ANALYSIS

The order fulfillment process for Water Tech from their private manufacturer in China depends on the product. Accessories such as batteries, chargers, and filter bags are constantly ordered while product units (robotic pool cleaner models) are at least once every two months. Water Tech is able to reduce the ordering for the robotic pool cleaner units to 6 times a year with their annual forecasting. The sales and revenue relies heavily on their data analysis and prediction since the the process from ordering to manufacturing and assembly to product testing to receiving the products take at least two months. In those two months, there could be wastes such as overproduction, waiting, transportation, and inventory that are not foreseen until later in the process. Despite that, the lengthy process of having a larger lot size has the advantages of reducing the ordering, setup, and transportation costs and saves the company with quantity discounts where the price per unit drops when an order is sufficiently large. To ensure there are no defects, the manufacturer in China sens over 3 to 4 units to be fully tested (measured, weighed, and water tested) before having the entire order shipped. As another precautionary measure, once the order have been received, 1-2% of the shipment are again inspected to ensure the quality.

As for customer order fulfillment process, Water Tech advertises promotions of early buys where distributors and buying group members order in case quantity-- this means that all products have to be ordered in multiples of fours. This promotional strategy aims to decreases inventory during non-peak season. It also reduces labor costs, and increases efficiency because workers do not have to open the master cartons for an odd numbered order since the cartons are already boxed and ready to be shipped.

The flowchart is a guideline provided to the customer representatives by Water Tech in addressing the issues raised by customers. The flowchart is a visual representation that traces the flow of information needed by the representative. It is used by managers as a training tool to efficiently and appropriately assists customers. The 12 pink circles represent the problems or issues with Water Tech’s robotic pool cleaner and all rectangle shapes have a brief description to help identify the solution needed.

The Pareto chart data is from the Water Tech’s flow diagram. It shows the top five most common complains by the customers showing the frequency and percentage of each one. Using the top five, we have constructed and designed a swim lane flowchart to better demonstrate and exhibit the process followed by the customer representative once a complaint has been identified. Each of the swim lane is chronologically arranged on how each issues were identified from the original Water Tech flowchart. The process starts when a complaint is received by a customer representative and ends when an action plan is provided. All functions contributing to the process are included in the flowchart. The rows are labeled according to the functional group they represent and arranged chronologically by the activity. The symbols in the flowchart illustrates the following shapes:

( O ) Circle shape represents an event has occurred or ended

( ◊ ) Diamond shape represents a yes/no or pivots/forward decision or outcome

( ☐ ) Rectangle shape represents an activity

To demonstrate the use of the swimlane flowchart here are the following are the steps in analyzing the flow chart:

1. An event is started when a customer calls about a product complaint.

2. The customer representative then identifies the main complaint as a ‘charger issue’

3. There two options for the product issue, it can be either ‘charger green LED not turning on’ or ‘charger is getting hot/overheating’.

If the answer of the customer is ‘charger green LED not turning on’

4. The customer representative will advise the customer with an action plan to have a new charger sent.

5. The issue is then resolved.

If the answer of the customer is “charger getting hot/overheating”

4. A follow-up question will be required to further investigate the issue. “Was the charger used in direct sunlight?”

If the answer is yes.

5. The customer representative will advise the customer with an action plan to have a new charger sent.

6. The issue is then resolved.

If the answer is no.

5. The customer representative will advise to charge indoors and never in direct sunlight.

6. The issue is then resolved.

Process Structure

Water Tech is a robotic pool cleaner manufacturer. The process structure can be small or large batch process—this depends on the order placement. A small batch process is applicable when private retail stores such as Macys, directly orders for a customized product. This type of order request requires a relatively large volume for Water Tech to accept. The advantage of this type of order fulfillment service is to have the retailer the benefit of selling the product exclusively in their stores.  A large batch process is considered when Water Tech does their annual forecasting for the incoming year. The factors considered for this process are sales, environment, and technology. The productions are handled by batch and in large quantities since it takes at least a couple of months for the production, assembly, inspections, and transportation. It is a batch process because the volumes are higher with same or similar parts going into the products that are produced repeatedly.

Customer Involvement

In general, the dimension of customer contact in service processes for Water Tech is low contact. The physical presence is absent because there is almost no physical contact from the service provider to the customers. Almost all communication and transaction are managed through the phone or e-mail. What is processed are possessions and information. Water Tech does not have a brick and mortar to actively interact with customers therefore the service could be seen as impersonal. The method of delivery is through regular mail. On the other hand, Water Tech have business development executive employees like Ryan Olito where they have a high contact with customers. These customers are not end-users but dealers, distributors, and mass merchants. Water Tech’s customer service is responsible for consumer issues regarding repairs and warranty purposes.

Resource Flexibility

Resource flexibility applies to both workforce and equipment. Water Tech Corp. employees have a relatively flexible workforce. Employees are cross-trained and able to perform multiple tasks and job function. As a result the company often promotes within the company. Moreover, Water Tech supports their employees by providing flexible hours and financial compensation to individuals who are determined to continue their studies.

Capital Intensity

Capital intensity is the amount of capital present in the mix of equipment and human skills process. All of the manufacturing process for Water Tech products are from a private manufacturing company in China, therefore the company is highly dependent on human skills. They have inspectors that examine and monitor the manufacturing process in China, engineers to do product testing, development executive employees to increase sales, and customer representatives to establish and maintain relationship with consumers. Water Tech has also taken advantage of automating service processes. As the capability of technology advances, costs decreases. An example of this would be the company website that has all the product information and details for the customers convenience. There’s also a button where consumers can click and a live representative can help address any question.