Case Study - WidgetBox Manufacturing
WidgetBox
Widgetbox is the largest producer of widgets in Australia.
NB* (This is not the software type widget used on phones or websites). This term is used for small manufactured mechanical device used across many industries in machinery or factories, often made from plastic.*
Established in 1995, it offers set of tools for widget developers and its widgets are used as components in different machineries, from domestic appliances to industrial equipment.
The company was established by Steve Smith. His son and granddaughter are currently running the company and collectively form Board of Directors.
Recently the granddaughter has been allocated the post of Managing Director Widgetbox.
There is only one location from where the Widgetbox operates. The location has a warehouse for storing the raw materials used to make the widgets, machines shop the raw materials used to make the widgets and dispatch areas are next to the warehouse.
The office block houses the following operational departments:
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Purchasing
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Research and Development (often abbreviated to R&D)
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Production
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Sales
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Human Resource Management.
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Accounting and Finance.
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A recently established customer services team.
Supply chain at Widgetbox:
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Widgetbox have both internal and external customers. Their external customers number over 1,200.
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Internally, the reception yard receives the raw materials from the external suppliers. The staff members in the yard are the supplier’s customers.
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The raw material is stored and kept in good condition until the production workshop staff asks for a delivery.
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At this point the storemen are suppliers and the workshop staff members are the customers.
Consider Widgetbox’ organisational chart as follow.
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The following is an excerpt from Widgetbox Business Plan.
Widgetbox business plan excerpt
Vision statement
To keep every Australian business running smoothly using safe, quality widgets.
Mission statement
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Innovate new ways of manufacturing and testing widgets
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Deliver consistently high-quality customer service internally and externally
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Keep Australian businesses buying Australian widgets through quality products and second-to-none customer service
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Have the best safety record of any widget company.
Widgetbox:
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Employs 55 staff members.
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Net tax profit of $1,890,000
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Financial turnover of $14,790,320
The business has a diverse customer base. It has an important customer in a local mining equipment manufacturer called West Mine Co. This customer accounts for approximately 38% of total widget sales. The other 62% sales are from the widget sales to medium and small businesses.They made an agreement with each other in 1999.
In their agreement, there were certain requirements for widget specifications and customer service which they have maintained as their product specifications ever since.
WidgetBox has provided you the following specifications:
Widget product and customer service specifications
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Widgets must be safe for use:
• able to take a load force of 24 kilonewtons (kN)
• every widget must be tested to half its rated strength (12 kN)
• 1% of every batch must be tested until they damage to guarantee that they can take a load force in excess of 24 kN
• Any widget, or quantity of widgets, that are accidentally dropped must be disposed of.
• Dimensions: 5mm, 6mm, 7mm, 8mm.
• Tolerance rate +/-10%.
• Cost: Base rate= $100 for 5mm, with increase of 15% cost for each 1mm increase in size.
At least 95% of widget deliveries must be on time (delivered 3–7 business days after the order date)
Complaints or queries from West Mine Co. to Widgetbox must be resolved according to the Widgetbox complaints policy and procedure.
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Please now refer to the Assessment Tasks required based on the information provided here. Updates will be provided in Scenario's as you progress through your Practical Tasks.
3. Development of Customer Service Charter
Scenario Update:
Steven’s granddaughter, Kellie was appointed as Managing Director of the company 7 years ago.
There were very little changes in the business during his leadership. The business continued to be the market leaders as there was very little competition. But during the last 5 years, the sales have begun to slump.
The owner soon recognised that Kellie was not competent enough to handle the challenges that the market is currently facing and hired a firm of Management Consultants to help.
After having discussion with the staff and looking at work processes and departmental records, the consultants produced and documented an initial report that included the following concerns:
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The business was not aware of their external customer’s needs
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The business was not aware of internal customer needs
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The business did not have adequate policies and procedures for managing its customer service.
The Managing Director, Kellie has admitted that she was potentially complacent in her approach to customer relations.
The Management Consultants have created a few simple protocols for developing and obtaining approval for policies and procedures.
Protocols for developing policies and procedures
All policies should have a:
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statement of purpose
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scope of the policy
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related resources, e.g. procedures, forms, guidance material, etc.
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related legislation
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approval information: the authorisation date and name of the person who approved the policy.
Procedures should be written as a number of steps where possible.
You are appointed as a Customer Service Manager to manage the business process and improve the quality services.
YOUR TASK:
The Management Consultants have asked you to develop aCustomer Service Plan.
Refer to the scenario and case study given above, and:
1.
Develop a customer service plan
Your customer service planshould include:
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Vision statement referring to Widgetbox provision of customer service.
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Mission statement referring to Widgetbox provision of customer service.
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Key internal and external stakeholders.
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Product standards:
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i. minimum safety requirments
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ii. dimensions of the widgets
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iii tolerance rate of the widget
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iv. material
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v. delivery standards
2) Write appropriate policies and procedures for the following areas relating to Customer Service:
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Gathering customer information and conducting market research to identify customer needs using the RATER model
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Customer complaints policy and procedure;
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Recordkeeping policy and procedure;
All of the above tasks are to be completed in the attached template: Here:
BSBOPS505 DLM Template Task 3