Concept explainers
Case summary:
O is a leader in pest control services for residential and commercial clients. Commercial clients include offices, hospitals, hotels and food processing plants, and make a third of its revenue. It has 8000 employees in over 400 locations.
In the 1990’s, many of O’s customers obtained ISO certifications and felt the need to partner with other companies that also held ISO certifications. O also wanted to achieve greater consistency of quality in its services across its network. The company then created a quality assurance (QA) team and ultimately got ISO certified in 2005.
O’s QA team consists of experienced quality professional with over 30 years’ experience at O. All have completed ISO technical and audit courses. The team conducts 200 internal branch audits annually. Each audit takes about 4 days and includes administrative reviews, vehicle inspections, and onsite customer inspections. If a branch fails an audit, it is required to rectify errors and will be re-audited in 90 to 120 days. Even branches that receive high audit scores are cited areas to improve on.
The ISO certification has translated into $600,000 in savings for O and improved customer satisfaction from 95.8% to 97.7%.
To determine: Why do you think O believed it had a need to meet international standards for quality?
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Chapter 2 Solutions
Operations and Supply Chain Management 9th edition
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