KC Mechanic Shop

KC Mechanic Shop was established by Mr. John, a seasoned mechanic who has over 20 years of

experience in the automotive repair industry. It is located in a suburban area with high traffic

The shop has 10 skilled technicians who handle the majority of repair work, with two office

managers and an operations manager who are responsible for strategic planning and overseeing

the operations and customer services. Establishing good mission and vision for the shop is a

very important responsibility of management since these have implications for the shops

survival.

Services Offered

KC mechanic shop specializes in the repair and maintenance of vehicles such as cars, trucks, and

SUVs. It operates in a customer- facing environment, where customers can drop off their

vehicles for service, repairs, or maintenance. It has a wide-ranging clientele, including individual

customers, corporate fleets and dealership.

The mechanics employed by the shop are trained professionals who are responsible for

diagnosing problems examining vehicles, performing repairs and maintaining vehicles to ensure

they run smoothly.

KC mechanic shop offers a wide range of services to its customers. These services include:

1. Oil changes

2. Tire rotations

3. Brake repair

4. Suspension repair

5. Transmission repair

6. Engine repair

7. Diagnostic testing

The Operations Manager makes a number of OM decisions on a regular basis. Some decisions

are done more regularly than others. These decisions are done in the following areas of

operations:-

1. Product

2. Human Resources

3. Location

4. Scheduling

5. Quality

6. Forecasting

7. Inventory control

8. Maintenance

9. Process

10. Layout

Sales Figure and Forecasting

The shop relies on accurate forecast to plan its operations and manage labor, inventory

and other resources. Sales figures are a key element in forecasting and are used to make

critical business decisions such as hiring new staff, investing in new equipment and

technology, or expanding the range of services offered. There are several methods that

can be used to forecast sales at the shop:

1. Historical data analysis: KC mechanic shop can analyze historical sales data identify

patterns, trends, and seasonal fluctuations, this information can be used to make

MGMT2026 Production and Operations Management semester l 2023-2024

forecasts for future sales.

2. Market research: KC mechanic shop can conduct market research to gather data on

industry trends, new technologies, and consumer preferences. This information can be

used to make informed sales forecasts and to tailor services to meet customer needs.

3. Industry benchmarking: KC mechanic shop can also benchmark their sales against

industry standards and competitor performance. This can provide useful insights into

areas where the shop can improve or innovate to drive sales growth.

4. Competitor Analysis Once a year, the shop conducts competitor analysis to evaluate

its performance against its competitor and generates insights that can help them

improve sales.

By using forecasting methods, the shop can make informed decisions about its

operations, and ensure that it is providing the best possible services to its customers

while remaining profitable.

Sales figures for the last ten months are as follows:-

Months Actual Sales

1 30,000

2 39,000

3 42,000

4 50,000

5 55,000

6 61,000

7 70,000

8 77,000

9 81,500

10 90,000

Spare Parts

The garage stocks parts that are used in its operations on a regular basis. These parts

include suspension parts, engine parts and body parts. Stocking parts can bring a

number of benefits to the mechanic shop.

QUESTIONS

1. Differentiate between mission and strategies. [2 marks]

2. Formulate a mission statement for KC Mechanic Shop (you must incorporate

some components of a good mission statement). [2 marks]

3. Discuss two operations strategies that can be used to achieve the mission stated

above. [4 marks]

4. Describe the following operations management decisions that must be taken at

BA Garage. (Human Resources, Scheduling, Quality) [6 marks]

5. How can KC Mechanic Shop differentiate itself from other mechanic shops in the

area? [2 marks]

6.

a. Use a three-period and a four-period weighted moving average to forecast sales

for the 12th month. (Use weights of 1,2,3 and 1,2,3 4). [4 marks]

b. From the data provided in the case, use MAD to determine which forecasting

technique is more accurate. [6 marks]

c. If forecast for month 7 is $72,000, with an alpha of 0.4, use exponential

smoothing to forecast sales for months 8 and 9. [4 marks]

7. Outline three benefits and three limitations of KC Mechanic Shop selling parts.

[6 marks]

MGMT2026 Production and Operations Management semester l 2023-2024

8. Select two competitive priorities and discuss how KC Mechanic Shop can

compete using these competitive priorities. [6 marks]

9. How can the Operations Manager utilize scientific management theory to enhance

his operations at KC Mechanic shop? [4 marks]

10. Is KC Mechanic Shop a manufacturing or a service facility? Give reasons for your

answer.