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ROSCOE NON DESTRUCTIVE TESTING

13 MAR'09

Roscoe NDT

1

PRESENTATION OUTLINE  History  Types of NDT  Customers dealt and setbacks faced  Survey results of March and November 1991  QIP and its elements  Questions and answers  Conclusion

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HISTORY OF ROSCOE  1973- Founded by Hans Norregaard  1980 - Company sold to NIS  But NIS was not able to manage the company  1984- Company again bought by Hans Norregaard & Grover Porter  1987- Grover Porter became President  1990- Encountered a downturn in both revenue and customers.

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THE NON DESTRUCTUVE TESTING INDUSTRY  Mom and pop labs  Nationwide companies' labs  Specialty firms  Regional firms

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CUSTOMERS DEALT & SETBACKS FACED  George Mc Donald, plant manager at the Franklin Paper Company was not satisfied with services provided.  Bob Kapala at International Paper’s plant was often more of a hindrance.  Billu Dunlap could not tolerate anyone mistreating his boiler which he treated like his baby.  Roscoe lost the contract with Rockton Paper Mill.

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STATED PROBLEMS  Service quality of prime importance.  Otherwise fee to be reduced.  Exploiting the potential of technicians.  Mills could not afford the cost of inspecting every cost twice.  Porter suggested conducting a survey. 13 MAR'09

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SURVEY RESULTSMARCH 1991  82 responses collected- ignored 11.  Skills of people and staff needed improvement.  Importance of people aspect in service quality.  Willingness to make an extra effort, courtesy of technicians, promptness of billing were rated as below average.  Also, overall service value for money paid had a high percentage of customers rating it as below average.

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QIP  Porter added 3 elements in QIP. They were: -Initial Training. -Bonus Reward System. -Customer Surveys at conclusion of every job.  Purpose was to establish lasting and fundamental training.

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ELEMENTS OF QIP Initial Training  ABS Consultants who specialized in teaching Customer Contact Skills for Industrial service companies provided the training. Bonus Reward System  Technicians earned bonus points that were cashed out at the end of year for $25 per point. Customer Surveys  After every job, the client filled out customer satisfaction survey. 13 MAR'09 Roscoe NDT

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NOVEMBER 1991 SURVEY SUMMARY  Revenues were down.  Profits were negligible.  According to Jane Bottensak, QIP was more successful than he thought.  Work force was more committed & provided better services to clients.

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ANSWER 1  Yes, the company should restructure its pricing policies.  Initially, the President thought they can charge any price because of the quality service that they offered.  Though the CSS was a success, it needed something more.  The overall service value for money in both the CSS’s was rated as average.

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 There were various service quality gaps.  Not knowing what customers expect  Not selecting the right service design standards  Not delivering to Service Standards  Not matching Performance to Promises  Non-monetary costs- very important for services.  Thus, Roscoe should implement demand based pricing.

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SATISFACTION LOW HIGH

I M P O

HIGH

R

Attributes that need attention- areas where priorities should be focused

Current company strength

T A

LOW

Low priority

Unnecessary strength- possible over skill

N C E 13 MAR'09

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ANSWER 2  Roscoe’s QIP was a good decision on President’s part.  Is a systematic approach to assessing services and improving them on a priority basis.  QIP was based on the following:  Training  Surveys  Bonuses

 Willingness to make extra efforts had majority % of customers rating it as average.  Ability to deliver the promised service could also not reach the level of excellence. 13 MAR'09

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 Majority of the customers still rated the overall service value for money as average.  But, CSS was a partial success as it had many flaws.  It should have aimed at designing of new services and improving existing services.

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CONCLUSION  Improve upon the following service quality dimensions:  Responsiveness  Assurance

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THANK YOU! PRESENTED BY: GROUP NO.5 ANKIT SHARMA CHANDNI BATRA PRASHANT KAPOOR NIKHILA AHUJA GAGAN BHATNAGAR 13 MAR'09

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