2025_EML Capstone Projects

Table of Contents

1.​ SPRING 2025 Projects

1.1.​ Trek Bicycle Corporation : Adriana Garcia, Ser Andre Gonzalez & Matt Messina…………………….. 4

1.2.​ Evaluating Business Opportunities in Las Vegas : Markus Egholm……………...…………………. 26

2.​ SUMMER 2025 Projects

2.1.​ Insider Threat Detection in VA Systems Using Behavioral Analytics : Ersin Togmen……………. 44

2.2.​ Smart Inventory Management System (SIMS) for the Healthcare Industry: Ashley Isaacs………. 61

2.3.​ Mentor Link Solutions: A Hybrid Mentorship and Knowledge Retention Model : Anthony Byrd & Luai Qubain …………………………………………………………………………………………………….. 87

Engineering Management and Leadership (MS EML)

EML-595: Capstone Project Spring 2025

1

Final Capstone Deliverable Part 1: Final Report

Trek Bicycle Corporation

Group 1: Adriana Garcia, Ser Andre Gonzalez, & Matt Messina

MS in Engineering Management and Leadership, University of San Diego

EML-595: Capstone Project Experience, Spring 2025

Professor Janaki Bhatt

April 7 th , 2025

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Table of Contents

Introduction & Problem Motivation ............................................................................................................. 3

Problem Statement ....................................................................................................................................... 4

Background and Literature Review............................................................................................................... 5

Project Plan and Timeline ............................................................................................................................. 6

Data Collection and Analysis ......................................................................................................................... 7

Feasibility Analysis and Solution Selection ................................................................................................... 8

Risk and Change Management ..................................................................................................................... 9

Implementation and Results ....................................................................................................................... 11

Recommendations and Improvements ...................................................................................................... 12

Conclusion................................................................................................................................................... 13

Appendices.................................................................................................................................................. 14

References .................................................................................................................................................. 21

3

Trek Bicycle Corporation – Final Report

Introduction & Problem Motivation

In the competitive bicycle manufacturing industry, efficiency in service operations is crucial for

maintaining profitability, customer satisfaction, and long-term success. This capstone project focuses on

a project plan for improving the Suspension Service Transfer Process at Trek Bicycle Corporation by

analyzing delays and inefficiencies in transferring suspension components from Trek’s North American

stores to its four Suspension Service Centers, with a primary focus on Kearny Mesa, San Diego, and

Stirling, New Jersey locations. The existing process, including intake, service, and final cash-out at the

originating store is currently slow, negatively impacting both customer experience and store

profitability. By evaluating root causes such as inconsistent vendor communication, inventory

management gaps, and inefficient service workflows, this project aims to provide actionable

recommendations to restructure operations and improve Trek’s overall service model.

This problem is significant across multiple disciplines, each playing an important role in

improving Trek’s Suspension Service Transfer Process. From a management perspective, the issue

highlights how decision-making impacts service logistics, vendor relations, and inventory strategies. A

well-structured approach to vendor coordination and bulk ordering can reduce lead times, prevent part

shortages, and improve cash flow through better resource allocation. Leadership is equally important, as

effective leaders drive operational improvements by developing better communication between service

centers, vendors, and retail stores. Encouraging data driven decision-making and actively listening to

frontline employees can improve process efficiency and create a more responsive service model. While

this is not purely an engineering problem, process optimization and inventory forecasting play an

essential role in restructuring workflows. Implementing a more structured, data driven system for

stocking high demand parts can reduce delays and improve service predictability, ensuring a smoother

and more reliable customer experience.

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Addressing these inefficiencies is essential not only for Trek but also for the broader industry,

where service logistics and vendor management present ongoing challenges. By refining the Suspension

Service Transfer Process, Trek can enhance customer satisfaction, increase profitability, and strengthen

its competitive position in the market.

Problem Statement

Trek Bicycle Corporation faces inefficiencies in its Suspension Service Transfer Process, which

negatively impact service speed, customer satisfaction, and store profitability. The current process for

transferring suspension components from Trek’s North Am erican stores to its four Suspension Service

Centers is slower than optimal, causing delays from intake to final cash-out. These inefficiencies stem

from inconsistent vendor communication, inventory management challenges, and process bottlenecks,

all of which contribute to longer turnaround times and increased operational costs. This project goal is

to analyze and address key managerial and operational challenges affecting the Suspension Service

Transfer Process. By examining vendor relations, bulk ordering strategies, inventory stocking methods,

and service workflows, this study will provide data-driven recommendations to streamline operations,

improve efficiency, and enhance Trek’s overall service model.

