Matt Manatrey AMGT 300-001

Extended Interval Oil Business Case

1. Executive Summary
As a small independent European only shop, we will have to service the fleets of
many companies in the area. One of the companies, Sysco, has a fleet of 25 2015
Mini Cooper 4 Door vehicles. In order keep the costs of maintenance of the fleet
down on this premium car, we are strongly recommending that we as a shop switch
to extended interval oil changes on not just this fleet of Mini’s, but all of the fleets
that we serve in the area. BMW USA switched over to Shell as their choice of oil
in the 2015 model year after switching from Castrol since MINI’s introduction
back into the US Market in the 2002 model year. This business case will be about
the benefits to switching to an extended interval oil change in these cars, because
this is the future of the oil change, and we think that this change will bring many
benefits to the business, and therefore be a positive change for the future of this
business. With the research and tests that we have seen we think that today’s oil
can last a lot more than the 3 month, 3,000-mile oil change intervals of yesteryear.

2. The Problem Statement

2A. Like a lot of things, technology evolves, and processes change, this is true with
oil change intervals in today’s cars. Many cars made today do not require the old
3-month, 3,000 miles oil change interval, many cars today require at least a 5,000
mile or even 7,500-mile oil change. Some BMW models (not this MINI) even have
an oil change interval of 15,000 miles! Unfortunately, BMW has since pulled this
requirement from the lineup in favor of smaller oil change intervals from problems
that BMW was having with carbon buildup and oil loss in the engines. MINI
actually says that it is normal to lose a quart of oil every 750 miles! Oil loss in
MINI’s is critical, and we have to make sure that the employer is on top of the oil
changes, because this car is so particular about what and what cannot go into it in
terms of oil.

2B. While the MINI model that we will be servicing requires that you use synthetic
oil, and not any other kind of oil, since adding non-synthetic will damage the
engine and cause major damage, we will stick with synthetic oil only. There are
Matt Manatrey AMGT 300-001

many different types of oils out there, between conventional, semi-synthetic and
even full synthetic. While they look similar, there are many differences between
them. According to idrive.com, the main difference between synthetic oil and
conventional oil is the way it is processed. Synthetic oil can be produced a lot
cleaner and has a lot less impurities, while with conventional oil can have
impurities and is not as refined as synthetic oil. Semi synthetic on the other hand is
the mixture of synthetic and conventional. Synthetic blended oils are a lot less
costly than regular synthetic oils, while still getting some of the benefits of
synthetic and conventional.

2C. There are many viable options for oil changes, but according to the MINI
service manual via Alldata, the oil change interval for the 2015 model year car is
every 5,000 miles. With the kind of driving this fleet does in a day, month, and
year, there should be no issue extending these oil change intervals to 7,500 miles
per oil change. Based on the national average of 15,000 miles per year, our
customers will come in 2 times a year instead of 3, therefore adding value to their
time to get more work done in that time, also the money saved can go back into the
company for other things that are more valuable to the company itself.

3. Analysis of the Situation

The following is some of the concern dealing with the stakeholders of the business.

3A. Customer Concerns

a. Will their car be alright with extended interval oil changes?
b. Will my work be warrantied in case something happens?
c. Is this really the future of oil changes?
3B. Owner Concerns
a. Will I still make money on extended interval oil changes?
b. Will I have to get new tooling or new oil in order to perform these to
customers vehicles?
c. Will this make my shop look good compared to dealers and other
shops?
3C. Manager Concerns
a.Will I make enough money on these oil changes?
b. How easy will it be to implement this into our daily shop routine?
Matt Manatrey AMGT 300-001

c. Will I be able to retain the jobs of technicians in order to switch over to

this extended interval oil change?
3D. Technician Concerns
a.Will they need to buy new tools to support this new initiative?
b.Will I still get paid the same as doing normal interval oil change?
c.Will I convince the technicians that this is the future of oil changes and
this is how we are to proceed with every oil change from now on for
every customer vehicle?

4. The Solution

With the information above, we believe that going to a 2x a year, 7,500-mile oil
change interval is the way that this shop needs to go forward with all oil changes
going forward. With the average American driving almost 15,000 miles a year as
of 2015 (Which is up from 10,000 in the year 2003), and with more miles being
added to these cars since they are used for sales, and follow a route weekly, adding
almost 1,000 more miles on it per week than what the employee does personally,
since these vehicles are also used a personal vehicle during non-work hours. Keep
in mind that most OEM’s even do not recommend a 3-month, 3,000-mile oil
change intervals in their new cars today due to oil and filter technology and new
innovations in the vehicle’s internal combustion engine system. We think that
today’s oil is also formulated to last more than the 3,000 miles that the oils of
yesteryear were rated for.

