Process and Systems Analysis
Professor Diwas KC
Homework 1 Solutions
Xpresso Lube (Case 2.2)
at end of
Chapter 2 of Fitzsimmons and Fitzsimmons
a. Describe Xpresso Lube’s service package.
: 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.
: oil, filters, auto parts, coffee, snacks, cups, napkins, sugar and milk.
: a car with new oil and filter, maintenance checks of the car, and a cup of
: 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
: 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?
: 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.
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
: Xpresso Lube’s supply is limited by the number of car lifts at the shop.
Lube matches supply with demand by providing customers transportation to and from work.
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.
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.