Customer Service Measures Research Articles

Best practices: our quest for excellence in behavioral health care.

Best practices: our quest for excellence in behavioral health care.

Logistics customer service: performance of Irish food exporters

Customer service in logistics, through its direct impact on a firm’s market share, its total logistics costs and ultimately its profitability, is a critical determinant of competitiveness. Examines what customer service means from a logistics perspective and traces out UK retailers’ changing requirements. It provides the results of a survey which investigates the importance UK grocery retailers place on particular elements of customer service and assesses Irish food exporters’ relative performance, vis‐à‐vis their competitors on the UK market. A comparison of these results with previous research by the same authors concerned with Irish food exporters’ internal measurement of customer service finds that Irish food exporters are perceived to lack flexibility by their grocery customers and that internal measures of customer service are limited. Furthermore, the measures exporters employ for monitoring purposes are not appropriately aligned with those logistics variables which UK retailers consider important. Reconfiguring the supply chain with respect to inventory location is found to be one means of improving perceived flexibility.

Job Requirements Biodata as a Predictor of Performance in Customer Service Roles

A job requirements approach to biodata item specification, similar to the content-valid job analysis approach developed by Pannone (1984), is used to predict customer service. Applicants rate the extent to which their current and previous jobs involve tasks and behaviours that have been identified through an analysis of the target job. On a sample of 245 employees in an international hotel, the criterion-related validity of job requirements biodata compares favourably with traditional construct-oriented biodata measures of customer service, cognitive ability and personality (Conscientiousness, Agreeableness and Extroversion). The job requirements approach provides a simple, direct and content-valid method of biodata item specification. As the approach can also be tailored for particular jobs or organizations, validity is also potentially optimized.

The effect of push and pull lot splitting approaches on lot traceability and material handling costs in stochastic flow shop environments

This study evaluates how the procedures followed in splitting job lots on the shop floor influence both material handling and lot integrity in stochastic flow shop environments. Former work has shown that lot splitting improves flow time and customer service performance, but with an increased number of transfers along with a corresponding increase in material handling costs. Physical lot integrity, which is important to lot tracing, has not been considered in prior literature. In order to overcome these limitations and address material handling concerns better, we define a new measure of performance called the lot integrity loss exposure (LILE). We use this and other measures to show that the traditional 'push' approach that has been followed in modelling lot splitting complicates lot traceability in the shop and leads to an excessive number of transfers. As an alternative, we propose a 'pull' approach in which an order is split between any successive pair of machines only on an as-needed basis. The push and pull approaches for lot splitting are compared under a range of conditions characterized by factors such as machine utilization levels within the shop, setup-to-processing time ratios, and number of splits created in job lots. Our results indicate that relative to the push approach, pull lot splitting helps significantly in reducing the number of transfers incurred and in maintaining a greater degree of physical lot integrity. At the same time, there is no significant difference in the two approaches with respect to improvements in flow time and customer service measures. Both the degree to which lot integrity is preserved, and the extent of savings in material handling that result from using the pull approach, are shown to be most pronounced under conditions characterized by high machine utilizations rates and setup-to-processing time ratios. Managerial implications of our study along with further research directions in this area are also discussed.

A bi-directional scheduling approach for job shops

In this paper, we propose a method for scheduling job shops that combines two distinct manufacturing/management philosophies, push systems and pull systems. A bi-directional heuristic algorithm is presented which simultaneously addresses the reduction of mean flowtime (i.e. a measure of work-in-process) and mean tardiness (i.e. a measure of customer service). The algorithm is applied to realistic manufacturing situations and its performance with respect to mean flowtime and mean tardiness is compared with the performance of traditional scheduling approaches. In addition, we demonstrate that schedules generated by the bi-directional scheduling algorithm have a better-balanced workload and are therefore more robust than traditional schedules.

