a. Why do you think Mr. Gandhi organized the customer survey the way he did? What other things do you think he might have done to analyze the stores' quality problems?

b. Develop Pareto charts to help analyze the survey results.

c. How would you define quality at the bookstores?

d. Discuss what you believe are the quality problems the bookstores have.

e. What are the bookstores' costs of poor quality?

f.  What actions or programs would you propose to improve quality at the bookstores?

g. What obstacles do you perceive might exist to hinder changes at the bookstores and quality improvement?

h. What benefits do you think would result from quality improvement at the bookstores?

Local University is a mid-sized university located in a major urban city. Tech Services is an incorporated university entity that operates two bookstores, one on-campus and one off-campus at a nearby mall. The on-campus store sells school supplies, text-books, and school-licensed apparel and gifts and it has a large computer department. The off-campus store sells textbooks, school supplies, and licensed apparel and gifts, and it has a large trade book department. The on-campus store has very limited parking, but it is within easy walking distance of the down-town area, all dormitories, and the football stadium and hockey arena. The off-campus store has plenty of parking, but it is not within walking distance of campus, although it is on the town bus line. Both stores compete with several other independent and national chain bookstores in the city plus several school supply stores, apparel stores, computer stores, and trade bookstores. The city and university have been growing steadily over the past decade, and the football team has been highly ranked and gone to the Vanier Cup finals for two straight seasons. 

The Tech bookstores have a long-standing policy of selling textbooks with a very small markup (just above cost), which causes competing stores to follow suit. However, because textbooks are so expensive anyway, most students believe the Tech bookstores gouge them on textbook prices. To offset the lack of profit on textbooks, the Tech bookstores sell all other products at a relatively high price. All “profits” from the stores are used to fund student-related projects, such as new athletic fields and student center enhancements.
Tech Services has a board of directors made up of faculty, administrators, and students. The Executive Director, Mr. Sanjay Gandhi, reports to the board of directors and oversees the operation of the bookstores (plus all on-campus vending and athletic event vending). His office is in the on-campus store. Both bookstores have a store manager and an assistant store manager. There is one textbook manager for both stores, a trade book manager, a single school supplies and apparel manager, and a computer department manager, as well as a number of staff people, including a computer director and staff, a marketing director, a finance staff, a personnel director, a warehouse manager, and secretaries. Almost all of the floor employees, including cash register operators, sales clerks, stock people, delivery truck drivers, and warehouse workers, are
part-time Tech students. Hiring Tech students has been a long-standing university policy to provide students with employment opportunities. The bookstores have a high rate of turnover among the student employees, as would be expected.
Several incidents have occurred at the off-campus store that have caused the Tech Services board of directors concern. In one incident, a student employee was arrested for drug possession. In another incident, a faculty customer and student employee got into a shouting match when the employee could not locate a well-known book on the bookstore computer system and the faculty member got frustrated over the time it was taking. In still another incident, an alumnus who had visited the store after a football game sent a letter to the university president indicating that a student employee had been rude to him when he asked a question about the return policy for an apparel item he had purchased on the bookstore’s website. When the student did not know the return policy, he told the customer in a condescending manner to come back later. The last incident was an offhand remark made by a local resident to a board member at a party about the difficulty she had completing a purchase at the mall store because the registers were un-staffed, although she could see several employees talking together in the store. 

Although sales and profits at the bookstore have been satisfactory and steady over the past few years, the board of directors is extremely sensitive to criticism about anything that might have the potential to embarrass the university. The board of directors suggested to Mr. Gandhi that he might consider some type of assessment of the service at the bookstores to see if there was a problem. Mr. Gandhi initially attempted to make random, surprise visits to the bookstores to see if he could detect any problems; however, there seemed to be a jungle telegraph system that alerted his employees whenever he entered a store,so he abandoned that idea. Next he decided to try two other things. First, he conducted a customer survey during a two-week period in the middle of the semester at both stores. As customers left the store, he had employees ask them to respond to a brief questionnaire. Second, he hired several graduate students to pose as customers and make purchases and ask specific questions of sales clerks, and report on their experiences.
Selected results from the customer survey are on the table below.

The only consistent responses from the graduate students posing as customers were that the student employees were sometimes not that familiar with store policies, how to operate the store computer systems, what products were available, and where products were located in the stores. When they did not know something, they sometimes got defensive. A few also said that students sometimes appeared lackadaisical and bored. Using observations of the operation of your own campus bookstores to assist you, answer the following questions.

Transcribed Image Text:

CAMPUS STORE OFF-CAMPUS STORE Student Non-student Student Non-student Yes Yes No No Yes No Yes No Were employees courteous and friendly? Were employees knowledgeable and helpful? Was the overall service good? 572 93 143 286 147 341 114 172 156 522 231 350 105 135 193 212 165 278 322 133 180 148 569 96 Did you have to wait long for service? Did you have to wait long to check out? Was the item you wanted available? Was the cost of your purchase(s) reasonable? 243 178 74 591 51 404 150 200 584 72 383 81 203 240 147 181 371 32 72 407 48 296 602 63 280 385 45 275 180 27 301 398 Have you visited the store's website? 52 335 330 391 262 193 17 311