RITIKA SHARMA

1910120028

ASSIGNMENT 2

Ques 1. What were the primary challenges facing Frumherji's Vehicle department? Which

ones were most important and why? (3 Marks)

Ans. There were 4 primary challenges that Frumherji’s vehicle department was facing which

are as follows:

 Shortage of qualified mechanics who had undergone the government-mandated

training program and have passed the certification exam

 Majority of the employees took their vacations during summer months when demand

for inspections was highest

 High employee turnover rate of 22-23% per year and the probability of even higher

percentage as members of Hesthal’s aging workforce retired

 Compensation limitation from the Icelandic government due to which the mechanics

were prohibited from offering the kinds of productivity incentives that they should

receive from other automotive-related business

In my opinion, shortage of qualified mechanics and compensation limitations were the most

important ones because with the increase in population, there will be more private vehicles

which will bring new customers. If there are less qualified mechanics and more customers,

then there will be more waiting time for customers which will lead to customer

dissatisfaction. Moreover, if there is a compensation limitation, then it leads to employee

dissatisfaction as well, which in turn leads to high employee turnover rate which will impact

the firm’s productivity and hence the revenue.

Ques 2. What is your assessment of Sigurdsson's idea (mentioned at the end of the case) to

create separate lines for first and second inspections? What would be the arguments for and

against it? (3 Marks)

Ans. In my view, the idea of Sigurdsson to provide multiple lines for the first and second

inspection is a positive one. Since consumers were already unhappy with the long queues

waiting for the inspection and waiting for the second inspection at the end, it would have

been uncomfortable for consumers to do the same as the first inspection. They waited about

90 minutes for their inspection, which lasted just 5 minutes, according to feedback from one

customer. The inspection they had was, most certainly, a second inspection, as they referred

to the audit of the necessary repairs, and if they had a separate lane for a second inspection

lasting just 5 or 10 minutes, the customers' waiting time would be reduced.

We would therefore build a mechanism for the completion of all second inspection vehicles

and only use the facility for the first inspection vehicle, which ensures that the devoted lane

will be used.

Ques 3. Answer the following questions: (5 Marks)

A. Where is the bottleneck in this process?

Ans. Bottleneck in this process is the waiting time for service, once the paperwork was done,

which was usually from 5-78 minutes, but it could be as long as 90 minutes as well.
 B. What is the capacity of this process in cars per day?

Ans. Capacity of this process range from 29 cars per day to 48 cars per day depending on

demand and defects with their standard throughput or flow time ranged between 15 and 25

minutes for smaller vehicles and between 20 and 45 minutes for large vehicles.

C. What is the total value-added processing time for Check-in, inspection, and

data entry if we ignore waiting?

Ans. Processing Processing

time(min) Small time(min) large
Process Name vehicles vehicles
Check-in 2 2
Inspection 25 45
Data Entry 1 1
Total Value add Processing
time 28 48

Ques 4. In what ways does the performance of Frumherji's emission testing and inspection

process differ from the ideal? What ideas do you have for improving operational

performance? In what ways would your ideas enhance Frumherji's market position?

(3 Marks)

Ans. Frumherji focuses mainly on the quality of service and, via the company's intranet

platform, on-the-job signs, and training staff, communicates its inspiration to all employees.

The effectiveness of the emission testing and inspection process of Frumherji differs from the

ideal starting from the inspection lane, where the inspection is conducted on the basis of the

first cum first serve criterion rather than on the basis of the registration number assigned to
the inspection in the process. Also, for some time, the second inspection vehicles were given

priority over the first inspection vehicles in the queue.

Improvement suggestions would be to seize control of the cars from the owners after the

check in period and to provide a quantity of time for the car owners so that buyers can use the

waiting time for some other jobs.

This method will be useful in enhancing operational efficiency since the inspection unit will

have full control of the vehicle until the check-in phase is completed and they will better

determine what to do. The customers' waiting time is the frustrating part, and customers will

leave the vehicle and come for pick-up at the informed time during the check-in phase if we

follow this protocol.

Ques 5. How would you implement the changes you have suggested? What challenges might

you face? (3 Marks)

Ans. The idea of the implementation of a procedure for taking control of the vehicle during

the process of registration or check-in could be carried out at one of the Hesthal locations on

a pilot basis. Implementing a new concept includes staff training and a modern barcode or

token system. The new scheme involves the development of a special code and a barcode

token for each car. This barcode/token can be used as a consumer monitoring tool from which

the status of the inspection process is known to them.

The Challenges which might occur are:

 To incorporate advanced technology, technically qualified experts are required.

 Resistance to reform from existing employees.

 To educate clients about the existing system and how to use the new process.
  Precise mechanisms for calculating the exact time of arrival that needs to be conveyed

to the customer.

Ques 6. What metrics would offer the best indicators of the success of your implementation

plan? (3 Marks)

Ans. A good metric for monitoring the success of the implementation plan will be the service

quality GAP model. The model of service quality gap defines that our interpretation of the

customer problem is handled correctly or not, and that the solution proposed to address the

GAP is eventually adopted or not by the customer.