Avis Budget Group's current processes involve using one person to clean one car at an average of fifteen minutes per car. In an eight hour shift an employee should clean approximately 32 cars. A possible solution for Avis Budget Group is to clean the vehicles using two employees per car.
According to operations manager Indera Thomas, when two employees are used to clean a car productivity was greatly increased. It has been documented that when two employees clean one vehicle the time taken to clean that car dropped to 6 minutes. It is not mandatory for employees to work together but because of this increased productivity it should be mandatory. If two employees cleaning one vehicle takes 6 minutes, in an 8 hour shift if working at maximum capacity, 80 vehicles should be completed by the end of the shift. Two employees individually working clean a total of 64 cars. An increase of 16 cars cleaned is the effect of a 2 person team.Since we will now be implementing a two person car cleaning system. More employees must be hired and some employees must work overtime for us to effectively maximize our productivity. This level strategy was developed to show the total cost for utilizing our employees along with the hiring and over time cost incurred.
According to operations manager Indera Thomas, when two employees are used to clean a car productivity was greatly increased. It has been documented that when two employees clean one vehicle the time taken to clean that car dropped to 6 minutes. It is not mandatory for employees to work together but because of this increased productivity it should be mandatory. If two employees cleaning one vehicle takes 6 minutes, in an 8 hour shift if working at maximum capacity, 80 vehicles should be completed by the end of the shift. Two employees individually working clean a total of 64 cars. An increase of 16 cars cleaned is the effect of a 2 person team.Since we will now be implementing a two person car cleaning system. More employees must be hired and some employees must work overtime for us to effectively maximize our productivity. This level strategy was developed to show the total cost for utilizing our employees along with the hiring and over time cost incurred.
Period
|
Sunday
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
| |
Demand
|
27
|
27
|
22
|
22
|
22
|
22
|
22
| |
Level
|
22
|
22
|
22
|
22
|
22
|
22
|
22
| |
Hire
|
5
|
0
|
0
|
0
|
0
|
0
|
0
| |
Fire
|
0
|
0
|
0
|
0
|
0
|
0
|
0
| |
Utility Cost
|
1,848
|
1,848
|
1,260
|
1,260
|
1,260
|
1,260
|
1,260
| |
Overtime
|
5,000
|
5,000
|
0
|
0
|
0
|
0
|
0
| |
Under-time
|
0
|
0
|
0
|
0
|
0
|
0
|
0
| |
Hire Cost
|
11,500
|
0
|
0
|
0
|
0
|
0
|
0
| |
Total
| 18,348 |
6,848
|
1,260
|
1,260
|
1,260
|
1,260
|
1,260
|
Hiring Cost=2,300
OT Cost= 1,000
Total Cost= 31,496
A second solution to ramp up productivity for Avis Budget is to implement an group incentive program. Meaning, if employees reach set goals as a group they will be rewarded. We recommend ABG uses the current incentive platform "Celebrate" to reward employees. It is a point based incentive program (600pts,1200pts,3000pts), the amount of points given is to the managers discretion. Once the work group reaches its goal, a manager will nominate each individual and upon approval of the District Manager the respective points will be loaded to an online "bank". Depending on the amount of points the employee accumulates he/she can purchase items such as gift cards, electronics, and even big items like furniture.
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