Service Operation Management Project on Maruti Suzuki Car Repair Services

9/19/2013

Submitted By: Harshi-12609045 Sakshi Jain-126090 Poonam Gupta-12609190

OBJECTIVE: This project covers the various aspects of managing customer satisfaction at a Maruti authorized dealer workshop. Through this project we aim at understanding and analyzing the customer satisfaction management systems, presently followed by Maruti workshop s, and its significance through the perspectives learnt in the subject Service Operations Management. At the end of the project, we also attempt to suggest recommendations for improving the present Customer Satisfaction management systems of Maruti works hops based on our learning in the subject service operation Management.

INTRODUCTION: An automobile is a quite unique product. Unlike pure services, it has a component of the product quality which affects the overall experience of the customers and unlike pure products it has a service component which also significantly affects the overall experience of the customers. There are many products today in which there is some component of service which a customer may or may not experience but an automobile is o ne such product which has a component of Periodic Maintenance Service (PMS) i.e. the regular service which a customer definitely experiences during the ownership of the product. For a typical automobile, a customer visits the workshop to avail service almost 3 times per year for regular maintenance as well as intermittent repairs. A car is owned by a person for almost 4-5 years on an average. Hence, during the entire lifetime of a car, a customer experiences aftersales service almost 12-15 times while he experiences the sales just once. As the ratio of overall experience is significantly skewed towards after-sales service, hence the service satisfaction has a significant effect on the loyalty of a customer.

FACTORS AFFECTING CUSTOMERS SATISFACTION

For an Automobile, the customer satisfaction affected by 2 factors. Service Quality Product Quality

SERVICE PROCESS: The entire service process which a customer undergoes can be broken
down into 4 main stages: 1. Service Initiation 2. In-Service Experience 3. Service Delivery 4. Post-Service Experience

In the following sub-section, we will try to understand what the customer evaluates during each step of the service process. This will help us in designing the entire service experience to take care of potential shortfalls. In each of the steps of interaction, we will also try to understand the hygiene factors and the activities which can delight the customer. Service Initiation This is the stage in which a customer gets his vehicle into the service. The convenience and speed with which the customer is able to get his vehicle into the service process determines the satisfaction level of the customer. Usually the customers give their vehicle in the morning before going to the office. Hence, usually time is the essence here. Customers usually feel that as the workshop staff is technically qualified hence the time spent for getting his vehicle into service is of no use. The anxiety level of the customer increases exponentially with the increase in waiting time as he has a time-bound activity planned after that (reaching office on time). The subsequent interaction of the customer is with the Service Advisor of the workshop who is a Managing Customer Satisfaction through Service Operation Efficiency technical person. His responsibility is to understand the service needs of the customer and understand the exact problems with the vehicle so that the same can be conveyed to the supervisor and technician for necessary rectification. Hence, the Service Advisor is a vital link between the customer (who is facing the problem) and the technician (who will rectify the problem). This is usually the first link of the communication chain. As we know, the strength of the weakest link will decide the strength of the entire chain. The aspects of service which a customer would evaluate in this stage are: 1. When arrived at workshop, the time taken for someone to acknowledge his presence 2. Time spent waiting to speak to the Service Advisor 3. Overall performance of the Service Advisor a. Understanding specific problems with the vehicle b. Asking questions to clarify further needs c. Listening to the customer d. Behavior (Giving attention and treating with courtesy)

e. Knowledge and expertise 4. Overall opinion of facility a. Convenience of location b. Cleanliness of facility c. Convenience of days and hours of workshop operation If there is a gap in understanding the customer and vehicle service requirements then it leads to a snowballing effect which will increase the magnitude of problems during the delivery of the vehicle in the evening. Service Expe rience: This stage is particularly applicable to the customers wait in the workshop premises while the vehicle is being serviced. This is also a critical phase of the overall customer experience as most of the times eithe r his own vehicle or other customers vehicle is being seen by the customer while it is being serviced. Hence, it has a significant impact on the confidence level of the customer as while giving the vehicle for service, the customer is entrusting the care and safety of the vehicle to the workshop personnel. Time is also the essence here as a customer who is waiting for the service to be completed will generally expect the vehicle to be returned faster than a customer who has given his vehicle for serviced and gone back to his office/ home. But, whether the customer is waiting or not, he would definitely expect communication from the workshop in case the vehicle requires additional repairs which may either attract additional cost or time or both. The aspects of service which a customer would evaluate in this stage are: 1. Comfort during the waiting period 2. Cleanliness of the waiting area 3. Amenities available in the waiting area like beverages, TV, magazines etc. 4. Communication in case additional time or cost or both are required If there is a lapse in the communication while the vehicle is in service, then it can also add to the snowballing effect and lead to a bigger problem in the evening during vehicle delive ry. This is also depicted in the picture shown in the previous sub-section. Service Delivery: This is the stage when the customer visits the workshop or waits and collects the vehicle after the completion of service. Delivery is an important part of the e ntire link as it is a crucial opportunity to make it up to the customer in the event of any lapse which may have happened while accepting the vehicle. During the delivery, customer would expect the vehicle to be in a state better than when he left the vehicle for servicing. This is the stage of service when the customer evaluates the fulfillment of all promises made to him i.e. regarding time, cost and work. Here too the time is an important factor, but the customer is

