29 Sep Business Operation Management
Links to few short news item/videos provide details of Castrol’s Nexcel, the idea that, if comes to fruition, will fundamentally redefine the oil change process. Instead of taking your vehicle to an auto service facility and wait at least 20-30 minutes for an oil change assuming they are not busy, the Nexcel concept requires less than 2 minutes’ time to swap cells containing oil and filter, akin to swapping ink cartridge on your printer. This concept may be welcomed by customers who would like to avoid wait time. Others, who have been scammed by auto service facility in the past (see video below for an example) may see this as an opportunity to eliminate anxiety associated with the process.
Critically analyze the information contained in news articles. Then provide well-thought out answers to questions listed below:
- If such a technology were to successfully introduced to market, what implications does it have on traditional oil change business (in terms of changes in the auto service business, in the process of recycling used oil, etc.)?
- What would be the downside of such a process introduction?
- Create a Process Map (refer to Figure 6.6 in Chapter 6 for an example) for the potential oil change service process involving Nexcel (include steps such as purchasing a new Nexcel, swapping the units, returning the used Nexcel for recycling, processing the returned cell to remove used oil/filter and replace with new items, etc., among others).
Discussion
Extended menu is Crippling McDonald’s Fast Food delivery process
For your discussion, I am including below links to news article and video profiling McDonald’s recent expansions of menu items, which have made the company’s kitchen operations increasingly complex. The menu has expanded from 85 items seven years ago to 121 today. Its McCafé drinks, for example, require a separate station behind the counter equipped with coffee grinders and blenders, causing longer waits. Also, Premium McWrap invariably stalls the food-assembly line. These additions to menu are hurting McDonald’s goal of getting customers through its drive-throughs in 90 seconds or less; in 2014, McDonald’s average speed of service was clocked at 189+ seconds! In contrast, In-N-Out Burger also offers its Secret (or now, Not-so-Secret) Menu to customers, which surprisingly does not considerably negatively impact the average service speed. Provide your opinion on what your learned from these news items. In your discussion, you may include your insights on what are the causes for slow service speed when comparing McDonald’s vs. In-N-Out menu expansion.
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