Operational details

Steve’s shop has grown steadily over the years. Originally, he maintained a modest three automobile bays at his shop, and Steve and his long-time buddy, Bill, conducted most of the work except oil changes which were handled by a part-time apprentice. Currently, Steve’s shop has six bays (the layout of the shop is shown in Figure 1) and seven mechanics. Each of the bays is identical so that any employee can work at any station.

Four of the employees (including Steve and Bill) are full-time (work at least 40 hours per week), and three are interns who work part-time (work fewer than 40 hours per week). Steve and Bill are the only two mechanics permitted to do work beyond the basics, and so more involved car services can take some time getting through the shop. Most mechanics at Steve’s were trained at the area vocational school, and those with particular skill are taken on as apprentices who work under Bill and Steve on the more involved projects. Steve provides all the tooling necessary, and is revered as a fair and caring boss. In return, Steve’s employees are loyal and hard-workers; seldom is absenteeism a problem, and turnover is rare.

The employee schedule for a typical week is shown in Table 1. The numbers shown in Table 1 are all devoted to working on vehicles. The shop closes for one week in the winter (although somebody is usually on call that week to handle emergency services that cannot wait). The hours required, the prices charged, and the percent of customers requesting each service are shown in Table 2.

o Have the appropriate process strategy decisions been taken? If not, what changes should be considered?

o Are all aspects of the service package being considered? What should be emphasized? What should be de-emphasized?