High School

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------------------------------------------------ Assignment:

1. Pull out a piece of paper that can be handed in. Write the Team # and the names of the people participating today (alphabetically by last name) on the top right corner.

2. Using a process map, lay out the steps from the time I arrived until the time I started my car to leave the dealership. Include times for each step. Don't forget a start and end process step. What is the total cycle time? You will have about 5 minutes.

3. As the consultant, a proud graduate of the BAM program, what are the main reasons for mapping the process?

4. If the dealership could do 10 oil changes in 8 hours, what is their productivity per labor hour?

- Productivity = 10/8 = 1.25 oil changes per labor hour

5. The standard in the oil change industry is one oil change every 30 minutes, or 16 in an 8-hour day. What is the efficiency of the dealership? Comments?

- The industry standard for oil changes is 2 per hour (60/30 = 2).
- Productivity is 1.25 oil changes per labor hour.
- Efficiency = 1.25/2 = 0.625 or 62.5%
- Efficiency is lower than the industry standard as it is only 62.5% of the industry standard.

6. Using your best estimates, what is the ratio of value-added time to total cycle time? Why is it important to examine this?

- Total value-added time = 3:25 - 3:00 = 25 min
- Total time = 3 + 7 + 3 + 25 + 20 = 58 min
- Ratio of value-added time to total cycle time = 25/58 ≈ 0.43 or 43%
- It is important to examine this as it provides details of how much time is spent waiting, which is a waste in the production process.

7. What are some potential problems as the dealership decreases its total cycle time?

- The dealership may need to hire more staff. If it continues to work with the same number of staff, it can result in errors and mistakes by different staff members, and the quality of work may suffer.

8. What are some other key business process measures that could be used in assessing the oil change procedures at this dealership?

Answer :

Final answer:

The total cycle time for the oil change process is 80 minutes, with the overall efficiency being 62.5% as compared to the industry standard. Process mapping is an important tool for businesses to identify areas of inefficiencies within their operations. As the dealership decreases its total cycle time, problems such as decreased service quality and overworked staff may arise, while other performance measures could include customer satisfaction ratings, average service time, cost per service and rate of return customers.

Explanation:

The process begins upon arrival at 2:25. Between waiting in line, talking to the advisor, and finding a seat in the waiting area, about 7 minutes is spent (2:32). The car only enters the shop by 3:00. The actual service – recording mileage, changing oil, resetting the reminder, and finalizing the paperwork – occurs between 3:00 and 3:25. The final step is payment, from 3:35 to 3:50.

Total Cycle time is from 2:30 - 3:50, totaling 80 minutes.

The importance of process mapping

lies in its ability to visually demonstrate the steps, sequence, and time taken in a given process. It can reveal bottlenecks, redundancies, and areas of delay or inefficiency allowing potential improvements to streamline processes. The dealership serves 1.25 oil changes per hour (Productivity), while the industry standard is 2 oil changes per hour. Thus, the Efficiency of the dealership stands at 62.5%, less than the industry standard.

Regarding the Value Added/Total Cycle time ratio, it's important because it allows the detection and potential elimination of non-value added time (waste) in the process.

If the dealership starts to decrease their total cycle time, they may face issues related to expediting the process, overworked staff, and potentially degraded service quality.

Other measures could include customer satisfaction ratings, average service time, cost per service, and rate of return customers.

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As a consultant, a proud graduate of the BAM program, what are the main reasons for mapping the process?Business process mapping is the visual representation of processes, workflows, and procedures using various process mapping techniques and tools.

It is an effective way to organize processes and provide a clear and comprehensive view of the processes from start to finish. Below are the main reasons for mapping the process:To identify waste: Business process mapping is an efficient way to identify non-value-added activities, bottlenecks, and other inefficiencies that are consuming time and resources. By eliminating these wastes, the process can be streamlined to improve efficiency and effectiveness.To improve communication: Business process mapping enables stakeholders to have a common understanding of how the process works. It provides a visual representation of the process that can be easily shared across the organization. The stakeholders can also collaborate to identify areas of improvement and implement solutions.To improve customer satisfaction: Business process mapping helps to identify gaps in the process that could be impacting customer satisfaction.

By eliminating these gaps, the process can be streamlined to ensure customer satisfaction.To improve quality: Business process mapping can identify areas of the process that could lead to errors, rework, and other quality issues. By eliminating these areas, the process can be streamlined to improve quality.To monitor performance: Business process mapping enables organizations to monitor the performance of the process. This includes cycle time, wait time, and other key performance indicators.

By monitoring these metrics, organizations can identify areas of improvement and implement solutions to improve performance.In conclusion, business process mapping is essential for organizations to improve efficiency, effectiveness, customer satisfaction, and quality.

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