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A substantial market exists for automobile tune - ups, oil changes, and lubrication service for the more than 1 2 million cars on Canadian roads.
A substantial market exists for automobile tuneups, oil changes, and lubrication service for the more than million cars on Canadian roads. Some of this demand is filled by fullservice auto dealerships, some by Canadian Tire, and some by other tireservice dealers. However, Mr Lube, Great Canadian Oil Change, Jiffy Lube, and others have also developed strategies to accommodate this opportunityMr. Lube stations perform oil changes, lubrication, and interior cleaning in a spotless environment. The buildings are clean, freshly painted, and often surrounded by neatly trimmed landscaping and clean parking areas. To facilitate fast service, cars can be driven though the facility. At Mr Lube, the customer is greeted by service representatives who take their order, which typically includes fluid checks oil water, brake fluid, transmission fluid, and differential grease and the necessary lubrication, as well as filter changes for air and oil. Service personne in neat uniforms then move into action. The standard team has one person checking fluid levels under the hood, and another in the garage pit removing the oil filter, draining the oil, checking the differential and transmission, and lubricating as necessary. Precise task assignments and good training are designed to move the car into and out of the bay in minutes. The idea is to charge no more, and hopefully less, than gas stations, automotive repair chains, and auto dealers. While doing so Mr Lube strives to provide better service than its competitors.Discussion Questions What constitutes the mission of Mr Lube? How does the Mr Lube operations strategy provide competitive advantage? Hint:Evaluate how Mr Lube's traditional competitors perform the decisions of operations management compared to how Mr Lube performs them. Is it likely that Mr Lube has increased productivity over its more traditional competitors?Why? How would we measure productivity in this industry?
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