Quality of customer service in supply chain system: a diagnostic study

Supply chain systems play very significant roles to improve the quality of customer service and therefore, derive considerable attention from managers of enterprises in pursuit of competitive excellence. Different strategies are used to improve customer service and different measures are also used to quantify this. A detailed diagnostic study was conducted in a large Indian company dealing with fast moving consumer goods. In this study, a new measure called Depot Service India (DSI) was used to measure the quality of customer service and using which various statistical analyses were carried out to study how the DSI values vary over time and among various depots, how these values are auto‐correlated, what factors influence the variations in DSI values and how various decisions at strategic, tactical and operational levels affect the performance of the system. The details of how the results obtained were used to evolve remedial measures to improve the quality of customer service in the supply chain system of this company are also discussed in this paper.

Validity of Customer Service Measures in Personnel Selection: A Review of Criterion and Construct Evidence

The criterion-related and construct validity of customer service orientation measures were examined using quantitative review methods and large samples of primary data. The criterion-related validity analysis was based on 41 coefficients with a total sample size of 6,945. The mean validity was .50 for an aggregated supervisory rating of job performance. The construct validity evidence indicated that customer service meas- ures were positively and strongly related to personality dimensions of agreeableness, emotional stability, and conscientiousness. Customer service orientation was moder- ately related to sales drive and social interests but was uncorrelated with cognitive measures.

Inventories and customer service in Polish manufacturing companies

Challenging task of reconstruction of the Polish economy caused that the details of efficient company's management tend to be neglected too often. Marketing and sales seem to be the current issues since the demand constraint puts severe limits to the volume of goods sold. The theory of the principles of modern logistics management becomes more and more popular; however, the precise tools and methods for managing effectively the flows of goods are not a common knowledge of the majority of managers as yet. One of the major problems in the nearest future of Polish companies would concern strategy and management of customer service. The managers in Polish companies slowly becomes aware of the fact that a business that is successful in the long term is one of that provides for the needs of its customers better than its competition. However, performance measures of customer service are not widely used and recorded in many companies. An awareness of potential impact of the customer service on many aspects of the firm needs to be developed, so that it would help management increase the efficiency and effectiveness of a firm's competitive position. Inventories may support the customer service policy of a company, contributing to the net profits. On the contrary, inventories may be considered as a source of additional costs, therefore imposing some restrictions on reaching high levels of customer service. In both cases inventories play an essential role in shaping the final level of customer service in companies. The paper addresses all the above mentioned problems. It has been based on the results of the survey on logistics management made in a sample of Polish manufacturing companies in 1993 and 1994.

Preparing for upheaval: Why America's electric utilities must reengineer

With utility companies and other energy providers invading each other's markets, competing fiercely on price and service, utility strategy must adopt customer value as its lodestone. To provide that value, it is necessary to reengineer a utility's core processes for major improvements in cost, customer service, turnaround time, quality and other key measures of performance.

Looking at customer service in a drinks company

Describes a study undertaken for a major Scottish drinks company. The company believed that the quality of service to its customers had declined in the course of merger and rationalization. Presents the background of the company and describes relevant company procedures in outline. Also describes the recommendations made and presents top management reports with measures of customer service. Discusses issues concerning implementation.

Models for evaluating the performance of serial and assembly MRP systems

This paper studies the problem of evaluating the level of customer service that can be achieved in serial and assembly production networks operating under MRP. Using results on the relationship between MRP and traditional inventory policies, we develop exact and distribution-free expressions for the inventory fluctuations at all stock points of these networks, and use them to derive analytic models for three customer service measures. All models make use of non-dimensional ratios, which drastically reduce the number of variables involved. These ratios are a direct extension to the multi-level context of previous ratios derived for single-level systems. Our analysis is concluded by an equivalence theorem, which allows the evaluation of the service obtained in two-echelon assembly networks through the direct application of the results obtained for serial networks.

