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Frumherji Ltd.
is a vehicle inspection and emissions-testing business located in Iceland. In
2008, it held the largest market share among companies in its field. Karl
Sigurdsson, Senior Manager of Frumherji’s Vehicle Department, knows that in
order to maintain this position and set itself up for future growth, the
company needs to undergo some strategic and operational changes. An increase in
population due to Eastern European immigration meant an increase in the number
of private vehicles on the island of 58% between 1996 and 2006. Knowing this
increase in quantity would have potential affects on the quality of their
service, Sigurdsson discussed his concerns with Frumherji’s Quality and HR
Manager, Anna Maria Thorvaldsdottir. Frumherji’s quality of service is a
leading factor of their good reputation and therefore is essential to the
successfulness of the business. In order to get a better grasp on the company’s
current processes, the Hestháls station in Reykjavik was chosen to be the pilot
site for observation. One of the first problems identified at the site was that
there was difficulty maintaining sufficient staff levels; not enough qualified
mechanics, vacation dates interfering with high demand in summer, high employee
turnover rate, and compensation limitations are all hindering factors to the
staffing issue. A second problem had to do with the increase of large vehicles
needing inspection that were not well accommodated by the facility. With the
help of a local consultant, Brynja Thorbjornsdottir, who was hired to make
observations and provide solutions to problems, the team could move forward
confidently with their goal of introducing company-wide improvements.

 

Question 1: Draw a diagram of the process

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See print out
copy for hand drawn process map.

 

 

 

 

 

 

 

 

 

 

 

 

Question 2:

Waiting time is
one KPI that sticks out as having a direct link to the map, since a process
improvement would also ideally reduce waiting time. Besides this, most of the
other KPIs are focused on market share, pricing, quality, and employee
qualifications. While these are all great, they do not focus specifically on
improving the process at hand. Since the KPIs are not specifically tailored to
increase the company’s performance (aside from waiting time), it is difficult
to draw links between them and the process map.

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