Florida International University Total Quality Management for Engineers Spring 2011

1. Florida International University Total Quality Management for Engineers Spring 2011 IMPROVING CUSTOMER SATISFACTION THROUGH SALES Team Members: Lindsey Sanders (Leader) Praneetha Boda Qian Wang Jorge Medina

2. OVERVIEW OF THE COMPANY Impact Computers is dedicated to the business of computer replacement parts distribution. Impact Computers is an outsource facility that supplements the existing channels when they fail in their attempt to satisfy customer requirements. Impact Computers serves every imaginable customer, from the general market, to businesses, schools, hospitals, and government institutions. 16 Year Anniversary (1995-2011) http://www.impactcomputers.com/

3. DEFINE PHASE The problem: The number of sales that are produced each day are about 60% less than the contacts each sales representative have with a potential customer via phone or email. …6 OUT OF 10 POTENTIAL SALES ARE MISSED • Purpose of the Project: • Strengthen the process of initial contact each sales representative have with a potential customer. • Double daily sales. • Strengthen customer satisfaction and draw more returning customers. • Goals: • Identify the cause of daily missed sales. • Improve the process starting from the sales person initial contact with the customer through the time an order is actually placed in database. Deliverable from this phase: Project Charter

4. DEFINE PHASE: Project Charter

5. DEFINE PHASE: Project Charter

6. MEASURE PHASE • Identification of the critical measures: • Cause-and-effect Diagram. • Process Flow chart. • Current Sigma level. • Measurement plan: • Collect Weekly Sales report. • Design of a survey for Sales Representatives to explore potential causes of missed sales (Critical-to-Quality). • Turn survey results into quantitative data. • Paretto analysis for potential causes.

7. ANALYZE PHASE: SurveyResults Training: At leat 3 out of 5 sales reps. strongly need training. Database Information: 5 out of 5 sales reps. consider the database has not enough technical information. Time for email : Frequency of checking and responding are considered normal.

8. ANALYZE PHASE: SurveyResults Causes of missed sales according to sales reps. (Weight Matrix and Paretto Analysis)

9. ANALYZE PHASE Current Sigma Level

10. ANALYZE PHASE: Cause-and-EffectDiagram

11. ANALYZE PHASE: Flow chart

12. ANALYZE PHASE: Database What’s missing?: basically all the information is available. Even though they say there is lack of information. Therefore, the real issue is lack of training. It is there but they don’t “see” it…

13. IMPROVEMENT PHASE: Training • Improve Knowledge about the company. (Mission, Vision, Strategies) • Clarify Responsibilities and Expectations. • Full understanding of their day-to-day activities and responsibilities. • Clear vision of the process of advancement within the company. • Highlight sales quotas or targets that are relevant. • Improve Product Knowledge. • Assure a through understanding of the products and services that the sales people will be selling. (Product specifications, features and basic pricing . • Bring in manufacturer/supplier representatives and technical support/installation personnel. Sales representatives should have full confidence that they could effectively answer any question raised by the customer about their products and services. • Enhance Sales Skills. • Representatives should gain new knowledge about how to effectively prospect for and deal with clients, and learn new techniques to persuade them to purchase the product. • Review common objections raised by clients and practice handling them in live drills, such as role-playing exercises. • Improve Morale • Sales representatives should leave the training program with a positive attitude and renewed motivation to perform at a high level.

14. IMPROVEMENT PHASE: Training HINT: Identify the most and least selling parts to make training efficient enough for the sales representatives

15. IMPROVEMENT PHASE: Training Most selling parts Memory 20,000+ AC adapters 125,000+ System Boards 35,000+ Batteries 10,000+ Least selling parts Power supplies 75,000+ LCD Panels 2,000+ Processors Optical drives Hard Drives Video/graphic cards

16. IMPROVEMENT PHASE: Pricing • Pricing helpful hints for sales representatives. • Quantity requested. • Type of Customer (End user, Government, Reseller) • Quantity in stock. • Shelf life of the part. • Manufacture date. • Cost of the part. • Replenish level of part. • Weight of the item. • Competitor price.

17. CONTROL PHASE The key is start measuring and monitoring trends in sales and make early decisions. • Monitor weekly sales performance. • Establish weekly, biweekly or monthly meetings to revise sales performance. • Measure each sales rep. performance and reinforce training when needed. • Update sigma level according to sales performance. • Make necessary adjustments according to goals. You can’t control what you don’t measure!

18. RECOMMENDATIONS • ISSUES THAT COMPANY SHOULD ADDRESS IN NEAR FUTURE • Product Availability – A variable that is independent of the sales team. This process would belong to the supply chain management. • Behavior – A CTQ variable that our team could not analyze within the scope of our project.