The scope of this project focuses primarily on the managerial and logistical aspects of Trek’s

Suspension Service Transfer Process rather than the technical engineering details of bike repairs. The

analysis will cover service center efficiency, with particular attention to Kearny Mesa, San Diego, and

Stirling, New Jersey, where operational challenges are most evident.

However, there are limitations to this study. The project does not include an in-depth technical

analysis of suspension system repairs, as its primary focus is on service logistics and management.

Additionally, the study is limited to North American servic e centers and does not assess Trek’s global

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operations. While financial considerations will be discussed in terms of efficiency improvements and

cost reductions, a full financial model of cost savings is beyond the scope of this analysis.

By refining Trek’s Suspension Service Transfer Process, this project aims to increase efficiency, reduce

turnaround times, and improve overall customer experience, ensuring that Trek maintains its

competitive edge in the bicycle industry.

Background and Literature Review

Trek is known for its mountain bikes featuring full or rear suspension systems (Trek Bicycle

Corporation, n.d.). These components, used across 15 models (see Table 10), are sourced from third

party suppliers such as Fox, RockShox, Manitou, and Suntour. Tre k’s Suspension Service Centers offer

tuning, modifications, and refurbishments to the front forks and rear shocks of Mountain Bikes. While

the industry standard for suspension turnaround is around 72 hours, many service providers, like Fluid

Focus, simplify the process with pre-paid shipping labels and fast scheduling (Fluid Focus, n.d.). Fox

Factory also advertises short service times due to strong parts availability (Fox Factory, n.d.).

Competitors like Specialized and Giant rely more on external service partners. Specialized’s

suspension turnaround can exceed 2.5 weeks (MTBR, n.d.), and Giant’s warranty process may take 4– 6

weeks, depending on vendor involvement (Singletrack Magazine, 2021). These extended timelines

highlight the potential inefficiencies in third-party servicing models.

In contrast, Trek’s model involves customers dropping off bikes at local dealers, who then ship

suspension components to centralized service centers. This extra step adds complexity and may extend

turnaround time, especially during peak seasons or when pa rts are delayed. Trek’s in -house service

centers offer a key advantage: vertical integration. Unlike competitors, Trek can standardize procedures,

reduce delays, and directly manage vendor relationships, offering better quality control, operational

visibility, and potentially faster service.

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Despite service benchmarks in the industry, little research explores optimization of internal

service centers within vertically integrated brands like Trek. Most literature focuses on local shops or

outsourced servicing, not on centralized, manufacturer-ru n operations. There’s also limited insight into

how digital intake systems, inventory tracking, and vendor integration impact performance across multi

location service models. While some shops use online forms, few solutions fully integrate with back-end

systems like DOTS. Additionally, previous internal research conducted by Trek for this project explored

the feasibility of outsourcing suspension services to a third-party vendor. However, this approach was

found to be cost-prohibitive due to increased shipping costs and logistical challenges for both Trek

dealers, suspension suppliers, and customers.

Project Plan and Timeline

The Project will be sponsored by Trek’s Chief Operating Officer and a PM appointed on April 1.

After planning, the project will formally kick off on June 1 and end on the Digital Intake form Launch day

(Figure 1). From there the project will transition to Product Management under a fully Agile framework,

with the Project Manager acting in a Product Owner role managing the future development of the forms

and processes with quarterly updates. The Project Manager will report to the Chief Operations Officer to

communicate the business value of the Digital Intake Process Portal each month. The features for the

project and their planned releases are shown in Table 2. The IT and Development teams will operate in

2-week sprints; the features with individual tasks (called User Stories) are projected in Sprints with the

dates. This team will follow the Agile principles and conduct the Agile ceremonies such as Sprint

Planning, Daily Stand Up, Refinement, Sprint Reviews and Sprint Retrospectives. These meetings will

allow the Project Manager to monitor the project progress during the Daily Stand Up and perform any

corrective actions during Sprint planning. The Minimum Viable Product (MVP) testing and employee

training plan will commence together. The employee training plan should start with an overview of the

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new process, assigned responsibilities, and how it aligns with all the stakeholders’ objectives. Starting

July 1st, the selected individuals will partake in the hands-on sessions outlined in Table 9. Additional

support and feedback mechanisms will be in place to address any challenges and as the project

progresses, we will measure success through our KPIs (Table 10).