MINI’s service manual says that it is normal to burn through a quart of oil
every 750 miles, which means it is imperative that the owners and employees
check the level of the oil frequently. Luckily, MINI eliminated the need for a
dipstick in the engine. You can find the oil level in the infotainment system. We
think that the employees can easily check the level of the oil and add oil as needed.
If the cars oil level is low, we will top off the oil for free. We will make sure that
the employer and the employees will be required to know how to check the oil and
what to do in the case the oil level is low. If the shop is closed, and we are not
available, then we will instruct the employee or driver of the vehicle to purchase
oil at the local parts store and keep the receipt and then get credited back the cost
of the oil from our shop. We will make sure that we keep a catalog of the approved
oils that can be used for the vehicle before they buy the wrong kind of oil in the
Matt Manatrey AMGT 300-001

vehicle, as the vehicle can have catastrophic damage if conventional or semi-

synthetic is put in the vehicle.

5. The Recommendation/Implementation

Answering some of the concerns with the stakeholder concerns…

5A. Customer Concerns

a. Will their car be alright with extended interval oil changes?
a. Yes, most OEM manufacturers recommend that oil changes are
more than 3 months apart and more than 3,000 miles apart with
cars built today.
b. Will the work be warrantied in case something happens?
a. While in all cases, the oil used will meet or exceed the MINI
LL-01 standards, as long as the correct oil is used on the
engine, we will honor the warranty on it. There are tests out
there that can determine the makeup of the oil and whether or
not it was the recommended oil that is used in the car, if legal
action is pursued against us, then we will use one of these tests
to prove that the oil that came from our shop is the correct oil
that is supposed to be in the vehicle.
c. Is this really the future of oil changes?
a. Yes, as stated above, many OEM’s are switching to an
extended interval oil change and therefore this is the future of
the oil change until electric becomes the majority of vehicles on
the road. It has been proven that oils do not start to break down
until way after 3,000 miles so a 3,000-mile oil change, you are
still draining perfectly good oil!
5B. Owner’s Concerns
a. Will I make money on these extended interval oil changes?
a. Yes! While performing this oil change, we will implement a more
intense inspection on the vehicle that we can use in order to sell
more services to the customer, we will think that the increased
services will mean the same or even more money in the owner’s
pocket.
b. Will I have to purchase new tools or find new oil to put in customer’s
cars?
a. Since we are a European specialty shop, we have all the tools
needed in order to implement these oil changes in the future. We
Matt Manatrey AMGT 300-001

already supply the recommended MINI LL-01 oil that is needed

for this vehicle with the newest service label, so new oil is also not
needed for this application.
c. Will this make my shop look good compared to dealers and other shops?
a. With the future of oil changes heading towards the extended
interval oil change, we think that this will make our shop stand out
from other shops and therefore we think that this uniqueness will
attract new customers to the shop.
5C. Manager Concerns
a. Will I make enough money on these oil changes?
a. With the future heading toward these, we think that it will be a
good thing to have and we think that we will get more customer’s
in the door with this program.
b. How easy will it be to implement this into our daily shop routine?
a. It will take the same amount of time (1.2 hours) to complete this
but we only have to do this twice a year instead of 3 times a year,
so it will save at least 1.2 hours per car.
c. Will I be able to retain the jobs of technicians in order to switch over to
this extended interval oil change?
a. Yes! With the hopeful customer service upselling, we will be able
to keep the jobs of the technicians of our shop.
5D. Technician Concerns
a. Will they need to buy new tools in order to perform these?
a. No, with the current tool inventory we have, we will not be
required to purchase new tools.
b. Will I still get paid the same as doing normal interval oil change?
a. Yes, but we think the increase of customers will make up the
difference when it comes to the number of oil changes performed.
c. Will I convince the technicians that this is the future of oil changes and
this is how we are to proceed with every oil change from now on for
every customer vehicle?
a. We think with the appropriate training and demonstrations that the
technicians will be able to get convinced that the future of oil
changes is not the typical 3-month, 3,000-mile oil changes of the
past.

6. Appendices

Research
Matt Manatrey AMGT 300-001

“Synthetic Oil vs. Conventional Oil.” Auto-Related News, Trends, & Tips - I
Drive Safely. Accessed November 21, 2019.
https://www.idrivesafely.com/defensive-driving/trending/synthetic-oil-vs-
conventional-oil.

“2015 Mini Hardtop 4 Door Owner’s Manual ,” January 1, 2015.

https://www.miniusa.com/content/dam/mini/PDF/archiveownermanuals/MY15/
2015_Owner_Manual_Hardtop.pdf.

“HISTORY OF FUEL ECONOMY One Decade of Innovation, Two Decades

of Inaction.” The Pew Environmental group, April 1, 2011.
https://www.pewtrusts.org/~/media/assets/2011/04/history-of-fuel-economy-
clean-energy-factsheet.pdf.

“Shell Remains as BMW's Recommended Oil Supplier.” Shell Global.

Accessed November 21, 2019. https://www.shell.com/business-
customers/lubricants-for-business/news-and-media-releases/2018/shell-
remains-as-bmw-recommended-oil-supplier.html.

Educational materials

Alldata- Used from Ferris FLITE Library.

Detailed cost – benefit information