Customers' Dissatisfaction with the Boot Department
Customers also expressed dissatisfaction with the company's boot department. As a result, many cost centers must be reconsidered in order to determine their performance as well as their effect on output efficiency. Perhaps the output level has deteriorated, which may explain the high number of consumer grievances and declining returns traffic. As a result, outlining the primary cost centers would be extremely beneficial in determining the source of the current crisis. Therefore, presentation of this information in affinity diagrams is important because it would help in the making of informed decisions to reverse the declining stream of returns as well as re-establish positive feedback from customers by redressing their grievances (Jiao & Chen, 2015).
Affinity Diagram
The following diagram shows cost centers in the boot division of the shoe manufacturing company. Some items and services that cost the company have been highlighted.
Cost Centers in the Boot Division
In conclusion, Management costs, labour costs, production costs, utility costs, material costs and manufacturing costs form the basic cost centres whose operations could have led to customer complaints and problematic returns. In this regard, it calls for proper administration and management of resources to ensure that such costs are minimized while maximizing quality and foster customer satisfaction. The affinity diagram is therefore a significant tool that would greatly help the management team to organize and group their recommendations and come up with comprehensive and effective solutions.
References
Jiao, J., & Chen, C. H. (2015). Customer requirement management in product development: a review of research issues. Concurrent Engineering, 14(3), 173-185.
