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

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

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

Customer 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 Finance Pay cash? Yes No Exit Yes No Yes 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 Dissatisfaction What are the biggest culprits? Delivery (45%) Delivery (45%) Service (35%) Service (35%) Sales (10%) Sales (10%) Cashier (5%) Cashier (5%) Accounting (5%) Accounting (5%)

Use of Cause and Effect Diagrams to Identify Potential Causes of a Problem Problem EnvironmentMethodsEquipment MaterialsPeople CAUSESEFFECT 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 Installation Ishikawa (fishbone) Chart

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

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

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

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

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

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

Employees Programs currently used Safety Token Reward System 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. 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 Programs currently used Point System Payment Point System Payment Driver are paid on points, not hourly 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. If any of these is not completed, they are not paid fully.

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

Questions?