Abstract
Case Analysis
I recall a scene from a movie, not from very long ago where the protagonist gets a road roller as a compensation from a government institution. He is, of course, very happy that he owns the equipment.
The protagonist is overjoyed as he turns on the engine and hears it roar, but as soon as he tries to drive it, the road roller stops abruptly. Now, he calls for a mechanic. Though the mechanic is not familiar with the problem, he emphasizes that he will resolve it. Things soon get worse when the mechanic dismantles the machine to such an extent that an elephant has to be brought in to pull the road roller. While this event was unfolding, the mechanic continued to convince the protagonist that he will resolve the problem. The protagonist, a customer who relied on the mechanic, until his machine is irreparable, is now completely dismayed about his decision.
But the road roller was an old machine and had problems.
On the other hand, Sarbani gets a new machine installed and somehow collectively, the company and the service team seem to make the machine old for her and the family, such that they lose the charm of purchasing a new machine. Sometimes, I feel that if this is the kind of service delivery that exists, it may be a better idea to get products assembled locally, which was the trend in air-conditioning as well. Whenever, a customer looked for options, a comparatively low priced option in terms of an assembled machine existed. At least, the customer’s expectations were low which got an offset in price and a localized and personalized service wherein the producer knew about the ins and outs of the machine as it was assembled by them.
Kindly allow me to present the diagnosis in an arranged manner here;
TIME CONTEXT: FEBRUARY, 2016
As mentioned in the case, the air-conditioning industry is growing and changing in terms of product choices. The number of manufacturers in the fray is rising, implying that the associated value chain as well as the related human resource is growing.
VIEW POINT: MR KANWALJEET JAWA, MANAGING DIRECTOR OF DAIKIN INDIA
It is important for me to clarify at this stage that looking at the situation with a customer’s point of view—in this case, Sarbani who faced the anxiety—is imperative.
But, at the end who must look into the situation and why is even more important. I have, therefore, taken a viewpoint of the Managing Director(Leader), who is responsible for justifiably proving the points of reliability, responsiveness, tangibility, empathy (above all), and assurance. His intervention led to problem resolution, otherwise, I presume there would have been another round of taking the machine to the workshop and similar complications. Due to this wear and tear, the machine by this time would have started looking and sounding old.
OBJECTIVE: To prove that we are daikin, a leading multinational, whose actions resonate with the positioning
Central Problem
After sequentially analysing the events mentioned in the case a thought, which comes to my mind is that Daikin does not imagine that their products would require service beyond normal installation and servicing. Hence, they have engaged local service partners who may do the usual job. Further, because of this presumption, they do not have an inventory of parts or supplies which may be required as evidenced in this case, where, they did not have the supply of the gas available.
All these things imply that Daikin is not training its service partners at all; neither in terms of service nor in terms of service attitude.
Symptoms
The service partners had a laid-back attitude towards the situation, for example, the person who installed the machine in February convinced the customer that it will work and did not care to see why it is not working properly. They just wished to tick-mark their Key Result Area.
The person who came to pick-up the machine knew that he had to carry the machine and that he will not be able to do it alone.
There was also indifference from the Daikin team regarding the performance of their products after installation.
Causes
Improper selection of service partners
Lack of training
Absence of an efficient feedback system as well as a system to curtail the effects of transgression in the initial stages.
Here are certain points to be deliberated upon and from this alternative courses of action are suggested.
Areas of Consideration
State-of-art automated Daikin manufacturing plant with robust quality control mechanisms.
The business philosophy of providing superior technical support and after-sales service to its customers anchored around three key aspects of promptness, reliability and care.
Daikin service branch office is in the protagonist’s city of residence, which gave the protagonist the necessary confidence.
Delivery and installation of the machine along with the service support provided by the retailer for installation that involved the use of additional copper wire was to be separately paid.
Further inspection after non-performance of the air conditioner was based on visual inspection by Diakin’s technician and mechanic.
The protagonist was requested to bear with them.
Alternative Courses of Action
Create a robust, connected system for tracking everything based on when and how is it done. Also, generate a feedback mechanism for every step and get the customer compensated through the service partners.
A software-based system and feedback levels with continuous training of service partners. While offering an incentive to Sarbani for all the troubles by changing the product or giving additional benefits of her choice like three years of free service.
Change the service partners and develop new partners with a fresh training perspective and motivating them to participate in the connected service delivery system while simultaneously investing in the system themselves. Service partners should also participate in the feedback practice at every stage. Furthermore, the AC machine of the protagonist must be replaced to reduce the feeling of transgression.
RECOMMENDATION AND JUSTIFICATION
I would suggest the third point be adopted as the course of action.
The reason is habits of the service providers will not change. Attitude of a service partner should be the pre-selection criterion of partnership. Generating new partnerships on the basis of mutual understanding based on the service vision of Daikin, that is, promptness, reliability, and care should be initiated. Continuous support in training and inventory maintenance based on the ground knowledge of the partners should be provided. A robust software system for controlling the complete service value chain that also incorporates a strong feedback system with a capability of interpreting customer satisfaction qualitatively should be put in place.
A customer purchases a new branded machine with expectations. In this case, a replacement with a brand new machines should be offered to the protagonist to reduce her dismay, which may percolate not only to several customers but also to the customer’s social circle through the different communication platforms. A reputation is built in years, but it dismantles in no time. Daikin knows this as they are a reputed manufacturer belonging to a culture of efficiency and customer satisfaction.
Reasons for Not Choosing other Alternatives:
Its struggling time for every manufacturer to hold on to the customers and to increase market share. Putting up measures may help but might take time. The situation does not only requires a remedy, but it requires complete recuperation.