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Service Industry Productivity Measurement

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SOLUTION TO CASE STUDIES CASE: 1 “NATIONAL AIR EXPRESS”
CASE: 2 “MINIT-LUBE, INC.”

CHAPTER # 1
“OPERATIONS AND PRDUCTIVITY”
CASE STUDY
NATIONAL AIR EXPRESS

1. Is the productivity measure of shipments per truck still useful? Are there alternatives that might be effective?
Answer:
Productivity of company can be measured by the number of stops covered by each driver. This way the amount of services can be measured on every day basis and with the area covered by each driver. So the company can tell how much area has been covered by a driver in one day. This way productivity can be assessed in a measurable way.
It can be formulized as:
Productivity= NoSDrv
Where,
NoS = Number of Stops
Drv = Driver

2. What if anything, can be done to reduce the daily variability in pickup call-ins? Can the driver be expected to be the several locations at once at five pm?
Answer:
This can be done by load balancing over the specified time duration. By load balancing I mean that we divide the crowded hours to reduce the pressure on peak time. Usually most of the telecommunication companies offer promotions at the night time when the network is not crowded so people only for important calls can use and benefit from the network and it does not affect the businesses by doing so.
Problem shows that most of the calls are around 5 p.m. so the promotional strategy can be applied to reduce the load. 3. How should package pick up performance be measured are standards useful in an environment that is affected by the weather traffic, and other random variables? Are other companies having similar problems?
Answer:
First of all a performance evaluation of drivers by surveying the customers can give an idea about their satisfaction. Measureable questions can be asked where a satisfaction ration can be counted to seek the better performance. These way drivers with good performance can be encouraged by incentives and rest can be motivated. Also both the drivers and customers should be taken into confidence by having a consensus on some rules of course following the labor laws and quality standards. However, a feedback can help in generating new ways of improvements.
With the harsh environmental conditions and providing services in anyways is one strong measurable variable which shows strength of the company/driver.

CHAPTER # 2
“OPERATIONS STRATEGY IN A GLOBAL ENVIRONMENT”
CASE STUDY
MINIT-LUBE, INC.

1. What constitutes the mission of Minit-Lube?
Answer:
Mission of Minit-Lube is constituted of offering cost-effective, protective and quick maintenance and interior auto cleaning, mainly to vehicles owned by individuals in the United States of America, comparatively in lesser price than gas stations, automotive repair chains and auto dealers with superior tune-up delivery.
2. How does the Minit-Lube operations strategy provide competitive advantage?
Answer:
Minit-Lube’s approach to the 10 key issues addressed by Operations Management (c.f. the introductory slide on OM) includes:
Service Design:
As Minit-lube is giving superior value to its customer by providing services to 3 cars at 1 time which includes quick oil change, cleaning of interior and lubrication services which creates its positive impression among its customers.
Quality Strategy:
Quality standards of Minit-lube exceeds because all of its employees are well trained from its own school having precise tasks which are done effectively and efficiently by the employees and are properly dressed while working.
Process Strategy:
Minit-Lube processes are smooth and efficient in its services as its 3 employees work simultaneously which also shows that all employees are following and focusing its mission competently.
Location Strategy:
It’s near to residential area which represents that customers can easily access its location.
Layout Strategy:
Minit- Lube can acquire up to 3 cars at the same time, all tasks are done at the same time; this way they sustain their immediate service for which they are known.
Supply Chain Strategy:
Negotiable purchasing of raw material from its reliable partners of good quality and building good relationship with them for example it has affiliations with several organizations such as Automotive Oil Change Association, Automotive Vehicle Industry and customer are satisfied with its quality work as Supply Chain Strategies which ends with customer deliverance of services.
Human Resources Strategy:
Minit-Lube hires few employees under supervision of highly qualified trainers and gives them training in Minit-lube school to improve their skills so, that they may be able to perform their specific tasks or duties efficiently.
Inventory:
By keeping their inventory low Minit-lube can expect high turnover which may not incur holding cost and change its inventory quality and may allow its parts and equipments to be replaced in time during unpredicted conditions.
Scheduling:
Minit-lube provides its services in least possible time with its efficient human resource so that customer’s relations can be maintained and satisfaction of customers can be gained.
Maintenance:
Having less equipments and highly trained staff it provides consistent and reliable solutions for maintenance.
3. Is it likely that Minit-Lube has increased productivity over its more traditional competitors? Why? How would we measure productivity in this industry?
Answer:
Expertise and specialization of a person and facilities play an important role on a success of a market and these should be able to effect positivity and efficiently on Minit-Lube.
It is not easy to measure the work efficiency in general but if tasks are aligned with a time frame a measurable quantity can be achieved. Work done by a person in a specified duration of time e.g. task per hour is measurable, this way finished or completed tasks can be counted and it is a good scale of measuring the productivity of an organization or of a person.

References

1. https://www.studymode.com/my-activity.php 2. http://www.bignerds.com/ 3. http://operations-management.knoji.com/marketing-research-ya-kun-hong-kong/

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