TREVOR LEEKSOperations DirectorJaguar Land Rover

New Global Standards of Enterprise Excellence

N E W G L O B A L S T A N D A R D S O F E N T E R P R I S E E X C E L L E N C E

T R E V O R L E E K SO P E R A T I O N S D I R E C T O R

• Jaguar Land Rover is built around two iconic brands with a wonderfully rich heritage and powerful consumer appeal and loyalty.

• Jaguar Land Rover was formed in 2008 when Tata purchased Jaguar Cars and Land Rover from Ford Motor Company. Jaguar Land Rover is a subsidiary of Tata Motors.

• Jaguar Land Rover is headquartered in the UK and is the largest premium automotive business there. Almost 28,000 of its 29,000 employees globally are UK-based.

W H O W E A R E

C O M P A N Y O V E R V I E W

• 11 vehicle lines – with ambitious expansion plans to extend product offerings

• Jaguar F-TYPE and XF Sportbrake announced as the 10th & 11th vehicle lines

• 3 UK vehicle assembly plants, with 2 UK product development facilities

• Employs almost 29,000 people globally - 11,000 employees recruited in past 3 years

• Employs 7,000 engineers and designers

• Global sales reach with a worldwide network covering 172 countries

2 0 1 3 H I G H L I G H T S

M A N U F A C T U R I N G & P R O D U C T

H A L E W O O D

Land Rover Freelander and Range Rover Evoque

Utility & Premium SUV market segments

c4,600 employees

JD Power European Gold Plant Award (2005)

C A S T L E B R O M W I C H

Jaguar F-TYPE, XF, XF Sportbrake, XJ and XK.

Aluminium body construction facilities

Medium/Large Premium & Sports market segments

c3,200 employees

S O L I H U L L

Range Rover, Range Rover Sport, Land Rover Discovery, Land Rover Defender

Aluminium body construction facilities

Functional/Utility & Premium SUV market segments

c6,000 employees

W H I T L E Y

Global Jaguar Land Rover headquarters

Design and Engineering Centre

Commercial and central staff functions

Powertrain and other test facilities

c4,000 employees

G A Y D O N

Design and Engineering Centre

Commercial and central staff functions

Extensive test track and off road testing

c6,000 employees

E N G I N E M A N U F A C T U R I N G C E N T R E

Jaguar Land Rover is building a state of the art advanced engine facility at i54 South Staffordshire Business Park

Investing more than £500m

Creating 1,400 new jobs

NOTE

1,000 employees in 17 National Sales Companies

D E V E L O P M E N T F A C I L I T I E S

E N G I N E M A N U F A C T U R I N G C E N T R E

L O N G T E R M S T R AT E G I C G R O W T H

A N E W F A M I L Y O F A D V A N C E D T E C H N O L O G Y, L O W - E M I S S I O N E N G I N E S F O R A L L J A G U A R L A N D R O V E R P R O D U C T S

W O R L D - C L A S S F A C I L I T Y

S U P P O R T N E W M A R K E T S , N E W S E G M E N T S A N D C O 2 R E D U C T I O N

C O N T I N U E D I N N O V A T I O N

N E W E N G I N E S C O M P L E M E N T J A G U A R L A N D R O V E R ’ S A W A R D W I N N I N G A L U M I N I U M V E H I C L E S

N E W M O D U L A R D E S I G N – I N L I N E & T R A N S V E R S E I N S T A L L A T I O N S F O R R W D & A W D

N E W P R E M I U M L I G H T W E I G H T L O W - F R I C T I O N E N G I N E

Machining Hall

Diesel AssemblyPetrol Assembly(under construction)

E N G I N E M A N U F A C T U R I N G C E N T R E

T R A N S F O R M I N G B U S I N E S S

JLR Mission - Transforming the BusinessJLR Vision Pyramid

• The Mission statement encapsulates the means by which we intend to grow the business (40 new products in 5 (Sections IV, VI & VIII)), the constituent elements necessary to deliver a sustainable structure target of 10% EBIT (Margins (Section IX) and Breakeven (Section X)) and the importance of delivering our Quality targets (Section VII).