Data Collection and Analysis

To understand inefficiencies in the Suspension Service Transfer Process, data was gathered from

a range of sources. Primary data came from interviews with Trek technicians, service managers, and

inventory staff, along with a structured survey sent to Trek stores using the suspension service. This

feedback captured issues related to service delays, process gaps, and inventory challenges. Additional

input from managers across multiple locations further clarified service bottlenecks. Secondary data was

extracted from the Dealer Online Tracking System (DOTS), including metrics on work order volume,

turnaround times, technician workload, inventory levels, part deliveries, and backorder rates. Historical

service demand and customer feedback were also analyzed to identify recurring disruption patterns.

A mix of qualitative and quantitative methods supported the analysis. Process mining was used

to visualize workflow inefficiencies. Pareto analysis identified the most common root causes of service

delays, while ABC analysis prioritized inventory items linked to downtime. Supplier performance was

evaluated through lead time tracking and control charts, and time series forecasting helped anticipate

demand shifts and improve inventory planning.

Collaboration with Trek’s Stirling, New Jersey and Kearny Mesa, California service centers

revealed regional trends. In New Jersey, demand surged in spring and summer due to seasonal cycling

patterns, while San Diego experienced stable, year-round demand. These differences shaped a broader

understanding of system-wide inefficiencies.

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The analysis found that the average suspension service turnaround time was 122 hours, with a

standard deviation of 89 hours, indicating high variability of service. Key challenges included inventory

shortages, inconsistent vendor communication, and non-standardized workflows across locations. These

issues were validated through feedback sessions with Trek employees, which were key to ensuring

findings aligned with observations at the service center level and supported the development of

targeted, practical recommendations.

Feasibility Analysis and Solution Selection

After collecting data and collaborating with Trek’s employees, a decision -making framework

evaluated three main solutions. Each was assessed using a Decision Matrix, (Table 4) and underwent a

SWOT analysis, (Table 5) to determine its feasibility based on cost, time, scalability, and long-term

impact. The proposed solutions included implementing a standardized inventory management system,

digitizing and standardizing intake forms, and establishing a centralized packaging and shipping station.

The first potential solution, a standardized inventory management system, aimed to optimize

inventory control, minimize delays, and improve vendor coordination with Fox and RockShox partners.

While this solution would enhance real-time tracking and reduce inefficiencies, it required a significant

upfront investment in software development, employee training, and integration. Additionally, the

implementation timeline was long, delaying short-term benefits. Although this solution offered long

term scalability, its high cost and complexity made it less viable for immediate improvement.

The second alternative, digital intake form standardization, focused on improving vendor

communication by reducing processing errors and streamlining service kit selection. This solution

leveraged Trek’s existing Dealer Online Tracking System (DOTS), requi ring minimal financial investment

and a short implementation period of one to two months. While minor employee training was

necessary, the benefits of improved accuracy, reduced delays, and enhanced service logistics

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outweighed these challenges. Its seamless integration into Trek’s current digital infrastructure made it a

highly feasible and cost-effective option.

The third proposed solution, a centralized packaging and shipping station, aimed to optimize

logistics by reducing unnecessary movements, improving inventory control, and enhancing cross-facility

support. However, this approach introduced additional shipping costs of $16 – $20 per package,

potentially impacting profit margins and customer retention. Furthermore, facility limitations and

fluctuating inventory demand posed significant risks to long-term sustainability.

After evaluating all three alternatives, digital intake form standardization emerged as the most

practical and effective solution. This option aligned with Trek’s long -term goals by offering cost

efficiency, scalability, and seamless integration with existing systems. Unlike the inventory management

system, which required substantial investment, or the centralized shipping station, which introduced

financial risks, digital intake standardization provided an immediate and low-cost improvement to

vendor communication and service efficiency. While minor resistance to change and training

requirements were anticipated, the overall benefits far outweigh these challenges. By implementing this

solution, Trek Bicycle Corporation can enhance operational efficiency, streamline vendor management,

and achieve long-term service improvements with minimal disruption.

