HW1-Solutions 2

HW1-Solutions 2 - Process and Systems Analysis BUS 351...

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1 Process and Systems Analysis BUS 351 Spring 2010 Professor Diwas KC Homework 1 Solutions 1. Xpresso Lube (Case 2.2) at end of Chapter 2 of Fitzsimmons and Fitzsimmons a. Describe Xpresso Lube’s service package. Supporting facility : Xpresso Lube has a fixed amount of operational capacity because it has a limited number of service ports—two to be exact. Other components of its supporting facility are tools and equipment, an equipment storage area, a spacious waiting area, a service counter, street access and parking. Facilitating goods : oil, filters, auto parts, coffee, snacks, cups, napkins, sugar and milk. Explicit services : a car with new oil and filter, maintenance checks of the car, and a cup of coffee. Implicit services : trust, a feeling of not ―getting screwed,‖ a feeling of keeping the car maintained, the satisfaction that comes from taking care of one’s car, the good feeling that comes from recycling the old oil, a caffeine lift, and the satisfaction of drinking good coffee while you wait. Information : type of car, type/brand of oil, type of filter, need for transport b. How are the distinctive characteristics of a service operation illustrated by Xpresso Lube? Intangibility : When an oil change is done in a typical pit, the customer cannot actually see the process and, after the service, the car’s performance probably will not be noticeably different. In this situation, customers rely on the word of the oil change person. (A look at the oil dipstick might show clean oil, but if changes have been performed at regular intervals, the difference between the old and new oil might not be detectable.) Xpresso Lube’s car lift design allows customers to watch its service, which gives customers more assurance that their needs are being met. Perishability : Xpresso Lube’s supply is limited by the number of car lifts at the shop. Xpresso Lube matches supply with demand by providing customers transportation to and from work. This helps smooth demand in off-peak hours. Heterogeneity of the product : Some customers of Xpresso Lube need a ride and some don’t, and the company is set up to address the needs of both groups. Simultaneity of production and consumption: Xpresso Lube adds interactions that help influence perceptions of quality. For example, because of the car lifts, employees can show customers when something is wrong with their cars. This business also has an auto repair facility next door so the two businesses can cross-market one another when appropriate. Customer participation: customers can indicate the brand of oil needed. Some customer may need to have the oil filter replaced. Customers may also require additional checks – e.g. tire pressure checks, fluid levels, etc.
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2 c. What elements of Xpresso Lube’s location contribute to its success? Again, Xpresso Lube’s location is on a main street near the University of Texas at Austin.
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This note was uploaded on 11/21/2011 for the course BUS 351 taught by Professor Diwaskc during the Spring '10 term at Emory.

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HW1-Solutions 2 - Process and Systems Analysis BUS 351...

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