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Practicum November 16, 2006

Practicum November 16, 2006. Group 4 Jeff Dittman, Bret Haney, Ryan Knapp and Elizabeth Wong. We’re all about home. About Our Organization. Founded in 1919 by David E. Urner Small, family-owned business Fewer than 100 employees

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Practicum November 16, 2006

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  1. PracticumNovember 16, 2006 Group 4 Jeff Dittman, Bret Haney, Ryan Knapp and Elizabeth Wong

  2. We’re all about home

  3. About Our Organization • Founded in 1919 by David E. Urner • Small, family-owned business • Fewer than 100 employees • Among top 100 appliance dealers in the nation – TWICE Magazine • Provide wide range of products • Professional delivery and installation • Service Center

  4. Customer Satisfaction is our Goal • With each step of our process, we strive to achieve complete customer satisfaction • Establish a personal relationship with the customer • Custom-designed orders • Custom installation • Same-day or next-day delivery • Professional repair and service

  5. Sales Appliances Contract Sales Electronics/Furniture Cashier/Credit Tender Payment Financing Applications Accounting Monthly Statements Refunds Due Warehouse/Delivery Pick-up Products Standard Delivery Custom Installation Parts/Service Repair Defective Products Sell Parts Administration Resolve the problems that arise from above Outlining our Process

  6. Urner’s Service Blueprint Yes Customer arrives @ store Customer provides information Begin search Decide to buy? Yes Receives product Product ok? Happy Customer Customer No No Contact service Exit Greet customer Request information Takes customer to floor Right product? Completes sales discussion Salesperson Yes No Exit Finance No No Cashier/Finance Discuss method of payment Cash or finance? Qualify? Pay cash? Exit Cash Yes Yes Warehouse/Delivery Arrange delivery Deliver product The service blueprint shows how the customer and service provider interface at each step of the service delivery process. Each point on the blueprint is a “moment of truth”

  7. Current Survey

  8. Customer DissatisfactionWhat are the biggest culprits? • Delivery (45%) • Service (35%) • Sales (10%) • Cashier (5%) • Accounting (5%)

  9. Use of Cause and Effect Diagrams to Identify Potential Causes of a Problem Typical Cause and Effect Diagram (a.k.a. Ishikawa or fishbone) People Materials Problem Methods Equipment Environment CAUSES EFFECT The major purpose of the cause and effect diagram is to identify the relationships that exist between each of the various causes and to determine their overall effect on the problem

  10. Delivery and InstallationIshikawa (fishbone) Chart

  11. Delivery Analysis • Employees (50%) • Merchandise (30%) • Transportation (10%) • Equipment (5%) • Scheduling (3%) • External Factors (2%)

  12. Potential Causes Material shortages Supply problems Customer expectations Weather Solutions develop close relationships w/ suppliers consider reliability when selecting suppliers Manage expectations by clearly defining delivery needs Monitor weather and road conditions and adjust as needed External Factors

  13. Potential Causes Absent employees Incomplete information Full Schedule Emergencies Long delivery window Solutions Develop rapid employee backup schedule Utilize standard form and have clerk repeat directions Develop “priority delivery” process (paid by customer) Quick customer notification Lean out delivery routes to narrow window Scheduling

  14. Potential Causes Workers call in sick; not enough drivers Damaged products during stocking Damaged products during delivery to customer Traffic causes late delivery Transportation equipment failure Solutions Develop rapid employee backup schedule Develop training for properly stocking products Develop procedures for correct, quality deliveries Schedule PM deliveries to offset backlog of AM deliveries Do preventative maintenance Transportation

  15. Potential Causes Suppliers deliver products late Employees order wrong products Products arrive in delivery damaged Employees mishandle and damage products Merchandise fails in showroom due to lack of quality Solutions Develop forecasting system Develop “double checking” ordering system Communicate problem with supplier Train employees on proper product handling procedures Analyze origin of lack of quality; possibly change vendors Merchandise

  16. Potential Causes Lack of training Improper Maintenance Wrong Equipment Solutions Knowledge & Content (OTJ or generic) Avoid Injuries Keeping on basic upkeep of machinery Calibrate machinery Document any problems Proper planning when moving large items Equipment

  17. Potential Causes Entry Level: under the age of 25, Don’t have the right attitude Improperly Motivated Solutions Give more responsibilities. Allow employees to grow. Offer Incentives Empower Employees Employees

  18. Programs currently used Safety Token Reward System If an employee is caught doing something right to prevent an injury or not to damage products, tokens are handed out and can be redeemed. Employees

  19. Programs currently used Point System Payment Driver are paid on points, not hourly Timeliness of delivery No Damage Correct Paperwork If any of these is not completed, they are not paid fully. Employees

  20. Develop More Comprehensive Customer Survey Implement Solutions based on highest factors of dissatisfaction (80%) Employees (50%) Merchandise (30%) Expand Incentives Program Employee of the Month Recognition dinners Rewards for being proactive Empower Employees Our Recommendations

  21. Questions?

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