Risk and Change Management

The risk management strategies focused on identifying and prioritizing potential risks to the

project. The overall goal of our approach was to minimize the likelihood of the project failing from

operational risks. The several risks that would significantly impact the project success were employee

resistance to change, system integration, vendor adaption, and costly project delays. Ultimately, the

project manager and scrum master would monitor the development and soft launch of the project to

provide technical support. The original strategy was to provide individual training for each location

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independently and not for vendors. However, this led to an overwhelming amount of inconsistency that

required higher than expected assistance to each location that limited resource availability to the

project. This outcome led to the recommendation of aligning vendors and locations together in the

training plan. Additionally, the number of employees involved was reduced to lower costs and increase

efficiency as training would focus on training the trainer. After the selected employees finish their

training, they have the ability to conveniently train employees at their location. This approach would

lead to a deeper focus of training with a faster adoption of grasping the new process.

The change management application focused on the risk associated with employees' resistance

to adopt the new processes. A PDCA continuous improvement plan was the preferred method because

it is a continuous cycle that ensures the digital process is implemented, monitored, and refined to any

changing needs. The training process and pilot testing timelines were extended because there were

unexpected outcomes that generated since the training was done independently and not jointly. Vendor

integration retained a significant challenge, with some suppliers struggling to adapt. To improve the

training process a help desk should be implemented directly to the project team to assist employees

with the new process. However, training and support were not adequately managed with these

decisions and led to an increased sense of frustration among employees that did not fully understand

the new process. As the training did not initially support all employees, it led to a slow adoption overall.

Monitoring and execution for tracking project KPIs included overwatching training sessions

during the hands-on and real-time demonstrations by store managers, vendors, and the project team.

The real-time simulated expected scenarios that employees would encounter. The revised training plan

called for feedback from employees which would identify gaps in the training at different locations for

the specific circumstances. The active participation and overwatch of training helped understand how

employees were interacting with the new process and it reinforced key concepts immediately. Lastly,

the project team employed an agile and scrum framework, using sprints to accelerate the delivery of

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software. This approach allowed for continuous feedback from the iterative development as the project

evolved to the refining expectations.

Implementation and Results

This project will follow a traditional waterfall structure, with key milestones outlined in Table 3.

The IT and Development team will use Agile DevOps practices, working in two-week sprints to deliver

updates within the larger waterfall plan (Rao, 2023). Implementation will begin simultaneously at the

Suspension Service Centers. The contracted development team will work remotely to build and

integrate the new digital forms into Trek’s Dealer Online Tracking System (DOTS).

To ensure successful execution, the team (Table 1) will monitor progress and track Key

Performance Indicators (KPIs) listed in Table 10. These KPIs are based on the problem statement,

proposed solution, identified risks, and operational pain points. The Project Manager will oversee

performance tracking and provide updates in standups and project reviews with Trek employees,

dealers, and vendors such as RockShox and Fox. The PM will also deliver regular weekly updates to the

stakeholders (Table 2).

Quantitative metrics such as turnaround time, work order volume, and technician utilization will

be collected from DOTS, timekeeping systems, and internal logs. Training adoption rates will be tracked

via Trek’s internal platform. Qualitative data will inc lude employee interviews, customer surveys, and

vendor feedback collected during sync-ups. Post-training surveys and observational tools like spaghetti

maps will be used to assess training effectiveness and identify workflow issues. Sources in Table 9.

Although the project is not yet implemented, the team has anticipated key feedback and

challenges. Employee resistance and discomfort with new systems will be addressed through phased

training, hands-on demos, and peer mentoring, with pilot feedback informing adjustments. Vendors may

struggle with the transition to digital workflows, so targeted onboarding, clear documentation, and

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incentives will support adoption. While customers are expected to see improved turnaround times,

some service centers may still face delays due to resource constraints, prompting staffing evaluations.

Concerns about cost and integration timelines will be mitigated with a detailed cost-benefit analysis and

a staggered rollout, beginning with key personnel during low-impact periods.

Recommendations and Improvements

The recommendations to improve inefficiencies in Trek’s suspension services transfer process

stem from stakeholder training and feedback, supported by the standardized digital intake form. By

continuously evaluating processes, stakeholders can streamline workflows together, reduce costs, and

increase productivity. Collaboration between vendors ensures that the sprint goals are met when there

is a clear understanding of the agile metrics. Additionally, it helps from a cost perspective when training

sessions for both parties are conducted simultaneously.

