Innovative Widgets Scenario

‘Innovative widgets’ is the largest producer of widget in Australia. Established in 1952, its widgets
are used as components in a broad range of machinery, from domestic appliances to industrial
equipment. The company is family owned and run by the children and one grandchild of the
founder, who collectively form the board of directors. Until recently, the grandchild had acted as a
managing director of Innovative widgets.

Innovative widgets operate from one location. There is a store area in the warehouse (for the raw
materials used to make the widgets), a machine workshop (where the widgets are produced) and
dispatch and deliveries area. The office block houses the following operational departments:

• Purchasing

• Sales

• Accounts

• Human resources

• A recently established customer service team.

In total, Innovative Widgets employs over 50 staff. Last year Innovative Widgets produced a pre-
tax profit $2,240,000 on a turnover of 16,000,000.

Innovative Widgets has a diverse customer base. Their largest customer is a major mining
equipment manufacturer. This customer accounts for approximately 40% of total widget sales.
The other 60% of sales are medium and small businesses and to individuals and sole traders.

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 The following is an excerpt from Innovative Widgets’ business plan.

Business plan excerpt

Vision statement
To keep every Australian business running smoothly using safe, quality widgets. Mission
statement

 Innovate new ways of manufacturing and testing widgets

 Deliver consistently high-quality customer service internally and externally
 Keep Australian businesses buying Australian widgets through quality products and
second-to- none customer service
 Have the best safety record of any widget company.

Specifications agreement with Yore Mine Co.

When Innovative Widgets made an agreement with a local company Yore Mine Co. to be their main
supplier of widgets, they agreed on some requirements for widget specifications and customer
service. The long-standing agreement was made in 1958.

Widget product and customer service specifications

Widgets must be safe for use:

 Able to take a load of 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 break to ensure 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.

At least 95% of widget deliveries must be on time (delivered 3-7 business days after the order
date).

Complaints or queries from Yore Mine Co. to Innovative Widgets must be resolved according to
the Innovative Widgets complaints policy and procedure.

Innovative Widgets Complaints policy and procedures

Innovative Widgets
Complaints Policy and Procedure

Scope The scope of this policy covers the management of customer complaints by employees and
contractors of Innovative Widgets.

Resources Specific procedures for the implementation of this policy are available below and on the
company intranet.

Purpose The purpose of this policy is to ensure the management of complaints is carried

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 out consistently, fairly and transparently and in accordance with organisational
requirements.

Responsibility for the implementation of this policy rests with employees and
Responsibility management of Innovative Widgets with responsibility for managing customer
complaints.
 Privacy Act 1988 (Cwlth)
 Equal Opportunity Act 2010 (Vic)
 Competition and Consumer Act 2010 (Cwlth).
 ISO 10002:2018; Quality management -- Customer satisfaction - -
Guidelines for complaints handling in organizations
Relevant legislation
https://www.iso.org/standard/71580.html
etc.
 Disability Discrimination Act 1992 (Cwlth)
 Racial and Religious Tolerance Act 2001 (Vic).
 Racial Discrimination Act 1975 (Cwlth)

Updated/authorise 10/2011 – John Doe CFO

To manage complaints – customer service representatives

1. Greet the customer courteously and give them your name.

2. Listen fully to what the customer is saying. Try to gather all the facts about the complaint
and jot them down. Ask questions and summarise what they are saying.
3. Never argue with the customer.
4. Apologise for any product fault or poor service. Be sympathetic. Ask if the customer will
allow us to send the faulty item to our quality department for testing.
5. When you have all the details about the complaint, ask the customer how they would like it
to be resolved.
6. No product replacements are within all staff members’ authority.
7. All staff members can use their professional judgement and refund an additional 10% of the
value of the faulty product up to a maximum value of $25.
8. Complaints involving damage to other property are covered by our insurance. Help the
customer to complete the Claims Form and ask if the customer can obtain quotes for
repairs.

9. All complaints involving injury must be referred to the Customer Service Manager. Agree a
suitable time for the Customer Service Manager to call the customer.

10. 10. Any complaint that is not covered in the above procedures must be directed to the
Customer Service Manager. Agree a time for the Customer Service Manager to call the
customer.

To manage complex complaints – customer service manager

1. Once you are alerted to a complex customer complaint, gather all the available details about
the customer, and the problem being addressed.

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 2. Before contacting the customer, decide on what actions need to be taken to address the
problem:
1. At a system level, to prevent similar problems occurring in the future
2. For the specific customer who has made the complaint
3. Once you have identified actions to be taken, contact the customer as soon as possible.
4. In your customer contact:
1. summarise the facts and the problem as you understand it and make an apology for
the mistakes Innovative Widgets is responsible for.
2. describe what Innovative Widgets is going to do at a systems level to prevent or
minimise these types of mistakes for all customers in the future.
3. Describe what Innovative widgets is going to do to solve the customer’s specific
problem immediately
4. Describe when you will follow-up with the customer to see if their problem has been
resolved
5. Ask if there is anything else the customer needs to resolve the situation or repair the
relationship.

BSBCUS501
December 2020
VZ