Core Organisational Functions at McLaren - Case Study Example

Managing business activities to achieve results Core Organisational Functions/Departments at McLaren In every organisation, there are the core functions or departments which ensure that the organisation is able to undertake its operations in a move to achieve their set goals and objectives. For McLaren, the two core functions or departments are the technology centre (production) and the racing department (marketing). The production department is responsible for developing high performance and highly efficient and technology innovative sports cars. The marketing (racing) department on the other hand is responsible for competing in the Formula one F1 car races for the company. These two departments are inter-related and it is clear that none of the two can do without the other. The technology department is produces cars that are used by the racing department in the formula one race. This means that the racing department cannot do without the high technology department since they would not have high performance cars for racing. The high technology department on the other hand would result to selling all the cars they manufacture (McLaren, 2014). Transformational Processes The input output model is an econometric technique used to show the inter relationships between various departments in an organisation. The model consists of the input activities, transformational process and the output (Miller and Peter, 2009.) At McLaren, this model is critical for managers since it will help them understand the inputs of the various departments and the output from each. It will also help the manager understand which department is responsible for providing his department with inputs. The transformation process is responsible for turning the inputs into out puts or finished products. The input process involves two main types of resources, transforming resources and the transformed resources. The transformed resources include materials, information and customers. In the case of McLaren materials include glass which is transformed through manufacturing, information include research outputs from the high technology centre and customers are transformed through high technology cars. Understanding the model is critical for managers in order to ensure that they design operations in a manner to ensure achievement of objectives. Quality Gateways Quality gateways are organisational points established to ensure that all processes must pass the specific requirements that have been set up to ensure quality products. In the transformation process, quality gateways are critical due to the fact that they ensure no product or process passes to the next transformational process without passing the requirements of the current process in terms of quality of output. For example at McLaren, quality gateways are important in ensuring that the various parts being manufactured by the various departments pass the quality required in order to ensure the final product (high performance cars) meet the requirements set and the specifications for high performance, efficiency and reliability. Quality gateways therefore help design the operational processes in the firm in a manner that problems are identified early and corrected before they move to the next process ensuring high quality final products (Miller and Peter, 2009.) SMART Objectives and Operational plan for McLaren Smart objectives are described as a means of setting objectives that are specific and measurable. The criterion suggests that all objectives should be specific, measurable, assignable, realistic and time bound. This criterion is used by organisations to set up goals and objectives which can be attained and which can be measured in terms of performance (Pisel, 2001). For McLaren, two smart objectives that can be used to improve the quality of their products include; Produce 4000 sports cars each year by the year 2016; and attain the number one position as the company producing the most highly efficient sports cars in the world by the year 2015. These goals are specific, measurable and are also time bound and they therefore adhere to the smart criterion. Using the planning process model, an operational plan to achieve the first goal (produce 4000 cars by 2016) can be developed and this plan will have five main stages. Since the task is already identified, the first step will be gathering information on the production methods, identifying alternatives on production methods, evaluating the alternatives and selecting the most appropriate production technique, implementing the project, evaluation and taking corrective actions. As a manager, my responsibility is to ensure that all the processes are carried out smoothly and that the quality gateways are observed in order to ensure that the cars produced are of the highest expected quality. As a manger, I will also be responsible for ensuring that each employee plays their part in implementing the plan in a successful manner (Kaufman, 2005). Systems at McLaren In order for the company to achieve the set goals and objectives (smart objectives) there is need for the adoption of various systems which will ensure they are achieved in the most efficient manner. The two major systems that the management can adopt are the Human Resource Management (HRM) system and a Management Information System (MIS). The HRM system is important in that it develops training manuals for employees to ensure that they deliver their duties efficiently and ensure that the products meet the required quality. This system is however costly for the company since it deviates from the core business. The MIS system is critical in that it ensures that management is aware of crucial information about the company thus being able to make informed decisions (Slack, Johnston and Chambers, 2007). At McLaren these systems can be used to ensure that employees have the required training to handle high technology equipment in the manufacturing process and also ensure that management has information about research findings in the high technology centre. Project Planning There are various project planning models that are available for a company like McLaren to help them implement and monitor their projects and ensure that they are implemented successfully. These models include the Project Evaluation & Review Techniques (PERT), Critical Path Analysis, use of Gantt Charts and other varied models. Project planning is important for managers in an organisational setting due to the fact that they ensure the plans are implemented in the efficiently and in the timeline set. They also ensure that managers can monitor how plans are being implemented and thus take corrective action as early as immediately problems are identified. One of the methods that can be used by managers at McLaren to ensure efficient implementation of projects is the PERT model. This model ensures that the project is implemented in various recognisable steps which can be monitored separately and corrective action taken immediately. Monitoring of activities is carried out during the implementation process and in case of problems, alternative courses of actions are taken and this ensures that the project