The competitive position of RAC Motoring Services in terms of its operations-based strengths or weaknesses
The strengths of the RAC Motoring services includes being a trusted brand with a high market end, and visible, high-tech control centers. Also, it uses highly skilled loyal patrols for customer rescues. Weaknesses include slow phone and roadside without a response guarantee. That is in addition to expensive, perceived traditional like a club, and inconsistent quality of services.
The advantages and disadvantages of the current cell-focused service management structure
Advantages include simplicity and convenience for the operations staff to dispatch patrols to customers with set tight location boundaries that reduce patrol travel time and distance. The disadvantage is the existence of adjacent cells with different queue time with random breakdowns. The solution is to provide the patrols with more direct contact lines with the managers at lower costs compared with the current hierarchical approach with new leading patrols with associated responsibilities, making it more effective.
The redesign opportunities of the employment contracts, payment systems, and working practices
By replacing stand-by to reduce overtime payments, reducing dependence on contracts, taking over control of Patrol’s working hours, rewarding patrols for flexibility, pay constant salaries to the patrols irrespective of working hours, complying with the European Working Times Directive (EWTD), and eliminating non-compliance stand-by time. That is in addition to effectively managing the new annualized Roster.
Recommendations for an implementation plan
The overall recommendations included radical design changes with the union that lead to an excellent working team, with honesty being the core value. That reduced labor turnover to 6%, with the scheme saving RAC £6m a year by lowering the use of contractors. That was in addition to the patrols increasing their total earnings by £2m, with individuals, with an increase of Customer Service Index for quality for the next 17 months consecutively. That is because of the RAC patrol’s attendance and quick response time.
References
Chambers, S. (2003). Case 20 RAC Motoring Services. In R. Johnston (Ed.), Cases in Operations Management (3rd ed., pp. 112–115). Prentice Hall.