Sin Ho Man 20052982
Why was the productivity of Safelite installers so low? Does the proposed PPP plan address the low productivity problem?
The low productivity of Safelite installers stems from the lack of hard work of workers. Besides, low productivity is also due to their difficulty in finding the correct location when they arrived or the customers are not at the stated location. Also, those technician had been give unclear or even wrong direction to go to the stated location. At meantime, even the technicians can get to the right place, they might find that they were given some wrong resources or materials from the warehouse. All of these problems have incurred high rescheduling costs, and more importantly, low productivity.
The problem with the PPP rate is that not all technicians will get the opportunity to increase their productivity. The first reason for this is the varying demand for the windshield around the year, during winter the demand is less which in turn provides less number of jobs per day for the technicians which can be less than the targeted PPP rate.
So if the company follows the PPP rate plan these technicians would get less guarantee rate as well as less PPP rate when the demand for windshield is less. Safelite Auto glass cannot increase their productivity just by this PPP rate plan because the organization has more issues like scheduling errors, miscommunications where a wrong windshield or a wrong address, lack of inventory and operational problems all affect the pay of the technicians, first the company should focus not reducing the scheduling and operational mistakes and make it 100% productive only when these other factors are rectified, the PPP rate plan would work efficiently for the works. New problems may also arise due...