PracticumPracticum

November 16, 2006November 16, 2006

Group 4Group 4Jeff Dittman, Bret Haney, Jeff Dittman, Bret Haney,

Ryan Knapp and Elizabeth WongRyan Knapp and Elizabeth Wong

We’re all about homeWe’re all about home

About Our OrganizationAbout Our Organization

Founded in 1919 by David E. UrnerFounded in 1919 by David E. UrnerSmall, family-owned businessSmall, family-owned business

Fewer than 100 employeesFewer than 100 employeesAmong top 100 appliance dealers in Among top 100 appliance dealers in

the nation – TWICE Magazinethe nation – TWICE MagazineProvide wide range of productsProvide wide range of productsProfessional delivery and installationProfessional delivery and installationService CenterService Center

Customer Satisfaction is our Customer Satisfaction is our GoalGoal

With each step of our process, we strive With each step of our process, we strive to achieve to achieve completecomplete customer customer satisfactionsatisfaction

Establish a personal relationship with Establish a personal relationship with the customerthe customer

Custom-designed ordersCustom-designed ordersCustom installationCustom installationSame-day or next-day deliverySame-day or next-day deliveryProfessional repair and serviceProfessional repair and service

Outlining our ProcessOutlining our Process

SalesSales AppliancesAppliances Contract SalesContract Sales Electronics/FurnitureElectronics/Furniture

Cashier/CreditCashier/Credit Tender PaymentTender Payment Financing ApplicationsFinancing Applications

AccountingAccounting Monthly StatementsMonthly Statements Refunds DueRefunds Due

Warehouse/Delivery Warehouse/Delivery Pick-up ProductsPick-up Products Standard DeliveryStandard Delivery Custom InstallationCustom Installation

Parts/ServiceParts/Service Repair Defective Repair Defective

ProductsProducts Sell PartsSell Parts

AdministrationAdministration Resolve the problems Resolve the problems

that arise from above that arise from above

Customer arrives @

store

Greet customer

Request information

Customer provides

information

Takes customer to

floor

Begin search

Completes sales

discussion

Receives product

Happy Customer

Contact service

Discuss method of payment

Arrange delivery

Deliver product

Decide to buy?

Urner’s Service Blueprint

Customer

Salesperson

Cashier/Finance

Warehouse/Delivery

Yes

No

Product ok?

Right product?

Cash or finance?

Qualify?

Cash

FinancePay cash?

Yes

NoNo

No

Exit

Yes

Yes

No

Yes

Exit

Exit

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”

Current Survey

Customer DissatisfactionCustomer DissatisfactionWhat are the biggest culprits?What are the biggest culprits?

Delivery (45%)Delivery (45%)

Service (35%)Service (35%)

Sales (10%)Sales (10%)

Cashier (5%)Cashier (5%)

Accounting Accounting (5%)(5%)

Use of Cause and Effect Use of Cause and Effect Diagrams to Identify Potential Diagrams to Identify Potential

Causes of a Problem Causes of a Problem

Problem

EnvironmentMethods Equipment

MaterialsPeople

CAUSES EFFECT

Typical Cause and Effect Diagram (a.k.a. Ishikawa or fishbone)

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

Delivery and InstallationDelivery and InstallationIshikawa (fishbone) ChartIshikawa (fishbone) Chart

Delivery AnalysisDelivery Analysis

Employees (50%)Employees (50%)

Merchandise (30%)Merchandise (30%)

Transportation (10%)Transportation (10%)

Equipment (5%)Equipment (5%)

Scheduling (3%)Scheduling (3%)

External Factors (2%)External Factors (2%)

External FactorsExternal Factors Potential CausesPotential Causes Material shortagesMaterial shortages

Supply problemsSupply problems

Customer expectationsCustomer expectations

WeatherWeather

SolutionsSolutions develop close relationships develop close relationships

w/ suppliersw/ suppliers

consider reliability when consider reliability when selecting suppliersselecting suppliers

Manage expectations by Manage expectations by clearly defining delivery clearly defining delivery needsneeds

Monitor weather and road Monitor weather and road conditions and adjust as conditions and adjust as neededneeded

Scheduling Scheduling Potential CausesPotential Causes Absent employeesAbsent employees

