TL 3073 - Operations Management

Project report

by

WIJATHUNGA K.L.S. (121492J)

An Analysis of Layout Planning of

Auto Miraj the total auto care specialist

A Project report submitted in partial fulfilment of requirements of the subject

TL 3073 – Operations Management conducted by the

Department of Transport and Logistics Management

of

University of Moratuwa

07/06/2015

Abstract

Auto Miraj the total auto care specialists commenced to offer total auto care solutions and

continues to believe every customer is a valuable business partner. Auto Miraj has a branch

network of fourteen outlets located in Colombo and outstation while employing a work force

of around 600 with an overall output of approximately 700 jobs each day. Auto Miraj is

totally committed to ensuring best services and products are perfectly synchronized to meet

diverse customer needs.

We are doing the research on the layout plan of Auto Miraj Rathmalana and we observed that

the layout is well segmented into its three main segments of vehicle servicing, engine

repairing and vehicle tinkering, body paint and maintenance and specialised employees are

allocated for each work and customers are happy about the service they provide even though

there are some improvements that can be done specially to the layout. But there seems to be

lack of entrance and exit facilities and no proper system in place for emergency handling. And

also there the positioning of management and supervisors room and customer rest room seems

to be causing problems and unnecessary movements. And most importantly there is very less

concern given for the safety standards of employees and customers within the arrangements of

the layout.

Within the report we recommend locating an emergency exit and signage system to handle

emergency situations and having a new entrance and exit to the adjacent depot road to

minimise congestion in the front entrance facing the Galle Road. And also to relocate the

managers and supervisors room and customers’ rest room and increase the efficiency of the

numbered token issuing process and so on. These and all other recommendations to increase

the efficiency and effectiveness of the layout are clearly explained within the report.

2 | P a g e

Acknowledgement

This project report consumed huge amount of work, research and dedication. Still,

implementation would not have been possible if we did not have support of many individuals

and organizations. Therefore we would like to extend our sincere gratitude to all of them.

First of all we are thankful to Management and all the employees of Auto Miraj - Rathmalana

for their support and for providing necessary information required about the service station

and guiding us through each and every section of their work sacrificing their own time for us.

We are also grateful to Mr. Sudath Amarasena, Senior lecturer of Faculty of Management

Studies and Commerce in University of Sri Jayawardanapura for leading us and giving us the

required knowledge and expertise to make this project report a success. And also special

thanks goes to Ms. Subodha Dharmapriya, the course coordinator of Operational Management

Module for helping us in many ways to make this report a success. Without their superior

knowledge and experience and guidance, the Project would not have been a reality.

At Last but not least, we express our gratitude toward our families and colleagues for their

kind co-operation and encouragement which help us in completion of this project.

3 | P a g e

Table of Contents1. Introduction & Objective................................................................................................................5

2. Functions of Auto Miraj service center...........................................................................................6

2. a) Operational functions of Auto Miraj.......................................................................................6

2. b) Management functions..........................................................................................................7

2. c) Marketing and customer service sector.................................................................................7

3. Literature Review...........................................................................................................................7

3. a) Fixed position plant layout.....................................................................................................7

3. b) Product oriented plant layout................................................................................................8

3. c) Process oriented plant layout (Functional Layout).................................................................8

3. d) Cell layout...............................................................................................................................8

4. Detailed analysis of the Layout Planning........................................................................................9

4. a) Service section......................................................................................................................11

4. b) Running repair section..........................................................................................................12

4. c) Tinkering and Painting section..............................................................................................13

5. Recommendations for the improvements of the Layout..............................................................14

6. Conclusion....................................................................................................................................16

References............................................................................................................................................17

Appendixes...........................................................................................................................................18

4 | P a g e

1. Introduction & Objective

The purpose of this report is to, allow us to demonstrate our understanding of the principle

and technique covered during the operation management subject we will submit a report that

will address Auto Miraj Soysapura branch’s operation process analysis. It will explain about

Potential layout, action planning and how to monitoring and control this operation process.

Auto Miraj the total auto care specialists commenced to offer total auto care solutions and

continues to believe every customer is a valuable business partner. Auto Miraj has a branch

network of fourteen outlets located in Colombo and outstation while employing a work force

of around 600 with an overall output of approximately 700 jobs each day. Auto Miraj is

totally committed to ensuring best services and products are perfectly synchronized to meet

diverse customer needs.

