Case 1: Rolls-Royce
Rolls-Royce plc, a UK-based aircraft enginemanufacturer, shifted its focus from being a product/technology firm toproviding aftermarket services. Rolls-Royce was the first to introducepower-by-hour assistance in the aircraft industry. Customers paid a setmaintenance cost for each hour an aircraft was in flight, specificallyfor the duration when the aero engine was operational. The companyprovided various service packages tailored to different customers.Rolls-Royce’s post-purchase services aided clients in minimizingmaintenance expenses and operational interruptions. The organization wasable to enhance its aero engine designs and establish positiverelationships with clients as a result of their contributions. Thecorporation also acquired a consistent long-term revenue flow from themaintenance contracts. Analysts believed that the company’s serviceorientation significantly enhanced its position in the unpredictableaerospace business. In 2017, Rolls-Royce’s service revenues of GBP4.2billion made up 53% of its total revenues. Rolls-Royce experiencedfinancial success from its aftermarket services but encountered issuesin 2016 when key clients like as All Nippon Airways (ANA) reported thatturbine blades in Rolls-Royce engines were corroding at a faster ratethan anticipated. Virgin Atlantic, British Airways, Norwegian Air, andAir New Zealand also experienced issues with the Trent 1000 engines.Consequently, the airlines decided to immobilize the aircraft and cancelnumerous flights to conduct necessary repairs on the afflicted planes.Aside from incurring significant costs for the airlines, it also drewattention from authorities. Analysts thought that fixing approximately380 engines globally would not be a quick solution for Rolls-Royce.Rolls-Royce announced that the engine repair would amount to GBP370million in 2018 and GBP270 million in 2019. The corporation needed toaddress its engine issues and secure a significant percentage of itsfuture revenue from aftermarket services.
Rolls-Royce is keen toavoid further problems with the engine and in March dropped out of therace to power Boeing’s planned mid-market aircraft. We do notanticipate it will cause any significant operator engine maintenanceburden, a spokeswoman said. We are developing a design solution whichwill remove the need to inspect these parts. Rolls-Royce set out to fixall affected Trent 1000 engines in record time. Not all Trent enginesrequired attention, but those that did required a rapid response fromthe British company. Rolls-Royce invested in new tools, equipment andpeople, and expanded capacity at its facilities in order to deal withthe problem. Rolls-Royce doing the engine modifications, trained airlineengineers to undertake their own inspections, allowing airlines moreflexibility over their maintenance requirements. Questions: (40 marks)
1. How would you describe Rolls-Royces competitive strategy? Does its operations management support that strategy? (20 marks)
2. How could Rolls-Royce implement a strategy that prioritizes operational toughness and rigid dependability ? (20 marks)
Case 2: Service Industry
Chooseone example of service industry that you know in Oman. It can be bank,telecommunication company, customer service, hospital, travel agency,etc.
Conduct an observation and literature studies about the process and provide a report to answer questions below:
1.What is the current state of your chosen industry process? Create aprocess mapping to explain the process in details explanation! (20marks)
2. Based on their current process, what problems existbased on your observation? Provide a brief explanation on why you thinkthat is a problem! (15 marks)
3. What improvements can be derivedfrom the identified problems in your chosen industry to improve theirperformance? Please provide new process mapping or calculate theproductivity to shows the improvement!
