Q Capstone Assignment 4 – Quality Satisfaction (30 Points) (Answer all 3 cases) Case 1 John the top service advisor at JAX Techs, has just been promoted to service manager because of his enthusiasm and consistent success in being the top service salesman. His boss has told him that he is giving John this chance to show what he can do. He decides to have a service meeting of all of his techs and advisors and come up with a contest to help improve the shop’s sagging customer satisfaction scores. John has formulated two possible incentive plans and is trying to decide which one he should unveil at Monday’s meeting. The two plans are: Plan A: Provide the service advisor whose group gets the biggest improvement in their customer satisfaction scores for the next month a $100 bonus. Their score must, however, be at least a 5 percent improvement over above last month’s very disappointing score of 82 percent. Plan B: Offer an all-expense paid trip for two to the Daytona 500 for the service advisor that can achieve a perfect (100 percent) customer satisfaction score for the month. You decide Which plan would you choose? Why? If you don’t agree with either plan, what would you suggest? Case 2 Lamar has been a service manager for ten years and knows that the key to consistent long-term success lies in the goodwill of past and current customers. In order to continue to build business he needs to build his base of satisfied customers. Currently his shop is receiving an 80 percent customer satisfaction rating, which ranks right in the middle of shops in the local Shop Owners Association (SOA). After a little bit of intervention he finds out that the highest score achieved is 88 percent. Lamar sits down with his employees to voice his concerns and they brainstorm to decide what they should do. 1. Nancy indicates that she knows that they are capable of producing work that is as high in quality as the others. “Let’s become number 1.” She further says, “If we don’t aim for the stars we’ll never succeed at all – let’s make our goal 100 percent customer satisfaction!” 2. Floyd, who has been there for twenty-six years, speaks up saying, “We’ve got it good, we have a loyal group of customers, why mess up a good thing? I don’t think that we need to go off and do some extra special stuff and spend more money. We should just stay the way we are. 3. Chis then offers his opinion, “We know that we can be number 1, we’re not that far off! Let’s set our goal at 90% satisfaction. That won’t cost us too much and we can still achieve our goal!” You decide Which is the best idea? Why or Why not? If you don’t like any of the plans what would be your suggestion? Case 3 Hector is the service manager at a small local independent repair shop. His shop concentrates on doing brake jobs, exhaust system work, and general maintenance. The shop stakes its reputation on providing high-quality repairs locally and affordably. Their customer satisfaction goal has been 85 percent satisfied customers, and the shop has missed this target for the past three months. After doing some research, they have identified one recurring problem. The rebuilt brake rotors that they have been buying from AJB Brakes have been failing at an alarming rate at two out of every 5 jobs (40 percent). You decide After checking with several parts suppliers Hector has 3 alternatives. 1. Stay with AJB Brakes rebuilt rotors because switching to other brands would drive up his price by $10 per brake job and he fears that he may lose some business to his competition. 2. Switch to purchasing slightly higher priced remanufactured brake rotors ($20 more per job) from another supplier that come with a full 100 percent lifetime warranty. 3. Switch to purchasing only new brake rotors from area new car dealers at a cost of $50 more per job knowing that by doing so their price will be higher than the local dealers, and expect their shop reputation to keep those customers coming to them. What would you do? PLEASE DISCUSS YOUR REASONING ON ALL THREE CHOICES FOR CHOOSING OR NOT CHOOSING A PARTICULAR ANSWER.