Concept explainers
Videos
Rapid-Lube
A huge market exists for automobile tune-ups, oil charges, 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, Rapid-Lube, Mobil-Lube, Jiffy-Lube and others have also developed strategies to accommodate this opportunity.
Rapid-Lube stations perform oil changes, lubrication, and interior cleaning in a spotless environment. The buildings are clean, usually painted white, and often surrounded by neatly trimmed landscaping. To facilitate fast service, cars can be driven through three abreast. At Rapid-Lube, the customer is greeted by service representatives who are graduates of Rapid-Lube U. The Rapid-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, 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 in the garage pit, removing the oil filler, 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 business model is to charge no more, and hopefully less, that gas stations, automotive repair chains and auto dealers, while providing better and faster service.
Discussion Questions
1. What constitutes the mission of Rapid Lube?
2. How does the Rapid-Lube operations strategy provide competitive advantage? (Hint: Evaluate how Rapid-Lube’s traditional competitors perform the 10 decisions of operations management vs. how Rapid-Lube performs them.)
3. Is it likely that Rapid-Lube has increased productivity over its more traditional competitors? Why? How would we measure productivity in this industry?
Want to see the full answer?
Check out a sample textbook solution
Chapter 2 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
- Are there any specific markets that MCDO should focus on IF THEY JUMP TO PLANT BASE FOOD TRAIN? Why? ** support answer with theoriesarrow_forwardMarketing effectiveness subject According to Spirit Manufacturing in Australia - IBIS world report Australia Revenue volatility The volatility and growth associated with spirit manufacturing means it falls into which of the following revenue volatility categories? a. Hazardous b. Stagnant c. Roller coaster d. Blue chiparrow_forwardPESTEL Analysis for Tata Power, Indiaarrow_forward
- Marketing effectiveness subject According to Spirit Manufacturing in Australia - IBIS world report Australia Revenue volatility The volatility and growth associated with spirit manufacturing means it falls into which of the following revenue volatility categories? а. Hazardous b. Stagnant C. Roller coaster d. Blue chiparrow_forwardEvaluate the Success and failures of Kentucky Fried Chicken (KFC)arrow_forwardPLEASE GIVE THE PROBLEM AND 2 ALTERNATIVE COURSES OF ACTION OF THIS. THANK YOU Office Depot has almost 1,000 office superstores and giant catalog of office supplies that it offers via mail order. Yet office Depot also enables its customers to shop on the internet. Its Web site offer virtually all the products Office Depot carries in its stores and catalogs and guarantees next-day delivery to most locations with no delivery charge on orders over 5K. online order tracking is available, and customized ordering, which takes into account the historical patterns of individual customers product purchases, is also a feature of Office Depot internet-based channel.arrow_forward
- Joiner & Sons Hardware: Case Study Exploring Multichannel Opportunities : Stephanie claims increasing sales will reduce the COGS on a PER UNIT basis. Wilson’sEOQ includes some of the logistics costs in COGS [assume annual demand is 1,000units per year, ordering cost is $55 per order, annual inventory carrying cost is 34.8%,unit purchase price is $48, and sales increases by 24% annually]. Show how increasingsales for an item will lower the COGS on a PER UNIT basiarrow_forwardExplain what is meant by push supply chain strategies ?arrow_forwardExplain how EMAAR mission and vision is reflected in the marketing of EMAAR.arrow_forward
- Explain the scope of supply chain practices in Cadbury Company (NOTE: please explain it with recent trends and in at least 600 words)arrow_forwardWith reference to the case study, outline the reasons Ellie had for favouring single sourcing as opposed to multiple sourcingarrow_forwardMattress Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7.47 million and inventory was $1.53 million. This year, costs of goods sold is $8.57 million and inventory investment is $1.58 million. a) What was its weeks of supply last year? b) What is its weeks of supply this year? c) Is Mattress Wholesalers making progress in its inventory reduction effort? Since the number of weeks that cover the supply has weeks (round your response to two decimal places). weeks (round your response to two decimal places). Mattress Wholesalers is making in its inventory-reduction effort.arrow_forward
