Discuss about the Managing Operational Improvement for MOT.
Moments of Truth means the moment when interaction takes place between consumers and service providers and this has either positive or negative image on the consumer. In the Gold Chilli restaurant, Moments of Truth (MOT) would be mainly the overall customer experience of ordering and obtaining food (Evans and Lindsay, 2013). Customer entrance, welcomed by a staff, guests sits, make order, receive order, clearance of table, server brings bill, customer or guest pays and leave the restaurant, etc. Customer enters in restaurant and welcomed by friendly and professional staff that would be the MOT. The ordered food provides to the guest in timely manner that will be the MOT as customers anticipates quick service in a fast food restaurant (Fisk et al., 2013). Clean and well-maintained service area as well as quality of ordered good would also be the MOT in the Gold Restaurant.
The customer segmentation practice of Gold Star would have positive impact on its customer-focused approach as it will help it to understand the needs and preferences of customers more effectively. Segmentation allows a firm to group the customers in accordance to their needs and preferences and to prioritize them (Evans and Lindsay, 2013). This would provide Gold Star a way to understand requirements and exceptions of each customers group. It may help this firm to determine right customer-focused approach. Customer segmentation in this restaurant may help this firm to make informed changes in the ways of servicing food and to make more effective customer-focused approach (Rodrigues, 2013). Thus, segmentation of customers would lead to the improvement in customer-focused approach of this restaurant.
Several approaches such as Total Quality Management (TQM), Six Sigma, Continuous Improvement (CI), etc. approaches should be used by the Gold Star to listen and to learn from the customers of different segments. These approaches would be useful for this company to analyze the performance of each process of developing and delivering services to the customers (Evans and Lindsay, 2013). Variety of ways such as customer comment card, customer survey, market research, 24*7 online chat, e-mail, etc, can be employed by this firm to use quality management approaches for determining customers’ expectations and needs. These ways would be useful to obtain feedback from the customers regarding the service delivery process and its management (Kaynak, 2013). This will provide views and opinions of customers for service offerings at the Gold Star.
Gold Star’s customer segments can be categorized broadly in two forms such as customers and franchisee. The “customer satisfaction survey” for both segments would include the questionnaire that would be designed to ask customers’ experience with the firm as well as their needs and expectations. The customers of restaurants would be approached for the survey. E-mail will be used to carry out survey on franchisee Rating scales would be used to obtain responses. Customers would be asked about the quality, cleanliness, services delivery, dining experiences and suggestions. Franchisee would be surveyed to determine their opinion regarding the effectiveness level of communication, transparency, dependability, timelines, quality and cooperativeness (Evans and Lindsay, 2013).
Figure 1: DMAIC Model
(Source: Furterer, 2016)
In the given problem, the process used by the team of car parts distributor can be aligned with DMAIC module in following way:
Define: Through this step, the team in given case can describe problem, customer, goal, scope, resources and timeline. The problem that is given case is related to ‘reduction of shipping time of auto parts’. Increasing in delay of services make a customer unhappy and threaten to switch to another part distributor. Also, using of longer carts causing traffic jams and thereby actually increasing picking times.
Measure: Through this step, the company can measure effectiveness of its current practices in resolving specified problem. Data is collected from many sources and team decided to draw a flowchart of the order fulfilment process (Furterer, 2016). The flowchart shows activities performed and their completion time to complete order on time. The team randomly chose 50 orders to study activity completion time.
Analyze: Team can identify the root cause of the problem through assessment of data received from above step. After analysis, it was found that picking time is the largest contributor to order processing delays. Also, a part picker spends seven hours in gathering parts from the warehouse out of 8 hours daily shift.
Improve: The team decided to improve the situation by using push carts to carry the parts. It reduced the number of multiple trips needed. The team should also focus on the rearrangement of the warehouse (Cudney and Furterer, 2012). The parts should be arranged in a systematic way so that part picker gathering time can also be reduced.
Control: The team should closely monitor improvement to ensure the success.
The process of team in given case can also be aligned with different steps of Deming cycle. Below is alignment of team process with Deming cycle:
Figure 2: Deming cycle
(Source: Agustiady and Cudney, 2016)
Plan: Under this step, team identifies the problem and develops an action plan for addressing problem. The problem was using small carts for delivering car parts. The solution identified by team was the use of longer carts by replacing small carts.
Do: The plan of trial longer carts is implemented and executed.
Check: At this step, actual results were studied and compare against expected results (Agustiady and Cudney, 2016). Usage of trial longer carts has met the expectation by reducing order processing time.
Act: Finally longer carts were applied in order processing.
The Creative Problem-Solving Process
Figure 3: Creative problem-solving module
(Source: Carroll, 2016)
The manager of centre warehouse identified a creative solution of customer complaints and guaranteed delivery within 24 hours or the customer would get the parts at no charge. The team collected data on performance of newer solution to identify a creative solution for resolving every issue with delivery operations.
Alternative Solution if the Longer Cart was not enough to achieve the Goals:
The lean tool is helpful to eliminate wastage, unnecessary processing steps, and unnecessary movement of material, waiting time and excess inventory.
Redesign of the warehouse is also an important way to reduce order processing time. In the given problem, a part picker spends about seven hours in gathering parts, out of eight hours shift per day. It shows warehouse is not properly designed (Carroll, 2016). There should be a separate title and section for parts that can easily be identified. There must be proper system or space available for storage. Reducing parts gathering and collection time will ultimately reduce order processing time. It will also save the time of part picker.
