Professional Documents
Culture Documents
OT - Efficiency Improvement - BS
OT - Efficiency Improvement - BS
I. Introduction
A. Company Background
B. Process overview
II. Efficiency Measure
A. Defining Efficiency
i. Maintaining quality
ii. Decreasing overall cycle time
The detail department of Lone Star Auto Auction employs 17 workers and two supervisors.
Auto detailing is the performance of an extremely thorough cleaning, polishing and waxing of an
automobile, both inside and out, to produce a show-quality level of detail. Besides improving the
appearance of vehicles, detailing helps to preserve the car, and thus, increases resale value. Our
[1]
facility houses five bays: three for detailing the interior of the car, one for thoroughly washing the car,
and one final prep/buff bay for cleaning the exterior of the vehicle.
The department offers a variety of service packages including wash/wipe with tire shine,
wash/vac with tire shine, maintenance detail, and a restoration detail. The pricing of services is based
on wholesale and retail vehicles. The bulk of sales come from wholesale details. Wholesale customers
range from banks selling repos and dealerships selling vehicles through the auction service.
Every Wednesday the company holds its auto auction. Sales representatives bring in vehicles
throughout the week to be detailed before the sale. The number of vehicles to be detailed varies from
week to week, but is usually above 100. A proper efficiency measure needs be defined in order to
accomplish tasks in a timely manner, thus leading to a decrease in the overall cost structure. As famed
management theorist Peter Drucker puts it, “What gets measured gets managed.”
After we find the proper efficiency measure, five strategies will be presented in order to
increase both efficiency and effectiveness in the detail department.
Efficiency Measure
Efficiency refers to the amount of resources used to achieve the organization’s goals. It is
based on the quantity of raw materials, money, and employees necessary to produce a given level of
output. In the department, the overreaching goal is to provide a superior detail service. Being the
number one detail shop within a 500 mile area, it is important to consistently produce better quality
product than our competitors. However, as the company continues to grow, our service volume grows
as well. Therefore our measure consists of quality and average overall cycle time for each vehicle. In
order to be effective, the average overall average cycle time of a single vehicle needs to decrease, while
quality remains at an average grade of A.
Our objective in this case is not a quest to find absolute efficiency; rather it is an incentive, a
framework to help get your wheels spinning. There are two truisms that we should keep in mind when
measuring efficiency:
1. Doing something unimportant well does not make it important.
2. Requiring a lot of time does not make a task important. [2]
In this case we are measuring the cycle time of each vehicle against the quality of the detail in
that time. Five strategies, presented below, will help to improve overall efficiency. By implementing
these strategies a better quality car will be produced in less time, thus increasing efficiency.
Strategies for Improving Efficiency
The strategies for improving efficiency are:
1. Process improvement through better lighting in detail bays
2. Team building strategies to improve experience and working relationships
3. Cultivation of knowledge through continuous employee training
4. Employee motivation techniques to decrease turnover rate
5. Other process improvement strategies to reduce cycle time
be minor things such as gift cards, a free lunch, or a rotational reserved parking space. Public
recognition is also an excellent motivator. Any outstanding performance by an employee can be
recognized during group meetings. The goal is for the employee to pride and gain satisfaction from
their work.
UPS has good example of an awards program that helped to promote safety, reduce employee
turnover, and decrease tardiness. Other members of the Safety Committee and I devised a raffle
drawing for a new DeWalt construction-grade portable radio. However, obtaining a ticket into the
drawing came with conditions.
1. The employee must not be late, or miss any scheduled days of work in the month
2. The employee must not have any safety infractions for the month
3. Only after the above two conditions are met does the employee’s name go into the
drawing.
After the contest was in place, we advertised the contest around the workplace by posting signs and by
reminding employees during meetings. The contest proved to be successful in all three categories. We
decreased safety infractions, reduced turnover, and showed that more employees had a perfect
attendance record.
Conclusion
The topic discussed is five strategies to improve efficiency in the detail department at Lone
Star Auto Auction, in Lubbock, Texas. The department offers a variety of service options for both
wholesale and retail customers. The company is famed for its auto auction service, which is held every
Wednesday.
In order to be effective in this department, the average overall average cycle time of a single
vehicle needs to decrease, while quality remains at an average grade of A. Five strategies are presented
to help decrease the cycle time of each, improve quality, and thus efficiency.
The five strategies outlined to improving efficiency are:
1. Process improvement through better lighting in detail bays. Examples to increase lighting are
fluorescent wall mounted lights; halogen light stands with multiple swiveling light heads, individual
flashlights for each employee, and painting the walls of the bays a bright white.
2. Cultivation of knowledge through continuous employee training. A comprehensive employee
training program needs to be installed, which includes an orientation period and the ability gain
advanced trade knowledge.
3. Team building strategies to improve experience and working relationships. The constant moving of
employees decreases efficiency. Having two permanent employees in each bay will increase
knowledge sharing and efficiency through an experienced working relationship. This will leave a free
third position in which newer employees can be rotated through for training purposes. Small seemingly
indefinable inefficiencies are eliminated through learned behavior. Each time an employee is moved
from a positive working relationship new inefficiencies are created and the learning process begins
again.
4. Employee motivation techniques to decrease turnover rate. Currently, employee evaluations and
feedback only concerns the negative aspects of employee performance, but completely ignores positive
employee attributes. Managers should use motivation to improve employee retention and decrease the
employee turnover rate.
5. Other process improvement strategies to reduce cycle time.
Three other, process improvements strategies were presented.
A. Battery Booster Packs will decrease cycle time by decreasing the lead time for dead
vehicles.
B. New Microfiber Rags will help to increase work speed, quality, and efficiency.
C. A New Way to Apply Tire shine through the use of an application sponge instead using a
spray bottle will help to increase efficiency.
Our objective in this case was not a quest to find absolute efficiency; rather it was a
framework. Through the application of this paper and its strategies, Lone Star Auto Auction should see
increased efficiency in the detail department. Also remember these two truisms when measuring
efficiency:
1. Doing something unimportant well does not make it important.
2. Requiring a lot of time does not make a task important.
Works Cited
1. Auto detailing. Wikipedia. Web. 16 Dec. 2009.
<http://en.wikipedia.org/wiki/Auto_detailing>.
2. Ferriss, Timothy. The 4-Hour Workweek Escape 9-5, Live Anywhere, and Join the New Rich.
New York: Crown, 2007. Print.
3. How to Increase employee motivation. Web. 20 Dec. 2009. <http://www.life123.com/career-
money/career-development/motivating-employees/employee-motivation-strategies.p2.shtml>.