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Gong-Auto is an automotive repair shop in the Illawarra region. They offer mechanical repairs to five major automotive brands. Gong-Auto procures and stores a
Gong-Auto is an automotive repair shop in the Illawarra region. They offer mechanical repairs to five major automotive brands. Gong-Auto procures and stores a number of different auto parts for the vehicles they repair to reduce the time required to return the cars to the owners. However, they have not been able to store all the parts, requiring them to order the parts as required as well. This has sometimes resulted in long waiting times for customers for repairs. The operations manager who joined Gong-Auto after completing a course in operations management from UOW, has been analysing their historical service data. He points out that 80% of their repair jobs are confined to two automotive brands. According to him, rather than focusing on all major brands it would be much more profitable for the company to focus on those two brands. He has been sharing this idea with the supervisors and the crew who agree with this suggestion. He has put forward this idea to the top management of Gong-Auto. Question 1 Which aspects of the four V's framework would be most impacted by the proposed change at Gong-Auto? Discuss how the change would impact either positively or negatively the spare parts inventory, the staff skill base and the profitability of the organisation.
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The proposed change at GongAuto to focus on two major automotive brands would impact various aspects of the four Vs framework which includes Volume Variety Variation in demand and Visibility Lets disc...Get Instant Access to Expert-Tailored Solutions
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