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Improvement in Customer Satisfaction for Orlando Rv

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Report on Improvement of Customer Satisfaction for Orlando RV
Define: Taking a look into the operations of Orlando RV, there is noticeable escalation in customer complaints and a steady decline in new and referral customers. The continual increase in customer dissatisfaction has raised flags for Orlando RV, as the effect of these occurrences have lead to significant decreases in revenues from period to period. The objectives of the project will be to ultimately decrease the defects of the RVs being sold, which will increase the overall satisfaction of all customers and bring in more sales. The project to improve Orlando RV’s operations should be carried out and implemented over an eight-week period, starting immediately. [See Project Charter, page 3]
Measure: To isolate the causes of Orlando RV’s problems, data was gathered from the inside to grasp a better overview of the current performance and see exactly where mistakes are being made in the process. The process flow chart [See Customer Flow Chart, page 3] helps illustrate the steps a customer goes through when making a purchase at Orlando RV. Included in this, is whether or not the customer returns to make a warranty claim for some defect their RV has after purchase. In reviewing the chart, the struggle a customer might have to experience if Orlando RV decided the warranty does not cover the damages becomes evident. In performing data collection, the frequency a customer returns to address a defect was recorded over a seven-week period [See Defect Check Sheet, page 4]. The data concluded a total of 30 defects in a seven-week period, averaging around four reported defects per week. During those seven weeks, Orlando RV made a total of 150 RV sales, equating to 20% of total RVs sold having some sort of defect. In comparison, a survey conducted from local competitors for benchmarking purposes established a mean average of two defects per week, with a defect rate of 6.6%. The data ultimately confirms Orlando RV should continue to assess their problems and find better procedures for their business to reduce their defect rate.
Analyze: The next step in the project is to determine where Orlando RV’s root causes of defects lie, because without a root cause it is nearly impossible to implement a solution. To do this, we brainstorm what makes up the causes of RV defects at Orlando RV [See Fishbone Diagram, page 4], and narrow down the possibilities to confirm the source of the problem. Examining the chart, the major causes that could contribute to defects are: lack of inspection standards, lack of training for mechanics, purchase of cheap materials through a third-party company, lack of communication by management, and outdated technology. Further analysis shows the heaviest weighted cause is lack of training for mechanics. To confirm this theory, a workshop for all current Orlando RV mechanics was conducted, along with a survey of questions that identify the decisions workers make in different situations. Of all workers who attended the workshop, 45% could not successfully identify and perform preventative maintenance tasks because it was outside of their level of expertise. In addition, the survey’s results concluded 58% of mechanics either did not know how to identify faulty parts, or were never trained to report these to management.
Improve: Now that the main cause of the defects is identified, the next step is to effectively develop a plan to implement and verify its ability for success. For Orlando RV to improve the quality of work their mechanics produce, they sent them to certification classes and workshops to effectively strengthen and perfect their area of expertise. The top trained mechanics would then cross train employees in different areas to ensure a stable level of quality and use of preventative procedures in all aspects of their work. Management was informed to better supervise the outputs of their mechanics by encouraging communication of faulty materials and setting detailed inspection procedures through every step of the process. After the plan is put into place, management should measure and analyze the new outcomes of operations to determine if improvement is being made. To verify this, a P-Chart was conducted to measure the proportion of defectives in a process [See P Chart, page 5]. The mean number of defects per week (using local competitors as a benchmark) used is 6.6% of total RV sales per week. Over the course of 20 weeks after the implementation of the new plan, Orlando RV recorded the proportion of defects to be in control, by never exceeding the upper control limit for proportion of defectives.
Control: After the conclusion of the project, the control phase comes into play to ensure the company continues to make efforts in upholding the improvements they made during and after the project. Orlando RV updated their computer systems to allow them to track a whole range of data including preventative maintenance scheduling, material tracking, and customer satisfaction rating results. Managers also took steps to order materials directly from the manufacturer to decrease the probability of faulty materials and implemented a mechanic training system to test and continue the education of standards their employees display. By setting new standards for management and staff, Orlando RV has been able to lift their reputation and surpass competitors in quality of products and services.
Charts and Diagrams Page 3
Charts and Diagrams Page 4

P-Chart of Defects over time
P-Chart of Defects over time Charts and Diagrams Page 5

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