Frumherji Ltd., Reykjavik: the Vehicle Inspection and Emissions-Testing Process

Decent Essays
Frumherj is a car inspection company in Iceland. They are one of the largest in the country, but they want to continue to grow and to outpace their competitors. However, there are some inefficiencies in their process that must be addressed before they can meet their goals. One of their first problems is maintaining an even flow in their process environment. Due to the nature of the inspections and the cold weather in Iceland, they are much more busy in the summer that they are in the winter. This makes it difficult to keep the right amount of employees. There is little they can do to avoid this problem, but rather they should examine their historical data to determine how many employees they will need in order to meet expected…show more content…
If the company can make every base take the same amount of time, they will experience less delays as less cars are stopped waiting for the next base to open up. There is very little correlation between the KPIs and the process map. They KPIs are focused on measurements such as market share, customer satisfaction surveys, and comparisons to competitor’s prices. None of the KPIs focus specifically on improving the process so there are no practical, actionable items that the employees can focus on. Without the employees being able to see how they fit in the plan to increase the company’s performance, they can’t possibly begin to innovate new ways to improve the process. Management by means seeks to find each individuals place within the system and to continuously improve the system. In MBM systems the employees help the management improve by offering design improvements, and the managers, in turn, use this information to optimize the system. The problem is not that the company doesn’t have admirable goals, but rather their process isn’t capable of producing the desired results. The goals and KPIs are bold and admirable, but they are not relatable to the process that will ultimately determine their outcome. The system will produce what it produces; you can’t get more out of a system than it is capable of making. Without
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