Cbmec1 M3 Wed

CBMEC 1
OPERATIONS MANAGEMENT AND TQM
Module 3
(Wednesday)
Consumer Oriented Approach

This approach may also be termed as user-based approach. This approach
starts from the premise that quality “lies in the eyes of the beholder”.
o It is, therefore, more appropriate to adopt a consumer-oriented approach,
which recognizes that the holistic process of service delivery has to be
controlled by taking into consideration the expectations and attitudes of
service clients.
Goods that satisfy customer preferences best are believed to have high quality.
o The major problem with customer-oriented approach is the equating of
quality with maximum satisfaction.
Customer-oriented skills
1) Empathy
2) Ability to understand and act on customer data
3) Agility: customer-oriented companies quickly adapt to customer needs
4) Effective communication
5) Active listening
6) Problem-solving skills
7) Customer focus
Customer orientation examples
Nordstrom
 The retail giant is well-known for creating positive customer experiences.
o Their one-rule employee handbook simply says, “Use good judgment in all
situations.” (While there are more rules, this still says a lot about how
important the customer is to Nordstrom.)
 Nordstrom's exceptional customer service comes primarily as a result of two
main components, firstly their attention to detail when it comes to the customer
experience and secondly, the level to which they empower their employees.
Sources:
Neha Tikko, Neha (Editor). Production and Operations Management. Excel Books Private Limited.
https://ebooks.lpude.in/Management/Bba/Term_4/Dmgt206_Production_And_Operations_Manageme
nt.Pdf
https://www.toolshero.com/quality-management/eight-dimensions-of-quality/
https://www.futurelearn.com/info/courses/introduction-to-international-logistics/0/steps/95161
o A Norsdtrom salesperson rarely points. If you have a question about
where something is located, they walk you there.
o Salespeople are taught to walk your bagged purchased around the
counter to you vs. just handing it across the counter.
o Salespeople can offer to ring up your purchase without you ever having to
stand in line. This particularly happens a lot in the shoe departments.
o Departments are generally trained to answer the phone on no more than
the 2nd ring.
Amazon
 Amazon lives and breathes customer experience.
o The company goes to remarkable lengths to make customers happy.
 They describe their leadership philosophy as “start with the customer and work
backwards.” CEO Jeff Bezos even reads customer complaint emails.
Netflix
 Netflix solves customer needs and creates fans with a mix of quantitative and
qualitative methods.
o Over the years, they’ve used this approach to:
 Cut down DVD shipping times by opening more distribution hubs
 Use more customer-friendly language in their interface
 Improve the quality of movie and show suggestions made to
customers
o Of course, that customer-oriented mindset even extends into customer
service.
Product Attributed Approach
In product-attributed approach, customers try to judge the product’s conformance
to standardized requirements, which have been set by reference to what
company managers think the failure point is.
In this approach, organizations try to control their products using an internal

product perspective e.g. a manufacturer of potato chips can grade pieces of
potatoes received from the supplier according to certain objective criteria.
o These criteria can be weight, shape, size, color, texture etc.
Sources:
nt.Pdf
From the consumer’s point of view, as an external perspective, assessment of
quality can be made at the supermarket or vegetable store prior to purchase.
o Consumers can touch or feel goods at a more subjective level.
o But in both cases, the assessment of quality relates to the finished
product. This involves inward looking product-led approach.
Examples of product attributes

o Name
o Product ID
o Size
o Color
o Weight
o Materials used in construction
o Design features
o Lifestyle photographs
o How-to videos
o Country of origin
o Price
Importance of product attributes

o Attributes allow shoppers to find, comprehend, and compare your
products.
 Selling online is not just about offering the best products but also
the best descriptive data.
 It is not just about making the sale but delivering on your promise.
 Unmet expectations lead to bad reviews and returns.
o Attributes like product descriptions, lifestyle photography, and training

