RAC Motoring Organisation Operations Management

This assignment analyzes the operational challenges faced by the RAC motoring organization. It examines their customer service issues, explores process mapping to understand key functions and standards, and proposes solutions to address inefficiencies like higher costs, slower service delivery, and poor service quality. The report emphasizes the need for attracting skilled recruits through training and implementing changes to meet industry competition.

OPERATIONS
MANAGEMENT

EXECUTIVE SUMMARY
The operations management is an attempt of any company to bring effectiveness in its
all activities. The current report has been made with a similar focus with the help of a case
study that is focussed on RAC motoring organisation. Besides this, the report has highlighted
some of the major issues that were faced by firm in past and present. As per this, a process
map has been shown to explain the way of performance followed within the mentioned
enterprise. Apart from this, the major factors due to which, stated business firm was unable to
give profound services to customers has been focussed upon as well. In addition to this, the
final part includes recommendation based on issues identified in report so as to make
improvements in operations of entity.

Table of Contents
EXECUTIVE SUMMARY........................................................................................................2
INTRODUCTION......................................................................................................................4
TASK 1......................................................................................................................................4
1.1Current operational strategy of RAC motoring company.................................................4
TASK 2......................................................................................................................................5
2.1Process map.......................................................................................................................5
TASK 3......................................................................................................................................6
3.1Factors responsible for poor customer service..................................................................6
TASK 4......................................................................................................................................7
4.1Recommendations.............................................................................................................7
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................9

INTRODUCTION
The operations management is referred as the efforts that are concentrated towards
designing and maintaining a control over the procedure of redesigning the operations of
business goods and services. The significance of operations management is high for all
business concerns who are indulged in either production or service providing areas.
Therefore, through operations management, organisations use to make strategies that can help
in making reforms in processes as per the current needs (Ming and et.al., 2013). The present
report has talked about a case study of RAC motoring services which is a firm that provides
its assistance in repairing the broken down cars at roadside. Further, it also gives the facilities
of general insurance and financial services as well. The report has talked about the strategy of
said company and a discussion over its process map. Besides this, there is a discussion over
the factors which are responsible for its poor customer services. On this basis, final section
will cover several recommendations with justifications.
TASK 1
1.1Current operational strategy of RAC motoring company
The Royal Automobile Club (RAC) was established in 1897 with a sole purpose of
serving the customers at roadside facing any issue of broken down cars and need of repairing.
Currently, the said company is facing various problems in different areas of its operations
(Casolino and et.al., 2012). Its major complexity is related with unable to satisfy customers in
efficient manner. Besides this, there is a large competition as well in the industry due to
which it is lagging behind in this competition. Because of this condition, the stated enterprise
took measures for making improvements in business. Further, the managers have adopted
operational strategy where it takes help of private contractors who provide intended services
mostly at the time of weekend days and at nights. As per the situations when demand is high
in market, they employ day patrols as well. However, it has been found that the mentioned
entity render its services at comparatively higher prices than its rival firms because of which
its customer retention is becoming less.
As per the market research and survey that was conducted by firm, revealed that the
rival firms are getting better response as they are good at call-taking and dispatching their
patrol workers to provide required services (DeAnna and et.al., 2010). On this basis,

company is working on this area so as to make improvements and provide rapid services to
the clients.
 Patrol management: It is providing good earning opportunities to its patrol staff
through overtimes because of which it is able to give services even at late nights.
 Appointing managers: Further, it has appointed some service managers in business as
well who use to ensure that services delivered by company are meeting set standards
and they are able to reach towards target productivity levels.
 Market study: Apart from this, the stated organisation use to make a study on demand
patterns so as to employ enough number of patrol contractors to deliver services
(Slack, 2015). Thus, currently the business is employing better operational strategy as
per the modern requirements.
TASK 2
2.1Process map
The business process mapping can be understood as the activities that explain major
function of organisation, setting of standards in business and the process through which these
standards will be met by the firm along with a determination of scale that will help in
knowing about the success of business. The process map of mentioned firm that demonstrates
the procedure of organisation followed to perform major operations of its business:
Illustration 1: Process map
(Source: Zurich, 2017)

