Electronic charge errors 650 Shipping delays 3,016 Packing errorS 1,879 Construc

Question

Electronic charge errors 650 Shipping delays 3,016 Packing errorS 1,879 Construct a Pareto diagram, and discuss the conclu- sions you may draw from it 6. Correct rejects and incorrect output: 7. Reconcile incomplete collateral report: 8. 2,243.62 $425.00 $78.34 Handle dealer problem calls; address associate problems; research and communicate information $2,500.00 12.: Classify the following cost elements into the appropriate 9. Compensate for system downtime 10. Conduct training: 519.01 $1,500.00 cost-of-quality categories, prepare a Pareto chart for the categories, interpret the results, and provide recommen- Loan Payment 1. Receive, inspect, and process payments: 2. Respond to inquiries when no coupon is $800.00 $829.65 ons Cost Element Customer complaint remakes Printing plate revisions Quality improvement projects Gauging Other waste Correction of typographical errors Proofreading Quality planning Press downtime Bindery waste Checking and inspection presented with payments: Loan Payoff Receive, inspect, and process payoff and Amount 81,000 28,000 14,000 90,000 39,000 55,000 350,000 57,000 185,000 53,000 42,000 1. $224.99 release documents: 2. Research payoff problems: $15.35 14. Describe some examples of poka-yoke in consumer products or manufacturing or service processes differ- ent from the ones cited in the chapter. 15. Refer to the automobile repair flowchart in Exhibit 7.5 in Chapter 7. Identify three activities where a potentially serious service error may occur suggest performance measures for each of these three activities in the flowchart, and describe poka-yokes that might prevent such errors from occurring. Sunshine Enterprises Case Study Mr. Gladiolus sat down at his desk and sketched out I think the waiter wrote in an extra $25 tip on my Sun- shine Café bill after I received and signed my credit card possible causes of this service upset as follows receipt," Mark Otter said to the restaurant manager, BradThe customer is responsible for adding the bill Gladiolus. "Mr. Otter, mail me a copy of the restaurant receipt and I'll investigate," responded Mr. Cladiolus."I and tipping properly, writing legibly, retaining the second receipt, and drinking alcohol responsibly have the receipt-I lost it-but I have my monthly card statement," replied Mr. Otter Mr: Claciolusthe The employee is responsible for typing the bill in the register/computer correctly, going back to the customer if the tip is unreadable and verifying the correct amount, and being honest. lesitated, then said, "Mr. Otter, I don't see any way to stigate your claim, so there's nothing I can do." CHAPTER 15:Ouality Management 333 rd INSPIRE DREAM

Explanation / Answer

1. Causes and effects

(a) Customer- illegibly written tip amount, mistake in writing tip, failure to check the exact amount. Failure to retain receipts.

(b) Employee- Unfair billing, mistake in recording the tips, wrong amount entered at the time of billing.

(c) Manager- Failure to cross verify the receipt, Failure to point and cross check a huge tip amount from customer, failure to check numerical mistakes.

The matter related to employee can be verified by examining the relevant records for the day, stages through which the document has passed, events that led to mistake and ascertaining the root cause.

2. VLC = repurchase frequency x amount spent per visit x contribution margin x billing lifecycle

The best way is to retain loyal customers and creating a good word of mouth un the customer fraternity. It will help repeat purchases and referrals, thereby increasing revenues.

3. Informal quality control system is not enough for managing 20 restaurants. It will need an comprehensive and documented point by point quality control program which will be centralised, but definable and measurable at all centres through effective control with standard operating procedures and fixed responsibilities at the units.

4. Recommendations include training, development and up Skilling of employees, centralised quality control and monitoring unit, standard operating procedures for all functions, an integrated and technology enabled purchase, HRM and CRM system to monitor service levels and driving continuous improvement initiatives. These measures will help to monitor, track, analyse, improve and effectively manage the services to live up to customer expectations.

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