The preventive maintenance system using state of-the-art equipment as well as teamed up

with well trained and dedicated staff has indeed proven most effective in maintaining new

generation vehicles in the best road worthy condition at all times. Reputation of the company

as a key player in the automobile industry from the inception and servicing the largest

customer base has earned a pristine place as one of the country’s leading automobile service

providers. The vast experience gained over the years made Auto Miraj to develop special

packages to suit local conditions and meet international standards. In recognition of our

continues improvement in standards, multinationals and global brands such as KIA, 3M,

leading Lubricant manufactures Mobil, BP & Castrol and Toyota have entered into business

partnerships with Auto Miraj. With the objective of fulfilling the long awaited need of loyal

customers Auto Miraj ventured into setting up professional Automobile Workshops and body

shops in Soysapura, Rathmalana & Pepiliyana.

Auto Miraj is also pleased to endorse our presence in the United Kingdom where they have

been very successful in operating two branches over the years and plan to further expand the

network. As such the overall position of Auto Miraj has been further strengthened as Total

Auto Care Specialists.

5 | P a g e

2. Functions of Auto Miraj service center

Auto Miraj is a service oriented organizations. They provide specialist services and total auto

care solutions for any kind of vehicles. Auto Miraj uses latest technologies and technical

procedures to their service centers. As well as they apply world standard concepts and

management systems to their business to improve their service qualities effectively and make

high customer satisfaction. In addition Auto Miraj uses websites, mobile apps and many other

latest technological medias to promote their services and make strong relationships with their

customers.

However the major functions of Auto Miraj can be divided into three aspects. Those are,

a) Operational functions

b) Management functions

c) Marketing and Customer services sector

2. a) Operational functions of Auto Miraj

All of activities which are directly involved with automobile services, can be define as

operational functions. Operation functions are the core of any business. By other hand,

operation functions are directly affect to make crucial decisions in layout planning. The main

layout designs of Auto Miraj has established according to this purpose. However major

operational functions of Auto Miraj can be divided into 5 sectors.

Under wash section

In this section, they use air compression technology and lift up cars. Then remove wheels.

After they repair and clean all the under parts of the car and car carpets.

Oil changing section

In this section, the Auto Miraj has a medium size store to store various type of car oils, brake

oil etc. when a vehicle arrive to this section, first they remove old oils and fill new car oils. In

fact they have environmental friendly system to remove used car oils.

Body wash and body painting section

The Auto Miraj use latest technologies for body painting. They have full covered house to

facilitate for car body painting. Even rainy day or sunny day, they can do car body paintings

without any climate issues. So that reason, they can do their car paintings with specific

weekly schedule. Auto Miraj has high demand for the car body washing section. Because of

6 | P a g e

that, more than 15 labors are working in under this section and they have capability to wash a

car within 20 minutes.

Vacuum cleaning section

Engine repairing and cleaning section

In the Auto Miraj, the engine repairing and cleaning section is separated from other functions.

It has separated warehouses and parking facilities for more than 15 vehicles. As well as, this

section scattered in large area and it has many sub sections. In this section, they do all of

engine repairs for all kind of vehicles.

2. b) Management functions

Management have the responsibility to make sure that everything goes well with the station

and that customers will be satisfied with the services are offered to them. Usually, people see

the attendants, but there is a person who supervises them and tells them what to do, when to

do it and how to do it.

2. c) Marketing and customer service sector

The Auto Miraj has introduced package systems to their customers to provide better services.

In addition they uses web pages and provide mobile apps to inform their customers and make

reliable car care services. Because of that facility, the car owners can contact them by using

internet and mobile apps. Also The Auto Miraj provides free pick-up and delivery services to

their customers and many more services. All of these activities are going under their

marketing and customer service sector.

3. Literature Review The production process normally determines the type of plant layout to be applied to the

facility. There can be four kind of production plan layouts can be identified.

3. a) Fixed position plant layout

Product stays and resources move to it. The term “fixed position” implies that the product

remains (more or less) stationary and all materials, equipment, labor, instructions, etc. are

brought to the place of work. The service equivalent might be where the “customer” remains

stationary and the various elements of the service are delivered to the point where the

customer is located. The labor resource can comprise an individual worker or might involve

7 | P a g e

group working. Fixed position layouts are usually a feature of batch production, or jobbing

operations.

3. b) Product oriented plant layout

Machinery and Materials are placed following the product path. This type of plant layout is

useful when the production process is organized in a continuous or repetitive way.