• The deployment mechanism is through the Transformation activity of the business: the key Levers; the Transformation projects (Section IV); and the key Business Excellence Facilitators (Sections X and XI). This is underpinned by the engaged High Performance team (Section XII).

• The Vision for Jaguar Land Rover is one High-Performance Company, with two Global Iconic Brands and three Passions (Product, Customer Experience, EI), underpinned by Dynamic Business Foundations (Premium market positioning, an engaged high performance Team, a sustainable Business structure and a pursuit of Business Excellence).

• These building blocks define the structure of Jaguar Land Rover’s Business Plan and ensure a clear line of sight from the Vision to the Operating Plans of the business.

Designing Great Products

… Faster

OutstandingCustomer

Experience

EnvironmentalInnovation

Engaged andPassionate

People

Confident LeadersWith a Spirit ofIndependence

Think Like BusinessOwners, build Teamwork and

Partnerships

Agile andCost effective

Operations

AchievingPremium Market

Positions

Driving Business

Excellence

Funding efficientInvestment in our

Future

Increasing theValue of our

Company

Long TermSustainable

Business

JaguarLand Rover

Two Global Iconic Brands

Three Passions

Dynamic Business Foundations

One High-PerformanceCompany

Delivering the Performance Challenge

Transformation

B U S I N E S S E X P E C T A T I O N

• Execute a Flawless Launch (Quality, Cost, Schedule)• Spend £518million Capital Efficiently – Maximise the return from Investment

The Stretch:• “Create Something Special (World Class) and

shift the JLR Operations paradigm”

How – when we face the perfect storm ?• New Engine Design• New Factory• New People• New Customer (x760)

B U S I N E S S E X P E C T A T I O N

• Get the right People on the Bus• Use latest Manufacturing Engineering techniques to deliver Simultaneous

Engineering• Development, Deployment and Training of Lean Principle, Systems and Tools.• Create Robust Planning and Review Processes • Create greater Integration between Eng’rg, Procurement and Manuf’g – know

the risks and work them – our first cultural challenge !!!

• Focus on Operational Excellence – make it the way we work

O P E R A T I O N A L E X C E L L E N C E

O P E R A T I O N A L E X C E L L E N C E

• “Operational Excellence is a philosophy of principle driven leadership, teamwork and problem solving resulting in continuous improvement throughout the organisation by focusing on the needs of the customer, empowering employees, and optimizing existing activities in the process.”

The relentless quest to make things better !!! • It requires Culture Change (Institutionalising a different way of working) where every

single person is engaged every single day in Change

Culture can only be affected by changing the way people think!• “Excellence is an art won by training and habituation. We do not act rightly because we

have virtue or excellence, but we rather have those because we have acted rightly. We are what we repeatedly do. Excellence, then, is not an act but a habit.”

Aristotle

W H A T W E S T R I V E F O R

• Clear, strategic vision with goals/objectives linked to guiding principles• Enterprise fully aligned horizontally & vertically with those goals• Integrated systems and structures with no silos driving ideal behaviours• Clear customer focus with measures that matter to the customer • A culture where continuous improvement is integrated with work• The strive for speed, flexibility, cost and quality does not compromise safety• Visible and supportive leaders who listen and challenge appropriately• Empowered & engaged employees – seen as assets not costs• The development of people is seen as a necessity and not a cost• High levels of trust engendered through open and honest communication• Excellent business results• Operational excellence is regarded as a journey and not a destination

O P E R A T I O N A L E X C E L L E N C E

Culture cannot be changed by:-

Merely implementing a “program” of continuous improvement.

Immersing large numbers of people in training programs. Organising many improvement “events”, nor by

assigning the work to a charismatic personality.

Culture can only be affected by changing the way people think!

Operational excellence is only achieved when everyone, top to bottom and side to side, align their thinking and hence behaviours with correct principles of operational excellence.

