Name: Cierra Holloway

Week 2: Case Analysis: Minit-Lube
Discussion Questions
Directions: Read the case and then answer each question in short paragraph form.
This assignment is worth 100 points.

A substantial market exists for automobile tune-ups, oil changes, and lubrication service for more than 250 million vehicles on U.S. roads. Some of this demand is filled by full-service auto dealerships, some by Walmart 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 service representatives 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 into 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 is 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 no less, than gas stations, automotive repair chains, and auto dealers, while providing better services.

1. What constitutes the mission at Minit-Lube? (5 points)
Minit-Lube provides fast and economical preventive maintenance and interior auto cleaning to privately owned vehicles in the U.S.

2. How does the Minit-Lube operations strategy provide competitive advantage? (Hint: Evaluate how Minit-Lube’s traditional competitors perform the 10 decisions of operations management vs. how Minit-Lube performs them). (80 points)

OM DECISION | Minit Lube | Traditional | Design of goods and services
(8 points) |
Services include fast oil change, interior cleaning and lubrication to three vehicles at a time. Minit-Lube has a narrow product design, focused on more specialized services. |
Provides a broader range of services and light repair work. However, such services can only be provided to one vehicle at a time. | Managing quality (8 points) |
Quality exceeds normal expectations. Personnel are neatly dressed and responds quickly. |
Customers are given service packages based on what they’re able to pay. | Process and capacity design (8 points) |
Three employees work together to accomplish the mission. |
A more traditional organization would conduct oil changes every hour. | Location strategy (8 points) |
Clean environment with white painted buildings and the landscaping provides an inviting location. | Jiffy Lube, a franchised company, provides locations approximately within a five mile radius of a local area. |

Layout strategy (8 points) |
Design maximizes ability to work efficiency by utilizing three personnel per vehicle.

The building allows three vehicles at a time maximizing on profit while maintaining the mission. |
Jiffy Lube, Pep Boys, and even Wal-Mart are able to service up to three vehicles at a time, allowing maximum efficiency. |

Human resources and job design (8 points) |

Minit-Lube hires highly qualified employees who have graduated from the Minit-Lube training schools to provide fast services while maintaining a low cost to customers. |
Traditional lube service companies hires highly certified employees. Training is conducted consistently to improve customer satisfaction. |

Supply-chain management(8 points) |
Minit-Lube negotiate large purchases and customer package. Furthermore, Minit-Lube builds good relationships with reliable partner who supplies Minit-Lube with good quality and affordable materials, equipment, or parts at short notice. Minit-Lube also has an affiliation with several organizations such as Automotive Oil Change Associations and Automotive Vehicle Industry. |
Competitors build strong relationships with vendors and the manufacturer to meet with consumer demands. | Inventory management(8 points) |
Inventory investment is relatively low with high turnover. |
Franchised oil lube companies often buy or lease tools from the parent company or vendors approved by the company. | Scheduling (8 points) |
Oil changes services provided in the least amount of time in order to meet customers demanding schedules while maximizing profit. |
Services are completed more comprehensively to ensure maximum quality. | Maintenance (8 points) |
There is relative little equipment to be maintained, therefore little preventive maintenance required. With three bays and three systems, there is backup available in the case of failure |
Minit-Lube’s competitors provides backups in case of supply failures. Little preventive maintenance is needed. |

3. Is it likely that Minit-Lube has increased productivity over its more traditional competitors? (Yes or No) Why? (5 points)
Yes. Expertise and specialization plays an important role in the success of a market and these should positively affect the efficiency of Minit-Lube.

4. How would productivity be measured in this industry? (10 points)
The job accomplished every man-hour would be a good measure of productivity. After all, it should take no more than 10 minutes to service three cars at a time.