Customer satisfaction measures

Describes measures of customer satisfaction developed by one business within ICI, a major UK‐based chemical company. Asserts there is a lack of clear focus on customers particularly in bulk manufacturing and process industries. Discusses customer satisfaction measures: supplier audits, complaints data, customer survey. Concludes most management teams spend disproportionate time studying financial data and give too little attention to non‐financial performance measures, which dictate financial performance. Contends customer service measures must be used as a basis to develop and track the progress of well‐conceived plans to continuously improve all aspects of customer service.

Interset Association between Measures of Customer Service and Market Response

Customer service is often described as consisting of a set of measurable elements. Similarly, market response to customer service may be viewed as consisting of a set of components which are measurable. Most published empirical studies of the relationship between customer service and market response, however, have represented market response through the use of a single measure. The results of an empirical study of interset association between two sets of measures, one representing the elements of customer service (measured in service levels) and the other representing various forms of market response, are reported. Canonical correlation analysis of data collected from 91 grocery channel dyads indicated (as expected) a closer association of market response with customer perceptions of customer service than with supplier perceptions of the same. Also presented, is the contribution of individual measures to the close association between market response and customer perceptions of customer service.

Bicriterion scheduling problem in a job shop with parallel processors

This paper deals with the problem of bicriterion scheduling with parallel identical machines. An algorithm is proposed taking into consideration the following criteria: minimizing total flowtime (measure of inventory) and minimizing the maximum tardiness (measure of customer service). Five different dispatching rules are compared, namely Shortest Processing Time (SPT), Earliest Due Date (EDD), Minimum Slack Time (MST), Largest Processing Time (LPT) and the sequence given by the algorithm of Wassenhove and Gelders. The Wassenhove and Gelders algorithm gives the best result among the dispatching rules. Finally, the proposed algorithm is applied to a real-life situation to illustrate and justify its validity.

Evaluating the interaction between the manufacturing environment and planning and control systems

Abstract The choice of an appropriate infrastructure (systems and organizations) that is used to support the manufacturing process is often treated lightly in the literature. Historically, the selection of manufacturing planning and control systems has been influenced more by current “new wave” rather than by the environment faced by the firm. This study explores the interaction between the manufacturing environment and the planning and control system as it relates to performance. A mail survey of sample companies is used to classify manufacturing firms along the dimensions of production process, production volumes and the type of planning and control system used, and to estimate the processes-environment fit. Manufacturing performance is assessed through measures of inventory turnover, customer service, and delivery lead time. A random coefficient regression model is used to investigate if the fit between the manufacturing environment and planning and control systems is related to manufacturing performance.

Management Performance Measurement in Service Industries

The problem of using management accounting techniques to measure managers' performance in the service sector is examined. The essence of the problem, it is argued, is that organisations are being judged externally on one set of criteria while the internal control system measures a different set of criteria. Using a management accounting perspective the article identifies the dominance of accounting measures in performance measurement and demonstrates how this has led to dysfunctional behaviour of managers. It is then proposed that a control system be developed that aims to achieve organisational control by the specification of a range of control measures. Measures of finance, customer service, resource utilisation, employee attitudes and service development should be included. Furthermore, no one set of measures can be expected to satisfy all organisations, the exact set and relative weighting of each component being determined by the particular organisation's objectives.

