NovaSound is a small business that assembles wireless earbuds in Australia using imported components. It sells through its own website and a major online marketplace.
In the last quarter, NovaSound launched a new model, the NS-2. The operations manager tracked the following information:
| Measure | Before NS-2 launch (previous model) | After NS-2 launch (NS-2) |
|---|---|---|
| Units shipped per month | 4,000 | 4,800 |
| % of orders delivered on time | 94% | 91% |
| Customer service contacts per 1,000 orders | 38 | 62 |
| Main contact reasons (top 2) | Pairing issues; delivery tracking | Battery not charging; warranty questions |
| Warranty policy offered | 12 months, return-to-base | 24 months, replacement-first |
| Warranty claims approved (per month) | 70 | 150 |
| Average time to resolve a warranty case | 9 days | 14 days |
Management is considering changing the operations process by adding a new final testing step (an automated battery stress-test) and changing how customer service handles warranty cases. The battery stress-test would add 40 seconds to the assembly time per unit and require one additional staff member per shift. NovaSound currently runs one 8-hour shift per day, 20 days per month. The line produces one unit every 18 seconds during assembly and packaging (before any new testing step).
NovaSound’s brand promise on its website is: “Fast delivery, easy support, and worry-free ownership.”
Using the data, analyse how NovaSound’s operations outputs have changed since launching the NS-2. Refer to both customer service and warranties in your answer.
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outputs - customer service - warranties
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