Question: Please solve this case study and provide me the best answer Mike's Bike Shop Mike & Bike is a bicycle workshop in Toronto that assembles
Please solve this case study and provide me the best answer
Mike's Bike Shop Mike & Bike is a bicycle workshop in Toronto that assembles bikes for customers of online suppliers as well as major retailer like Walmart and Canadian Tire. The founder and the shop have been founded and is owned by Mike Tylor who started this business in a small bike repair store before he expanded his operation to what it is today. With a stellar craftsmanship reputation among professional bikers, his shop also does major repairs to damaged racing bikes. The majority of the store's activity is in the assembly of newly purchased bikes. Operating all year round, Shr/day, Monday-Friday, the shop assembles a wide variety of bicycles that can be classified in two types (Men's Bikes, Ladies' Bikes). A smaller portion of the shop operations involves repair services that might include alterations in bikes (adding special parts to enhance their performance). While Mike is satisfied with his shop revenue, he sometimes gets upset about the backlog of orders and also about delivering the finished jobs in a timely and cost efficient manner. Assembly jobs usually come with all parts in the package, but occasionally some universal parts like hexagon nuts are missing so he keeps a small inventory of these parts. In an attempt to resolve these problems and improve his operation, Mr. Tylor has hired you as a consultant to examine the shop's operations and offer recommended solutions. Last week you visited his workshop and held a meeting in his office where he provided the following operational details. "I am very picky about delivering scratch free finished jobs sn all inhs come "I am very picky about delivering scratch free finished jobs, so all jobs come into the shop floor in our own crates and when finished go out in the same crates." Mike continued "Upon arrival, crates will be inspected by our receivers to make sure they are all good. On average, this is done in about 10 minutes. After that, jobs would be divided into two categories': a) assembly and b) repair. All assembly jobs will go through three processes: Frame/Wheel, Top Mount and Adjustment. Now let's walk through the shop and see them done in action." said Mike. During your tour of assembly operations, you noted that in "Frame/Wheel" station Frank mounted the pedals and crank on the frame, added cassettes and freewheels to the back wheel before it was mounted on the frame, and finally installed the front wheel on the frame. You were told that on average the entire Frame/Wheel station is completed in 20 minutes. During "Top Mount" process, Henry installed the handle and seat, routed brake and gear shift cables and connected the brake pad modules to the front and back wheel rims. You were told that top mounting is averagely completed in 18 and 15 minutes for Men's and Women's bikes respectively. You also observed that all three bikes went through adjustment station whereby Bob installed the chain with the right tightness and adjusted and the gap between the brake chain with the right tightness and adjusted and the gap between the brake pads and the wheels rims for ease of application and grip. You were advised that these activities averagely are completed in 10 minutes. During your tour of Repair Operations, you noted two activities: Bill dismantling the module that needed repair. Then you observed a cassette and the broken spacers in the freewheels were replaced by Joe during your repair. You were told that repair jobs would averagely take 25 and 20 minutes for disassembly and re-assembly/alterations (installing new parts) respectively At the end of your tour Mike told you that they ensure all the assembly and repair jobs are carefully checked for quality before they are released to the customer. "On average we spent about 10 minutes on each bike to make sure the brakes are working properly, seats are steady, gears shift easily, the tire shafts are centered, and all joints are torqued to spec." You asked him how many of each job order they receive. Mike said the number of orders slightly change at different times of the year but ballpark 60% of their business is in assembly jobs and 40% in repair jobs. You asked about the break down of assembly jobs and he said men's and women's assembly each form 30% of orders. Mike then invited you back to his office, offered you coffee and asked his shipping Forman, Tom Moberlaw to join in. After coffee he said: "I am rather content with my business, but at times, particularly in summer, we take more jobs than we can finish in time that bothers me. I don't know, perhaps it would be helpful to have a map of our operation to figure what gives us a headache and what needs to be done about it. I also would very much like to know the shop's effective hourly capacity for assembly orders. I really don't know the average capacity of the store in terms of customers per hour for assembly and repair jobs. Tom here has some challenges with his work which I am sure he will share with you. Tom started by saying "I am in charge of shipping and receiving. Our orders are brought in by three courier contactors every morning and pick our orders from all GTA retailers and repair shops. The same contractors (called Town Guys, Express and Turbo) pick up finished jobs for delivery in the afternoon. Their fleet vehicles are different so some can cover out of Town service and charge more." You asked Tom how they charge the shop for their service. "Well, let's see," replied Tom picking a pile of invoices and going through them. "Town Guys charge $16 for assembled jobs and $12 for repair jobs. Express charges $16, $20 and $16 for assembled men's assembled women and repair jobs respectively, but they can do a larger volume. Turbo has the largest and newer fleet vehicles so they can cover out of town up to Milton, so they charge $20, $22 and $18 for men's, women's and repair jobs." You asked about the load capacity of these contractors and Tom advised you that Town Guys handles 20 orders, Express can do 30 and Turbo can do up to 38 orders a day. You asked him if he has had any issues with them and he said: "Currently we work with these guys in no particular order and ballpark we pay $1800 a day. I would like to know if we can do better. I wonder how we can assign orders to them to bring our cost down". Leaving Mike and Tom, you promised them to write a report that would address their concerns. Your group is required to collaborate on preparing this technical report



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