Case The Pert Mustang: Roberts Auto Sales And Service
Case The Pert Mustang: Roberts Auto Sales and Service (RASAS) consists
Case The Pert Mustang: Roberts Auto Sales and Service (RASAS) consists of three car dealerships that sell and service several makes of American and Japanese cars, two auto parts stores, a large body shop and car painting business, and an auto salvage yard. Vicky Roberts, owner of RASAS, inherited a Ford dealership from her father and expanded it into a diversified business empire. She is interested in expanding into the vintage car restoration business, specifically restoring a 1965 Shelby Mustang GT 350 to mint condition. Roberts envisions using the restored Mustang for promotional purposes at auto shows to attract customers to her existing businesses. She plans to serve two primary customer segments: do-it-yourself enthusiasts who need parts and technical resources, and clients who want a full restoration service. Roberts is aware of the complexities involved in restoring the car within a 45-day deadline, and she aims to assess whether the project can be completed within her cost constraints of $70,000 total budget and weekly spending cap of $3,600. She also seeks a report on how this new venture aligns with her current operations strategy concerning cost control, quality, customer service, and flexibility.
Paper For Above instruction
The prospect of expanding RASAS into vintage automobile restoration presents a strategic opportunity that leverages the company’s existing expertise in parts, repairs, and bodywork. As Roberts considers this venture, it is imperative to analyze both its feasibility and its strategic fit within her current business model, which emphasizes rapid sales and repairs. This paper examines the operational requirements, cost considerations, timeline constraints, and strategic implications of restoring the 1965 Shelby Mustang GT 350 to mint condition within the specified constraints.
Feasibility Analysis of Restoration Project
The core challenge of the project involves determining whether the restoration tasks can be scheduled efficiently to meet the 45-day deadline. Using PERT/CPM methodologies helps visualize the sequence of activities, identify the critical path, and estimate the total project duration. The activities are interconnected, with specific dependencies such as the receipt of parts before their installation and the removal of chrome before re-chroming.
The initial activities involve ordering parts and materials, which are time-consuming but essential. Ordering all parts takes 2 days, but their receipt will span from 7 to 30 days. The critical path likely begins with these procurement activities since they hinge on the longer deliveries of upholstery and the windshield. Once the parts are received, the team can proceed with activities such as removing chrome (1 day), removing the body (1 day), and subsequent repairs and replacements.
The main tasks to be completed include removing rust, pulling and rebuilding the engine, replacing the transmission and brakes, painting, reupholstering, and reassembling the vehicle. Notably, activities such as painting and interior reupholstery are time-intensive and require prior completion of structural and mechanical repairs. Careful scheduling shows that to meet the 45-day deadline, all activities must be aligned on the critical path, which is heavily dependent on the procurement of parts and the sequential nature of repair tasks.
Cost Constraints and Budget Analysis
The total projected costs, including parts, labor, and overhead, are crucial for assessing economic viability. The initial expenditure of $50,000 on acquiring the car must be factored into the total budget, which cannot exceed $70,000. The additional costs for parts, labor, and rework are estimated at approximately $20,000 to $22,000, aligning with the overall budget constraint.
Weekly expenditures must also be monitored to stay within the $3,600 limit, which necessitates parallel processing of certain non-dependent activities. For example, ordering parts and beginning some preparatory work can be scheduled concurrently to distribute costs evenly.
Strategic Positioning and Operational Fit
Venturing into vintage restoration enhances RASAS's competitive positioning by diversifying services and attracting high-end clients who seek authentic, mint-condition restorations. This move complements existing repair and parts sales activities by creating cross-selling opportunities and elevating the brand’s prestige.
From an operations perspective, focus should be placed on maintaining high standards of quality, efficient project management, and customer service. The unique nature of each restoration requires a flexible approach to scheduling and resource allocation, ensuring that customizations or special requests do not compromise deadlines or budgets.
Quality and Customer Service Implications
Achieving a mint-condition restoration aligns with RASAS's high-quality standards and respect for vintage automotive authenticity. Providing transparency and communication throughout the restoration process will enhance customer satisfaction and build loyalty. RASAS's operational task should include strict project monitoring, quality control inspections at each critical phase, and maintaining a skilled workforce that understands vintage car details.
Conclusion and Recommendations
Based on the analysis, restoring the Shelby Mustang to mint condition within 45 days and budget is feasible if activities are tightly scheduled, procurement processes are preplanned, and resources are efficiently allocated. The project’s success depends on adherence to the critical path, proactive procurement, and prioritization of key activities. Strategic alignment with RASAS’s broader goals can position the company as a leader in vintage car restoration, expanding its market and enhancing its reputation.
Implementing a dedicated restoration team with expertise in classic vehicles, leveraging existing repair infrastructure, and establishing partnerships with suppliers for quick parts procurement will be vital. This project offers an opportunity to tap into a niche market, broaden RASAS's service portfolio, and capitalize on the rising popularity of vintage automobile collectors and enthusiasts.
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