INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE

Interactive Distance Learning Programme – Operations Management eEPOM03

(eMEP Alumni to ePGP Second Year)

VILLAGE VOLVO
Service Operation Management – Case Analysis
DESCRIBE VILLAGE VOLVO’S SERVICE PACKAGE
Supporting Facility
 Location – Location is sub-urban location. When the customers drop the car for service,
getting back to house / office is a problem
 Facility Layout – Waiting areas are provided for customers who come for quick services such
as oil change, alignment etc
 Interior – Waiting lounge available with all facilities

 Architectural appropriateness – New butler building with 4 bays, waiting area and storage
space
Facilitating Goods
 Special care for customer’s unique requirements, Variety of services offered around Volvo

Cars
Information
 Maintains CCVD through which timely reminders are sent to customers for repairs. Also helps

the mechanic to diagnose the problems in the car better.

Explicit Service
 Issues explained to the mechanic, he does a test drive to understand the issue better

 Initial estimate and time of completion informed immediately

 Any changes informed to the customer pro-actively, alternatively the customer can contact
technician / service manager
 Clean car handed over together with explanation of changed parts and documented in CCVD

Implicit Service
 22 years of expertise with the Volvo cars and reputation in the market

 Before delivery, mechanic does a test drive to verify the issues are resolved
HOW ARE THE DISTINCTIVE CHARACTERISTICS OF A
SERVICE FIRM ILLUSTRATED BY VILLAGE VOLVO?

Customer participation in service process

 The customer participates in the service process more often.
Initial estimate and delivery tome can be changing and any
changes will be notified to customer in advance. Customer can
also get in touch with service manager
Simultaneity
 High customer satisfaction and market leadership
Perishability
 capacity of Village Volvo, an hour without repair Intangibility:
reputation of Village Volvo
Intangibility
 Waiting lounge and refreshments, cleaning of car
Heterogeneity
 Direct contact mainly with service manager so that one voice
goes to customer
CHARACTERIZE VILLAGE VOLVO IN REGARD TO THE NATURE OF SERVICE
ACT, RELATIONSHIP WITH CUSTOMERS, CUSTOMIZATION AND JUDGMENT, THE
NATURE OF DEMAND AND SUPPLY AND THE METHOD OF SERVICE DELIVERY

Nature of service act

 Tangible Action directed to customer – Waiting lounge and refreshments
 Tangible Actions directed at Customer’s Possession – Estimate of service and actual
service
 Intangible Action directed to customer – Friendliness, communication on changes to
the plan and delivery
 Intangible Actions directed at Customer’s Possession – Cleaning the interior, CCVD
and documentation
Relationship with customers
 Service is direct relationship with customer and it is a long-term relationship. They
maintain CCVT for future reference and timely reminders to be sent for service and
renewal of insurance etc
Customization and judgment
 The customer participation in the process is high, there are regular contacts made to
customer in between for changes that was not clear at the time of initiating the service.
Alternatively customer can contact the service manager for all queries
Nature of demand and supply
 There is enough demand for cars with warranty completed from the company. The
owners has enough experience in the field and have good reputation in the field
Method of service delivery
 The rough estimate and time of completion are mentioned at the time car is picked up.
But any changes to the above are notified to customer well in advance. Once the car is
ready for delivery the mechanic does a test drive to verify all issues are resolved and
parks in the delivery area.
SUMMARY OF CHARACTERISTICS

Nature of Service Act

Direct recipient of the service Things Repair
Nature of the service Act Tangible Act
Relationship with the customer
Type of Relationship Membership
Nature of the service delivery Continued Delivery services
Customization and judgment
Extent to which services are customized High

Extent to which customer contact personal High

exercise judgment
Nature of demand and supply
Extent of demand fluctuations Narrow
Supply is constrained With/Without delay
HOW COULD VILLAGE VOLVO MANAGE ITS BACK OFFICE
LIKE A FACTORY?

Smooth operation of demand

They have standard service process to resolve most general customer
problems. The service offered is very centric to customers and high level
of attention is given to this. The mechanics do not do any repairs during
7-8 am because this is the time for customer contact. Similarly 5-6 pm
too. The service manager is aware of what is happening for vehicles and
they are in touch with customers for all variations. The mechanics are
also approachable by the customers for any queries. This makes the
whole service process transparent.
Finished Goods
They do a test drive after the service is completed and place it in parking
area. By this they avoid any rework of the vehicle and add to the finished
good inventory.
HOW CAN VILLAGE VOLVO DIFFERENTIATE ITSELF FROM
VOLVO DEALERS?
Customized Service
The owners have created a custom car care program which is not
available with local dealer. Customers can drive in during specific days in
week for quick checks and oil changes. They also have a option to take
prior appointment and drop in. They encourage users to use this for
diagnosis and repair. The owners have 22 years of experience with the
same cars and they have good reputation which makes this service
operation possible.
Out of warranty
They only deal with out of warranty vehicles
Sustainability
All the worn out parts are made available to customers verifications and
after that it is recycled with a partner. Other partnership exists for
bodyworks alignments etc
Workshops
Helps customer to know more about the vehicle and conducts workshops