INDUSTRY EXAMPLES (LEC 5, 6, 7 & 8)

Question 1

What company has won the Malcolm Bridge National Quality Award?

Answer 1

Ritz-Carlton in 1992

They were recognized for their customer-focused culture and their ability to consistently deliver high-quality services

They went through rigorous evaluation process that assessed their leadership, strategic planning, customer focus, measurement & analysis, workforce engagement and results

They were required to demonstrate continues improvement efforts and their ability to achieve sustainable results

Question 2

What company has implemented the Shingo System

Answer 2

Toyota uses the Shingo system to improve their manufacturing processes by implementing “poke-yoke” or mistake-proofing techniques to eliminate defects in their products.

It has helped them become efficient and high-quality automakers in the world

Question 3

Give an example of a high contact and low contact service

Answer 3

high: traditional bank
low: online bank

Question 4

What company can use the service-system design matrix?

Answer 4

Starbucks

• degree of customer contact falls under the high-contact category since customers typically interact with baristas and customize their orders
• service customization falls under the high-customization category since customers can choose from a wide variety of options and customize their drinks according to their preferences
• degree of labor intensity falls under the high-labor intensity category since the preparation of drinks requires the skills and knowledge of trained baristas
• degree of capital intensity falls under the medium-to-high capital intensity category since the company uses specialized equipment such as espresso machines and grinders to prepare drinks
• capital investment required is not as high compared to other industries such as manufacturing

Question 5

Give examples of the 3 contrasting service designs

Answer 5

• The production line approach: McDonald’s, where the process is designed to deliver the same food quickly and efficiently to customers.
• The self-service approach: online shopping, where customers can browse and purchase products without assistance, or self-checkout kiosks in retail stores
• The personal attention approach: high-end restaurants, where waitstaff provide individualized recommendations and attention to each table, or luxury hotels, where staff provide customized experiences to each guest