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Jaguar Comes to Halewood (Jaguar founded in 1922 (1998 (Jaguar took…

- - - - Objectives/Journey
        
        Year 1 - Asses
        Workforce and Unions
        
        1) Willingness to change
        
        2) Commitment to change
        
        Year 2 and 3
        
        Deliver the change
        
        1) Deliver new corporate culture.
        Back it with new vision and new objectives
        
        2) Merge best practices of Mass and Quality production
        create lean manufacturing unit
        
        3) New culture to take root,
        create enabling environment
        for quality production
        show visual evidence of
        companies commitment
        to change
        
        Take majority of emplyee with him
        or back him
- - - - Halewood was producing Escort
      - X-400 was lower segment of
        premium market
        
        Compete with Mercedes, BMW
        
        Volume sales
        
        Volume to double to 200,000
        per anum with Halewood
- - - - Body const, press shop,
        paint shop, trim, final
        on single site
      - Press shop supplying for Jag
        from 1993
      - Workforce had inherent skills and experience
        for volume production
      - Paint shop was
        best in EU
      - Making Jag in EU was important
        from Image standpoint
        Close association with British
      - Proximity to other Jag plants and
        suppliers was also critical
      - Political sensitivity favoured Halewood
      - 43Million funding from EU funding and local givt aid
        
        Offset cost difference with US plants
        finalists
      - Closing down would impact investments
- - - - Some of them in bringing Jag to top 3
      - exp of Fords best practices QS9000 at Jag
      - Contrary to 18 month contracts
        att team was responsible upto Job 1 Feb 2001
        "to see it through"
    - - 10 years at Jag ac communication manager
    - - 27 years Ford and 7 year Jag veteran
      - Leading figures in Jag transformation in 1989
        after acquisition
      - early 1998
        
        Cross functional study of needs of Halewood
        
        Four weekness identifies
        Quality, productivity, infrastructure, culture
        
        Study received full support from
        Top management including
        Jac Nasser (President Ford Motor)
        
        HUge investment was
        approved while other divisions
        were going through restructuring
        
        Project was significant
        Deadlines where tight for X-400 managemnt team
        
        Operating Commitee visited field
        Drafted 7 Main guding values and behaviours
        Underwent 3 sessions of culture change
        First workshop in 1999 created a
        "Closely Knit comfortable team
- - - - Hudson was clear
        
        Jaguar can produce X-400 at Halewood
        Only if Jag's principles and practices are
        followed strictly
        
        Else plant would shutdown
    - - Developed based on Ford's
        New product development process
        calls "Gateway Process"
      - Agreement: Set of milestones, part of gateways
        with deadlines
      - Program move to next step
        only if previous step is complete
      - Milestones were reviewd by external 3 man team
        from Ford Europe and WOrld Operations
        
        Review progress
        Convey findings
        secure commitment for next targets
      - 29th Sept 1998, Eitht months after
        Hudson's arrival, Six months into negotiations
        Steward committee issued a leter to employees
        
        Seeking cooperation and adherence to
        Jag's production procedures
      - In Nov 1998, Gateway Agreement
        Was completed
        
        Touched all aspects of business
        
        Faced severe resistance on each item from unions
        
        Hudson Union members, Shift leaders, and supervisor to Jag's west Midlands plant for a week's visit to show that items were
        correct ways of running business
        
        Workers had to accept the agreement before
        the evidence presented
        
        Mar 1999 agreement
        was shared with all employees
        
        Copy was mailed to employees address
        
        Major components of agreement to
        improve working practices
        
        No Smoking
        
        Bell to bell working
        
        Achieve best in class quality
        
        Zone containment
        
        supplier quality revuew
        
        QS 9000 monthly
        management review
        
        Improve productivity
        
        Targets
        Jobs re-processed where needed
        process capability
        selection based on competency
        Ford Total productive maintenance
        
        Outsource internal and external material handling
        
        Focus was on sustaining improvements
        
        History suggests improvements did not last
        
        Hudson challenged plant managers
        For EX: Tom Breen, Manager Planning
        to keep challenging the book
        
        Halewood s no longer place for survivors
        
        EMployees needed to change and adhere to new processes
        
        No rules to be made up
        
        Plat wise apprisal was put in place to
        identify low performers
        
        Not viewed by everyone as fair
        
        resulted in termination of 600
        employees that included some stewards
        
        1 more item...
        
        Living by the Book
        
        Six months after arrival to Plant by Jags
        Management performance was slipping
        
        Numbers fell on Quality, volume and cost
        
        Employees resisted change and there was no trust
        
        There was no communication
        between different layers of the organiation
        
        Jaguar brand did not make any emptional impact
        
        WOrkers did not want to build Jag with
        escorts money
        
        By Jan 1999
        
        No progress was seen on
        established milestones
        
        Considering situation three
        pronged strategy was introduced
        
        Quality
        Centers of excellence
        Culture Change
        
        Culture change was a major challenge
        
        Promotions, competency based placements
        Overtime practices were major challenges
        
        Hudson requested for support from
        employees in March 1999 letter
        
        3 more items...
        
        Breaking down the barriers
        
        1 more item...
- - - - Hudson felt a sense of pride as a facility that was written off
        is turned around
- - - - 13000 employees
      - 200,000 cars per anum
    - - 6500 employees
      - 150,000 cars per anum
    - - 3000 employees
      - 100,000 per anum
  - - - 3 weeks in 1969
        9 weeks in 1971
      - all record beaten in number
        of strikes between 1978-82
  - - - took pride in production
        of escort
      - wide spread belief
        no change required
        Escort production was
        good
    - - Germany & Spain
        stopped producing escort
      - Halewood Only supplier
      - Continental Europe
        dealers refused
        to sell due to poor quaitu
      - Poor performance results of
        Fords priorities and practices
        
        Plant rewarded for
        Cost savings and not quality
        
        Quality issues were design based
        
        Supporting systems lacked customer focus
        
        Managers had short contracts of 18 months
        resulted in limited accountability
      - Escort to be phased out by 2000
      - Employees were informed
        
        Plant did not secure replacement for escort
        
        Had fighting chance of getting Jaguar
      - Jaguar moved in
        
        Relation between management
        and workforce
        "Them vs Us"
        
        Workforce
        
        Militant,skeptical
        collective distrust,
        lack of
        coherent leadersip
        unkept proises
        
        Give the background
        
        It was a surprise for Unions and
        Industry that Halewood was in contention
        
        One Manager put as
        35 years of strained industrial relations
        is difficult to rewrite