(Heizer, Render, 2011, p. 50) 1) What constituent the mission of Minit Lube? The mission of Minit-Lube is to provide fast and affordable services, hopefully less than gas stations, automotive repair chains and auto dealers while delivering better service. Supply the customers with a top of notch prevention care maintenance and interior auto cleaning, to keep the customers satisfy. 2) How does the Minit-Lube operations strategy provide competitive advantage? Minit lube use the 10 strategic OM decisions as follow a) Goods and services design According to Heizer and Render, designing goods and services usually determine the lower limit of the cost and the upper limit of quality.
For example, race cars use manual transmissions. They have some advantages like they are very fuel efficient. Also can respond better to the driver which makes them safer. People who are used to shifting gears will focus more on their driving making it more efficient and safe. When shifting gears down to reduce speed, you are saving money on brake repairs (rotors, pads, calipers).
This website was the first online service provided for buyers to shop for cars online so that they do not have to deal with the problems and hassles that arises that traditional buyers would usually deal with when they are at the dealership. Some of the cost and benefits to consumers of the Autobytel system at the time of the case were that they were hassle free compared to going into the dealership, they were good for beginnings, they offer financing and loyalty programs. This is good for beginner buyers because they are able to look at car pictures for every make and model with the specifications and pricing information. After they figure out what car they are looking for, they receive more information about the car they selected. They are also able to customize their car with possible features the car model offers.
Innovations in the automotive industry also drive customers to bring their vehicles in to be worked on by automotive shops rather than working on them themselves. My friend takes advantage in this by ensuring that he and his mechanics are
This new and improved assembly line required the workers to stay in one spot and put on a part as the vehicle moved past them (Ford Museum). When Ford designed this he engineered conveyor belts that delivered parts to the employee rather than the employee having to go get the part that he needed (Ford Museum). He also made sure that these conveyors were specially timed to deliver the part at the right time and to make sure the process was going smoothly and efficiently (Ford Museum). This introduction of the moving assembly line changed the way that all manufacturers would produce cars. This process significantly reduced assembly time per vehicle which in turn lowered costs.
Another type of merger is vertical, its when companies which produce different goods but in the end are finished with a product using powers of both companies. For example if a car industry merges with steel industry to make metal parts of car and also merges with some leather company to produce interior parts. This is done in order for automobile company to get supply at a better price and have better control over how this supply is made, which makes the whole merger very efficient. Economies of scale occur when a large firm can reduce their costs due to bigger output. This will lead to lower prices as average costs went down.
This is not only about management, but more sort of a way to eliminate costs, that are not essential for production process. Most businesses that manufacture their product spend most time on inspecting quality and repairing faulty products, which aims to eliminate errors from manufacturing process, in this simple method. Greatest benefit of JIT is that business reduces operating cost, and therefore has advantage over its competitors. There is also a benefit of reducing manufacturing times and shortening delivery
In a functional organization structure jobs (and departments) are specialized and grouped according to business functions and the skills they require; production, marketing, human resources, research and development, finance, accounting and so forth (). A functional structure works best for standard, because there is not much environmental change in the parking industry. Therefore, the company will not have to adapt to change; making it simple to formulate consistent planning methods. Standard is a simple functioning organization. The service they supply to their customers does not require the company to break down into segregated divisions; therefore, a divisional structure is too complex for them.
Based on the case study written by Tia Quinlan-Wilder, University of Denver, the Can-Am Spyder states that the design of the product is unique compared to other traditional motorbikes (Babin and Harris 2011, 147). Thus the product allows the consumer to travel from one place to another; based on one of Maslow’s hierarchy of needs – physiological needs; will guarantee that the product meets consumer expectations and offers utilitarian value just like any other vehicle. The Can-Am Spyder has several unique safety features. It includes anti-locking brakes and stability control system (Babin and Harris 2011, 147). Vehicle safety is important to consumers, as they are more likely to purchase a vehicle that is safe.
Customers were a primary factor in the success in the Toyota Prius. By identifying the qualities that were important to the consumer, such as fuel efficiency and luxury improvements, Toyota was able to capitalize on the niche market. As there were no major competitors currently on the market, Toyota was able to capture a main hold on buyers who were interested in the hybrid vehicle, and create a demand which exceeded the supply. Other businesses that were involved were the dealers of the vehicles, who went through extensive training to provide the information and customer service to match the quality of the vehicle. In each of the micro environmental factors, Toyota has successfully created a dynamic structure in the introduction of the Prius Hybrid.