Reference no: EM132273223

Kroger's QueVision System Improves Customer Service. Kroger has annual sales in excess of $100 billion and operates stores across the United States under various names, including Kroger's, Ralph's, and Harris Teeter. In surveys, Kroger's customers have consistently rated waiting at the checkout lane as the worst part of the grocery shopping experience. In response, Kroger developed its QueVision computer-based information system, which relies on real-time data feeds from point-of-sale systems as well as infrared sensors over store doors and cash registers to count customers entering the store and standing at checkout lanes. The system also uses historical point-of-sale records to forecast the number of shoppers that can be expected and, therefore, the number of cashiers that will be needed. All this was done to achieve the goal of ensuring that customers never have more than one person ahead of them in the checkout lane. The system provides feedback by displaying customer checkout time on a screen that both employees and customers can see—delivering a visible measure of how well the whole system is working. The system is now deployed at over 2300 stores in 31 states and has cut the average time a customer must wait to begin checkout from four minutes to 30 seconds.

You are a new store manager at a Kroger store where the QueVision system has been deployed for two years. Unfortunately, since you took charge of this store two weeks ago, you have received numerous complaints about the system from store cashiers and baggers. These employees are requesting that you either turn off the screen that displays customer checkout time or add more cashiers and baggers to each shift to reduce checkout times, which are currently averaging over six minutes.

A problem statement is a clear, concise description of the issue that needs to be addressed. A good problem statement answers the following questions: What do people observe that causes them to think there is a problem? Who is directly affected by the problem? Is anyone else affected? How often does the problem occur? What is the impact of the problem? How serious is the problem?

Development of a problem statement is the most critical step in the decision-making process. Without a clear statement of the problem or the decision to be made, it is useless to proceed. If the problem is stated Wrongly, the chances of solving the real problem are greatly diminished.

Which of the following is the best problem statement for this situation?

a. Your store needs to cut its average checkout time by at least five and one-half minutes.

b. You need to replace the store’s QueVision system and retrain your baggers and cashiers to provide faster checkout service.

c. You need to replace the QueVision system equipment for your store in order to achieve an acceptable average checkout time.

d. The QueVision system in your store has determined average checkout time is excessive, resulting in poor customer service and upsetting baggers and cashiers, which could lead to a loss of customers and employees.