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Frumherji Ltd Reykjavik The Vehicle Inspection and EmissionsTesting Process Case Solution

Solution Id Length Case Author Case Publisher
716 792 Words (3 Pages) Karen A Brown, Brynja Thorbjornsdottir Thunderbird School of Global Management : TB0055
This solution includes: A Word File A Word File

Frumherji 

Ltd is the leading company in Iceland providing the services of mandatory vehicle inspection, emissions tests and driver testing. A typical customer has to go through four Bases at the station for the inspection process.

The first Base is the reception where the customer has to fulfill the check-in requirements. The first step for the customer, when entered, is to take a number and wait for the service which will take about 0-60 minutes. When the number called, the customer has to meet the receptionist and complete the paperwork. Following this the customer has to pay the inspection fees which will take few seconds to two minutes. Then customers drive towards the lane at Base 2 and wait for their turn, this can take 5-90 minutes. The customer exits the vehicle and it is inspected by an inspector while the customer waits in the lounge. The time spend at base 2 is between four and 10 minutes. The vehicle is then moved to base 3, where they check the brakes and further inspects it. This process takes 1-2 minutes. The inspector then drives the vehicle to the hoist at base 4 where the vehicle is uplifted and inspected, taking 4-12 minutes. This is the whole process, a customer has to go through for the vehicle inspection. The average time taken for the total process going through all the bases is 95 minutes.

Following questions are answered in this case study solution:

  1. What is the total processing time for a typical customer going through all the bases?

  2. What is your assessment of the ratio between non-value-added time and value-added time in the process?

Frumherji Ltd Reykjavik The Vehicle Inspection and EmissionsTesting Process Case Analysis

The ratio between non-value added time and value-added time spend can be 2 to 1, which means that non-value added time is two times the time spend efficiently. The non-value added time includes the waiting time spend at reception in base 1 and in the lane at base 2 which should be reduced for providing the service more efficiently.

What is the total processing time for a typical customer going through all the bases?

1.  Average waiting time to see the reception (0+16)/2 = 8minutes

  Average processing time at reception desk (2 + 120)/2 = 61 seconds or 1 minute and 1 second

2.  Average waiting time for inspection (5+90)/2 = 47.5minutes 

  Average service time (4 + 10)/2 = 7 minutes

3.  Average waiting time for brake inspection (1+2)/2 = 1.5minutesmin.+2)/2 = 1.5 minutes

4.  Average waiting time for brake inspection (4+12)/2 = 8minutes min.+2)/2 = 1.5 minutes

What is your assessment of the ratio between non-value-added time and value-added time in the process? 1:1

Valued Added Time

  1. When the monitor indicated it was time to enter the inspection hall, the customer drove into the designated lane at Base 2.

  2. Sometimes inspectors served customers needing a second inspection ahead of first-time customers.

  3. Three were inspectors dedicated to standard-sized vehicles generally worked as a team in a single lane, in assembly-line fashion, with one inspector manning each base sequentially.

Non-Valued Added Time

  1. After completing check-in requirements, the customer returned to the vehicle and moved it to the lot adjacent to the inspection hall if it was not already parked there.

  2. Each customer took a number and waited for service.

  3. Delays in the reception area, because the receptionists had to serve customers who were there for other services such as driver testing, picking up their license plates, and buying drinks and sweets.

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