Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 12

AutoMart Repair Shop is currently organized as follows: a repair manager meets with the customer to discuss the problems with the car. A repair order is completed. The mechanics specialize in particular types of repairs (for example, air conditioning, body work, etc.). Typically, a car in the shop requires work by several specialists. The manager plans the sequence of service among the specialists. The car is then serviced by each of the necessary specialists in turn. Discuss how AutoMart's Repair Shop might look if it reorganized around the process of fixing an automobile. Discuss the pluses and minuses of the current structure compared to the more product oriented structure.