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CUSTOMER SERVICES. Three C’s. CUSTOMER. VALUE. COST DIFFERENTIAL. COMPANY. COMPETITOR. Definition And Scope. Process For Providing Significant Value-added Benefits To The Customer In An Efficient Way Activity Performance Phil.Of Mngt . - PowerPoint PPT Presentation
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CUSTOMER SERVICES
Andary A Munita Hanafiah
Three C’s
COMPANY
CUSTOMER
COMPETITOR
VALUE
COST DIFFERENTIAL
Definition And Scope
Process For Providing Significant Value-added Benefits To The Customer In An Efficient
Way
Activity Performance Phil.Of Mngt.
Process Efficient Customer- Focused
Stage Of Process
1. Pre Transaction 2. Transaction
3. Post Transaction
Pre Transaction
Relate To Corporate Policies Or Program:
• Written Customer Service Policy• Accessibility
• Organization Structure• System Flexibility
Indicator Performance
Pre Transaction
• Stock Availability• Target Delivery
• Response Time To Queries
Transaction
Concern With Customer Service Variable Directly Involve In
Performing The Services
• Order Cycle Time• Inventory Availability
• Order Fill Rate• Order Status Information
Indicator Performance Transaction
• Order Fill Rate• On Time Delivery• Back-orders
• Shipment Delay• Product Substitutions
Post Transaction
Elements That Are Generally Supportive Of Product While In
Use
• Availability Of Spare Part• Call-out Time
• Product Tracing/warranty• Customer Complaints, Claims, Etc.
Indicator Performance
Post Transaction
• First Call Fix Rate• Customer Complaints
• Returns/claim• Invoice Error
• Service Part Availability
Quality ?
• Fitness for Use
• Conform To Specification
Dimension of Service Quality
• Tangible Appearance of physical facilities, equipment, personnel, and
communication material
• Reliability Ability to perform the promised service dependability and
accurately
• Responsiveness Willingness to help customers and provide prompt service
Dimension of Service Quality
• Security Freedom from danger, risk, or doubt
• Access Approachability and ease of contact
• Communication Keeping customers informed in language they can
understand and listening to them
• Understanding the Customer Making the effort to know customers and their needs
Service Standard
1. Order Cycle Time2. Stock Availability
3. Order Size Constraint4. Ordering Convinience5. Frequency Of Delivery
6. Delivery Realibility7. Documentation Quality
8. Claims Procedure9. Order Completeness
10. Technical Support11. Order Status Information
Composite Service Index
Aggregat’s Indicator Of Customer Service That Can Be Used As A
Management Tool
CSI = Sum Of ( Iw X Pl)
Iw : Importance Weight Of Service ElementPl : Pereformance Level Of Service Element
Focused On Customer
1. Customer Needs2. Product Become Worth Due To Services Has Added Value To The
Core Product3. Product And Services Become Meaningful Only When Its Available
And Positioned From The Customer’s Perspective At The Time And Place Required
Service Surround
COREPRODUCT
SERVICE
SURROUND
Customers’ Service Need
1. Identify The Key Component Of Customer Service
2. Establish The Relative Importance Service Components
3. Identify Cluster Of Customer
Setting Customer Service Priorities
Profit Contribution
SEEK COST PROVIDE HIGHREDUCTION AVAILABILITY
REVIEW JIT DELIVERY
PROFIT CONTRIBUTION
VOLUME
H I GH
L OW
LOW HIGH
Types Of Service
1. Basic ServicesCustomer Service Program Upon Which A Firm Builds Its Fundamental
Business Relationship
2. Zero Defect ServicesCustomer Service Leads To Perfect Order Performance
3. Value Added ServicesUnique/specific Activities That Firm Can Jointly Work Out To Increase
Effectiveness And Efficiency
I. Basic Service Capability
Basic Capability To Satisfy The Customers
Availability Performance Reliability
A. Availability
Capability to have goods (inventory) when it is desired by a customer
Operating Safety Stock Stock
Measurement Of Availability
1. Stock Out Frequency How Many Times Demand for Specific Product Exceeds
Stock Available.
2. Fill Rate Number of Goods That Could Not Be Fulfill Promptly
3. Orders Shipped Complete Number of Order That Could Be Fulfill Completely and
Promptly
B. Operational Performance
Capability To Give The Services To The Customers Measured By:
1. Speed2. Consistency
3. Flexibility4. Mulfunction/recovery
Speed
Elapsed Time From When An Order Is Placed Untill Shipment Arrival
Consistency
Ability To Perform Orders At The Expected Delivery Time Over A Large Number Of
Performance Cycle
Compliance To Delivery Commitment Over Time
Flexibility
Ability To Handle Extraordinary Customer Service Request Caused By:
1. Modification In Basic Service Arrangement
2. Support Of Unique Sales/ Marketing Program3. New Product Introduction
4. Product Phase Out5. Disruption In Supply
6. Product Recall7. Customization
Mulfunction/Recovery
Ability To Prevent Mulfunction Or To Prevent/ Accommodate Special
Situation
Contingency Plans
C. Reliability
Ability To Comply Planned Inventory Availability And Operational
Performance
II. Value Added Services
1. Customer focus services2. Promotion focus services
3. Manufacturing focus services4. Time focus services
5. Basic services
Competitive Service Strategy
• Cost Leadership– Seeking Out Low Cost Customer– Standardizing a Custom Service– Reducing the Personal Element in Service Delivery– Reducing Network Cost– Taking Service Operation Off-line
• Differentiation– Making the Intangible Tangible– Customizing the Standard Product– Reducing Perceived Risk– Giving Attention to Personnel Training– Controlling Quality
• Focus
Challenge For Manager• Low Labor Intensity– Capital Decision – Technological Advances– Managing Demand – Scheduling Service Delivery
• High Labor Intensity– Hiring – Training – Methods Development and Control– Employee Welfare– Scheduling Workforces– Control of Far-flung Geographical Location– Setup of New Unit– Managing Growth
Challenge For Manager
• Low Interaction/customization– Marketing– Service Oriented– Attention to Physical Surrounding
• High Interaction/customization– Fighting Cost Increases– Maintaining Quality– Reacting to Consumer Intervention in Process– Managing Advancement of People Delivering Service– Gaining Employee Loyalty