The following are some observations, conclusions and recommendations we made. -Company’s value proposition is Operational excellence -All ten operations decisions has to support chose value proposition and provide competitive advantage -Minit-lube provides fast and quality customer service at low cost by utilizing resources in an efficient way Analysis Mission of Minit-Lube is to provide fast and superior quality customer service with no additional cost to customer. In order to succeed in the market place company has to have focus.
The value proposition most likely might be Operational Excellence. In this case, competitive advantage is created through high efficiency of the operations, and as a result providing a greater value to the customers in comparison to key competitors. Ideally, we have to analyze 10 operation decisions in all functional areas in the light of chosen Value proposition and determine areas of process improvements. At the same time we have to decide which of the 10 decisions we have to concentrate on in terms of improvement and how much effort we will place on others.
The service provided by the company is in maturity stage since it is highly standardized and many other companies provide similar service to the customers. In order to retain and improve productivity company has to be highly efficient in use of assets. 10 operation decisions should be implemented in a way to provide competitive advantage. 1. Services design. Company differentiates itself by creating positive first impression, providing fast service by combining procedures which can be done simultaneously and more efficient way of assets usage. 2. Quality.
Precise job assignment, good training and concentrating on specific task allow for a high quality service while ensuring high speed. 3. Process and capacity design. Since the product is in maturity stage the capacity utilization has to be optimal, and process must be very stable. In this case Mini-Lube has well define and very efficient process of car maintenance, it make good use of facility and labour. 4. Location selection. The location has to be close to the customers, probably in commercial areas where customer can enjoy different activities while their cars are on service.
Additionally, since the process only takes about 10 minutes, it is more important for the customer to have activities accessible within the facility It should be located close to customers, probably in commercial areas near competitors, brightly lit and accessible, so that the clean, professional atmosphere and competitive cost will entice consumers. 5. Layout design. Layout is well designed and supports overall company’s focus on fast and quality service. A comfortable lounge area should be conveniently located within the building, perhaps with fresh coffee and magazines will allow the customer to relax while his or her car is serviced. . Human resources and job design. Company seems to utilize well its human resources. While service representatives are taking orders and working with the next customer, the team of three technicians is doing necessary maintenance on the car of the previous customer. This way, the higher-skilled technicians are able to focus on the more skilled task, while a lower-paid representative takes care of the more menial tasks. Thus, by effectively using human resources the company reduces labor cost which is generally the most expensive part of service cost.
That allows Minit-Lube to provide better quality service to the customer for the lowest possible cost. 7. Supply-chain management. Minit-Lube needs to create trustful long-lasting relationships with its suppliers. That strategy will allow Mini-Lube to negotiate better prices as well as a regular delivery schedule in order to reduce purchasing, ordering, carrying and stockout costs. 8. Inventory. Inventory purchasing and storing decision is in a correlation with supply-chain management decision. If supply-chain management is effective, inventory management can be done on the lowest possible cost.
By tracking past sales history, Minit-Lube will be able to effectively forecast when and how much stock is needed. For example, if the peak sales day of the week is Saturday, inventory delivery can occur every Thursday so that stock is ready for the weekend. If stock were to unexpectedly run out, it would occur during a less critical time. 9. Scheduling. Company has to determine number of employees it needs to provide necessary service in different periods, so there is always enough workers during the peak periods and not too many in slow time.
There are various classes of employees, lower-skilled customer service representatives who greet the customer and perform fluid checks, as well as higher-skilled service personnel. Tracking the length of time it takes each team member to perform his or her task will allow for a greater degree of accuracy in scheduling. 10. Maintenance. Since the service is in its maturity stage the process has to be highly stable, so maintenance is very important for the entire operation process. See Tom’s solution