Continuous flow: The correct operations flow is reached through the layout design and the

equipment and machinery specifications.

Repetitive flow (assembly line): The correct operations flow will be based in a line

balancing exercise, in order to avoid problems generated by bottle necks.

The plant layout will be based in allocating a machine as close as possible to the next one in

line, in the correct sequence to manufacture the product. Advantages of product oriented plant

layout can be identified as reduced material handling activities, work in Process almost

eliminated, minimum service time and tasks simplification.

3. c) Process oriented plant layout (Functional Layout)

Machinery is placed according to what they do and materials go to them. This type of plant

layout is useful when the production process is organized in batches. Personnel and

equipment to perform the same function are allocated in the same area. The different items

have to move from one area to another one, according to the sequence of operations

previously established. The variety of products to produce will lead to a diversity of flows

through the facility. The variations in the production volumes from one period to the next one

(short periods of time) may lead to modifications in the manufactured quantities as well as the

types of products to be produced.

3. d) Cell layout

Hybrid Layout that tries to take advantage of different layouts types. And this defined as

group of equipment and workers that perform a sequence of operations over multiple units of

an item or family of items. Cell layout looks for the advantages of product and process

layouts:

Product oriented layout: Efficiency

Process oriented layout: Flexibility

8 | P a g e

In cell layout there is a Group Technology which grouping outputs with the same

characteristics to families, and assigning groups of machines and workers for the production

of each family.

4. Detailed analysis of the Layout Planning

The lay out is designed allocating spaces based on three main functions that are carried out by

the service station. The mentioned three sections are servicing, running repairs and tinkering

& painting. The total space of the work station spans in a 140 perches area.

45% of the total area is allocated for the servicing section which is considerably the largest

area allocated for a particular section. This section is located at the front of the layout. The

space is sufficient for 40 vehicles. This section carries out two main functions which are body

washing and full servicing that includes body wash, oil refilling and vacuum cleaning. This

section consists of areas allocated for exterior / interior vacuum cleaning, body wash, under

wash, oil changing, service section store room and compressor room.

The second section is allocated for the running repairs which is placed next to the servicing

area. This section basically concerns about the mechanical repairs. A 25% area of the total

land is allocated for this section. The space is sufficient for 20 vehicles. There are two

categories in this section. One is the vehicles that are repaired within one day and the vehicles

that take more than one day for the repairs. Other category includes on floor repairs and

repairs carried out on lifting jacks. This section includes with areas allocated for on floor

repairing, lifting jacks, electric scanning places and a running repair store room.

Tinkering and painting is the third section which normally takes more than two day time

period for a single vehicle. The area allocated is 25% out of the total area and the space is

sufficient for 20 vehicles. This section consists of areas allocated for painting booth, painting

store room, machinery room for painting, gig machine, tinkering and repairing area.

The remaining 5% area is allocated for the parking requirements and for the accommodation

purposes of the employees working in the work station.

As stated above Auto Miraj has three main components in its layout. These components have

been established in the existing position according to the demand and easiness to response for

those demand. The three main components of the layout are,

a) Service section- in the front

9 | P a g e

b) Running repair center- in the middle

c) Tinkering and painting- in the back

10 | P a g e

2. Service Section Layout of Auto Miraj Service Center, Soysapura Branch

4. a) Service section

As stated this section is situated in the upfront of the facility. The section provides washing

and cleaning facility for vehicles and it takes only few hours. As to the manager a vehicle

comes once a month for a body wash and once in two or three months for the full service.

Auto Miraj’s main function and the most revenue generating section is the service section.

The most populated and congested area is the service section. It is situated in the front

because the higher amount of movement. Vehicles come for services and leaves within few

hours and this happens all the day. So to reduce the impact of the movement of vehicles to the

other two sections it has been established in the front.

Inside the service function there are several sub functions. So the area is divided according to

the need and the sequence of the service process. They have been illustrated in the above

figure as it is on the workshop.

Many of the customers, around 70% is for the service section. So therefore guest room and

office is established in this part considering the customer convenience and as a strategy,

because customers can see what is going on with their vehicle and that creates a better attitude

about the company. As mentioned in the previous chapter there are two types of vehicle

services done here.

