|1. Manufacturing Process||2. Product Life Cycle|
|3. Manucacturing Strategy||4. Focused Manufacturing|
|5. Strategic Service Vision||6. Quality Demention|
|7. Zero Detections||8. Service-Profit Chain|
|9. Supply Chain||10. Development Management|
|11. Globalization of Manufacturing||12. Environment Protection|
|3. Manufacturing Strategy /|
|4. Focused Manufacturing /|
Process focus vs Product Focus
|5. Strategic Service Vision /|
A Target Market Segment
A Service Concept
A Service Delivery System
|6. Quality Dimension /|
|7. Zero Defections /|
Quality does not improve unless you measure
Defection decreases expected cash flows over a customer's lifetime
<Case Study>Club Med/
After carefully reviewing the information you have provided us on Club Med, we have identified the major strengths and weaknesses in your service organization, and ways in which we think you can improve on your already successful business. Our recommendations are based on the service value chain we have outlined in the attached exhibit (see Exhibit 1). We have focused on improving operations and customer satisfaction. It is important to realize, however, that further data needs to be collected, as we explained in our primary recommendations, that of updating your questionnaire.
Questionnaire-Redo format to make it more user friendly (See Exhibit 2). Add some of the frequently repeated qualitative comments to the questionnaire to try and get a general sense of how other guests feel about these issues. We have added some of the areas we have suggested for change to the questionnaire to get a more empirical base on which to make our decisions. Some of the recommendations we are making should be further evaluated after gathering data from guests for at least a six month time period. This will more accurately assess the sentiments of a larger portion of your clientele in regard to the changes we recommend that you make. Our recommendations are based on the data you have provided for us, most of which have come from qualitative comments your customers have made. We recommend that you ask future customers about these issues in order to get a more representative sample. The validity of the data will then be much higher. By initially distributing the questionnaire at checkout time, rather than when the customer is at home, we expect to get a higher rate of returned questionnaires, which will help in our evaluation process. Customers who do not return their questionnaires at this time could be sent a questionnaire at home. To provide more motivation for returning the questionnaires, we would also recommend that an incentive be offered to customers for returning their questionnaires, such as a free one year Club Med membership.
Drinks-Eliminate bar beads and make drinks inclusive in the package. This reduces the need for customers to keep track of spending and the whereabouts of their beads. It also supports Club Med's all-inclusive resort philosophy, a popular feature of the Club Med vacation. For budget conscious customers, little else can destroy the euphoria of a great vacation than the unexpected. Being presented an additional bill after thinking that you have already paid is a horrible feeling, one which will guarantee that the customer will leave with a bad feeling about their stay. This will discourage repeat business and positive word of mouth advertising, which is critical to Club Med's continued success. Making the Club Med vacation a truly all-inclusive package will reduce unnecessary hassles during the customer's vacation and add to the total Club Med experience.
Evening activities-As is the case with daytime activities, provide a variety of activities from which the customers can choose. Entertainment should be varied to provide an array of local bands and professional entertainment in addition to the shows put on by the GOs and the music played by the DJ. Alternate between evenings with assigned seating at dinner and evenings where guests are free to find their own seats. This plan will enable Club Med to continue to promote guest interaction, one of its strengths, while still providing opportunities for guests to dine casually with people of their choosing.
Job Rotation-Make the six-month rotation period optional for GOs. This will increase satisfaction for GOs who want to stay in the same Club, but will also provide opportunity for movement for those who want to travel. Some overlap of staff will also build team cohesion and a more consistent atmosphere due to pre-established relationships among the employees. In this effort staffing won't be entirely new every six months and groups of GMs won't feel the impact an entirely new staff has on a village.
Room Keys-To prevent potential theft, add locks to each door. More important than promoting a sense of trust, locks will provide an added sense of security for guests that their belongings will be safe. Keys could be turned in to the main office when guests are not in their rooms so they don't have the extra burden of carrying them around during their activities.
Double Beds-Begin adding rooms with double beds to accommodate couples wishing to share a bed. By slowly integrating this feature into Club offerings, there won't be as intense of a need for a major outright capital investment. The expense associated with restructuring facilities will be somewhat less prohibitive.
Flights-Due to low satisfaction ratings on flights and transfers, negotiations with new airlines for improved service should be made. A new contract could include the offer of a free drink for Club Med vacationers over the age of 21 aboard the plane. This extra service attention would make the customers feel as though they are special and as if their vacation had already begun, something some of the other resorts are able to provide due to chartered plane service. It would also be of no additional cost to Club Med because of the high interest among airlines to book bulk seats with them, but it would provide additional satisfaction among customers.
In Exhibit 3 we have provided information to show you the impact on sales and profit of an increase in service quality. From this information, it can be inferred that higher quality of service will lead to an increase in net income by $ 1,211,000 and an increase in sales by $ 20,418,000. The assumptions we have made are stated in this exhibit.
In summary, we strongly feel that every effort should be made to ensure total customer satisfaction. Club Med's dominant standing in the market is clearly due to its unmatched ability to provide excellent customer service while minimizing cost. By making improvements based on customer feedback and by increasing employee satisfaction, Club Med will continue to dominate the market.
|9. Supply Chain /|
In order to simplify the whole manufacturing structure, supply chain concept is useful
Cross division standardization (Cross-divisional parts integration)
World wide supply incentive to suppliers
Workshop for collaboration with suppliers
Investment support & life time contract incentive for excellent technology from suppliers
|10. Development Management /|
1. Problem Solving
Phased Approach/Overlap Approach
2. Conflict Resolution
Share information between upstream and downstream
Resolve conflicts at lower level
3. Project design
Manufacturing Capability Utilization
|11. Globalization of Manufacturing /|
Four Forces of Globalization
1. Global Market Force
2. Technological Force
3. Cost Force
4. Political & Macro Economical Force
|12. Environment Protection /|