Appointing supervisor at warehouse can also increase efficiency/effectiveness. The supervisor can direct and design workflow for reducing activity time and to meet goal of on-time delivery of car parts.
Now the packaging activity is identified as activity responsible for greatest delay (Tracy, 2014). In this case, company will need to improve its packaging operations. This can be done by hiring of new employees with experience in packaging work. In addition to this, company may also need to start extra shifts or overtime facility in for packaging workers (Proctor, 2010). This way, the packaging work can be done in shorter time span.
The six sigma DMAIC Model is defined as a tool to solve a problem and improve existing products or processes in organizations (Stern, 2016).
DMAIC stands for:
Define the goals of project and requirement of customers.
Measure the process to identify the current performance and find out the problem that will arise.
Analyse the main cause of the problem/ defects.
Improve the process by removing the defects.
Control the negative effects for efficient performance in future.
Figure 1: DMAIC Model
(Source: Evans, 2013)
Use of Six Sigma to Help Cigna Corporation to Address Five Strategic Imperatives:
Five strategic imperatives of Cigna’s can be achieved through Six Sigma by effective defining of customer requirement, development of effective project plans (i.e. including cost control strategies, by making production in bulk quantity as per customer requirement) to reduce company’s overall cost, effective use of available resources at the right place and right time to create cost advantage over competitors (Evans, 2013). For improving the health and well being of members, Six Sigma is beneficial to monitor and improve current business operations at Cigna Corporation. Under sigma model, company will focus on providing effective training to the employees for providing effective benefits to the members and the insured people of Cigna.
For bringing innovative products in the market, Six Sigma first helps to identify the requirement of customers and competitive advantage of Cigna in the market. This will help to make an effective strategic plan to launch new product that will differentiate it from competitor and will help to create competitive position in market (Rajdou and Prabhu, 2015).
For becoming the partner of choice to customers, Six Sigma first helps core product team to analyze the customer data and then prioritize and design the products and services according to customer requirements. This can help Cigna to retain customers for long term. For creation of winning environment in Cigna, Six Sigma can be used to develop effective competitive strategies and positive behavioural changes among employees to work in collaboration with each other to achieve the desired objective. Cigna not only focuses on productivity improvement but also on behavioural changes and focus on customers. This way, Six Sigma is productive to facilitate quality, continuous improvement, sustained excellence at Cigna to create competitive advantage (Bloom, 2016).
Specific Type of Six Sigma Projects that Might Support Cigna’s Strategic Imperatives:
For achieving the all five strategic imperatives of Cigna’s Corporation, only one type of project is not appropriate so we have to consider all three types of Six Sigma Projects. These projects are explained as follows:
Quality Improvement Project: Main focus of this project is to improve quality by effectively removing the defects that are recognized from complaints made by customers. The main element of this project is to effectively make data analysis of the relevant facts to identify the root cause of defects, introduce change or improvement to eradicate defects. This can help Cigna to provide better and innovative products to the customers (Jones, 2014).
Revenue Enhancing Project: This project focuses on earning revenue by activating the inactive distributors and getting repeat business from the existing customers. This project can help Cigna to achieve increased revenue and to deal efficiently with customer requirement by creation of a winning environment.
Cost-saving Project: This project mainly focuses on elimination waste and reallocation of resources for efficient production. Through this project, Cigna will need to provide training to employees, review their work processes, recognition of the possible waste in work and taking of steps or effective measures to eliminate the waste. This project can help Cigna to achieve cost advantage strategic imperative over its competitors (Kubiak, 2013).
References
Agustiady, T. K. and Cudney, E. A. (2016) Total Productive Maintenance: Strategies and Implementation Guide. USA: CRC Press.
Bloom, D. (2016) The Field Guide to Achieving HR Excellence through Six Sigma.US: CRC Press.
Carroll, C. T. (2016) Six Sigma for Powerful Improvement. USA: CRC Press.
Cudney, E. A. and Furterer, S. L. (2012) Design for Six Sigma in Product and Service Development. USA: CRC Press.
Evans, J. (2013) Quality & Performance Excellence.7th edn.US: Cengage Learning.
Evans, J. R., and Lindsay, W. M. (2013) Managing for quality and performance excellence. USA: Cengage Learning.
Fisk, R., Grove, S. and John, J. (2013) Services Marketing Interactive Approach. USA: Cengage Learning.
Furterer, S. L. (2016) Lean Six Sigma in Service: Applications and Case Studies. USA: CRC Press.
Jones, E. (2014) Quality Management for Organizations Using Lean Six Sigma Techniques.US: CRC Press.
Kaynak, H. (2013) Total quality management and just-in-time purchasing: Their effects on performance of firms operating in the US. UK: Taylor & Francis.
Kubiak, T. (2013) The ASQ Pocket Guide for the Certified Six Sigma Black Belt.US: ASQ Quality Press.
Proctor, T. (2010) Creative Problem Solving for Managers: Developing Skills for Decision Making and Innovation. UK: Routledge.
Rajdou, N. and Prabhu, J. (2015) Frugal Innovation: How to do better with less.UK: Profile Books.
Rodrigues, L. L. (2013) Service Quality Measurement: Issues and Perspectives. Anchor Academic Publishing.
Stern, T. (2016) Lean Six Sigma: International Standards and Global Guidelines. 2nd edn. US: CRC Press.
Tracy, B. (2014) Creativity & Problem Solving. USA: AMACOM.
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