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Enterprise rent-a-car total quality management

Extracts from this document...

Introduction

´╗┐Improving the front line service quality of Enterprise-rent-a-car Total Quality management The report will utilize the DMAIC framework to analyze each process in the customer service cycle and from this develop an integrated framework for performance management of the car rental industry. 2012 Total Quality Management 2K 4/27/2012 ________________ Table of Contents Part 1 Executive Discussion: Improving the service quality of Enterprise Rent-a-car ________________ 1.0Executive summary 1.1Introduction 1.2 Objectives 1.3 Project Charter 1.4 Data Collection and Analysis...................................................................................................................3-7 Part 2 Define Stage ________________ 2.1 Flow Diagram 2.2 Fish bone diagram 2.3 CTQ Tree............................................................................................ ..................................................7-13 Part 3 Measure Stage ________________ 3.1 Questionnaire 3.2 Pareto Analysis...................................................................................................................................13-15 Part 4 Analysis ________________ 4.1 Internal Value Chain Analysis..............................................................................................................15-17 Part 5 Improve Stage ________________ 5.1 Affinity Diagram..................................................................................................................................19-20 Part 6 Control Stage ________________ 6.1 PDCA Model 6.2 Balanced Scorecard.............................................................................................................................21-24 Part 7 Recommendations ________________ 7.3 Recommendations 7..4 Justifications......................................................................................................................................25-28 Part 8 Bibliography 29 ________________ Appendix ________________ Questionnaire Part 1 Executive Discussion: Improving the service quality of Enterprise Rent-a-car 1.0 Executive Summary ________________ The aim of this report was to gather an understanding of the key customer service processes used by Enterprise Rent-a-car and make suggestions as to how we could improve customer satisfaction. We utilized the DMAIC framework to analyse each process in the customer service cycle and discovered the main area of improvement within employees? demotivation and lack of sufficient training before entering branch. From this we developed an integrated framework for performance management of the business. The main focus placed on the development of its employees through implementing the Kaizen approach to management of employees, hosting monthly auditing checks, amongst quality circles to operational tasks such as a daily performance matrix. Alongside establishment of a different, monthly team leader to review the front line service process. Design/methodology The framework will first define the customer service process, using a flow diagram and further will assess the success of the process using a CTQ (Critical Quality Tree). ...read more.

Middle

Secondary problems included wrong car specifications given and poor check in and check out processes . Therefore, there needs to be more attention among the Enterprise rent-a-car team towards improving the customer gap. Part 4 Analysis ________________ 4.1 Value chain ________________ It is important to conduct further analysis of the firm?s infrastructure and the foundations upon which the customer process is built to evaluate how successful the firms activities support the companies mission statement. ?Porter?s value chain has been a keystone of strategic analysis? (McPhee and Wayne et al, 2006). It looks at how core functional activities of the firm add value to the company. All activities are interconnected and the value chain analysis is inwardly looking. The value chain identifies the effectiveness of all core and supporting activities which determine the company?s competitive advantage. From a resource based view this is determined by the valuable nature of resources that place pressure on competitors (Prajogo et al, 2008). ________________ 4.1 Internal Analysis-Value Chain INBOUND LOGISTICS The service of Enterprise from a paper based perspective is built up as the competitive advantage of the firm. However, from the measure stage we have ascertained that customers would like a better immediate feedback facility and be better informed of all charges. This points towards better sales and service training for new employees especially to improve this aspect of front line service quality. FIRM INFRASTRUCTURE HR MANAGEMENT TECHNOLOGY DEVELOPMENT PROCUREMENT OPERATIONS OUTBOUND LOGISTICS MARKETING & SALES SERVICE MARGIN The firms infrastructure forms the entire building blocks of the company. The general management stabilises the firms activates and guides further operations. Each enterprise branch consists of an assistant manager and manager who control the company fleet and report to head office. The branches are the bricks and mortar of the company. It is the quality of customer service delivered throughout these branches that form the key source of competitive advantage for the firm and support its reputation. ...read more.

Conclusion

This would result in the number of defects and customer complaints being reduced drastically, therefore providing a benchmark for performance measurement to be incorporated and an aim to achieve a six sigma quality standard. 7.2 Justifications ________________ The implementation of the suggested project involves some minor financial investments. With the suggestion of hiring more front-line staff, each new employee will cost the company £15,000 per year. With a Enterprise Holding’s revenue of £8.747 billion ($14.1 billion with the rate of currency on the 23/4/2012) and approximately 70,000 employees worldwide, executing a training program for new and current employees will involve an opportunity cost of £2,130, which is quite insignificant, compared to the £125,000 revenue per employee generated yearly by the company. To implement change and promote a manager to lead change, the rest of the project is estimated to cost £65,000 per region. It is proposed that this manager will continue to become a regional business development director after the execution of the project, applying knowledge and gained experience to further innovation and solutions in improving the company. By rigorously putting into action the employee training and leadership programs, costs can be heavily cut by reducing staff turnover and, hence, decreasing hiring and training expenditure. Employee motivation will be improved, even further making an impact to the aforementioned factors. Moreover, they will induce providing better service and, therefore, higher customer satisfaction, giving way for company growth and an increase in profitability. The improvement process is continuous, but the estimated time to undertake the project will be one year, during which a positive shift in employee attitudes and employee satisfaction and motivation should have taken place, resulting in higher customer satisfaction ratings by the end of the period. Since this would contribute also to Repeat Business Ratio and company’s public image, the financial returns and business growth would exceed the costs and effort required to undertake the process. We propose Enterprise Rent-a-Car undertake the implementation of this project to gain higher customer satisfaction, repeat business and the financial returns associated to these factors. ...read more.

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