Mid Term Exam

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California State University, Fullerton *

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516

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Information Systems

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Dec 6, 2023

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docx

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Mid Term Exam 1. Using the SERVQUAL quality tool, please list an example from the case of each element of the tool (Tangibles, Reliability, etc..) that should be used to measure quality for External Customers.  Tangibles – The restaurant has a very limited waiting area. On Friday and Saturday nights, the busiest time and usually the wait time can be 45 minutes, customers will need to wait outside the restaurant until their party is called.  Dependability – The typical time to complete a meal is 12 mins. However, during peak times, getting good meals delivered to the table can take more than 20 mins. Customers are complaining about not been served in a reasonable time.  Responsiveness – Upon customers’ arrival, the hostess will greet them and either take them to a seat or tell them the expected wait time. Also, after seating customers, the hostess will distribute menus and fill glasses.  Assurance – The waiter will announce the daily special to customers. Once the cook has completed all the meals, the waiter will check to see that all meals are correct and pleasing to the eye, correct any mistakes, and add any finished touches.  Empathy – The waiter keeps an eye on the table to detect if any dishes can be cleared away any requests for dessert or coffee. 2. What metrics would you set for each (wait time less than 15 minutes, windows cleaned every week, check on customers 3 times, manger visits each table, etc..)? Please use numbers.  Tangibles – The restaurant should have a separate waiting area and at least has six to ten chairs for customers in the waiting line.  Dependability – The restaurant should keep the amount of time to complete a meal no later than 15 minutes.  Responsiveness – Upon customers’ arrival, the hostess should greet them and either take them to a seat or tell them the expected wait time right way. Also, after seating customers, the hostess should distribute menus and fill glasses within one min.  Assurance – The waiter should not only announce the daily special to every customer but also provide some recommendations to customers when needed.  Empathy – The waiter should follow up with customers at least 4 times during the mealtime to check whether the meal meets the customer’s expectations and if any other assistance is needed. 3. Please list an actual, or hypothetical example of each of the 4 costs of quality (Prevention, Appraisal, etc..) that are present in the case. If no examples are present in the case, list a hypothetical one.  Prevention: The cost that the restaurant will spend on training waiters how to detect if a meal is completed incorrectly (like overcooked, not fresh, etc.) or not pleasing to the eye.  Appraisal: The cost to inspect the quality of the ingredients that have been delivered before storage in the refrigerator.

 Internal Failure: The cost of reworking a meal that is detected to have been overcooked by waiters before delivery to the customers.  External Failure: The cost of a complaint from a customer about the waiter placing a wrong order and the meal delivered is not the meal that customer wants. 4. Please place a numerical value to those costs (actual, derived or hypothetical) in dollars per month , and show your work.  Prevention: The cost of training a new waiter is about $130 per month if a new waiter has been hired. A new waiter’s hourly rate is about $15, and a manager’s hourly rate is about 50. And the training will take about two hours. (50+15)*2hrs=130  Appraisal: The cost to inspect the quality of the ingredients is about $450 per month. The waiter’s hourly rate is about $15, and the incoming materials inspection will only need one waiter to take one hour to complete every day. $15*30days=$450  Internal Failure: The cost of rework on a meal is about double the price of the meal. If a meal is about $20, the cost of rework on a meal will be $40. And if the rework happens 3 times a week. The total cost for rework will be 480 per month. $40*3times*4weeks=$480  External Failure: The cost of a complaint from a customer placing a wrong order is about 1080 per month. Rework and discount costs will be add to the cost of complaint. And Discount cost can be highest to $50. If the complaint happens 3 times a week. ($40+$50)*3times *4weeks=$1080 5. Please give a hypothetical example of recovery that might be applied to an external failure in this case. The external failure example is receiving a complaint from customers regarding placing a wrong order. Since the meal has been delivered to the table, the restaurant won’t charge any fee for the wrong order. To apologize for the inconvenience, the restaurant will also provide the correct meal with half-off discount for the next visit. In this way, the customer will be more willing to revisit the restaurant for the half-off discount. 6. From the Customer Survey results, which are the two most important issues to resolve as determined by % negative responses vs. total responses in each of the five categories and please show your work. 1. Were you seated promptly? Negative responses % = 13/(70+13)=15.66% 2. Was your waiter satisfactory? Negative responses % = 10/(73+10)=12.05% 3. Were you served in a reasonable time? Negative responses % = 25/ (58+25)= 30.12% 4. Was your food enjoyable? Negative responses % = 11/(72+11)=13.25% 5. Was your dining experience worth the cost? Negative responses % = 16/ (67+16)= 19.28% Thus, the two most important issues to resolve are the served time and dining experience.

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