Mobile Truck Maintenance

[Name of Tutor]

[Name of the Institute]

Part A

Criteria for the Maintenance Industry for Core and Non-Core Work

The business operations are focused to provide the mobile truck maintenance to the client companies and to the on call help requests. The activities resulting in revenue generation are defined to be core activities which include carrying out onsite maintenance, driving of trucks and utilization of other tools, maintenance of service equipment, towing of trucks, etc. The supporting activities which are more focussed on the operations of the business like store keeping, maintenance of records, reconciliations of parts and inventory transactions etc.

Reasons for the Classifications

The non core activities are classified due to their non contribution to the actual business revenue function. Theses activities are not carried out for the increase of revenue but are responsible for the records of business and are used track business activities. If the maintenance staff itself carries out non core activities then it will reduce their own work efficiency and will be a cause of reduction in motivation among the fellow peers. The core activities are defined as the activities which directly contribute to the organization revenue generation. The mobile maintenance service will remain to be the core activity of the company as it is the revenue generating function of the company.

Composition of Core and Non-Core Work at Mobile Truck Maintenance

After analysing the work environment of the company, we can review that the company's core activities are being performed by in house staff as well as the non core activities. There were no outside contractors besides some parts suppliers given the tasks to provide engine and other parts at the company premises which are negligible. The company's in house staff take care of the almost 100% of the tasks being performed whether core or non-core. The non-core activities have been observed to be taking the prime efficiency and opportunity of the company as the onsite engineers often are overworked whereas in house workers are completing paper work.

Discuss this current ratio and recommend if it should change or not.

The core activities at the moment are being carried out by the in house employees, which makes it almost 100% for the in house employees. However the in-house maintenance manager has a small team of workers, who are present for the contingency tasks. This team of workers, on an average takes care of around 20% of the non-core activities, while the rest is being carried out by the third party contractors.

As the paradigm of resource allocation and efficient utilization is evolving, so are the frameworks and the proportion of in-house task and the ones that are outsourced to the other organizations. The specialized and cost effective services, provided by the third party contactors makes it vital for the manager, to get their work done, through outsourcing, in order to contribute to the lowest cost for the organization, with the products on the benchmark.

We will like to change this ratio and enable the company to spare ...