Case: Under ch13, Case name: Wash & Dry Inc (page 534)
You need to incorporate answers to the following questions in your case analysis:
1. If you were hired as a consultant to develop these KPIs for WD, how would you assess what KPIs they should be measuring? In general, what areas of service and cost would these KPIs address? Be sure to include both internal and customer KPIs.
2. What KPIs would you recommend for the manufacturing facility? Why?
3. What KPIs should be used at the distribution center? Why?
4. How would you measure the revenue and profit impacts of these new KPIs?
There are a few factors to consider when determining which KPIs to measure for a business like WD. First, we need to consider the areas of service that WD offers. These include laundry service, dry cleaning, and alterations. Each of these areas could be measured separately in terms of cost and quality of service. For example, we could measure the average cost per item of laundry service, the number of items that are damaged during dry cleaning, and the percentage of alterations that are completed on time.
In addition to measuring the quality of service, we also need to consider customer satisfaction. This can be measured in a number of ways, including surveys or customer complaints. We would want to look at KPIs that address both positive and negative feedback in order to get a complete picture of customer satisfaction.
Finally, we need to consider the costs associated with running WD. This includes things like labor costs, materials costs, and overhead costs. By measuring the cost of each area of service, we can get a better understanding of where WD is spending its money and where improvements can be made.
In summary, there are a number of factors to consider when choosing KPIs for WD. By taking into account the areas of service, customer satisfaction, and costs, we can develop a well-rounded set of KPIs that will help WD assess its performance and make improvements where necessary.
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