Question: please this is a case study with follow up questions and all questions should be answered.. thanks ) INSTRUCTIONS: Read the following case carefully and


please this is a case study with follow up questions and all questions should be answered.. thanks
) INSTRUCTIONS: Read the following case carefully and answer the questions that follow President Jones runs an accounting service operation, providing accounts receivable and accounts payable (ARAP) services for small and medium-sized businesses. The Jones operation used a staff of accounting personnel who were paid based on the volume of AR AP transactions they processed. The more ARIAP transactions the staff processed in a day, the more income they received. For more than a decade, the Jones Accounting Service organization prospered under this system. During this decade, there was also little competition in the arca it served. A few years ago, though, competition on the service products Jones offered started increasing, the entry of new competitors did not only stop the growth in the Tones business, it also causing the loss of some of its long-term customers. This competition problem needed to be solved and President Jones was just the person to do it He first talked to twenty of the company's long-term customers that had recently withdrawn their business and asked them why they had left. The reasons they gave and the percentage of those who responded is as follows: Reasons That Caused Customers to Leave Jones Accounting Service Poor reaponse limie To customer compaints and delay in Pour allude i un cortomer onvidu nepresentative Basiolence Source: Sang M. L. and Marc J. S. (1994) Operations Management. Houghton Millin Compam Boston. P70 Based on these responses, President Jones decided that total quality management was called for to correct the customer service problem. He met with all the AR and AP department managers and laid out the following step-wise plan to correct the problem Step 1. Foxtall a new how jalan. All accounting personnel would be given the incentive of a 5 percent bonus on their salary to do a better job of handling customer problems. A resolved 1 of 6 to do a better job of handling customer problems. A resolved problem will be certified by the customer as accepted and happy about it before the personnel will be qualified for the bonus. The bonus will be paid with the last paycheck of the year. This bonus will be paid to all accounting personnel except those who have more than 10 customer complaints that have not been resolved by the year's end. Step 2: Ler department managery know they are responsible for quality. President Joncs made it clear that the department heads were free to fire anyone who did not comply with improved quality directives. President Jones also let the managers know their jobs were on the line for anymore loss in customers due to poor service. Step 3: Reduce cost of services to customers. A new cost rate, lowering the cost of services, was prepared by the President. This new cost rate was to be sent out to all the customers they had lost as well. Step 4: Invite the customers to offer their comments on service quality after every service encounter: A customer service card was to be placed in each AR/AP report given to customers that would permit the customers to comment on the quality of the service Jones Services were providing. President Jones felt that these steps would just be the beginning of the firm's TOM program even though he acknowledges that more would have to be done by him and his team to put Jones Services back on top of the AR/AP business. QUESTIONS 1. Does the plan offered by President Jones embrace any of the TOM principles? Identify which ones it does and how. Identify which ones it does not embrace and what might be done to include them. (6 marks) 2. If you were appointed by President Jones as an operations manager to help solve the problems Jones Accounting Services is facing, what would you do differently? Discuss any ivo. marks)Step by Step Solution
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