Joint training on new programs with vendors is crucial for ensuring smooth collaboration and

alignment between both parties. It is also beneficial to have a joint training program for both parties at

the same time as it can reduce costs and build relationships. Joint training can open communication as

the companies build trust from interacting. The desired outcomes would demonstrate to vendors that

Trek is dedicated to the long-term partnerships from the increased commitment and responsibility from

this investment. This can be accomplished when both the companies are trained together and foster a

shared understanding between the different perspectives of the internal processes. Collaborative

learning environment would promote open communication that would lead to understanding others

perspectives to eliminate knowledge gaps. Ultimately, joint training would help ensure that everyone is

on the same page, and it would lead to more effective problem-solving with the desired outcome of the

agile alignment with the adoption of new technology and system implementation.

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Conclusion

The nature of extreme cycling demands the highest performance standards from its

components. Cyclists often push the limits of their bikes and experience unexpected breakdowns just

before a competition or a race. Trek’s significant demand to provide sponso red cyclists and enthusiasts

with a reliable shipping service can reduce customer anxiety. Fast shipping and proper inventory

management ensures that cyclists do not miss out on the opportunities and competitions they have

spent years training for.

A Decision Matrix and SWOT analysis determined the feasibility and risks associated with each

solution to establish a digital intake form standardization and standardized inventory management. This

option supported the long-term objectives by delivering cost efficiently and integration with existing

systems. In contrast to inventory management systems, which demanded significant investment, or the

centralized shipping station, which posed financial risks. The digital intake standardization offered a

rapid, low-cost enhancement to vendor communications and service efficiency. The highest ranked risk

associated with this solution was the training program and employee resistance to the process change.

Focusing on employee training was crucial when implementing the new process because providing

standardized training helps maintain uniformity and minimizes resistance to change.

Overall, maintaining operations internally rather than outsourcing to third party vendors

increases control and consistency with direct oversight of the processes. Standardization becomes

consistent as internal teams foster stronger communication and collaboration between all stakeholders.

Additionally, the leveraging of existing DOTS platforms at Trek locations enables them to scale this

model to other locations. The adoption of standardizing digital intake forms between vendors and Trek

Bicycle Corporation will ensure a faster service delivery and improve inventory management to increase

customer satisfaction.

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Appendices

Table 1 - Trek Project Stakeholders

Title

Role

Trek, COO

Project Sponsor

Adriana Garcia

Project Manager

Matt Messina

Technical Specialist

Andre Gonzalez

Research Specialist

Trek, Enterprise IT

Stakeholder

Rockshox, Vendor Operations

Stakeholder

Fox Racing Shox, Service Division

Stakeholder

Trek Kearny Mesa

Stakeholder

Trek Stirling

Stakeholder

Table 2 - Trek Project team and locations

Kearny Mesa, CA Team

Stirling, NJ Team

Developer Team

2 Suspension Technicians

1 Suspension Tech (part time)

1 Full Stack Developer (Contract)

2 Parts Coordinator

1 Parts Coordinator

1 Systems Integration Designer (Contract)

2 Shipping receiving clerk

2 Shipping receiving clerk

1 UI/UX designer (Contract)

1 Service Intake coordinator

1 Service Intake coordinator

1 QA/Test Automation engineer (Contract)

1 Customer Service Rep

1 Customer Service Rep

1 Tech Lead (Trek IT)

1 Service Center Manager

1 Service Center Manager

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Table 3 - Project Milestones

Date

Milestones

April 1

Project Charter signed by Chief Operations Officer, endorsed by CEO, Project Manager formally appointed.

April 1

Project Planning Begins.

April 22

Project planning ends, Project Kick-off and Execution starts, vendor and contract selection start.

June 1

Standardized Intake Forms and Digital Processing development begins under the Agile and Scrum Framework

June 15

Build out the DOTS API integration with the new forms

July 1

Minimum Viable Product (MVP) Reached, MVP testing starts, Onboarding Suspension Service Centers.

July 1

Phased Employee Training and Development Begins

July 15

Launch Features Completed, MVP testing completed, Training completed

August 1

Digital Processing Forms Launch, Project Ends, Agile and Scrum development continues.

2025 Q3

Additional features update v1.1, launch Employee Survey

2025 Q4

Additional features update v1.2, Collect Survey Data for features update v1.3/v1.4 in Q1/Q2

Table 4 - Decision Matrix

Criteria: Worst=1, Good=2 and Best=3

Potential Solutions

Cost

Implementation time

Feasibility Long-term impact

Scalability

Standardized Inventory Management Standardization and Digital Processing

1

1

3

3

3

2.6

2

3

3

2.2

Centralized Packing & Shipping Station

1.3

2

2

2.3

2

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Table 5 - SWOT Analysis

Strengths

Weakness

Opportunities

Threats

Standardized Inventory Management System

Reduces inventory shortages and excess. Improves vendor communication and efficiency. Minimizes delays due to missing parts. Reduces processing errors and delays. Ensures accurate service kit selection. Minimizes back and forth communication with customers and vendors Requires low investment and utilizes existing Trek systems (DOTS).

