WEEK 1 ASSIGNMENT 1
Anticipated Impacts on Operating Efficiencies and PossibleSolutions to Minimize the Negative Impacts
The addition of the engine tune-ups service will increase the amountof work the shop owners have to perform. It may also increase thecost of training and production. Therefore, to increase profits forthe organization while still providing quality services, the companyhas to incorporate several changes to reduce the negative impacts(Lee, Rho & Yoon, 2015).Reducing excessive cost requires the team to control production thuspreventing overproduction. Additionally, to reduce waiting time foreach customer, the company may have to consider additional staff whowill be in charge of engine tune-ups (Leeet al., 2015). The organization has to come up with aninventory control mechanism to avoid having excess materials.Employees should stop holding inventory just in case they have afuture need for it. There may have to be a reorganization of theworkspace to reduce movements of people and machines (Leeet al., 2015). This strategy will help to reduce waste withinthe organization and thus improve operation efficiency.
Need to Change Operating Practices to Accommodate the Tune-ups
The addition of the new service makes it necessary to incorporatesome changes. The organization should come up with a feedback systemthat provides the employees with an avenue to provide ideas to helpimprove the work processes. The current process will need to bereanalyzed to remove all the extra processing such as duplication,re-work, redundant approvals and inspections, pointless reports, andperceived customer requirements (Battilana& Casciaro, 2013). Also, the workers may need to gothrough regular training to ensure their skill sets are up to parwith the new work requirements.
Reasons for Gathering Input from the Shop Owners
The addition of a service to the existing product line willsignificantly impact Midas employees. Including the shop owners inthe decision-making process will help both the company and theemployees. The employees will trust their employers since it showsthat the firm is not keeping secrets from them. This strategyencourages transparency in the organization. Also, including the shopowners will provide the management team with diverse and compellingangles which are applicable on the ground. Involving the shop ownersoffers the employees an opportunity to express themselves and sharetheir thoughts. Additionally, the shop owners will feel appreciatedand valued once they see their input implemented (Conrad,2014). This strategy will create a strong working relationshipsince the shop owners will understand that Midas needs and valuesthem.
Types of Input That Should Be Gathered
The shop owners and all other workers are vital members of theorganization. Ensuring they feel valued is crucial. The workers canprovide meaningful insight into what happens on the ground. Some ofthe types of input gathered include ideas on how to improve workmethods (Conrad, 2014).Through surveys and questionnaires, the management team can identifythe level of skill the shop owners have and to what extent they willneed the training to provide engine tune-ups. The input will help theteam decide if it makes more economic sense to outsource someresources (Conrad, 2014).The shop owners have been going through the process of delivering aservice to the customer. Therefore, they can provide great insightinto which stages are redundant or unnecessary. This input will helpmaintain or improve the amount of time the customer spends waiting.The shop owners can assist in determining if the service is actuallyin demand from the clients (Conrad,2014). The company could incur the cost of providing theservice at all shops such as purchasing new equipment only to realizejust a few stores receive customer requests for engine tune-ups.
Processes and Steps needed to launch this New Program
To achieve a successful addition to the new service, Midas has todesign business processes and steps that help them achievecompetitive advantage rather than a liability. The primary processes,in this case, are strategy development, product development,formulate a system to provide engine tune-ups, and order fulfillment(David & David, 2016).Strategy development process helps give the organization a directionto meet its objectives. This step requires a team effort from themanagement team to the shop owners who have specialized knowledge.Similar to the strategy development process, the product developmentprocess requires a team effort. Data about customer needs,technology, operational capacity, and financial constraints gatheredfrom all the respective departments. The team then comes up with astrategy that includes the product concept, product design, andprocess design. The next step requires the organization to develop asystem to help provide engine-tune-ups by organizing the resources:individuals, amenities and tools, and supplies and energy. Midasneeds to decide whether to outsource some of the resources or providethem. The designs derived from the product development are used inthis step to come up with an efficient production system. The finalstep is the order fulfillment whereby the team identifies measurestaken to satisfy the customer’s order. Just like the otherprocesses, this process requires a team effort to meet customerrequirements. The organization plans and manages every operationincluding scheduling, inventory control, purchasing and materialmanagement, and project management.
Battilana, J., & Casciaro, T.(2013). Overcoming resistance to organizational change: Strong tiesand affective cooptation. ManagementScience, 59(4),819-836.
Conrad, D. (2014). Workplacecommunication problems: Inquiries by employees and applicablesolutions. Journalof Business Studies Quarterly, 5(4),105.
David, F., & David, F. R.(2016). Strategic Management: A Competitive Advantage Approach,Concepts and Cases.
Lee, D., Rho, B. H., & Yoon, S.N. (2015). Effect of investments in manufacturing practices onprocess efficiency and organizational performance. InternationalJournal of Production Economics, 162,45-54.