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Lecture Managing operations across the supply chain (2/e): Chapter 9 - Swink, Melnyk, Cooper, Hartley

Chapter 9 - Customer service management. Upon completion of this lesson, the successful participant will be able to: Describe how operations helps establish and meet commitments to customers, define elements and measurement of customer service, describe model of customer satisfaction, explain importance of commitment to customer success, describe technologies and relationships, describe customer segmentation. | Copyright © 2014 McGraw-Hill Higher Education. All rights reserved. CHAPTER 9 Customer Service Management McGraw-Hill/Irwin 1 Learning Objectives LO9-1 Describe how operations helps establish and meet commitments to customers LO9-2 Define elements and measurement of customer service LO9-3 Describe model of customer satisfaction LO9-4 Explain importance of commitment to customer success LO9-5 Describe technologies and relationships LO9-6 Describe customer segmentation 9–2 2 Customer Management 9–3 Intense focus on understanding and providing customers with products/service they desire LO9-1 3 Customer Service 9–4 Product Availability: inventory available when and where desired by customer Units Lines Orders Orders Units Lines Delivered Delivered Delivered 1,000 20,000 5,000 19,500 4,800 910 Unit Fill Rate: % of ordered units delivered = 19,500/20,000 = 97.5% Line Fill Rate: order lines filled in total = 4,800/5,000 = 96% Order Fill Rate: orders shipped complete = 910/1000 = 91% Example | Copyright © 2014 McGraw-Hill Higher Education. All rights reserved. CHAPTER 9 Customer Service Management McGraw-Hill/Irwin 1 Learning Objectives LO9-1 Describe how operations helps establish and meet commitments to customers LO9-2 Define elements and measurement of customer service LO9-3 Describe model of customer satisfaction LO9-4 Explain importance of commitment to customer success LO9-5 Describe technologies and relationships LO9-6 Describe customer segmentation 9–2 2 Customer Management 9–3 Intense focus on understanding and providing customers with products/service they desire LO9-1 3 Customer Service 9–4 Product Availability: inventory available when and where desired by customer Units Lines Orders Orders Units Lines Delivered Delivered Delivered 1,000 20,000 5,000 19,500 4,800 910 Unit Fill Rate: % of ordered units delivered = 19,500/20,000 = 97.5% Line Fill Rate: order lines filled in total = 4,800/5,000 = 96% Order Fill Rate: orders shipped complete = 910/1000 = 91% Example 9-1 LO9-2 4 Lead Time Performance 9–5 Lead Time: time between start and end of an activity Design: conceptualize, design & test Order: place and schedule for production Procurement: source and arrive Production: start to end of production Delivery: warehousing & transportation to customer LO9-2 5 Service Reliability: The Perfect Order 9–6 Service Reliability: performance of all order related activities error-free If a firm has 97% reliability on four attributes, the probability of a perfect order is .97x.97x.97x.97 = 88.5% The Perfect Order: delivered without failure in any order attribute Complete On time Damage free Documentation correct Example 9-2 LO9-2 6 Limitations of Customer Service 9–7 Customer service involves specifying the firm’s commitment to availability, operational performance and reliability Order winners, qualifiers and losers Meeting or beating competitor levels Link to competitive strategy Link performance to customer satisfaction LO9-2 7 Customer Satisfaction – .