not in as much hurry as he is likely to be when he leaves the vehicle for servicing in the morning. But, as the customer makes payment for the services he has availed, he expects the value of service he receives to be worth what he is paying for. Though the customer would be able to realize and evaluate the quality of service completely after using the vehicle for a few days, he can very well evaluate the basic aspects of service during the delivery itself. This is the time when the customer again interacts with the Service Advisor and hence gets the opportunity to complete his assessment. The aspects of service which a customer would evaluate in this stage are: 1. Acknowledgement of customers arrival at workshop Managing Customer Satisfaction through Service Operation Efficiency 2. Time taken to bring the vehicle after arrival of customer 3. Promptness of having vehicle ready when promised 4. Overall performance of Service Advisor a. Honesty b. Fulfillment of commitments c. Behavior (Giving attention and treating with courtesy) d. Knowledge and expertise 5. Explanation of work done 6. Explanation of charges/ bill amount 7. Cleanliness of vehicle 8. Fairness of charges 9. Thoroughness of fulfilling requests 10. Availability of parts for service 11. Overall opinion of facility a. Convenience of location b. Cleanliness of facility c. Convenience of days and hours of workshop operation 12. Dealer taking ownership of service to assure of any prob lems in future Service Delivery is the last stage of service when physical interaction happens between the customer and the workshop staff. After this, a physical interaction may be required only in the event of requirement of any service recovery activity. On the other hand, if a customer

experiences a lapse in service at the time of delivery, then the service recovery activity may be required on-the-spot depending on the time required for the activity and time available with the customer. Post-Service Experience This is the stage of the service when customer evaluates the quality of service by using the vehicle. Here, there is no physical interaction between the customer and the workshop as the customer is all by himself. This is a critical stage as when the customer takes delivery of vehicle after completion of service he may not be able to completely evaluate the service performance. As most of the customers are not technically competent, hence they may not be able to differentiate between product problem and service problem. For few days (~ 1 month) after service, even if any problem crops up with the vehicle due to product quality, the customer may attribute it to poor quality of service performed by the workshop. On the other hand, as the customer is usually in a hurry during the delivery of the vehicle, he may not be able to thoroughly evaluate the performance of the vehicle then. Hence, it becomes critical Managing Customer Satisfaction through Service Operation Efficiency to keep track of the customer for few days after service in order to assess the satisfaction of customer. The aspects of service which a customer would evaluate in this stage are: 1. Ability to understand and diagnose problem mentioned 2. Quality of work performed 3. Trouble free operation 4. Ease of maintenance and repair 5. Dealerships concern for service 6. Work done right first time

Service Concept

Service Blue Print of Maruti Suzuki Car Repair & Services

Physical Evidence

-Availability -Attitude

-Uniform -Attitude -Entrance to service centre gate

-Bay In -Vehicle Stand -Equip ment -spare stock roo m

-Receipt /bill -car cleaning Area

Custome r Interaction
-Customer Call -Customer Describe the problem -Customer meet For regular/emergency service -Customer Pay ment Procedure

Line of interaction

Contact Person (onstage)

-Reception /appointment confirmat ion Line of visibility -workshop Manager Deals with the problem -Vehicle in into the specified bay. -Problems identified by the mechanics in front of the customer

(Backstage)
Mechanics specify the days or hours for vehicle repair/servicing Line of internal interaction Final billing and vehicle exit procedure by the floor manager

Support Process
-job card entry by the operator -Spare parts availability check by the stock manager

Decreasing unit costs

HIGH
MARUTI True Value Assistance Computerised Emission Testing With Photo

Capability Complexity

MARUTI Hitech Body Repair Section Computerised Wheel Alignment & Balancing

Increasing Process Definition

Process Variety

MARUTI Genuine Engine Spare Overhaul MARUTI Parts Insurance Gear (ONLINE) Box Injector Overhaul MARUTI Cleaner Running Repairs MARUTI Onroad Service Warranty Repairs MARUTI 1st, 2nd & 3rd Free Services

MARUTI Paid Services New Car Booking

Simplicity

Commodity

Volume Variety Matrix for Maruti Suzuki Car Repair Services

LOW Volume per Unit HIGH

LOW

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