_Case Study Part A - Group 9_

1 MGMT 3069- Operations Management Part A: Case Study Report Case Title: Mike & Bike Submitted by Group No: 9 Hana Kim: Process Flow Indra Prasad Chapagain: Executive Summary & Table of contents Kien Thanh Ly: Bottleneck, Responsibility Matrix, References, Conclusion & Final Check Mary Keshinro: Synopsis & Challenges Faced Submitted to: Dennis M. Jewlal Date: February 9, 2024

2 Table of contents Executive summary………………………………………………………………………… 3 Synopsis…………………………………………………………………………………….. 4 Challenges faced by mike and tom………………………………………………………….. 5 Workflow backlogs…………………………………………………………………… 5.1 Inventory Management……………………………………………………………… 5.2 Effective capacity Uncertainty………………………………………………………. 5.3 Operational map lacking……………………………………………………………. 5.4 Inventory cost Issues………………………………………………………………… 5.5 Process Flow Diagram of Operation………………………………………………………….. 6 Process Flow Explanation………………………………………………………………………7 Identification of bottleneck within the system……………………………………………….. 8 Conclusion……………………………………………………………………………….…..9 References…………………………………………………………………………………… 9 Responsibility matrix………………………………………………………………………… 10

4 2- Synopsis: Mike & Bike is a well-established bicycle workshop in Toronto owned and managed by Mike Tylor. Originally a small bike repair store, it has grown substantially and now assembles bikes for customers of online suppliers as well as major retailers like Walmart and Canadian Tire. With a character for celestial craftsmanship, the shop also caters to professional bikers by providing major repairs and enhancements to racing bikes. The shop's principal activity is assembling new bikes, which make up about 70% of its business. The assembly line includes the following stages: Frame/Wheel, Top Mount, and Adjustment. Men's, Women's, and Children's bikes take different times at the Top Mount station, but all jobs eventually go through an Adjustment station that takes an average of 5 minutes. In addition to assembly, about 30% of the shop's operations include repairs. Repair jobs involve a detailed dismantling process, an examination for repairability, the actual repair (with or without part replacement), and reinstallation. Each repaired job goes through a final quality check. Mike values quality and timely delivery but he is concerned about occasional backlogs and parts shortages, especially for repairs, having a negative impact on their capacity to finish jobs on time. He aims to maintain a job completion rate within 5% of the target. Therefore mike hired my team to consult him on the matter, he considered a process map to be made to find out where his problem is and how to solve it. Tom Moberlaw, the foreman, shared with us how he is facing issues with inventory management, particularly for parts like spacers used in freewheel repairs. Parts ordering and inventory levels are inconsistent which hinders smooth workflow.

5 3- Challenges faced by Mike and Tom Below are the main challenges faced by mike & bike: 1. Workflow Backlogs: The workshop sometimes takes in more work than it can complete in a timely manner, causing concerns for Mike about keeping up with the demand and maintaining the shop's reputation for fast and quality service. 2. Inventory Management: Tom struggles with managing the inventory, often running out of necessary parts like spacers for repair jobs. The current ordering system sees delays and irregularities that do not align with the fluctuating demand, leading to hold-ups in job completion. 3. Effective Capacity Uncertainty: Mike and his team do not have a clear understanding of the shop's effective capacity per labor hour for assembly and repair jobs. This makes it difficult to forecast their ability to manage incoming orders and workload. 4. Operational Map Lacking: Mike believes that an operational map might reveal bottlenecks and inefficiencies in the shop's processes, which could then be addressed to improve the overall workflow. 5. Inventory Cost Issues: There is an uncertainty about whether Tom is ordering the right amount of parts at the right time to optimize the inventory while minimizing costs, including regular expenses on parts, oil containers, and shipping charges. By tackling these challenges, Mike & Bike have the opportunity to smoothly run their operations, ensure timely deliveries, maintain high-quality standards, and optimize their inventory management, also customer satisfaction .

7 Process Flow Explanation: The flow processes for the assembly of bikes as follows: ● Frame/Wheel Process 1. Mount pedals and cranks on the frame. 2. Add cassettes and freewheels to the back wheel. 3. Mount the back wheel on the frame. 4. Install the front wheel on the frame. ● Top Mount Process 1. Install the handle and seat. 2. Route and connect brake and gear shift cables. 3. Connect brake pad modules to the front and back wheel rims. ● Adjustment Station 1. Install the chain with the correct tightness. 2. Adjust the gap between the brake pads and the wheel rims for ease of application and grip. ● Final check The flow processes for the repair of bikes as follows: ● Dismantling and Disassembly: Dismantle and disassemble the module in need of repair. ● Examination of Repairability: Examine the module to determine if it can be repaired without replacing parts or if replacement parts are needed. ● Module Repair: Perform repairs according to the determined method (with or without replaced parts). ● Reinstallation: Reinstall the repaired module.

8 ● Final Check: Perform a final quality check on the repaired jobs. Ensure brakes are working properly, seats are steady, gears shift easily, tire shafts are centered, and all joints are torqued to specification. 5- Identification of Bottleneck within the system The bottleneck throughout the process of bike assembly occurs during the Top Mounting stage for Men, Women and Children bikes. This stage will require extra time based on the type of the bike, specifically 10 minutes for Men’s bike ; 8 minutes for Women’s bike and 6 minutes for Children’s bike. The structure of these bikes could be the reason that causes this bottleneck, as a Children’s bike tends to be simpler, smaller, which makes it easier for the technician to inspect and adjust. A man’s bike is much larger, and depending on the working area, the technician may need more time to move around this bike to do their job. Another bottleneck will occur during the repairing process due to the variability of the bike’s status, which means it will be assessed further to determine whether it’s necessary to repair with replacing parts or to repair without them. It will take approximately 5 minutes to repair without replacing parts, whereas this time will be doubled if the repair includes a replacement part. Furthermore, before deciding to repair the bike with parts or not, the technician will need to ask the client for permission in order to alert them of the potential extra charges. Also, finding the appropriate replacing part may cause extra time to repair, sometimes the parts will match other current parts in terms of structure, but their color doesn't. Sometimes the necessary parts are not available in the inventory and the technician will need to order them. It is always uncertain how long it will take the parts to arrive and this will make them postpone the repair jobs.

10 8- Responsibility Matrix Group #9 Responsibility Matrix Part A Case Study Report: Mike & Bike Tasks Date Completed Kien Thanh Ly Hana Kim Indra Prasad Chapagain Mary Keshinro Performance Cover Page FEB 2 nd 2024 R E Table of contents FEB 7 th 2024 S R G Executive Summary FEB 7 th 2024 R E Synopsis FEB 6 th 2024 R E Challenges faced by Mike and Tom FEB 6 th 2024 R E Process flow diagram of operations FEB 6 th 2024 R E Identification of Bottleneck in the system FEB 9 TH 2024 R G Conclusion FEB 6 th 2024 R G References FEB 6 th 2024 R E

11 Responsibility Matrix FEB 6 th 2024 R E