Overview of President Jones Accounting Service
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Transcript of Overview of President Jones Accounting Service
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8/18/2019 Overview of President Jones Accounting Service
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OVERVIEW OF PRESIDENT JONES ACCOUNTING SERVICE
OPERATIONS SYSTEM
Key findings fro !"e C#se S!$dy
It is seen that Jones Accounting Service organization is one that provides Accounts Receivable
(AR) and Accounts Payable (AP) services for small and medium scale businesses. he
operations system could be described in the diagram above.
!or some time" their business #as booming and profitable as there #as no competition in the
area that they operated. $o#ever" #ith time" there #ere easy entry barriers to their business
industry #ith the springing up of other firms #ho ended up #inning their long%term &ey
customers.
$o#ever" the o#ner Jones decided to find out the cause of the loss of customers and ascertained
from &ey customers of their firm #ho had left. he main reasons that they left #ere as follo#s'
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ENVIRONMENT
ARAP Services tosmall and medium
Scale businesses
MONITORING % CONTRO&
!*+A,- ,/R0 S1S2
C$s!oers Co'e!i!ors Go(ernen! Te)"no*ogyE)onoy
Accounting staff
,omputers3uipment
Accounting Soft#are
,ustomer Info
!acility
INPUTS TRANSFORMATION PROCESS OUTPUTS
ARAP transactions
$andling customercomplaints
!ront des& transaction
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;2 measures adopted by Jones includes'
• Install ne# bonus plan < that is 5? tied to employees efforts to handling at least 97
customer complaints.
• 0et departments &no# that they are responsible for 3uality < mpo#ering department
heads to ensure 3uality is enforced in their department as their :ob #ill be on line if they
can8t fire subordinates #ho do not comply #ith 3uality standards.
• Reduce cost of services < that is" customers should not pay too much or more than
enough for the output they receive.
• Invite customers to offer their comments on service 3uality after every service encounter
< that is" customers are to evaluate the service they receive after every meeting #ith a
customer service rep. here #ill be a service card or evaluation form given to customers
to comment.
+$es!ions
9. *oes the Plan offered by President Jones embrace any of the ;2 Principles@ Identify
#hich ones it does and ho#. Identify #hich ones it does not embrace and #hat might bedone to include them.
. If you #ere appointed by President Jones as an operations manager to help solve the
problems of Jones Accounting Services is facing" #hat #ould you do differently@ *iscuss
any B of the things you #ill do.
+UESTION ONE SO&UTION
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;2 is a philosophy that focuses relentlessly on the needs of the customer" both internal and
eCternal" realigns the organisation from detection to prevention and aims to improve
continuously via the use of statistical monitoring. he main goal of ;2 is customer
satisfaction. he &ey principles of otal ;uality 2anagement includes'
i. Management Responsibility and Commitment D the top management must provide the
leadership for 3uality.
ii. Customer Focus or OrientationD the customer defines 3uality" and customer satisfaction
is the top priority.
iii. Employee Participation and Team Work D it8s the responsibility of all employees at all
levels of the organization.
iv. Education and Training D for all employees are the bases for continuous 3uality
improvement.
v. Quality management systemD ;uality is a strategic issue" and re3uires a strategic plan.
vi. All functions of the company must focus on continuous 3uality improvement to achieve
strategic goals.
vii. ;uality problems are solved through cooperation among employees and management.
viii. Problem solving and continuous 3uality improvement use statistical 3uality control
methods.
he ;2 step%#ise plan as outlined by President Jones include'
i. Install a ne# bonus plan.
ii. 0et department managers &no# that they are responsible for 3uality.
iii. Reduce cost of services to customers.
iv.Invite customers to offer their comments on service 3uality after every service encounter.
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President Jones embraced some of the ;2 principles in his step%#ise plan for Jones
Accounting Services. ;2" unli&e other 3uality concepts" involves a #hole company getting
organized in every department" in every activity" #ith every single person at every level not only
in solving problems but also in preventing them. ;2 aims chiefly at changing behaviour"
attitudes and s&ills so that the culture of the organization becomes one of preventing failures and
doing things right first time every time.
!rom the case" ;2 principles embraced include customer focus and employee empo#erment.
!or instance" the second step%#ise plan #hich #as that $eads of *epartment #ould be in charge
of 3uality in their departments deduces that they are empo#ering their employees to an eCtent
#hich is a ;2 principle. In addition" #ith the installation of bonus plan and the reduction of
cost of service #hich are tied to customer satisfaction and listening to customers8 comments on
all service encounters also implies that they are focusing on the customer and attempting to build
customer relationships #hich are also re3uirements for ;2 principle.
$o#ever" the ;2 plan by President Jones did not embrace other ;2 principles such as
ensuring continuous improvement" benchmar&ing and establishment of effective measurement
metrics (standards). It is necessary that Jones Accounting Service embrace continuous
improvement #hich #ould eliminate customer problems and complaints. hey could do this by
benchmar&ing other firms and this #ould even help to even eliminate the bonus plan for staff.
+UESTION , SO&UTION
;2 is a strategic approach to producing the best products and services through a process of
continuous improvement of every aspect of a company8s operations #ith the involvement of staff
at all levels. otal ;uality 2anagement (;2) is a comprehensive and structured approach to
organizational management that see&s to improve the 3uality of products and services through
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ongoing refinements in response to continuous feedbac&. If I #ere appointed perations
2anager of Jones Accounting Services" in order to solve the problems at sta&e" I #ould consider
the follo#ing'
C$s!oer-fo)$s. ;2 is a #ay of managing to improve the effectiveness" fleCibility and
competitiveness of a business as a #hole. It also serves as a means of improving company
bottom%line performance by creating a sense of purpose shared by everyone in the company and
geared to#ards the needs of the customer. It re3uires the company to chec& customersE attitudes
regularly and includes the idea of internal customers as #ell as eCternal ones. his means
avoiding re#or&" i.e." cutting the amount of defective #or&. his #ould go a long #ay to satisfy
or even delight the customers.
S!#ff In(o*(een!. he highest level of development of a system for 3uality management is the
concept and practice of otal ;uality 2anagement. veryone has to be committed to 3uality.
hat means changing the attitude of the entire #or&force" and altering the #ay the company
operates. his involves improved communication. he ;2 concept puts much emphasis on the
involvement of every #or&er from the ,ompany ,hief Cecutive fficer to the lo#est shop floor
#or&er in ensuring that productsservices continually meet customer eCpectations. So ;2 is
directed at enhancing competitive edge and thereby increasing :ob security. Improving 3uality is
the most cost%effective and less capital intensive #ay of improving productivity.
Con!in$o$s Pro)ess I'ro(een!. there is the need to focus on internal business processes to
improve all anomalies and satisfy the ultimate customers. he elimination of #aste in all forms is
a ma:or ob:ective of any company8s ;2 process. +ut the aim should be to re%deploy resources
a#ay from #asteful activities into value added activities. his #ill improve customer service"
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fleCibility and responsiveness and reduce product development lead times. ,ontinuous
improvement means bringing perfection in all organization function and process.
Me#s$ring Perfor#n)e. 2easuring performance means :udging #hat have been planned
either achieved or not. b:ective behind performance management indicate the process gain or
loss" compare the goal #ith #hat been achieved" determine #hat process need to improve and
determine the overall performance of the organization. here should be a measurement scale that
performance #ould be compared to and I #ould adopt the balanced scorecard #hich measures
performance based of four criteria < finance" process" customer and organizational learning).
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