Long Development and testing time. Initial investment in software and training.

Scaled across Trek stores for standardized processes. Integrate with existing Dealer Online Tracking System for increased operational efficiencies. Can be integrated with inventory management systems for end-to-end efficiency. Scalable across Trek’s service network, improving operations company-wide.

Resistance to process changes. Potential integration issues with current systems.

Standardization and Digital Processing

Requires minor employee training. Potential adjustment period for stores transitioning from manual forms.

Employee resistance to adopting digital tools. Potential system integration issues with current workflows.

Centralized Packing & Shipping Station

Simplifies structural layout. Inventory control &

Initial startup costs. Delivery costs reduce profitability.

Streamline operations. Improve customer satisfaction & retention.

Facility Limitations. No Demand for inventory. New Products. New company disrupts marketspace & demand.

management. Cost Effective Reduces surplus inventory Increases delivery time.

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Table 6 - Digital Intake Form Planned Releases and Features

Features at Launch - v1.0 Standardized Intake Forms & Digital Form Processing*

DOTS integration

Vendor Parts/Inventory/Supply integration*

Features in v1.1

Customer-facing Status and tracking portal

Features in v1.2

Point of Sale Device Integration

Features in v1.3 Shipping integration with FedEx/UPS/USPS Note: * depicts features that meet the Minimum Viable Product (MVP).

Table 7 - Revamped Employee Training Plan

Training Phase Event

Description

Time

Stakeholders

Introduction

Kick-off

Communicate the need and goals

2 hrs

All employees

Phase 1

Personnel

Select key personnel

1 hrs

Managers & Project Team

Phase 2

Preparation

Organize workspace for implementation In-depth walkthrough of systems features

8 hrs

All employees

Phase 3

System Overview

8 hrs

Selected Personnel & Managers Selected Personnel & Project Team Selected Vendors and Trek employees

Phase 4

Practice

Hands-on training and rehearsals

8 hrs

Phase 5

Live Kickoff

Vendor and Trek Session pilot testing

4 hrs

Phase 6

Improvement

Identify flaws and troubleshoot issues

48 hrs

Key employees

Phase 7

Review

Provide feedback and help desk support

2 hrs

Key employees

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Table 8 - Key Performance Indicators

KPI

Category

Definition

Target

Data source

Notes

Average Turnaround Time (TAT) % of Jobs Completed Within 72 Hours

Avg time from work order intake to completion Percentage of work orders completed within industry standard Total number of service jobs received/completed per period Percentage of jobs completed without rework or return

72 hours is the industry standard, Trek is currently averaging 135 hours

DOTS, Service Centers

Operations

72 hours

90% of jobs should have a less than 72 hour turnaround time

Operations

90%

DOTS

Work Order Volume

Track over time

Operations

DOTS

Standard Service Metric

First-Time Fix Rate

Operations

95%

DOTS

Standard Service Metric

Technician Utilization Rate

Percentage of available tech hours spent on active repair 80-90%

HR, Timekeeping

Operations

Standard Service Metric

Time a job waits before technician begins service

Average Queue Time

Operations

Minimize

Digital Tracking Standard Service Metric

With the development of the new forms, all intake work should use the forms. The 5% that are exceptions will be considered during feedback to improve forms.

Digital Form Adoption Rate

% of service forms submitted digitally vs. manual % of digital forms submitted with missing or incorrect info

New Form System

Operations

95%

Standardization of this process is expected to minimize errors

Error Rate in Submissions

Quality Assurance

Operations

<2%

All employees at the suspension service centers and dealers will be trained on the new forms.

