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Archive for the ‘Services’ Category

One of my sisters-in-law (I have several) runs a frame shop. A trip to my wife’s hometown often means stopping by her sister’s shop and hanging out while mats are being cuts and frames assembled. So I was curious then to read an essay to read in the New York Times about running a frame shop — even more so given its title, The True Price of Customer Service (Aug 21).

The essay is written by the founder of Artists Frame Service, which is based here in Chicago and has generally been very successful. It has been open for more than three decades and (according to the article) is 20 times bigger than the average US frame shop. Part of how it got that way is by promising faster service. Since its founding, it has promised to turn around orders in a week. Consistently delivering on that, however, creates operational challenges.

What I was really asking about was the one-week turnaround: Was it worth the trouble? Did it matter enough to customers? I was asking because it is not an easy commitment to keep. If someone orders framing on Monday afternoon, it will not go into production before Tuesday morning. And it has to be done by Friday for it to be inspected and wrapped and put in the pickup shelves by the following Monday. That means we really only have three days to get it done.

The challenge has always been that some weeks are so busy that my staff members have to work 10 or more hours of overtime, while other weeks are slower and their hours are cut. I considered switching to a 10-day turnaround. This would effectively double the amount of time that we have to complete an order. But I worried: Was this the equivalent of cutting Samson’s hair and losing the magic?

Let me start by saying that in terms of operations, this is a really nice problem to think about. It highlights some important points about managing processes to provide fast service. (more…)

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Wal-Mart has had a tough go over the last few years. Sure, they are still a huge force in retailing but they have run into a variety of operational problems largely related to in-store execution. (See. for example, this post.) Now the Wall Street Journal reports that Wal-Mart is gearing up for the holidays by trying to address some customer service pain points (Returning to Wal-Mart: Human Cashiers, Aug 15).

In an attempt to lure more customers this holiday season, Wal-Mart Stores Inc. is promising to staff each of its cash register from the day after Thanksgiving through the days just before Christmas during peak shopping times.

The move, called the “checkout promise,” is aimed at addressing one of the retailer’s biggest customer complaints: long waits in checkout lines, which can cause even more frustration when positions aren’t fully staffed. The pledge will cover hours typically on weekend afternoons but which can vary by store.

“We feel good about price and having the top gifts of the season, so the next priority is about getting customers in and out of the stores quickly,” Duncan Mac Naughton, Wal-Mart’s chief merchandising officer, said in an interview. “Taking the possibility of waiting in long lines off the table will attract more people into stores.” …

On Thursday the retail giant said it allocated more hours to the front end of the store, to overnight stocking, and to deli and bakery to improve customer service during the most recent quarter.

Here are two questions that are worth thinking about. (more…)

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If you live here in the States, you may never have heard of the telecommunications company EE. But they are a major player in the United Kingdom with brands like Orange and T-Mobile. According to their Wikipedia page, they have around 28 million customers. EE has a new service offering that I must admit is kind of intriguing. Here is how it is described on their web page.

Priority answer service

From 6 August 2014 we’re also introducing a priority answer service. It’s available to all customers on pay monthly and SIM only plans.

Our priority answer service gives you the choice to get support even faster for just 50p per call when you call 150 and want to speak to customer services. It’s always available so if there’s a queue, you can be moved towards the front – ideal if you’re in a hurry.

How much it costs

The charge for this is 50p. If you’re on a plan that includes standard charging for customer services at 25p, you’ll only be charged an extra 25p for priority answer – so the total for the call with priority is 50p.

The 50p charge applies regardless of how long the call lasts.

To save the Americans the trouble of Googling this, 50p works out to about 84¢. So what do you think happens when customers are given the chance to jump the queue for less than a buck?

(more…)

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Would you be more likely to go to fast food restaurant if it guaranteed how long you wait at the drive thru? Some McDonald’s in South Florida are doing just that (McDonald’s offers a 60-second lunch guarantee on weekdays, Aug 4).

McDonald’s guests at participating South Florida restaurants will receive timers when paying for their order in the drive-thru. The timers are then returned to the McDonald’s crew member when their food is presented. This guarantee promises that customers will receive their meal within 60 seconds of paying for it, or receive a complimentary lunch item on a future visit.

The guarantee doesn’t apply all day. Indeed, it is only in effect for an hour — but it is the hour that matters, noon to one.

Let me acknowledge upfront that this is clearly a gimmick. McDonald’s has been in a funk and their drive thru times have been climbing (along with the time of many in the industry). So this offers customers some assurance and maybe puts a little competitive pressure on some of the other players in the industry.

