain including
tilting the car to ensure the occupants will remain dry no
matter what Mother Nature may throw at them. And also
check is there any leakage
•Breaks are tested with the help computerized speed
85. •1 out of 10 engines was pulled out of
production, completely stripped and
inspected with microscopes to check on
wear. After this check, the engine was re-
assembled and put back into production.
•Engines were tested by running them
each for a couple of hours at half load
and 1 out of 100 was tested under full
load and then completely dismantled to
86. Cost of Quality:
Rolls Royce also face cost of Quality because
they had produce Quality of products there are
some cost which Rolls have to bear to manage
Quality which are given as fellow.
87. Internal Failure Cost:
The Internal administration cost incurred by the Rolls Royce. Rolls
Royce should have to pay following charges due to occurrence of
the following.
•Reject of Receipt $500
•Concession $700
•Reject as a result of Complain $900
•Reject as a result of Operator Complain.
Total Quality Management:
Total Quality Management means the expectations as by the
customers or Organizational efforts design to improve Quality
process in every business level.Rolls Royce set the standers by
following the follows standers.
88. Benchmarking
Benchmarking seeking superior performance by searching
for best practice in any measurable dimension. Rolls-Royce
conducts numerous assessments and measures for their
almost all processes and practices. In other words, the four
types of benchmarking is practiced in Rolls-Royce. That is
clearly found in the high attention Rolls- Royce give in
terms of global indices for environment, efficiencies and
other indicators
89. Six Sigma
Dave Harry, an ASQ member since 2006, is a
Black Belt at Rolls-Royce Energy Systems, Inc
used Six Sigma approach is aimed to reduce
cost of poor quality and customer
dissatisfaction. Six Sigma is defined as a
business strategy used to improve business
profitability, to improve the effectiveness and
efficiency of all operations to meet or to
exceed customer’s needs and expectations .
90. · Define:
The cycle starts with defining the problems.
It identifies the amount of work and change
necessary to improvement.:
In this step data is used to refine the
problems. Measurements are made to know
exactly what is happening.e:
cause of the problem is analyzed in the
third step. This step contributes to make
it easier to make a successful
91. · Improve:
The improvement process starts, when the
root cause is identified. Different solution is
implemented to solve the problem.
· Control:
The new improvement is monitor, control
and ensure in this stage. It is to ensure the
made change are to stay.
93. Supply chain
Supply chain collaboration has the potential to unlock solutions for
some of today’s most pressing business challenges, in skills, access
to finance, innovation and supply chain efficiency.
Process in Rolls Royce
Invitation
Global Supplier Portal
The Rolls-Royce Global Supplier Portal (GSP) is the supplier’s
access point for information and documents such as Saber and
Notices to Suppliers (NTS). The GSP will provide a measurable
framework to facilitate two-way interaction with Rolls-Royce
suppliers, enabling us to conduct business transactions, communicate
information, answer questions and resolve business issues.
94. what are future benefits
Future releases of the Portal will include a Search
capability on the Rolls-Royce Supplier Approvals
listing.
Registration to Global Supplier Portal
Registration to the GSP was mandated from Friday 4th
April 2014 for all suppliers who:
Have greater than one transaction per year with Rolls-
Royce
95. How to Register to the GSP
You will receive an email to join Exostar. If you have not
received an email please contact purchasing-support@rolls-
royce.com and they will ensure the appropriate email is sent.
In the email it will state user name and a password.
96. What Suppliers get for
Registering
Global Supplier Portal:
· eFairs
· SAP Sourcing
· eConcessions
· Approved Supplier List
Supply Chain Platform:
· ePO
· Delivery Schedules
· eInvoicing
· Advanced Shipment Notification
(ASN)
97. GSP Home Page
The home page is an at-a-glance view of key information
related to our
business relationship: Scorecard Summary, Notices to
Suppliers, Rolls-
Royce News, Workspace Summary and Status.
As we mentioned earlier, security is required to access certain
functions.
Prior to accessing the GSP home page, logging in will be
required. For
details on how to log in, please refer to the GSP login
documentation
98. Negotiate and Select
A request for proposal (RFP) is a solicitation, often made through a
bidding process, by an agency or company interested in
procurement of a commodity, service or valuable asset, to potential
suppliers to submit business proposals.
Rolls-Royce Motor Cars is floating an RFP designed to keep sales
momentum at the super-luxury auto company in high gear.
Negotiating the right deal with your suppliers doesn't necessarily
mean getting what you want at the cheapest possible price.
• You may want to negotiate other factors such as delivery times,
payment terms or the quality of the goods.
99. Supply chain:
Rolls-Royce operates a global purchasing organization
with a Supply Chain total Spend exceeding £4.7 billion
Rolls-Royce has 950 purchasing employees globally and employs
18,000 active suppliers, across a large and growing number of
products and parts. This supports a diverse business purchasing
portfolio embracing technology development components for
manufacturing, direct finished for both MRP and project-based
activities.
100. Purchasing is at the centre of external supply chain management in a
complex international environment and is responsible for the
selection and management of suppliers whilst meeting our customers’
strategic requirements in quality, cost and delivery
.Training and development is a key part of our business with 80
percent four employees trained to a graduate level or above, with
many holding the industry accreditation of Chartered Institute of
Purchasing and Supply (CIPS)
101. Raw material planning an inventory software package which maps
the sub tier supply chain providing demand signal visibility, risk and
utilization analysis, demand simulation and key points of failure
analysis. Information interactions and provide valuable Supply Chain
quality and performance data.
102. Robust supply chain strategies
Developed supply chain design and
programmed management world-class
expertise
In supply chain logistics management
Reduce complexity by operating single
point of contact
Providing access to new supply chains and capacity
without extensive start
up costs
Leverage of known supply chains to
establish competitive prices
Global objective to achieve world-class
standard of staff.
No duplication of roles.
103. Location
After BMW bought the rights to the Rolls-Royce brand as
applied to motor cars from Vickers plc, it required a new
manufacturing plant in which to build the new cars.
The original plant, located close to Good wood Circuit
and Westhampnett village, was projected to cost up to
£200M, resulting in a plant employing circa 350
people capable of making 1,000 cars a year
104. BMW engaged architect Sir Nicholas Grim Shaw, the architect of
the Eden Project in Cornwall, who penned a £60M building.
Designed to fit into its environment, the plant is unable to be
viewed from the road, in part thanks to a 3.5 had "living roof"
made of sedum plants, the largest in the UKCustomization:
Rolls Royce is not only hand build but also hand finished, through
bespoke program, each car is customized to meet individual standards
and satisfaction including personalized features.
Differentiation:
Rolls Royce offer the best care of your car after sale
service by the most talented technicians of the world.
105. Niche marketing:
Rolls operate their marketing activities most where people are rich &
over rich HONGKONG.
Marketed in the areas which are technologically developed?
Customers that have a reputation & fame with his occupation having
liquid asset of in excess of 30 million.