Body wash only

11 | P a g e

1. Layout of Auto Miraj Service Center, Soysapura Branch

3. Running Repair Section Layout of Auto Miraj Service Center, Soysapura Branch

Full service

Service which only washes the body of the vehicle is done on the left side of the picture (on

the right hand side of the facility from the entrance). It has its own body wash area and

interior vacuum cleaning area. Full service has its body wash and interior vacuum cleaning

facility on the other side. Near to those facilities there is a dedicated area with a pit to aid the

oil draining and refilling facility. Under wash facility and the exterior vacuuming is done

mutually for both steps as it takes a minimum time compared to the body wash.

There is no specifically separated parking/waiting space for vehicles. Service section has its

own separate store room which contains chemicals, instruments and other things needed for

the operation. Compressor room is attached to the store room, because the compressor is a

fully automated one and needed to be in a water proof condition.

The layout for the service section is set in manner that both full service and body wash to be

performed separately, but in a case of higher demand for one particular section both areas can

be used for that particular section to meet the demand.

4. b) Running repair section

Running repair center is for the mechanical and electrical repairs of the vehicles. The entrance

for this section is through the service section. This section is at the middle as it has the second

highest demand and the vehicle movement in and out to this facility is comparably small with

the service section. The layout of this section can also be divided in to two main categories.

On floor repairs- vehicle can be repaired while it stands on the floor

Lifted repairs- vehicle has to be lifted above ground level using lifting jacks to repair

As for convenience above mentioned two types of repairs are done separately on separate

areas. Left side is dedicated for on floor repairs and right side is dedicated for lifted repairs

and electric scan which needs the aid of special machinery.

12 | P a g e

4. Tinkering and Painting Section Layout of Auto Miraj Service Center, Soysapura Branch

Parking/waiting facility is provided in the center where vehicles come wait till their turn for

repairing and waiting for the owner to collect after repair. Electric scanning place is at the

backward point as it has a low demand comparing to mechanical repairs. There is no waiting

room in this section. Customers have to use the guest room in the front (service section).

Running repair store room is at the same layout for the convenience, because it helps to move

the parts a lesser distance.

4. c) Tinkering and Painting section

Tinkering and painting section has the least demand and that’s the reason it is situated the

most back. The entrance is established via both service and running repair sections. Vehicles

usually take at least two days for a minor repair and therefore the vehicles come to this section

does not much interfere the processes of other sectors. The sections layout is processed in the

manner which is convenient with the sequential operation.

When a vehicle is met with an accident first step of repair is to inspect for any contortion or

crookedness of the chassis or the body of the vehicle. Gig machine is used for that purpose.

Then the vehicle is unloaded to the adjacent floor where the major tinkering is done. Next it

goes to the tinkering/repairing area where the minor tinkering works and the pre-step for the

painting is done. After all the works vehicle is moved to painting booth for the painting.

Layout is planned in same manner of the operations as illustrated in the above figure. This

layout has helped to minimize obstruction to the other processes in the same section while

ensuring the higher utilization. Machinery and paints needed for the operation are stored in

the same area.

13 | P a g e

5. Recommendations for the improvements of the Layout

Problem 1 – Auto Miraj Rathmalana station has only one gate respectively for all vehicles

entering and exiting. When the demand is high the waiting time for vehicles is high especially

for vehicles that come for engine repairing and body painting, tinkering etc.

Recommendation 1 – Auto Miraj can easily provide a separate entrance from the depot

road adjacent for vehicles coming for Engine repairing, body painting, tinkering, accident

repairing etc. Because then it won’t impact the users who come for above work by the

high demand created by normal vehicle servicing operations. The vehicles coming for

servicing can use the entrance and exit from the Galle Road.

Problem 2 – The inefficiency in the number issuing process leads to vehicles being parked

near the entrance and waiting to get a number create a congestion near the main entrance. The

drivers need to stop their vehicle near the main gate vicinity and go to the front desk and

register the details and get the number while waiting in a queue. The situation worsens where

in sometimes there are only two counters operating to register the customers and deliver the

number.

Recommendation 2 – Auto Miraj need to have proper forecasting techniques adopted to

identify the daily demand specially for normal servicing and have between 3 to 4 counters

open to register the customers and provide the number. And also after registering a

customer Auto Miraj can provide a special electro magnet card where all the details of the

customers’ previous services taken are recorded and they can show that card at the front

office and take the numbered token much quickly as their registration details are already

with Auto Miraj. A special counter can be open for already registered customers to get the

numbered token for their current work and this counter can be similar to a Toll collecting

center in Highways where the driver does not need to get down from the vehicle, but

rather provide their Auto Miraj given ID card and show it to the office and get the

numbered token.

