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Customers also expressed dissatisfaction with the company's boot department. As a result, many cost centers must be reconsidered in order to determine their performance as well as their effect on output efficiency. Perhaps the output level has deteriorated, which may explain the high number of consumer grievances and declining returns traffic. As a result, outlining the primary cost centers would be extremely beneficial in determining the source of the current crisis. As a result, the presentation of this information in affinity diagrams is critical because it will aid in making educated decisions to reverse the diminishing stream of returns as well as re-establish positive feedback from customers by redressing their grievances (Jiao & Chen, 2015).
The following diagram shows cost centers in the boot division of the shoe manufacturing company.
Cost Centers in the Boot Division
Customer Complaints in the Boot Department
The affected Cost Centers
Possible Problems at the Cost Centers leading to Customer Complaints
Information Technology Cost Center
Accounting department Cost Center
Human Resource Management Cost Center
Transport Cost Center
Research & Development Cost center
Quality Control cost center
Less focus on after-sale transport
Poor quality of raw materials
Inadequate number of staff
- Limited Accounting Stationary
Poor flow of information
More specialized Equipment for research
Improper application of Technology in production
Improper packaging and storage
-Many accounting errors
Limited motivation of staff
Poor condition vehicles
Delayed transport of ordered boots to customers
Limited access to communication equipment
More training required
Less focus on Innovation
Less monitoring of quality of output
The accounting cost center, human resource management cost center, information and technology cost center, research and development cost center, transport, and quality control form the basic cost centers whose operations could have led to customer complaints and problematic returns. Moreover, an affinity diagram would allow the management team to come up with the most comprehensive and effective solutions to the problems outlined to restore customer trust in the boot division.
Jiao, J. & Chen, C. H. (2015). Customer requirement management in product development: a review of research issues. Concurrent Engineering, 14(3), 173-185.
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