Minor financial investments

It is imperative that for a clear improvement to be derived from the use of models and theories, the models being applied must be applicable to the customer service process. Through the use of questionnaires and a pareto analysis we have been able to identify issues and directly link them to a flow diagram and critical to quality tree which have helped reinforce the thinking process behind areas failing to exceed the expectations of customer service. Moreover through the DMAIC framework, in particularly the control stage, we have established the importance of applying the balance scorecard and PDCA model.

The PDCA being recognised as a tool for continuous improvement and the way in which it should be deployed efficiently. By drawing on some key aspects of the Toyota production system, Enterprise can seek new ways of ensuring efficient total quality management exists continuously. In order to maximise customer satisfaction, enterprise rent a car could consider: The lack of customer feedback option 1. To firstly address the impact of the lack of customer feedback option we believe Enterprise needs to implement an accessible and instant source of feedback during the check in process of the reservation.

When closing each reservation via the software currently used, to introduce a final question before closing the reservation, ‘whether the customer was fully satisfied with there experience with Enterprise Rent-a-car and is there anything that could have been improved? ” This therefore replaces the current outdated method of the SFL(Securities, Failure Log) log which through observation is hardly used by employees. Having a feedback option accessible before the customer leaves branch which is prompted by the software in place, means employees wouldn’t forget to ask the question and documentation wouldn’t be lost.

This can therefore work as a more detailed accompany to the current ESQi survey. But the feedback option on the reservation is more representative as it asks every customer and is sampled on a daily rather than monthly basis. Hidden charges 1. To address the second most likely cause of customer dissatisfaction of hidden charges. Enterprise needs to aim more focus on its employees. Currently, it is clear from our quantitative research that employees aren’t making the costing process clear to the customer.

Therefore from a customer perspective there is therefore a lack of transparency behind additional costs involved in renting a vehicle. Here executing a training programme for new and current employees will refresh employees knowledge of the customer service process and allow new employees to follow best practices of current employees examples. The cost of this programme is discussed in the Justification Stage point 2. 4. Hiring of more front line service employees 1. Furthermore as discussed in the analysis stage point 1.

10 we suggest the hiring of more front line staff which will take the pressure off current employees and allow quicker more accurate customer service. Currently, there is pressure from management to offer outstanding customer service, alongside generating more revenue from a sale by upgrading customers and selling ad on products. With the suggestion of introducing one-two more employees in certain branches that are experiencing lower ESQi scores and experience more retail business, the pressure to achieve on every level can be justified when shared amongst more employees.

Of course Enterprise would need to assess each and every branch across each region to narrow down which branches are struggling to achieve the ESQi 82% customer satisfaction target. This therefore means a better distribution of staff amongst branches, of which the costs are discussed in the Justification Stage point 2. 4. Additional employee training 1. Alongside employee training, Enterprise’s employees need to undertake an entire organisational culture change. Training programmes needs to be supported by a new attitude adopted by management firstly and then employees.

Firstly, encouraging participation amongst employees can prove to be a key tool in fulfilling customer’s satisfaction. Through the kaizen approach this can be met, by incorporating a similar model to that of Toyota who considers their employees as members, as opposed to just an employee. Employee leadership programmes 1. Allowing employees to review their own job roles through monthly auditing checks, can ensure workers seek to continuously improve their own job role and consequently leading to less defects overall as a company. 

Secondly, Quality Circles provide workers with the chance to make suggestions and propose new ideas in groups (Mondon, pg 13), thus leading to improvements in quantity control and changes in cycle time. 3. Similarly to Toyota enterprise should create jobs sheets that instruct employees on what they should do at each step during the check in process. This should be recited to a team leader/supervisor once a month of the top of their head. In doing this it will ensure a repetitive procedure is followed allowing for fewer mistakes to be made.

4. Measuring how happy employees are on a daily basis through a performance chart, posting a positive or disappointed face on the chart, alongside a comment as to where they can improve the following week, can address the learning and development perspective of the balanced score card. By allowing employees to be creative and look for their own solutions, can help save the company time and money, whilst boosting morale. This can prove crucial to reduce defects across the board not just in relation to consumers.

The cultural change undertaken by employees must firstly begin with management. Through a top to bottom approach management must accept these issues and relevant improvements for ideas to be able to filter downwards. Enterprise rent a car employees are trained to appreciate the 8 core values imposed upon them by enterprise, by showing similar dedication to they’re workers in relation to expectations amongst members of staff, enterprise can amend their own issues, by making use of its own internal knowledge and know how.

To implement change we believe it is important to hire an external manager to lead change across each region, of which the cost is discussed in the Justification Stage point 2. 4. An external manager will be more effective than internal management, who may have biased opinions towards current processes and present a case towards resistance. Employees may also react more positively to an external perspective who is impartial. Conclusively, the DMAIC framework provides a window of opportunity for enterprise rent a car to reflect upon their current ethos as a company.

Through the analytical tools provided, the car rental industry could be revolutionised. This would result in the number of defects and customer complaints being reduced drastically, therefore providing a benchmark for performance measurement to be incorporated and an aim to achieve a six sigma quality standard.  Justifications The implementation of the suggested project involves some minor financial investments.

With the suggestion of hiring more front-line staff, each new employee will cost the company15,000 per year. With a Enterprise Holding’s revenue of ? 8. 747 billion ($14. 1 billion with the rate of currency on the 23/4/2012) and approximately 70,000 employees worldwide, executing a training program for new and current employees will involve an opportunity cost of ? 2,130, which is quite insignificant, compared to the ? 125,000 revenue per employee generated yearly by the company. To implement change and promote a manager to lead change, the rest of the project is estimated to cost ? 65,000 per region.

It is proposed that this manager will continue to become a regional business development director after the execution of the project, applying knowledge and gained experience to further innovation and solutions in improving the company. By rigorously putting into action the employee training and leadership programs, costs can be heavily cut by reducing staff turnover and, hence, decreasing hiring and training expenditure. Employee motivation will be improved, even further making an impact to the aforementioned factors.

Moreover, they will induce providing better service and, therefore, higher customer satisfaction, giving way for company growth and an increase in profitability. The improvement process is continuous, but the estimated time to undertake the project will be one year, during which a positive shift in employee attitudes and employee satisfaction and motivation should have taken place, resulting in higher customer satisfaction ratings by the end of the period.

Since this would contribute also to Repeat Business Ratio and company’s public image, the financial returns and business growth would exceed the costs and effort required to undertake the process. We propose Enterprise Rent-a-Car undertake the implementation of this project to gain higher customer satisfaction, repeat business and the financial returns associated to these factors.


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