But as gimmicks go, I kind of like this one. (more…)

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How to get people onto planes is an interesting topic. It is a process most of us go through with some regularity and it is hard not to think that there has to be a better way. There are many articles in the popular press explaining that in many ways airlines are doing it wrong (for an example, see this recent Quartz article). Academics like publishing papers on new methodologies that purport to work better — even if their approach is at best whimsical (would an airline assign seats based on who has carry on luggage?). But what if the secret to a smooth boarding process was really in the gate area not in the jet bridge or plane aisle?

That essentially is the premise of some work reported in the Wall Street Journal (In Tests, Scientists Try to Change Behaviors, Jul 28).

At the Copenhagen airport, Dr. Hansen recently deployed a team of three young researchers to mill about a gate in terminal B. The trio was dressed casually in jeans and wore backpacks. They blended in with the passengers, except for the badges they wore displaying airport credentials, and the clipboards and pens they carried to record how the boarding process unfolds. …

The researchers are mapping out gate-seating patterns for a total of about 500 flights. Some early observations: The more people who are standing, the more chaotic boarding tends to be. Copenhagen airport seating areas are designed for groups, even though most travelers come solo or in pairs. Solo flyers like to sit in a corner and put their bag on an adjacent seat. Pairs of travelers tend to perch anywhere as long as they can sit side-by-side.

For the next stage of the project, the airport has given the researchers permission to change seating configurations at some terminal gates to figure out which arrangements are most likely to encourage greater numbers of passengers to sit down and help make the boarding process more orderly. Among possible ideas the team is considering are expanding the number of spots that could encourage single travelers to sit and placing signs with updates about the status of the boarding in key locations.

When people are uncertain about the process, they tend to follow each other, and that can lead to a large group of people clogging up the boarding, Dr. Hansen says.

(more…)

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Why do you stand in line? In many Western countries, that is a silly question. You stand in line because that is what you do. Whether waiting to check out at the supermarket or get into a ballgame, standing in line is the norm. You stand in line because everyone else is standing in line. However, as a National Post article points out, standing in line is very much a cultural phenomenon and not just some inherent human trait (Everyone line up: Canada’s tradition of orderly queuing ‘foreign and strange’ to many newcomers, Jul 25).

“Lining up is seen as a universal sort of truth,” said J.J. McCullough, the Vancouver-based author of J.J.’s Complete Guide to Canada, an online primer for newcomers. “And if someone doesn’t adhere to the protocol then it must be because they’re uncouth or uncivilized, rather that this is a sort of idiosyncratic tradition that we’ve internalized.” …

At the Canadian School of Protocol and Etiquette, located in London, Ont., lineup training comes on the same day students are taught about North American-style introductions. Students are taught where to line up, how to maintain one’s proper place in the lineup and — most importantly — how close to stand.

“In certain cultures, queue etiquette is just not on the radar,” said school director Wendy Mencel.

So where does this tradition come from?

(more…)

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Have you ever wished you could tell the TSA what to do with itself? Now, you have that opportunity — at least when it comes to how they organize and manage their queues. To make things even better, they might actually pay you! The Transportation Security Administration has posted a challenge asking for people to develop a simulation model to tackle the capacity management issues of getting people through airport security. If you are interested in the challenge, the official call is here. Here are some of the specific considerations that need to be tackled:

TSA is looking for the Next Generation Checkpoint Queue Design Model to apply a scientific and simulation modeling approach to meet the dynamic security screening environment. The new queue design should include, but not limited to the following queue lanes:

  • TSA Pre✓™
  • Standard
  • Premier Passengers (1st class, business class, frequent fliers, etc.)
  • Employee and Flight Crews
  • PWD (wheelchair access)

The Challenge is to provide a simulation modeling concept that can form the basis to plan, develop requirements, and design a queue appropriately. The concept will be used to develop a model to be applied in decision analysis and to take in considerations of site specific requirements, peak and non-peak hours, flight schedules and TSA staffing schedules. Solvers are expected to provide the concept and provide evidence that it works as described in the requirements.

According to Nextgov.com, there are specific performance targets for different classes of customers (Attention, Passengers: $15,000 Prize for Whoever Can Speed TSA Screening, Jul 18)

The line, in this scenario, extends from the point where a passenger joins the end of the queue to the metal detector or body scan machine.

The rules for the challenge state wait times cannot be more than 5 minutes for PreCheck and 10 minutes for standard lines.

(more…)

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