Essay About Service Operations And Micro Cars Limited

Micro Cars Limited – Workshop Project Proposal
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1. EXECUTIVE SUMMARYMicro Cars Limited investments are a new limited liability company formed under the laws of the Sri Lankan government.Micro Cars Limited was established in 1996 by veteran automobile engineer, Dr. Lawrence Perera with 20 employees and 1 factory. The objective was to engineer and build Sri Lankas first truly home-grown automobile and the result was the launch of Privilege which was completely designed and made in Sri Lanka.The first National Automobile was thus launched in 2001 winning an international patent for its unique design. The demand and acceptance for Privilege amazed the country but the production constraints deprived Micro of meeting the escalating demand. The company would develop a low-cost manufacturing and assembly operation that could produce high quality vehicles utilizing the resources and labor force of Sri Lanka.Today Micro Cars Limited remains the only national car manufacturer, assembling a full range of vehicles, from Compact Cars and Vans to Luxury SUVs, Buses and Prime Movers. Micro tied up with the Koran automobile giant Ssangyong in 2008 and began assembling SUVs in Sri Lanka for the first time with a 35% value addition. Micro in 2010 tied up with Geely International, a Chinese automobile manufacturer who is also the owner of Swedish luxury automobile brand Volvo. Micro with the tie up with Geely has entered the compact car segment and today is competing shoulder to shoulder with other leading global brands. This report is indented to give a clear course path for the given project investment decision. The purpose of this report is to review and recommend the best course of action that can be taken from the options available for the investment in the project of different spectrum to be done by the company. We will be using the principles of Real Option Analysis by means of NPV analysis for the target year, probabilities estimated by the advisors for the project.[pic 2][pic 3]2. PROJECT DESCRIPTION Project Title:[pic 4]Automobile Repairing & Servicing WorkshopType of Project:Automobile Repairing & Servicing warranty claimsProject Proponent/s:CBA Company (PVT) LTDDate of Implementation:08 August 2016Duration:8 monthsArea of Project Implementation:Kaithady Road, Maruthanarmadam, Chunnakam,Jaffna.3. INTRODUCTION  The Automobile Repairing & Servicing Workshop business is a viable business provided that it is operated with a good business acumen that involves having a thorough knowledge and experience of the repair and service operations and also managing the jobs with the right type of skilled manpower. When these factors combine with good customer relationship management and effective business development skills, the business is expected to give considerable profits which are expected to grow over the years.

We have Auto mobile repairing & servicing workstations all over the country (Colombo, Kandy, Matara, Kurunegala, Anuradhapura, etc.) But not enough to cover the whole country provide a non time consuming & efficient service for the customer because of they have travel to service for 50km to 80km in rural areas.As per the requests by our loyal customer we have planned to expand our services to northern area of Sri Lanka. Due to high sales of our automobile products relatively our after sales services should increase as well to provide the warrant & periodic services & maintenance of the vehicles for the northern area customers.The end of the war marks the beginning of a new chapter in Sri Lankan history and should allow the country to harvest its great untapped potential. Because of that we have planned to open new Auto mobile repairing & servicing workstation in Jaffna town, providing a satisfactory service for the customer.3.1 OBJECTIVES The companys objective is to build quality, full repair & service station that will command the approval of the predominantly to community which it serves. Our goals include: 1. A 10% market share in our first year. 2. A modest increase in our gross margins within the second year of operation 3. An increase in our market share by a minimum of 10% for each of our first five years. Currently, there is no competitor in Jaffna, or the surrounding areas (for a radius of 200km). The company believes that by entering the marketplace first and by establishing quality facilities, it will become, and remain, a leader in the Auto mobile repairing & servicing workstation in Jaffna.Our fundamental objective is to realize how we impact the community that we do business in, knowing that we will stand the test of time if the local residents approve and support our service centre.3.2 VISION Micro Cars Limited investments sole purpose is to establish a profitable and well managed company while at the same time creating an atmosphere for the customer satisfaction.3.3 MISSION Based on our research, our primary targeted market is all the Micro, Geely vehicle owners in northern area. With that in mind, we intend to design our facilities to address this primary market, while keeping in mind the secondary markets such as spare parts sales & grooming centre. We believe that our main keys to success include: Providing popular and wide-ranging in every aspect of repairing & after sales service with or without warranty.Ample and secure parking.The use of state-of-the-art technology.Easy access.Design facilities to cleanness & high efficiency service.We believe that we can minimize certain risk factors by: Initial capitalization of the company to sustain operations through year one.Low overhead through the use of multi-skilled employees and continual training.Strong customer base through aggressive marketing & promotions. Strong community ties and involvement.Eliminate collection costs by establishing cash/credit/debit card only facilities. 4.0 BASIS AND PRESUMPTIONS The unit is expected to work at 75% efficiency on 8 hrs. Single shift basis for full capacity utilizations. The full capacity utilisation will be achieved in three years. 70% in the first year followed by 85% in the next year and the 100% in subsequent years. Labour and wages mentioned as per prescribed minimum wages and the proprietor is considered as a manager. Interest considered @11.5% (2015 rate in Sri Lanka) in the project provide for recurring and non-recurring investment. The cost of land, construction charges, cost of machinery and equipment, raw materials and consumables other expenses etc. initiated in the profile are based on the prices prevailing at the time of project preparation. Therefore, they are subject to necessary changes from time to time based on local conditions. 5.0 IMPLEMENTATION SCHEDULE[pic 5][pic 6]6.0 TECHNICAL ASPECTS The three main critical factors that affect the decision to invest in the proposed business setup are: i) Hands on Experience Having a thorough knowledge and hands on experience of all the relevant technical details is a must for entry into this business. Relevant work experience is the most important pre-requisite because it has a direct impact on the successful management of the business.