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Operations Management-Customer Service

According to Nersesian (2000), “Operations management is all about transforming raw inputs in the form of labor, material and capital into useful goods and services. ” It is important to handle all the aspects of operations management in an organization to deliver the products and services promised by the organization in various communication processes with its stakeholders. This is a case of US based manufacturing company the Carbide Industries Corporation. This is a multi-national company has annual sales nearing $10 Billion.

As mentioned in the case; “Carbide Industries is one of the pioneers of the petrochemical industry and is the acknowledged technology leader in several market sectors and benefits from large licensing royalty fees for those technologies. ” The company manufactures number of commodity products at low cost. The marketing approach is based on providing a wider selection of products at a single location than do any of their competitors. Challenging Issues: The organization is facing a challenging situation where the customer service complaints are increasing alarmingly.

Response Customers of the Carbide Industry Corporations range from the retail customers to the business customers. The company is producing low cost commodity products. There are various factors that have impact on the customer satisfaction

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process. These are as follow: There was no change in the American Customer Satisfaction Index of energy utility services in the previous year.

However in the year 2009 there is a significant and measurable dip in the customer satisfaction index by -1. 3%. The score of first quarter of energy services was 74 in the year 2009. This indicates the overall customer satisfaction for the industry has been decreasing. The customer service index is measured on the basis of customer interviewing and econometric modeling. The customer interviewing is the study of various variables like customers’ perceived value of product and services received, perceived quality, customer expectations and establishing relationship among various variables studied.

Customer complaints are defined as the percentage of the respondents indicating to have direct complaints to the company regarding product and services within specified time frame. Customer satisfaction and customer complaints are anonyms to each other. Higher are the customer complaints lesser is the customer satisfied with the organization and its products. Effective handling of customer complaints may turn them to loyal customers. Customer satisfaction depends on the perceived value and received value of products and services.

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