Irregular workloads with MRP systems: Some causes and consequences

AbstractMaterial Requirements Planning (MRP) systems have been widely applied in industry to better manage multiproduct, multistage production environments. Although many applications have been quite successful, much is still left to the planner's intuition as to how to assure that master schedules, component lot sizes, and priorities realistically conform to the capacity limits at individual work centers. Capacity issues may indeed be the soft spot in MRP logic.This paper explores some possible causes of irregular workload patterns when using an MRP system. Better insight on which factors cause temporary bottlenecks could help managers better assess the vulnerability of their plants to this problem. It might also suggest ways of dampening peaks and valleys. The problem setting is a multistage environment; several products are made from various subassemblies and parts. Each shop order is routed through one or more capacitated work centers. An order is delayed either by temporary capacity shortages or the unavailability of components. Of course, the second delay can be caused by capacity problems previously encountered by the shop orders of its components.Seven experimental factors are tested with a large‐scale simulator, and five performance measures are analyzed. The factors are the number of levels in the bill of material, the average load on the shop, the average lot size, the choice of priority rule, demand variability, the use of a gateway department, and the degree of equipment specialization. We have one measure of customer service, two for inventory, and two for workload. The workload measures are unconventional, since our interest is when workload variability occurs and how it affects inventory and customer service.The simulator has been developed over the course of eight years, and since this study has been further enhanced to handle many more factors. The simulator was validated recently with real data at two manufacturing plants. It is quite general, in that the bills of material, shop configuration, routings, worker efficiencies, and operating rules can be changed as desired.An initial screening experiment was performed, whereupon the average load and priority rules were not statistically significant at even the .05 level. A full factorial analysis with two replications was then conducted on the five remaining factors. Multivariate analysis of variance (MANOVA) and analysis of variance (ANOVA) statistical tests have been performed.The results confirm that workload variability can have a detrimental impact on customer service and inventory. The following structural changes to the manufacturing system can be beneficial, but tend to be more difficult to achieve. More BOM levels improve customer service, but increase inventory and capacity bottlenecks. Resource flexibility is a powerful tool to reduce workload variability. Capacity slack averaging much over 10% is wasteful, having no benefits for inventory and customer service. In general, revising the routing patterns only, such as creating more dominant paths, will not give big payoffs. The following procedural changes are easier to implement. Master schedules which smooth aggregate resources are an excellent device to reduce workload variability. Even with a smooth MPS, debilitating workload variability can still occur due to the design of the BOM, lot size, and leadtime offset parameters. Selecting a priority rule does not seem to be of overriding importance compared to master scheduling and component lot sizing. These findings must be considered within the context of the range of plant environments encompassed by this study.

A Note On Initial Fill Rate

AbstractA common measure of customer service is initial fill rate, the percentage of demand satisfied without delay from stock on hand. An exact expression for initial fill rate when demand is compound Poisson has previously been developed. This note presents an approximation which is simple to program and relatively quick to run. Its accuracy is distribution dependent. For negative binomial distribution of demand, its accuracy is evaluated and found to be good. A common alternative approach to calculate initial fill is shown to work very badly for one class of items.

A systems analysis approach to transit routing and scheduling in a small city

A computer model involving simulation is presented which can be used by small city mass transit decision-makers to determine benefits of alternative routing-scheduling systems. Given the results of an origin-destination survey, the model determines the number of trip demands which will be lost due to poor routing or poor scheduling, and the best travel pattern for the trip demands which can be serviced by the routing-scheduling system. The simulation portion of the model then simulates the operation of the buses on the routes, and the loading, unloading, and transfer of passengers in order to determine trip revenues, vehicle operating costs, and a variety of customer service measures.

The Background: Role and Relevance in Distribution Service

Preferences and needs of purchasers must be thoroughly defined and analysed when a supplier is establishing criteria upon which to evaluate distribution service within cost constraints. Historically, time and time‐related standards have served as primary, and often only measures of customer service. This temporal emphasis is understandable, given the characteristics of delivery schedules, inventory management, and goods handling systems; however, time‐based standards should not preclude consideration of other service measures. Research has indicated that the backorder may be a useful alternative or supplementary measure of customer service. Morgan concluded that the backorder is “an inverse measure of service achievement”. Perreault and Russ found that 25 % of the purchasing managers they surveyed cancelled more than one‐fourth of all orders which were backordered. Others have suggested that the backorder is a useful service criterion. In those cases where finished goods inventory is not ordinarily present in the system between the production line and the customer it becomes an extremely useful potential measure of performance.