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A services company offers a range of software services for its customers. The company has a large number of service offerings and has been increasing the offerings with new versions every year. The customers typically face several issues after buying the service that needs a little bit of hand holding to iron out some issues. The company has a wide network of franchisees, who are required to work with the customers in addressing these issues. It has a large sales & support staff to handle the customer complaints. However, the customer satisfaction surveys have indicated that the customers are unhappy with the company’s nature of services offered. In particular, they expressed that the services offered are “out of sync” with their expectations. In response to this situation the company did the following: (a) It invested in modern technology that allows it to interface with the customer seamlessly. (b) It mapped the typical process of franchisee dealing with the customer request for a standard process that normally requires 45 minutes to sort out, and found the following: Sl. No. Process Step Description Average Elapsed Time Process Owner 1 Customer calls the Centralized Complaint Management System (CCMS) Representative to register the Complaint 2 minutes CCMS 2 The CCMS provides a tracking number to the customer after registering the complaint 1 minute CCMS 3 The CCMS sends the request to Marketing Division for action on the complaint 5 minutes CCMS 4 Marketing representative registers the complaint in their system for tracking and evaluation purposes 40 minutes MKTG 5 The complaint is passed on to the area franchisee for action 10 minutes MKTG 6 Franchisee calls the customer and schedules for an appointment 1 day FRNC 7 The Franchisee attends to the customer complaint by providing the required assistance 60 minutes FRNC 8 The Franchisee logs the details of the complaint addressed back to Marketing Office 30 minutes MKTG 9 CCMS calls the customer after 1 hour to take feedback 62 minutes CCMS 10 30% of the occasions the customer reports that the problem is not solved CCMS 11 CCMS initiates another request with a new tracking number and goes through steps 2 to 9 CCMS Despite all these efforts, both the top line (sales) and the bottom line (net margins) of the company has been shrinking over years. The company is now contemplating on the next steps to take in order to address the problem. 1. What is the meaning of lead time to work content ratio? 2. What is the lead time to work content ratio in this process for servicing a satisfied customer in the first call itself?
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