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REQUIREMENTS

IN
PRODUCTION AND
OPERATIONS MANAGEMENT

SUBMITTED BY:

LUCKY JAMES S. ABEL


MBA
Case on Management of Quality

Tip Top Markets

Tip Top Markets is a regional chain of supermarkets located in the South-eastern United States.
Karen Martin, manager of one of the stores, was disturbed by the large number of complaints from
customers at her store, particularly on Tuesdays, so she obtained complaint records from the store’s
customer service desk for the last eight Tuesdays.
Assume you have been asked to help analyze the data and to make recommendations for
improvement. Analyze the data using a check sheet and Pareto diagram. Then construct a cause-and-
effect diagram for the leading category on your Pareto diagram.
On July 15, changes were implemented to reduce out-of-stock complaints, improve store
maintenance, and reduce checkout lines/pricing problems. Do the results of the last two weeks reflect
improvement?
Based on you analysis, prepare a list of recommendations that will address customer complaint.

Check Sheet. Customer Complaints from June 1- July 27

June June June June June July July July July


Complaints
1 8 15 22 29 6 13 20 27 TOTAL
Out of Stock 8 11 9 10 9 10 8 13 12 90
Store Maintenance 9 6 5 5 4 8 5 4 9 55
Pricing
Problems/Queuing 4 3 9 2 5 4 6 5 1 39
TOTAL 21 20 23 17 18 22 19 22 22 184

Pareto Diagram. Customer complaints from June 1- July 27.

TIPTOP MARKETS - CUSTOMER COMPLAINTS


14

12

10

0
June 1 June 8 June 15 June 22 June 29 July 6 July 13 July 20 July 27

Out of Stock Store Maintenance Pricing Problems/Queueing


Based on the pareto diagram, problems regarding stock-out is consistent. Stock out problems
arises due to poor inventory management. Tiptop Markets should conduct weekly inventory count to
properly monitor stock movement. This will allow the management to be aware on product inventory
levels.

After July 15, there is a significant decrease in pricing and queuing problems but not on the issues
regarding stock out and improvement of store maintenance.

How to handle customer complaints.

1. Listen and understand- always listen to the customer. They are concerned about an aspect of
your services. Let go of the temptation to respond in any quick fashion.
2. Empathize- once you have listened to their concern immediately empathize with their position to
create a bond between you and the customer so that they know you have heard their concern.
3. Offer a Solution- always focus on what you can do as opposed to what you cannot. There is
always a solution.
4. Execute the solution- solve their problem be it with their originally requested resolution or an
alternative you have proposed.
5. Follow-up – make sure you follow-up with them to make sure that they are satisfied with the
solution and that you have taken care of their concern.
6. Record and organize meaningful complaints
7. Identify who you are talking to
8. Don’t be passive-aggressive
9. Transfer quickly, but explain why