can be completed within the set timelines. The PERT method therefore ensures that managers and the project planning and implementation team is up to date with the process and efficiency is ensured (Slack, et al., 2007). Quality at McLaren According to Wolkins (1995), a quality management system is a” management technique used to communicate to employees what is required to produce the desired quality of products and services and to influence actions to complete tasks according to the quality specifications”. One of the prominent quality management systems being used today by most companies and can be used by McLaren is the ISO 9000 certification standards. This quality management system focuses on the entire organisation as well as the external environment to ensure that only quality products reach the customer and that the production process does not have negative effects on the environment. There are various dimensions of a quality management system such as transparency and sustainability, independence of the audit process, continuous improvement, product quality and organisational structures. A quality management system offers a lot of benefits to a company like McLaren in that it ensures that the products (sports cars) are of high quality and are accepted in the market. Some of the costs include the costs of certification and implementation costs. Some issues that may arise during the implementation of a QMS system for McLaren include resistance from employees and increased costs of production (Hoyle, 2005). Total Quality Management at McLaren According to Pfeifer (2002) “Total quality management (TQM) consists of organization-wide efforts to install and make permanent a climate in which an organization continuously improves its ability to deliver high-quality products and services to customers”. The key concepts of total quality management are; quality is defined by the requirements of customers, the responsibility for quality improvement in a company rests on the top management, the improvement of work processes and adoption of a systems approach leads to quality improvement in the organisation and finally, the improvement of quality in an organisation is a continuous process and should be conducted throughout the entire organisation. TQM is beneficial to organisations due to the fact that the focus on quality leads to better products thus increased sales revenues and profits. It also leads to the efficient use of resources which lower the cost of production for a company. TQM can be applied at McLaren to ensure that there is continuous monitoring, evaluation and improvement of quality. The company could adopt the use of low cost production materials which would lead to lower priced sports cars and thus increase affordability and demand. The company could also adopt the Japanese Manufacturing Techniques (JIT) so as to reduce wastages in the production process. This would reduce the costs of production for the company. Risk Assessment and Health Safety Laws Proper risk assessment involves five major steps that must be followed in order to ensure that organisations are in total compliance with the Health and Safety Executive regulations. These steps are considered the most straightforward for any organisation although it is noted that it is not the only way to carry out a risk assessment. Under these regulations, McLaren is expected to follow the following steps; identify the work place hazards that face the employees of the company, decide on the people who might be harmed and how they might be harmed at the work place, evaluate the inherent risks and come up with precaution measures, record the findings of the assessment and implement them, and finally, review the assessment and in case of any new developments, update as necessary. It is suggested that managers should avoid over complicating the process in order to improve chances of success. The personal Protective Equipment at work Regulations can be enforced to ensure workers in the production department do not get injured. The Lifting operations and lifting equipment regulations should be enforced to ensure employees using lifting equipment are protected from injuries. The control of noise at work regulations should also be implemented to ensure noise is kept at a minimum level in the production department (HSE, 2014). Managing Health and Safety In a company like McLaren or any other manufacturing company, it is important to review the health and safety policies on a regular basis in order to ensure maximum protection of employees and also in order to ensure that the policies are compliant with the regulations. Reviewing these safety policies can be done in the following manner at McLaren. First, it is important to ensure that the health and safety policy of the company is in line with the organisational plans, priorities and targets. Secondly, it is important to examine whether the systems put in place to manage the health and safety policy give regular reports to the management and board of the company. Third, it is important to report the shortcomings of the policy and also make sure that the effects of the decisions made by the management and board of the company regarding the same are reported. Fourth, come up with strategies to address the weaknesses of the policies and a means of monitoring the implementation of these strategies. Lastly, it is important to consider major reviews of the policies in the event that major shortcomings are identified or when major risky events occur (HSE, 2014). At McLaren, there are potential hazards in the manufacturing departments for example as a result of using forks and lifts and also as a result of not using protective equipment. Thus the policies on protective equipment and those on lifting operations regulations should be improved to ensure improved safety. There are risks that items being lifted may fall down and injure employees who are not wearing protective clothing. It is therefore important that these regulations are improved. References Health and Safety Executive (2014), Health and Safety Law: What you need to know, Retrieved on 21 April, 2014 from http://www.hse.gov.uk/pubns/law.pdf Hoyle, D (2005). ISO 9000 Quality Systems Handbook, Fifth Edition. Butterworth-Heinemann, New York. Kaufman, R. (2005), Defining and delivering measurable value: A mega thinking and planning primer, Performance Improvement Quarterly, vol.18, no.3, Pp.5-15. McLaren (2014), About, Retrieved on 21 April, 2014 from, http://www.mclaren.com/group#/about/index/type/about Miller, R.E. and Peter, D. B. (2009). Input-Output Analysis: Foundations and Extensions, 2nd edition. Cambridge University Press, Cambridge. Pfeifer, T. (2002), Quality Management: Strategies, Methods, Techniques, Carl Hanser Verlag, Munich, Germany. Pisel, K. P. (2001), The validation of a detailed strategic planning process model for the implementation of distance education in higher education, Old Dominion University, Norfolk, VA. Slack, N., Johnston, R., and Chambers, S. (2007), Operations management, 5th edn, Prentice Hall/Financial Times, New York. Wolkins, D. O. (1995), Total Quality: A Framework for Leadership, Management Leadership Series, Productivity Press, New York. Read More