Analysis

Avis Budget Group functions as a Hybrid office. The front office structure is the service desk that requires direct contact with customers for renting cars and other customer needs. The back office structure is made up of the car wash station, oil change station, and other behind the operations such as Human Resources and Accounting.

Customer involvement in Avis is low. Customers can only choose from a wide variety of cars on the lot. Avis is a very high capital intensive company as they must purchase and lease thousands of vehicles. In addition the Avis Newark facility contains an mechanic shop for oil changes, and has a full car wash station. Employees at Avis are not flexible. Employees are hired for their position and their position only.

The issue Avis Budget Group is facing is that they are not getting enough cars cleaned, turned around and ready to be rented. There are more than enough cars to satisfy demand, but productivity of cleaning the cars is slowing down satisfying that demand. On Sundays and Mondays the demand for car rentals are at their highest totals of the week which is when the most amount of cars need to be cleaned. The lack of productivity leads to long lines at the service desk and unsatisfied customers.

 The current process for car cleaning is as follows. One employee cleans a car that takes approximately 15 minutes to clean. Through an 8 hour workday an employee is expected to clean approximately 32 cars. Employees do not usually work at maximum efficiency so the number may be actually less than 32 cars per 8 hour shift.


This chart documents the productivity of the different shifts. The numbers coded in red shows less production that was supposed to be completed. Avis Budget seems to be having more unproductive days than productive days, which is leading to the backup of dirty cars on their higher demand days.