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MG375 Week 4

5. What are the differences between high and low customer contact service (CCS) businesses, in
general for the dimensions listed below? (Example Facility Layout; in a high CCS, the facility would
be designed to enhance the feelings and comfort of the customer while in a low CCS, the facility would
be designed for efficient processing.)
Worker Skill
Low CCS Business The direct workforce need only have technical skills.
High CCS Business The direct workforce constitutes a major part of the service product and so must be
able to interact well with the public.
Capacity Utilization
Low CCS Business Storable output permits capacity at some average demand level.
High CCS Business To avoid lost sales, capacity must be set to match peak demand.
Level of Automation
Low CCS Business The customer is not involved in the majority of processing steps.
High CCS Business This has a direct effect on the customer. If automation is low, the customer could
have to spend more time than needed.












MG375 Week 4
Chapter 9 Case Study

1. What are the causes of the quality problems on the Greasex Line? Display our answer on a fishbone
diagram.

2. What general steps should Hank follow in setting up a continuous improvement program for the
company? What problems will he have to overcome to make it work?
Update and discuss his plan to upper management to get their support.
Present the plan to supervisors so they can work as a team to implement the changes.
Discuss plan with employees and get input to give the team a sense of involvement in the
process. By doing so, this will allow employees to accept the implementation of the
improvements/change.
Have a formal training program for employees to demonstrate how to work the machinery
correctly.
Benchmark each milestone to document the improvement of their product,
Create incentives for employees as improvement continues.
He will need to get the vendor of the nozzles to correct and replace the defective ones
Hank will have to take care of is scheduled maintenance for the filling machine or replace the
current one for one that is designed properly to get the job done
The last implementation Hank needs to do is the testing of the cans for ease of filling and
performance- this will ensure safety issues are greatly reduced in the future and that there are
no defects.
The main problem Hank will need to overcome to make improvements is dealing with the
attitude of the current employees, manufacturing management and supervisors. He will need to
instill that quality over quantity is important
Redo goals as the quality of their product increases to set higher standards.

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