Minit-Lube - Minit-Lube Case Study PDF

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Minit-Lube Case Study...

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1. What constitutes the mission at Minit-Lube? Minit-lube's mission statement is to provide quick, reliable, and superior services in a customerfriendly setting while ensuring the smallest possible oil change, lubrication, and interior cleaning to U.S. car owners compared to gas stations, automobile dealers, and automobile repair chains. 2. How does Minit-Lube operations strategy provide competitive advantage Product Design: Minit-Lube's services could be described as "lubricating cars" with a limited product approach (i.e. oil change, lubrication and vehicle interior cleaning). It enables more concentrated and effective activities to be developed afterwards. Minit-Lube seeks to distinguish itself from (traditional) rivals by enabling quick service and offering customer comfort (i.e. it has a superior service design that allows 3 vehicles to be serviced at a time). Quality: A serviced car leaving the station every 5 minutes (on average) is a Minit-Lube service standard. Furthermore, quality exceeds ordinary norms as all service staff from the Minit-Lube school are (neatly dressed and) trained. This results in increased customer satisfaction as high repetition, excellent instruction, and excellent manuals are restricted in the variety of tasks. Quality should therefore be relatively easy to maintain. Process: Minit -Lube has three service bays with a service team managing each bay. Each service team is made up of three people. Minit -Lube's standard three-person service will have one person inspecting fluid levels under the hood, one person inspecting interior vacuuming and window cleaning, and the third person removing the oil filter, draining the oil and inspecting differential and transmission, lubricating as needed. Thus, this effective use of human resources allows for quick service delivery as three workers work simultaneously on a vehicle: the process approach of Minit-Lube allows staff and capital investment to concentrate on doing this task well. Location: Minit-Lube works in its own premises where structures are clean (e.g. painted white and often surrounded by clean landscapes) and generally close to residential areas. Since traditional companies may not place much emphasis on the working environment, Minit-Lube has the advantage that its location choice and distinctive (spotless) atmosphere enables it to conduct its service in a spotless setting and in places that reach and appeal to (savvy) clients (i.e. convenient, fast-service and clean environment). Layout: Minit-Lube has a process-oriented design that focuses on the ' job-shop ' setting, maximizing the effectiveness and quality of service delivery: decreasing waiting times, enabling vehicles to move quickly in and out of the bay. In order to enable fast service, the layout design of Minit-Lube's three vehicle bays is specifically intended for lubrication and vacuuming activities, minimizing wasted movement on the workers ' part, and contributing to speedier service (i.e. allowing vehicles to be driven through three abreast into the three service bays, each bay being staffed by a service team). Human Resource: Minit Lube's HR approach focuses on employing a few skilled staff, training them in a restricted amount of duties so they can be carefully monitored during the performance. For instance, well-trained service representatives (Minit-Lube School graduates) will welcome clients and take orders that typically include fluid inspections and needed lubrication, as well as air and oil filter adjustments. The service team comprises of three well-trained people, specializing in accurate task assignment that enables them to provide the highest amount of service. This guarantees cost effectiveness by constructing excellent client relationships and delivering fast and precise service.

Supply Chain: Minit-Lube’s purchasing is achieved by the negotiation of large purchases and customer packaging. Minit-Lube therefore has a competitive advantage by constructing strong relationships with credible partners who can supply Minit-Lube at brief notice with excellent quality and inexpensive products, equipment or components. For instance, Minit-Lube has cooperation with Minit Automotive, where this partner will be referred to all mechanical work Minit-Lube is unable to manage. Minit-Lube also has affiliations with several organisations such as the Association for Automotive Oil Change Inventory: Minit-Lube should minimize their investment in inventory and expect a high turnover. Doing so would ensure that Minit-Lube will not incur holding cost and affect the quality of the inventory, allowing equipments or parts to be replaced quickly during unforeseen circumstances. Scheduling: Minit-Lube's service planning for most cars is comparable and quite straightforward. Once volume and quantity fluctuations are determined, Minit-Lube will be able to provide service within the shortest possible time frame by efficiently using the its human resources to satisfy client schedules, supporting both staff and client relationships. Maintenance: Relatively little equipment requires minimal preventive maintenance. And with its three bays and three systems, there is assurance that Minit-lube has a backup available in case of failure. Conclusion: Minit-Lube differentiates themselves from the competitors by providing fast, reliable and superior services at the lowest possible cost in a customer friendly environment as compared to other gas stations, automotive repair chains and auto dealers; achieving a competitive advantage over its competitors through differentiation and low cost. 3. Is it likely that Minit-Lube has increased productivity over its more traditional competitors? Why? How would we measure productivity in this industry? The main criteria of measuring productivity of service providers such as Minit-Lube is differentiation, flexibility and cost involved in their service provisions. Minit-Lube has distinguished itself from its rival automobile service providers by differentiating as a narrow service provider limited to automobile lubricating services rather than a general servicing of automobiles. Its approach is flexible and responds quickly to the needs and convenience of its clients. The service provided is better, quick, and cost competitive. Full satisfaction of customers is its Motto. Due to these approaches, the productivity of Minit-Lube is increasing as compared to other traditional competitors....