 Step 1: As per the process map, the first step is a receiving a call from customer. The
distressed customer will make a phone call to the company asking for assistance from
the organisation’s servicing department.
 Step 2: At next stage, there are servers which are set by firm so as to attend the call of
clients and provide required services to them.
 Step 3: After this, the server is responsible to receive and transfer the call to control
room so that main person who is authorised for giving services will attend the
customer.
 Step 4: As per the transferred call, the authorised person will ask for all the details
from customer about major issue faced by him/her, their location and status of
breakdown occurred in their vehicle (Barratt, Choi and Li, 2011).
 Step 5: As per the collected information about status of breakdown and location of
client, authorised person will inform the patrol who is available at that time nearest to
the location. All details will be sent to them so that they can reach to customer.
 Step 6: The patrol will reach to customer and communication will be made about
arrival along with solution of the problem.
TASK 3
3.1Factors responsible for poor customer service
There were a number of factors due to which the organisation has failed to give its
efficient service to the customers. Some of the major ones among them are as follows:
Inefficient services: The companies who are not able to provide efficient and rapid services
to the customers are at higher risk levels (Peng and Lai, 2012). As per the study, it was found
that its rival companies like the AA and Green Flag use to give quick services like reaching
to customers within 35 minutes, attending call in impressive manner etc. were some of the
services due to which both organisations have beaten RAC in competition. AA Ltd. picks up
the call of its customers instantly and attends them in impressive manner so as to satisfy them
in great way.
High prices: From the study, it was discovered that though the quality of service provided by
mentioned enterprise was very good, the prices charged by it for these services were very
high. As compared to AA and Green flag, service cost was higher due to which it was
operating in a risky environment (Akkerman, Farahani and Grunow, 2010). After the entry of
Green Flag in this industry, a large part off market share was overtaken by it as they provided

very cheaper services and also launched a scheme of refund if the service is not provided
within 35 minutes.
Slow service: With the advancement of time, the customer’s expectations also increased
which was not fulfilled properly by stated firm. The interaction between company and its
service providers was not up to the level due to which their dispatch process was not good.
As a result, the time taken to deliver service to customers was very slow.
TASK 4
4.1Recommendations
As per the case analysis, there are some measures which can be adopted by stated firm
so as to improve operational activities (Subramanian and Ramanathan, 2012). Some of the
recommendations to bring changes and bring improvements are as follows:
 Many times, the cited firm use to outsource the patrols who cannot be relied on giving
efficient services intended by company. Therefore, more focus towards employing
patrols of RAC should be exerted.
 RAC must make improvements in its call taking and dispatch services so as to make
entire process more effective. For this purpose, training can be provided and more
high tech technologies can be installed.
 The system of paying for overtime should be restructured so that patrols can be
encouraged for better performance. Besides this, the patrols will not have to avoid
long shift hours by logging off.
 Many of the patrols and other staff are retiring; hence it is necessary to make strong
measures for attracting skilled recruits. There must be facility of their training so that
they can be made able for better services (Galindo and Batta, 2013).
 The management of firm should make their staff understand the need of changes and
its significance in organisation’s success. Through this, there will be less number of
opposition for changes within staff.
CONCLUSION
The above report has basically focussed on operations management within a
company. For this purpose, case of RAC motoring organisation has been referred. As per the
report it has been concluded that currently, the said company is facing various problems in
different areas of its operations. Its major complexity is related with unable to satisfy

customers in efficient manner. Besides this, there is a large competition as well in the
industry due to which it is lagging behind in this competition. Report has included a
discussion over process mapping of stated firm that explains major function of organisation,
setting of standards in business and the process through which these standards will be met by
the firm. In addition to this, there were some factors like higher cost, slower service delivery,
inefficient service providing which were responsible for poor customer services.

REFERENCES
Books and Journal
Akkerman, R., Farahani, P. and Grunow, M., 2010. Quality, safety and sustainability in food
distribution: a review of quantitative operations management approaches and
challenges. Or Spectrum, 32(4). pp. 863-904.
Barratt, M., Choi, T.Y. and Li, M., 2011. Qualitative case studies in operations management:
Trends, research outcomes, and future research implications. Journal of Operations
Management, 29(4). pp. 329-342.
Casolino, G.M. and et.al., 2012, September. Smart modeling and tools for distribution system
management and operation. In Energy Conference and Exhibition (ENERGYCON),
2012 IEEE International (pp. 635-640). IEEE.
DeAnna, R. and et.al., 2010. System for development, management and operation of
distributed clients and servers. U.S. Patent 7,730,111.
Galindo, G. and Batta, R., 2013. Review of recent developments in OR/MS research in
disaster operations management. European Journal of Operational Research, 230(2).
pp. 201-211.
Ming, Z. and et.al., 2013. Historical review of demand side management in China:
Management content, operation mode, results assessment and relative
incentives. Renewable and Sustainable Energy Reviews, 25. pp. 470-482.
Peng, D.X. and Lai, F., 2012. Using partial least squares in operations management research:
A practical guideline and summary of past research. Journal of Operations
Management, 30(6). pp. 467-480.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Subramanian, N. and Ramanathan, R., 2012. A review of applications of Analytic Hierarchy
Process in operations management. International Journal of Production
Economics, 138(2). pp. 215-241.
Zurich, L.B., 2017. Service Operations and Management.