Read the U-Haul case thoroughly.

CASE STUDY

U-Hauls Performance Problem

In Ontario, the Highway Traffic Act has in place tough sanctions and fines that apply to commercial vehicles. However, there is an exemption in the Acta loopholestating that trucks rented for short-term personal use are not commercial vehicles and are therefore exempt from some of the sanctions and penalties. The exemption includes do-it-yourself movers who are the target market for U-Haul. In fact, U-Haul is the market leader among do-it-yourself truck rental companies.

If police feel that the general maintenance on commercial truck is poor, they can issue a $20,000 fine against the trucking company. However, a company falling under the exemption such as a U-Haul truck is immune from fines and also from having its safety violations recorded against the companys provincial Commercial Vehicle Operating Record (CVOR).

In July 2005, the Toronto Star investigated the safety of U-Haul vehicles. One of the conclusions was that if you rent a U-Haul, you have a 50-50 chance of getting a truck that will not pass a road safety check. The Star based its investigation on three sources:

Ontario Provincial Police data showing police failed 109 of 220 U-Haul vehicles during roadside safety checks between 2002 and 2004

Independent test conducted by the Ontario Safety League of four U-Haul vehicles rented at random, in which all four failed a standard North American provincial and state commercial vehicle safety inspection that every truck must pass yearly to continue operating

U-Hauls driving record, accessed through the Ontario Ministry of Transportation, which showed that 17 of 35 U-Haul vehicles failed safety inspections over a two-year period.

Some of the violations found by the Ontario Safety League included holes on the floor on the drivers side, axle sealant leaking onto the brake pads, one flat tire, one bulging tire, one tire with a nail in it, power-steering fluid leaks, coolant leaks, oil leaks, and a loose king pin on the front axle. In all the trucks there were problems with the lights and signals.

Upon hearing of the Ontario Safety League investigation, U-Haul pulled the four vehicles in question out of service and hired independent mechanics to look at them. U-Haul agreed that three of the four trucks had unacceptable flaws and should not have been rented. The vice president of U-Haul Ontario said the company was dealing with the four locations that rented the four vehicles and stated employees and dealers are responsible for seeing that our equipment is in safe operating condition, scheduling repairs throughout the life of the vehicle.

U-Haul says it runs preventive maintenance inspections at 8,000 kilometers, 24,000 kilometers, and 48,000 kilometers that meet or exceed the federal specifications. Prior to the rental of a vehicle, the employee or dealer is required to check for fuel leaks and levels, transmission-oil levels, broken seals, anti-freeze levels, tires for treads and air pressure, and to make sure all lights and signals are working and that the windshield is clean. And after every rental, an employee is required to ask the renter if there are any problems that need to be fixed before the next customer rents this truck including braking problems, engine overheating, and electrical problems.

U-Haul operates 1,800 vehicles in Ontario. According to U-Hauls provincial operating record for the past two years, 35 trucks have had safety inspections and 17 failed. If not for the exemption, every OPP citation against U-Haul would be on record. During one weekend safety blitz, U-Haul vehicles failed six of eight inspections and were pulled off the road until they are repaired.

At the time, Harinder Takhar, Ontarios Minister of Transportation, said he would investigate closing the loophole in the Highway Traffic Act. If we are having some evidence that there are safety concerns out thereI will get a full report. Im asking the Ministry, what kind of problems did we find and if those problems are serious. I want to make sure the consumers are protected and safety is maintained on our highways. Police and the Ontario Safety League are calling for the loophole to be closed.

Following the Toronto Star investigation, the Ontario transportation ministry launched a province-wide investigation of the truck rental industry including surprise spot checks of U-Haul vehicles and other major truck rental companies and determined that U-Haul had the poorest safety record. This resulted in high-level meetings among MTP, OPP and U-Haul executives. U-Haul subsequently promised that it would clean up its act and begin removing older vehicles from service, and more thoroughly check vehicles before they are rented.

However, in December 2005 a 43-year-old Peterborogh man died after being thrown from a U-Haul truck when it flipped over. And in September of 2006, the Ontario government told U-Haul that its license would be suspended if it did not meet stringent safety benchmarks.

Source: Adapted from Saks and Haccoun (2013) Managing Performance through Training and Development

Additional information:

Read the following job descriptions in the career opportunities section of the U-Haul website: General Manager, Mechanical Express Specialist, Preventative Maintenance Technician.

1. Assume it is 2006, and you have been hired by U-Haul to conduct a needs assessment. Begin by answering the questions (that you can) in the Mager and Pipe performance Analysis Flowchart. Be sure to include your full response rather than a yes or no answer to each of the questions. Your responses should be based on what you learned in the case, not speculation.

2. For each of the questions that you cannot answer, create a plan to collect data. Consider the various techniques in Table 3.2 of your textbook. Which techniques will you use and why have you chosen those techniques? Who or what will you assess to answer each of the questions? If you will be using observations, what specific behaviors will you observe (create a checklist). If you will be using questionnaires/interviews/focus groups, what questions will you ask (create a list of questions). If you will review documentation, what records will you need access to?

3. Organize your plan as if you will submit it to U-Haul executives who will make the decision whether to hire you to conduct the needs assessment. This is not an academic paper; it is a business proposal. You do not need to submit fees or contract terms.

Gather additional information: Read the following job descriptions in the career opportunities section of the U-Haul website: General Manager, Mechanical Express Specialist, Preventative Maintenance Technician.

Assume it is 2006, and you have been hired by U-Haul to conduct a needs assessment.

Part 1. Begin by answering the questions (that you can) in the Mager and Pipe Performance Analysis Flowchart. Be sure to include your full response rather than a yes or no answer to each of the questions. Your responses should be based on what you learned in the case, not speculation.

Part 2. For each of the questions that you cannot answer, create a plan to collect data. Consider the various techniques in Table 3.2 of your textbook. Which techniques will you use and why have you chosen those techniques? Who or what will you assess to answer each of the questions? If you will be using observations, what specific behaviors will you observe (create a checklist). If you will be using questionnaires/interviews/focus groups, what questions will you ask (create a list of questions). If you will review documentation, what records will you need access to?

Part 3. Create a Needs Assessment Proposal. Organize your proposal as if you will submit it to U-Haul executives who will make the decision whether to hire you to conduct the needs assessment. This part is not an academic paper; it is a business proposal. You do not need to include fees or contract terms.