INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE

Interactive Distance Learning Programme Operations Management eEPOM03 (eMEP Alumni to ePGP Second Year)

VILLAGE VOLVO
Service Operation Management Case Analysis

DESCRIBE VILLAGE VOLVOS SERVICE PACKAGE

Supporting Facility Location Location is sub-urban location. When the customers drop the car for service, getting back to house / office is a problem Facility Layout Waiting areas are provided for customers who come for quick services such as oil change, alignment etc Interior Waiting lounge available with all facilities Architectural appropriateness New butler building with 4 bays, waiting area and storage space Facilitating Goods Special care for customers unique requirements, Variety of services offered around Volvo Cars Information Maintains CCVD through which timely reminders are sent to customers for repairs. Also helps the mechanic to diagnose the problems in the car better. Explicit Service Issues explained to the mechanic, he does a test drive to understand the issue better Initial estimate and time of completion informed immediately Any changes informed to the customer pro-actively, alternatively the customer can contact technician / service manager Clean car handed over together with explanation of changed parts and documented in CCVD Implicit Service 22 years of expertise with the Volvo cars and reputation in the market Before delivery, mechanic does a test drive to verify the issues are resolved

HOW ARE THE DISTINCTIVE CHARACTERISTICS OF A SERVICE FIRM ILLUSTRATED BY VILLAGE VOLVO? Customer participation in service process

The customer participates in the service process more often. Initial estimate and delivery tome can be changing and any changes will be notified to customer in advance. Customer can also get in touch with service manager High customer satisfaction and market leadership capacity of Village Volvo, an hour without repair Intangibility: reputation of Village Volvo Waiting lounge and refreshments, cleaning of car Direct contact mainly with service manager so that one voice goes to customer

Simultaneity

Perishability

Intangibility

Heterogeneity

CHARACTERIZE VILLAGE VOLVO IN REGARD TO THE NATURE OF SERVICE ACT, RELATIONSHIP WITH CUSTOMERS, CUSTOMIZATION AND JUDGMENT, THE
NATURE OF DEMAND AND SUPPLY AND THE METHOD OF SERVICE DELIVERY

Nature of service act

Tangible Action directed to customer Waiting lounge and refreshments Tangible Actions directed at Customers Possession Estimate of service and actual service Intangible Action directed to customer Friendliness, communication on changes to the plan and delivery Intangible Actions directed at Customers Possession Cleaning the interior, CCVD and documentation Service is direct relationship with customer and it is a long-term relationship. They maintain CCVT for future reference and timely reminders to be sent for service and renewal of insurance etc The customer participation in the process is high, there are regular contacts made to customer in between for changes that was not clear at the time of initiating the service. Alternatively customer can contact the service manager for all queries There is enough demand for cars with warranty completed from the company. The owners has enough experience in the field and have good reputation in the field The rough estimate and time of completion are mentioned at the time car is picked up. But any changes to the above are notified to customer well in advance. Once the car is ready for delivery the mechanic does a test drive to verify all issues are resolved and parks in the delivery area.

Relationship with customers

Customization and judgment

Nature of demand and supply

Method of service delivery

SUMMARY OF CHARACTERISTICS

Nature of Service Act Direct recipient of the service Nature of the service Act Relationship with the customer Type of Relationship Nature of the service delivery Customization and judgment Extent to which services are customized Extent to which customer contact personal exercise judgment Nature of demand and supply Extent of demand fluctuations Supply is constrained Narrow With/Without delay High High Membership Continued Delivery services Things Repair Tangible Act

HOW COULD VILLAGE VOLVO MANAGE ITS BACK OFFICE LIKE A FACTORY?
Smooth operation of demand
They have standard service process to resolve most general customer problems. The service offered is very centric to customers and high level of attention is given to this. The mechanics do not do any repairs during 7-8 am because this is the time for customer contact. Similarly 5-6 pm too. The service manager is aware of what is happening for vehicles and they are in touch with customers for all variations. The mechanics are also approachable by the customers for any queries. This makes the whole service process transparent.

Finished Goods
They do a test drive after the service is completed and place it in parking area. By this they avoid any rework of the vehicle and add to the finished good inventory.

HOW CAN VILLAGE VOLVO DIFFERENTIATE ITSELF FROM VOLVO DEALERS?

Customized Service
The owners have created a custom car care program which is not available with local dealer. Customers can drive in during specific days in week for quick checks and oil changes. They also have a option to take prior appointment and drop in. They encourage users to use this for diagnosis and repair. The owners have 22 years of experience with the same cars and they have good reputation which makes this service operation possible.

Out of warranty
They only deal with out of warranty vehicles

Sustainability
All the worn out parts are made available to customers verifications and after that it is recycled with a partner. Other partnership exists for bodyworks alignments etc

Workshops
Helps customer to know more about the vehicle and conducts workshops