Training Completion Rate

% of employees trained on the digital platform

100% in first month

Trek Training System

Operations

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The new forms goal is to increase communication with the vendor to ensure that supply of parts are available at the trek service centers The new forms goal is to increase communication with the vendor to ensure that lead time of parts are kept to a minimum Additional metric to track how well we are communicating with the vendors After completing a service, a customer fills out a survey forms which will be collected and assessed for feedback on a scale of 1-5 After completing a service, a customer fills out a survey forms which will be collected and assessed for feedback

Inventory/

Work Orders Requiring Special Order Parts

Percentage of jobs delayed due to missing parts

Order management System

As low as possible

Vendor

Average time vendors take to fulfill part orders

Supplier Lead Time

Inventory System

Vendor

Minimize

Procurement/

Percentage of part orders not fulfilled immediately

Backorder Frequency

Inventory System

Vendor

Minimize

Customer Satisfaction Score (CSAT) Customer

Post-service survey score from customers 4.5 to 5

Survey Platform

Net Promoter Score (NPS)

Likelihood to recommend service (customer loyalty)

Positive NPS

Survey Platform

Customer

Table 9 - Qualitative Data Collection

Qualitative Area

Data Source

Collection Method

Comments on ease/difficulty using digital forms Free-text feedback from service surveys Notes on delays, misunderstandings, or manual errors Staff opinions on training clarity and support Descriptions of frequent or unclear steps

Employee Adoption Feedback

Surveys, focus groups, interviews

Customer Experience

Survey open-ended responses

Vendor Communication Challenges

Interviews with Trek and vendor reps

Training Effectiveness

Post-training feedback forms

Employee interviews, spaghetti maps, observations

Process Bottlenecks

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Table 10 - Trek’s Suspension Bicycle Models

Model Name

Price Range (USD)

Suspension Type Full Suspension Full Suspension Full Suspension Full Suspension Full Suspension Full Suspension Full Suspension Full Suspension Full Suspension Front Suspension Front Suspension Front Suspension Front Suspension Front Suspension Front Suspension

Suspension Manufacturer

Supercaliber

$4,799.99 - $12,499.99 $3,999.99 - $11,499.99

RockShox (IsoStrut)

Top Fuel

RockShox, Fox RockShox, Fox RockShox, Fox RockShox, Fox RockShox, Fox RockShox, Fox

Fuel EX

$2,699.99 - $9,499.99

Remedy

$3,299.99 - $7,499.99 $4,199.99 - $8,499.99

Slash

Session

$4,999.99 - $7,499.99

Fuel EXe (Electric)

$6,499.99 - $13,999.99

Rail (Electric)

$5,499.99 - $12,499.99

RockShox, Fox

Powerfly FS (Electric) $4,499.99 - $6,499.99

RockShox, SR Suntour

Marlin Series

$579.99 - $1,299.99

SR Suntour RockShox RockShox RockShox RockShox

X-Caliber Series

$1,099.99 - $1,659.99 $1,199.99 - $2,699.99 $2,199.99 - $4,499.99

Roscoe Series

Procaliber Series

1120

$2,999.99

Farley Series

$1,799.99 - $3,499.99

Manitou

Figure 1 - Project Gantt Chart

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Evaluating Business Opportunities in Las Vegas Markus Egholm EML-595: Capstone Project Experience, Spring 2025 Instructor: Janaki Bhatt April 07, 2025

Table of Contents 1. Introduction and Problem Motivation​

2 2 2 3 3 3 3 3 4 4 4 4

2. Problem Statement​

3. Background and Literature Review​

4. Project Plan and Timeline​ 5. Data Collection and Analysis​

6. Feasibility Analysis and Solution Selection​

7. Risk and Change Management​ 8. Implementation and Results​

9. Recommendations and Improvements​

10. Conclusion​

Acknowledgments​

References​

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1.​Introduction and Problem Motivation

The project or opportunity, rather, is something that I had actually been quite curious about and utilized this capstone project to explore this opportunity as well as show what I have learned over the course of this master’s program. The purpose of this project is to evaluate the purchase of three distinct franchises within Las Vegas. I used a general businesses for sale type website to help me locate businesses to buy from and stuck to that source to choose options from. Another aspect to doing this analysis is that I can create an overall framework that I could apply to any other business in the future. The three businesses I evaluated were a nutrition supplement store, a pilates studio, and a physical therapy practice. These businesses were chosen based on. The selected businesses were based on trying to choose different industries, at three different prices (low, medium, and high) and also factor in personal interest. I will acknowledge that this is far more focused on the management end of the spectrum than the engineering or technology side. However, technical aspects were factored into my project through the different evaluation methodology and data collection techniques I used. The project is important in that it is very practical and within my skills to potentially pursue someday. I really wanted this capstone project to be as realistically applicable to my life as reasonably possible. This was a way for me to extract tangible value from this program in a meaningful way that may impact my life in the future.

