A substantial market exists for automobile tune-ups, oil changes, and lubricatio

Question

A substantial market exists for automobile tune-ups, oil changes, and lubrication service for more than 200 million cars on U.S. roads. Some of this demand is filled by full-service auto dealerships, some by Sears and Firestone, and some by other tire/service dealers. However, Minit-Lube, Mobil-Lube, Jiffy-Lube and others have also developed strategies to accommodate this opportunity. Minit-Lube stations perform oil changes, lubrication, and interior cleaning in a spotless environment. The buildings are clean, painted white, and often surrounded by neatly trimmed landscaping. To facilitate fast service, cars can be driven through three abreast. At Minit-Lube, the customer is greeted by the service representative who are graduates of Minit-Lube U. The Minit-Lube school is not unlike McDonald’s Hamburger University near Chicago or Holiday Inn’s training school in Memphis. The greeter takes the 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 personnel in neat uniforms then move in action. The standard three-person team has one person checking fluid levels under the hood, another assigned interior vacuuming and window cleaning, and the third 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 10 minutes. The idea is to charge no more, and hopefully less, than gas stations, automotive repair chains, and auto dealers, while providing better service.

What is likely Minit Lube’s mission based on the case?

What is this company’s competitive advantage?

What aspects of their operation strategy can be attributed to Lean strategy?

Explanation / Answer

1. Minit Lube's likely mission is to:

"Serve the customer in a clean and pleasing environment and perform work activities typically needed for smooth functioning of the vehicle at an affordable price i.e. give value of money to the customer"

2. The company's competitive advantages are:

a. It provides services which are most necessary and basically required for smooth running of a vehicle at an affordable price

b. The customer does not mind spending a nominal amount periodically to ensure the vehicle remains in good road worthy condition. It spends much less as compared to other full service stations.

c. The pleasing environment of the service center with smiling, trained and neatly dressed attendants creates a welcome atmosphere for the customers.

d. The minimum time i.e. typically 10 minutes to complete all the activities is a great plus for the customers

3. Minit Lube's lean strategy can be attributed to precise work and time assigned to three different staff who complete different work assignments simultaneously to complete the entire work in 10 minutes flat. This way the productivity of the station greatly enhances and can service many more vehicles within the operational time of the service station.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.