The One Stop Car Co. (OSC Co.) offers a range of services for car owners at its 55 service centres across the country. The car maintenance business is extremely competitive in all regions across the country. Each service centre operates autonomously and managers are able to choose how to package up the services they offer. OSC Co.’s aim is to ‘make the task of car maintenance a pleasure and not a chore’.
Its national website states the following:

● Range of service packs available, including express service and full valet
● ‘We work whilst you wait’ service, with average wait times of only two hours
● Watch our friendly, experienced mechanics producing high quality work!
● Freshly made tea and coffee and free internet in our comfortable lounges
● Monthly free prize draw for all customers completing an online feedback form

Customers initially access the national website, but depending on their location, they are automatically redirected to the website of their nearest service centre so that they can view the offers available at that centre. All bookings are made through the OSC website.
Results for one of the service centres, the Midlands Service Centre (MSC), for the year which has just ended are given below. The column headed ‘OSC’ shows the average figures for all of OSC Co.’s 55 service centres:

Notes
1 Mechanics are classified as ‘senior’ if they have been qualified for more than five years.
2 ‘Junior’ mechanics include both trainee mechanics who are unqualified and mechanics who have been qualified for less than five years.
3 The MSC introduced three new service packs during the year:
● Free valets for orders over $100;
● A safety check costing only $20, instead of the usual $40, for all customers booking a full service;
● A $10 air conditioning efficiency check, which usually costs $20, for all customers booking an oil change.
These three new service packs produced revenues of $66,000, $58,000 and $54,000 respectively. Two comparable new service packs developed by other centres produced revenues of $44,000 and $42,000.
4 The online feedback form asks customers to rate the centre from 1 to 10 with 10 being the best.

The CEO of OSC Co has recently attended a business seminar and heard about Fitzgerald and Moon’s building block model of performance management. The CEO is interested in how the dimensions block could be applied at OSC Co. The dimensions of performance identified in the model are: competitiveness, financial performance, quality of service, flexibility, resource utilization and innovation.

Required:

(a) For each of the dimensions of the building block model, calculate one performance indicator for MSC and one for the OSC average using the data available. Briefly justify your choice of performance indicator and discuss MSC’s performance relative to the other OSC service centres.
(b) Explain how the standards and rewards blocks support the dimensions block in Fitzgerald and Moon’s building block model.

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Sales revenue ($) Gross profit ($) Number of mechanics: senior Number of mechanics: junior Number of new service packs developed Number of new website hits Total number of jobs booked and completed Number of jobs from repeat customers only Total time spent completing jobs (hours) Percentage of customer feedback forms showing score of 9 or 10 Notes MSC 12 2 3 4 760,500 890,365 304,200 328,146 7 5 3 14,000 9,506 OSC Average 80% 7.8 5.2 2 1,260 11,870 1,500 1,660 23,100 24,800 70%