2.​Problem Statement

The problem statement as described, and refined, earlier in this project is as follows: ​

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Las Vegas’s economy is often associated with tourism and hospitality, however public data suggests it also experiences robust population-driven demand, which boosts local business prospects. Therefore, I want to identify, compare, and ultimately select one business opportunity from a pool of three potential franchise or small business options currently for sale in Las Vegas. These franchises will be selected based on demand for the service, price (one low, one medium, one high cost), and personal interest. Each opportunity must be evaluated against critical factors, including upfront financial investment, ongoing operational requirements, and potential market viability within the local economy. Additionally, the chosen franchise or business should align with the project’s overarching goal: determining whether ownership is both practical and profitable, given my parallel commitments. 3.​Background and Literature Review The research conducted for this capstone project was comprehensive but focused solely on publicly available information related to the businesses. The information collected were focused on industry reports related to the different good and services provided by each business, government and market data that was available and deemed to be relevant, and the individual franchise listings. The preliminary theory was that the physical therapy practice and pilates studio would not be as good of a business as the nutrition supplement store. This theory was based primarily on personal bias and desire to run one of these stores. However, after the different analysis strategies (discussed later) my opinion was altered. After the analysis conducted over the course of this capstone project I ultimately came to the conclusion that the pilates studio afforded the best business opportunity amongst the three businesses. The primary knowledge gaps related to this project come from two sources. The first source is the lack of specific information related to the business listed for sale. Information is obtainable for a price, however I elected not to purchase this information because I want this iteration of this analysis to be a trial run in which I can obtain feedback from my classmates, instructor, and mentor prior to conducting the analysis again. The second source of my knowledge gap comes from my lack of experience running and owning a business. I believe that

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I am missing out on analyzing and factoring in important components simply because I am unaware. I am hoping to develop a deeper understanding of running a business through my mentor and potentially smaller opportunities that may come in the future prior to pursuing this venture.

4.​Project Plan and Timeline

The project timeline is shown in the Gantt chart below. The chart identifies the different phases of this project broken down into tasks or deliverables.

The phases of the project are as follows: ​ ​ Phase 1:

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​ In this phase the goal was to identify the scope of the project. This goal was further broken down into generating project ideas, seeking feedback, finalizing a project statement (stated above), and creating a data collection plan.

Phase 2: ​

In this phase I worked to create a delivery decision making framework. This framework was constructed through the use of a SWOT analysis on each business and a singular decision tree for the businesses. These results were then interpreted and presented as my decision making framework for this opportunity. Phase 3: ​ In this phase I created a change management plan. To be able to create a change management plan I started by evaluating the project up until this point, identifying weak points or areas for improvement. I then applied the ADKAR model to provide a structured approach to reevaluating my decision up until this point with the potential to adjust my project’s direction. Phase 4: ​ In this phase I defined several KPI’s that I deemed to be significant measures of the effectiveness of this project. I summarize different feedback I had received from several sources including my peers (although lacking due to my terrible performance on discussion boards), my professor through comments on my submissions, my mentor, and myself. I utilized this information to then help develop an improvement plan.

Phase 5: ​

In this phase (current phase) I am working towards compiling the data and results I have generated over the course of this project into a final paper, powerpoint presentation, and video presentation. The goal in this phase is to summarize my results effectively and provide a clear recommendation.

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5.​Data Collection and Analysis

​ The source of my data over the course of this capstone project was from publicly available information related to the type of business I was researching, business trends within the Las Vegas area, generalized business information related to the government and market data, and lastly the available information on the business listing. ​ The method I used to collect data was based on a priority of information, the order of priority was as follows, specific information related to revenue and profitability metrics was the most valuable information in that it gave me direct insight into the business’s performance that I could then compare with the other alternatives, market demand trends to help me project into the future, startup and operational costs which would help me to establish different baselines for expenses that I could help estimate net profits, and competitor information that I could use to evaluate the competition for each alternative. ​ Some key findings are shown in the table below.

Franchise Type

Revenue Potential

Net Profit Margin

Market Growth

Startup Costs

Supplement Store

$500K–$900 K $500K–$900 K $750K–$900 K

$180K–$500 K $200K–$450 K $100K–$500 K

Moderate (2.5%)

5–15%

Pilates Studio

10–20%

High (8–11%)

PT Practice

14–15%

Strong (6%)

This table shows the different revenue, net profit margin, startup costs, and market growth giving me valuable information to compare against when performing my decision making analysis and change management analysis.

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