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Production & Total Quality Management
December 2024 Examination
Q1. A start-up in a bustling metropolitan city aims to introduce a comprehensive house cleaning service. The service will include routine cleaning, periodic deep cleaning, and pest control, tailored to meet the needs of urban households. The idea is to offer flexible packages, including all necessary cleaning materials, skilled personnel, and customizable frequency of service based on customer contracts. The company has identified a growing demand for reliable, professional cleaning services, especially among busy professionals and families. However, they face challenges in determining the ideal mix of services, pricing models, and operational logistics. They must design a product (the service package) that not only meets customer expectations but also remains profitable and scalable.
Apply the product development process to create an effective house cleaning service based on the case situation applying all product development process steps logically? (10 Marks)
Ans 1.
Introduction
The rise in dual-income families, busy professionals, and evolving urban lifestyles has created a burgeoning demand for professional house cleaning services in metropolitan cities. These services cater to the need for hygienic and well-maintained living spaces without requiring significant time or effort from the customers. A start-up aiming to introduce such services has identified the need for flexibility, professionalism, and affordability in its offerings. However, translating this idea into a scalable and profitable business requires a systematic approach to product development. By following the product development process, the start-up can ensure that its services align
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Q2. UrbanCart, a rapidly growing e-commerce company, is facing significant challenges in managing its inventory across multiple warehouses. The owners, who have recently invested heavily in the business, are struggling with inefficient inventory allocation, leading to overstocked and understocked warehouses. This has caused delays in order fulfillment, resulting in dissatisfied customers and potential loss of business. Additionally, high carrying costs, inefficient use of warehouse space, and a lack of real-time visibility into inventory levels have further strained the company’s resources. Issues like unaccounted damaged goods and increased risk of theft are also impacting overall profitability.
As a consultant, how would you explain the importance of effective inventory management to the owners of UrbanCart, who have limited knowledge of e-commerce and inventory management? (10 Marks)
Ans 2.
Introduction
Inventory management is a cornerstone of efficient e-commerce operations, particularly for a rapidly growing business like UrbanCart. With multiple warehouses, managing inventory effectively becomes increasingly complex, yet it is critical to ensure smooth operations. Inefficient inventory allocation can lead to overstocked items in some locations and shortages in others, causing delays in order fulfillment and customer dissatisfaction. The costs of excess inventory, underutilized warehouse space, damaged goods, and theft further strain profitability. Additionally, the lack of real-time visibility into inventory levels hinders decision-making and
Q3a. Describe the RATER model (SERVQUAL model) and apply it to a service-based scenario of your choice. Conclude with a logical explanation of the benefits gained from using this model in the chosen situation. (5 Marks)
Ans 3a.
Introduction
The RATER model, derived from the SERVQUAL model, is a framework used to evaluate service quality based on five dimensions: Reliability, Assurance, Tangibles, Empathy, and Responsiveness. It helps businesses identify gaps between customer expectations and their perceptions of the delivered service. By focusing on these dimensions, companies can improve service quality, enhance customer satisfaction, and build trust. This model is widely applicable across service industries and serves as a diagnostic tool to pinpoint areas for improvement.
Concept and Application
Q3b. Describe the concept of Quality Circles (QCs) and apply it to a service-based scenario of your choice. Explain the benefits of implementing QCs in that situation and conclude with a logical explanation of the improvements gained from their application. (5 Marks)
Ans 3b.
Introduction
Quality Circles (QCs) are small groups of employees who voluntarily meet to identify, analyze, and solve work-related problems. These groups promote teamwork, empower employees, and enhance workplace quality. QCs are particularly effective in service-based industries where customer satisfaction depends heavily on the efficiency and creativity of front-line employees. By