O P E R A T I O N A L E X C E L L E N C E

Quality Management SystemsBusiness re-engineeringOrganisational Change

Business TransformationOperational Excellence

Organisations don’t change, it’s the people who do or don’t!

20% technical and 80% behavioural

O U R R E C I P E F O R S U C C E S S

Our People, Our Teams

SYSTEMS

Our Systems, driving the right behaviours

DCP ProcessError ProofingProcess ConfirmationStandard Work ConfirmGauging StrategyCadence of Events• SQDCPE• Sub System TeamsRobust Reject StrategiesKaizen ProcessProblem Solving

PRINCIPLES

S T R A T E G I C & C U LT U R A L A L I G N M E N T

O P E R A T I O N A L A L I G N M E N T

P O W E R T R A I N O P E R A T I O N S J O U R N E Y

Pre LaunchThe Way we do business at JLR

Powertrain Operations

Principles

SystemsTools

Principles

SystemsTools

Principles

Systems

Tools

Bene

fitBe

nefit

The Personal Leadership Journey for the Team

Organisation development and design

Vision, Mission, Goal an Values

Strategy Development and deployment

People development and training

Reactive Formal Deployed Autonomous

O U R O P X J O U R N E Y

S T R A T E G I C & C U L T U R A L A L I G N M E N T

Study Tours:• Senior Leadership Team• Management Team• Staff Study Tours(Halewood, Ricoh, Aero Engines, Fuchs)

Study Tours Key Learning

Outcomes

Definition of Mission, Vision, Values & Goal

POW

ER T

RAIN

ST

RATE

GY

POLI

CY

DEP

LOYM

ENT

What is Next?

LEADERSHIP BEHAVIOURSTRAINING

INDIVIDUAL OBJECTIVES

FURTHER BENCHMARKING(STUDY TOURS)

O P X S T U D Y T O U R S

U N D E R S T A N D I N G E X C E L L E N C E

Common Themes They all had a burning platform to initiate the journey

Everywhere we visited had an air of calm from shop-floor personnel to Senior Leadership

Development of their people was key from Leader to Associate – not only via training but by quality 1:1’s too!

Complete Leadership buy-in with evidence of buy-in within the whole organisation (with relatively few casualties)

Everybody in the organisations had clarity of their purpose: Values, Mission, Vision, Goals

They all had a dedicated Continuous Improvement departments

Key to develop at least as many ‘problem solvers’ as ‘problem finders’

Time allocated in the standard day to develop and deploy improvement activities

Very visible Leadership ! For example, go-look-see walks, 1:1’s, Process Confirmation etc.

V I S I O N , M I S S I O N , G O A L

C R E A T I N G C L E A R D I R E C T I O N

Operational Workshops took place before and after our Study Tour and included a two day Strategy Workshop where we worked on the following:-

Powertrain Values

Powertrain Vision

Powertrain Mission

Powertrain Goal

To enable every individual to articulate our purpose and to lead the journey we will go on and ensure we obtain the commitment of all the team in delivering our goals

Compelling Reason (The Customer)

V I S I O N , M I S S I O N , G O A L

C R E A T I N G C L E A R D I R E C T I O N

Our VisionCreating a legacy for generations to come through a tenacious approach to continuous improvement. We will be the benchmark for excellence across the globe. A proud and passionate family who live the ‘NURTURE FIRST’ values to create a supportive learning environment where there is equality and mutual respect for all.

Our MissionTo power the freedom and fulfilment in peoples lives

Our Goal To transform the way in which engines are manufactured to be recognised as the new global benchmark for excellence!

Our Values (How we behave and are true to ourselves)Nurture: Develop people to their full potentialRespect: An Inclusive environment where people are valued and listened toIntegrity: Do the right thing when no one is listening or watchingTenacity: Striving for excellence in everything we do no matter how difficultSimplicity: Less is moreFun: Enjoy the journey

NURTURE FIRST

I N S P I R I N G A N D M O T I V A T I N G

Machining Hall

Diesel AssemblyPetrol Assembly(under construction)

O P E R A T I O N A L A L I G N M E N T