14 | P a g e

Problem 3 – No concern for health and safety of the employees and customers and no

emergency exits within the premises.

Recommendation 3 – Within the premises there is no posters or information boards

mentioning about safety work procedures that employees have to follow when providing

services to the customers and all most all the employees didn’t have a safety head gear

while working and only some had boots and most of the employees in the servicing area

didn’t have covered their nose and mouth. And they didn’t have any emergency exits

within the premises in case of an emergency where all they had was the main entrance and

main exit opening to Galle Road. Auto Miraj has to provide emergency exits from the

depot road where there is less congestion unlike in Galle road. And also they must provide

posters in all three languages in the premises on safety standards as well as on how to

react in emergency situations without panicking.

Problem 4 – Inappropriate locating of supervisors and managers office and customer resting

room and the interior designing of the customer rest room is very poor.

Recommendation 4 – Due to this configuration the managers and supervisors find it

difficult to observe the work going on from their office space and need to unnecessarily

walk around the station to supervise the work and the interior furniture of the customers

rest room is not appropriate and they are made of aluminum chairs without any cushioning

and it is not well maintained and we can see most of the customers not waiting in the rest

room but standing near the service place without any appropriate safety gear.

Problem 5 – Delay caused in accident repairing, tinkering etc. results in more time taken to

complete the order and results in low customer satisfaction

Recommendation 5 – It is observed and identified the main reason for this is the lack of

most commonly used spare parts and the availability of genuine spare parts is very

important; therefore the need for a well-organized parts department within the station to

deliver on time service where currently they follow a reactive approach to rather than a

proactive approach in the accident repairing section of Auto Miraj. They have enough

space in this section which is underutilized, to have spare part store to consist at least the

majorly important spare parts needed for repairing.

15 | P a g e

6. Conclusion

Auto Miraj is a total auto care specialists which has their branches all over Sri Lanka. The

branch we have studied for this report is situated in Rathmalana. In Rathmalana branch they

offer specialist services and total auto care solutions for any kind of vehicles. Therefore they

have to run so many operations in a tight schedule; operations such as car under wash, oil

changing, body wash, body painting, vacuum cleaning, engine repairing and cleaning. While

Auto Miraj management is supervising these operations there marketing and customer service

sector is taking care of their service quality and promotions campaigns.

As the analyzing subject of this report we have selected the layout planning function of Auto

Miraj. There are four main kinds of layout types; fixed position plant layout, product oriented

plant layout, process oriented plant layout and cell layout. Because of being a service oriented

business, which has to complete their tasks within small time windows we identified Auto

Miraj’s Rathmalana branch layout is more likely as a product oriented plant layout. Where

service machinery are placed following the vehicle servicing steps.

In Rathmalana Auto Miraj branch they have three major sections; servicing, running repairs

and tinkering & painting which are spread out within 140 perches area. From this most of the

space is allocated for the servicing section because this section is the most responsible for the

core services of Auto Miraj which carries the highest daily demand. Therefor it has given the

space near the entrance, because thereby they can continue their daily operations effectively

and efficiently.

While continuing their reputed service for the future Auto Miraj can further improve their

service quality and increase their profitability by doing some adjustments to their current

layout. Such as they can provide separate gates for exit and enter to different sections of their

operations. Because this plays is always dealing with dangerous equipment’s it is very

important to have emergency exists which cannot be identified presently. Finally Auto Miraj

have to think about construct a spare part department within the premises and also have to

rethink about the locating of supervisors and managers office in appropriate places.

16 | P a g e

References

Automiraj.lk,. 'Auto Miraj | Sri Lanka Auto Detailing | Car Service Centers'. N.p., 2015. Web.

5 July 2015.

Http://Homes.Ieu.Edu.Tr/~Aornek/ISE470_Ch4_2.Pdf. 1st ed. 2015. Print.

Http://Planningschemes.Dpcd.Vic.Gov.Au/Schemes/Vpps/52_12.Pdf. 1st ed. 2015. Print.

Ielm.ust.hk,. 'Layout Planning'. N.p., 2015. Web. 5 July 2015.

Vehicleoperationsmaintenance.Pdf. 1st ed. 2015. Print.

17 | P a g e

Appendixes

18 | P a g e