Incomplete informationIncomplete information

Full ScheduleFull Schedule

EmergenciesEmergencies

Long delivery windowLong delivery window

SolutionsSolutions Develop rapid employee Develop rapid employee

backup schedulebackup schedule

Utilize standard form and Utilize standard form and have clerk repeat directionshave clerk repeat directions

Develop “priority delivery” Develop “priority delivery” process (paid by customer)process (paid by customer)

Quick customer notificationQuick customer notification

Lean out delivery routes to Lean out delivery routes to narrow windownarrow window

TransportationTransportation

Potential CausesPotential Causes

Workers call in sick; not Workers call in sick; not enough driversenough drivers

Damaged products during Damaged products during stockingstocking

Damaged products during Damaged products during delivery to customerdelivery to customer

Traffic causes late deliveryTraffic causes late delivery

Transportation equipment Transportation equipment failurefailure

SolutionsSolutions

Develop rapid employee Develop rapid employee backup schedulebackup schedule

Develop training for properly Develop training for properly stocking productsstocking products

Develop procedures for Develop procedures for correct, quality deliveriescorrect, quality deliveries

Schedule PM deliveries to Schedule PM deliveries to offset backlog of AM deliveriesoffset backlog of AM deliveries

Do preventative maintenanceDo preventative maintenance

MerchandiseMerchandise

Potential CausesPotential Causes Suppliers deliver products Suppliers deliver products

latelate

Employees order wrong Employees order wrong productsproducts

Products arrive in delivery Products arrive in delivery damageddamaged

Employees mishandle and Employees mishandle and damage productsdamage products

Merchandise fails in Merchandise fails in showroom due to lack of showroom due to lack of qualityquality

SolutionsSolutions Develop forecasting systemDevelop forecasting system

Develop “double checking” Develop “double checking” ordering systemordering system

Communicate problem with Communicate problem with suppliersupplier

Train employees on proper Train employees on proper product handling product handling proceduresprocedures

Analyze origin of lack of Analyze origin of lack of quality; possibly change quality; possibly change vendorsvendors

EquipmentEquipment

Potential CausesPotential Causes Lack of trainingLack of training

Improper MaintenanceImproper Maintenance

Wrong EquipmentWrong Equipment

SolutionsSolutions Knowledge & Content Knowledge & Content

(OTJ or generic)(OTJ or generic) Avoid InjuriesAvoid Injuries

Keeping on basic Keeping on basic upkeep of machineryupkeep of machinery

Calibrate machinery Calibrate machinery Document any Document any

problemsproblems

Proper planning when Proper planning when moving large itemsmoving large items

EmployeesEmployees

Potential CausesPotential Causes Entry Level: underEntry Level: under

the age of 25, the age of 25, Don’t have the Don’t have the right attitude right attitude

Improperly Improperly MotivatedMotivated

SolutionsSolutions Give more Give more

responsibilities. responsibilities. Allow employees to Allow employees to grow. grow.

Offer IncentivesOffer Incentives Empower Empower

Employees Employees

EmployeesEmployees

Programs currently Programs currently usedused

Safety Token Safety Token Reward SystemReward System

If an employee is If an employee is caught doing caught doing something right to something right to prevent an injury prevent an injury or not to damage or not to damage products, tokens products, tokens are handed out and are handed out and can be redeemed. can be redeemed.

EmployeesEmployees

Programs currently Programs currently usedused

Point System Point System PaymentPayment

Driver are paid on Driver are paid on points, not hourlypoints, not hourly Timeliness of Timeliness of

deliverydelivery No DamageNo Damage Correct PaperworkCorrect Paperwork

If any of these is not If any of these is not completed, they are completed, they are not paid fully.not paid fully.

Our RecommendationsOur Recommendations

Develop More Develop More Comprehensive Comprehensive Customer SurveyCustomer Survey

Implement Implement Solutions based on Solutions based on highest factors of highest factors of dissatisfaction dissatisfaction (80%)(80%) Employees (50%)Employees (50%) Merchandise (30%)Merchandise (30%)

Expand Incentives Expand Incentives ProgramProgram Employee of the Employee of the

MonthMonth Recognition dinnersRecognition dinners Rewards for being Rewards for being

proactiveproactive

Empower Empower EmployeesEmployees

Questions?Questions?