videos are created to capture shoppers’ attention and illustrate what life
looks like with your product.
 This requires a fair amount of market research and a clear
understanding of your product's value.
Sources:
nt.Pdf
How to manage product attributes
o Collaborate with your teams - . ask around the different departments in
your organization to understand what’s currently in-place and identify
opportunities for collaboration.
o Create a product attributes list - an attributes list can help you identify the
most salient (and searchable) attributes of your product lines.
o Group attributes - identify which attributes apply to all of our products and
which ones apply to specific assortments.
o Use attribute types and rules – clearly define your unit types.
o Study your competition - review and analyze how the top sellers in your
industry describe their products
o Read product reviews - reviews for both your own products and your
competitors will often give you insights into what your customers want and
need.
ASSIGNMENT 2
CASE STUDY: COCA-COLA
Iconic beverage company Coca-Cola has famously kept its secret formula under wraps
since its 1886 founding. While the legendary story of the elusive recipe has received a lot of
press over the years, the most important driving force behind the global giant’s success is as
apparent as its red and white label: Coca-Cola goes above and beyond to keep customers
happy. So when Coca-Cola Germany wanted a technology platform to help take customer
service to even higher levels, its choice was Salesforce.
When a company has been around as long as Coca-Cola, it sees a lot of customer service
technologies and philosophies come and go. But with Salesforce, Coca-Cola Germany feels it’s
found a solution that will be with the company for the long haul. “In the past, big companies
outcompeted smaller companies. But that’s history. Today, the fast companies outcompete the
slow companies,” explained CEO Ulrik Nehammer. “We needed to get much faster, work on
collaboration, connectivity, and scalability — and all that in a mobile context. Salesforce has
been a fantastic partner and a great help for us.”
Sources:
nt.Pdf
Impressed with its flexibility, Coca-Cola Germany is using Salesforce Platform as the
principal technology behind its sales and customer service efforts. The company is powering
multiple parts of its business with custom apps built on this platform. Thorsten Kohler, CEO of
Your SL, Coca-Cola Germany’s Salesforce implementation partner, explained the platform and
its scalability: “It’s like a big toolbox. Out of that toolbox you can quickly build new applications
for any department in your company.”
Salesforce Platform also provides unprecedented connectivity. It’s an advantage Coca-
Cola Germany didn’t find with other systems it had seen. “We’ve seen a lot of systems, but they
weren’t 100-per cent connected. With Salesforce Platform, we all see everything at the same
time,” said Nehammer. Now, with departments from bottling locations to field reps using apps
connected in the cloud on the Salesforce platform, the company is able to take care of
customers as one big team. “With everything connected on this platform, everyone knows
what’s going on with our customers,” said Kai Uhlemann, head of mobile. “That’s very
important for us.” Coca-Cola Germany is now able to instantly solve issues that once took days
just to spot. “We call it connecting the dots,” said Nehammer. “If there’s a delivery that’s gone
wrong, immediately the customer sees it, the sales rep will see it, distribution will see it, and I
see it.”
With the help of Salesforce, the company’s technical call centre and repair departments
are running like a precision machine. With the previous system, the call centre and repair
department suffered from frequent downtime, slow mobile app sync-up time, and an overall
unsatisfactory user experience. With Service Cloud, call centre support agents have instant
access to customer history. They can log issues, generate work orders, and dispatch field
service technicians via a custom field in the service mobile app — all in real time. The mobile
app even plans out the optimal route for most efficiently completing the day’s service requests.
The company’s in-house repair facility, which formerly had technicians tracking their
jobs on paper, has also been brought into the fold. Now connected to Service Cloud,
technicians can alert customer-facing sales reps the moment repairs are completed. Overall,
Coca-Cola Germany’s technical services departments have seen a 30 % increase in productivity.
“This has been a massive step forward for us,” said Andrea Malende, business process expert
and mobile solutions. “I’m amazed how quick and smooth the implementation was.”
Custom mobile apps integrated into Sales Cloud have also been a far-reaching
component of Coca-Cola Germany’s account service advancements. Being able to stay totally
connected to crucial customer data has done more than just allow work on the go. It’s helping
the company make better decisions for customers. “The most dangerous place to make a
decision is in the office,” said Nehammer. “You need to make decisions where the customer is.”
Retailers are enjoying the benefits too. Armed with tablets running these fully connected
custom apps, field reps have the data to give retailers personalised service.
Sources:
nt.Pdf
Beyond ordering inventory, reps are also tasked with helping create the most effective
point of sale possible. Surveys are done to check if Coca-Cola promotional materials are being
used and more. In the past, surveys were done manually and results could be slow to come.
But, with the connected apps, all relevant team members are alerted immediately so issues can
be remedied quickly.
With a legendary brand to sell and Salesforce’s cutting-edge technology helping power
its efforts, Coca-Cola Germany is more excited than ever about its future in the market.
“We’re just getting faster and it totally excites me,” said Nehammer. “It’s a very important time
in history to have a great brand coupled with great technology. We are on to something very,
very special. Some would call it a secret formula.”
Source: https://www.salesforce.com/ap/customer-success-stories/coca-cola/
Discuss Coca-Cola customer relationship management practices.
Sources:
nt.Pdf

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CBMEC 1

OPERATIONS MANAGEMENT AND TQM

Consumer Oriented Approach

In this approach, organizations try to control their products using an internal

Examples of product attributes

Importance of product attributes

o Attributes like product descriptions, lifestyle photography, and training

Discuss Coca-Cola customer relationship management practices.

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