QHT1 Task 2 Complaints and Efficiency Plan Example

Wrong Size, Late Box: Tracing a Composite Boot Maker's Doubled Customer Complaints to Their Operational Causes and Improving the Work Boot Division's Efficiency

Student Name

School of Business, Western Governors University

QHT1: Business Management Tasks, Task 2

Course Instructor

Month Day, Year

Wrong Size, Late Box: Tracing a Composite Boot Maker's Doubled Customer Complaints to Their Operational Causes and Improving the Work Boot Division's Efficiency

The Situation

Cascade Bootworks, a composite maker of work and outdoor boots in Oregon, sells its work boot line through safety supply stores and online. Customer complaints to the work boot division doubled over the past year, from about 190 a month to 380, and the division's online rating fell from 4.5 to 3.9 stars. At the same time, the division's on-time shipment rate to retailers fell from 94% to 82%, and overtime in the plant rose by a third. Leadership asked for an analysis of the complaints, their causes and improvements that would address both customer satisfaction and operational efficiency.

Categorizing the Complaints

I sorted twelve months of complaints from customer service logs, online reviews and retailer reports into categories. Sizing and fit accounted for 46% of complaints, most saying that boots ran half a size small; late or incomplete orders, 29%; product defects such as stitching and sole problems, 17%; and billing or customer service issues, 8%. A Pareto chart, which ranks categories from most to least frequent so that the vital few stand out (Montgomery, 2019), makes the priority clear: two categories, fit and late orders, account for three-quarters of all complaints. Focusing on those two will address most of the problem.

Complaints deserve careful attention because they are an early warning and an opportunity. Research on complaint management argues that encouraging and resolving complaints can be a valuable defensive strategy, because retaining existing customers who complain is often less costly than attracting new customers to replace those who leave (Fornell & Wernerfelt, 1987).

Operational Causes

Sizing complaints: The complaints began in March, which matched a change to a new supplier for the lasts, the foot-shaped forms around which boots are built, on two of our best-selling models. Measurements showed that the new lasts were about three millimeters shorter than the old ones at several sizes. No one compared the new lasts with the old ones before production, and the online size chart was never updated.

Late orders: The plant schedules production in large batches of each model and size to reduce changeover time. When a popular size sells out, retailers wait for the next batch, which may be three weeks away. Meanwhile, the warehouse holds excess stock of slow-moving sizes. Rush orders to fill gaps cause overtime and disrupt the schedule, which delays other orders, a cycle that has worsened as the product line grew from 38 to 55 styles.

Contributing cause: Customer service representatives lacked information about expected ship dates, so customers who called about late orders received vague answers, which generated repeat complaints.

Improvements

Fixing fit: Recalibrate the new lasts to match the original dimensions, and require a first-article inspection that compares measurements whenever a supplier or tooling changes. In the meantime, update the online size chart and product pages to advise ordering a half size up for the two affected models, and offer free exchanges to customers who received boots that run small.

Improving scheduling: Move from large batches to smaller, more frequent runs for the 20 best-selling model and size combinations, supported by faster changeovers through standardized tooling. Shorter changeovers are the key: when switching a line from one model to another takes less time, small runs stop being wasteful, and production can follow what customers are actually buying (Heizer et al., 2020). Hold a small buffer of finished boots for the most popular sizes and reduce production of slow sellers.

Informing customers: Give customer service representatives access to the production schedule and inventory system so they can give accurate ship dates, and send automatic updates to customers when orders ship or are delayed.

Using complaint data: Review complaint categories weekly in a short meeting of operations, quality and customer service leaders, so that new problems are caught within weeks rather than months.

Recovering Customers Already Affected

Fixing causes prevents future complaints, but the division also needs to recover customers who have already had a bad experience. Customers who bought the two affected models in the past nine months will receive an email acknowledging the sizing problem, explaining what went wrong and offering a free exchange with prepaid shipping, even beyond the normal return window. Retailers will receive a similar notice and credit for exchanged pairs, along with updated fit guidance for their staff. For customers whose orders arrived late, customer service will offer a discount code on their next purchase. These steps cost money, but they are consistent with the idea that resolving complaints well can retain customers who would otherwise leave, and they signal to retailers that the company takes responsibility for its mistakes. Online reviews will be answered individually, with a note that the sizing problem has been corrected, so that future buyers see the company's response alongside the complaints. The division will also track how many affected customers accept an exchange and whether they buy again within a year, which will show whether the recovery effort is working.

Efficiency Gains

The improvements also raise efficiency. Smaller batches of fast sellers and less production of slow sellers should reduce excess inventory by about 20% and cut rush orders, lowering overtime. Fewer exchanges and returns reduce shipping and handling costs. Better information for customer service representatives shortens calls and reduces repeat contacts. Together, the division estimates annual savings of about $420,000 in overtime, returns and inventory carrying costs.

Measuring Success

The division will track monthly complaints by category, with a target of returning to fewer than 200 a month within six months; fit-related returns; on-time shipment rate, target 95%; overtime hours; inventory levels by style and size; and online ratings. Results will be reviewed monthly and shared with the plant and customer service teams.

Conclusion

The work boot division's complaints doubled for two operational reasons: new lasts that shortened two popular models without anyone noticing, and batch scheduling that left popular sizes out of stock while slow sizes filled the warehouse. Fixing the lasts and the size information, shifting to smaller runs for top sellers, giving customer service accurate information and reviewing complaints weekly address those causes, improve customer satisfaction and make the division more efficient.

References

Fornell, C., & Wernerfelt, B. (1987). Defensive marketing strategy by customer complaint management: A theoretical analysis. Journal of Marketing Research, 24(4), 337-346. https://doi.org/10.1177/002224378702400401

Heizer, J., Render, B., & Munson, C. (2020). Operations management: Sustainability and supply chain management (13th ed.). Pearson.

Montgomery, D. C. (2019). Introduction to statistical quality control (8th ed.). Wiley.