What is the impact of the existing process on Sears

For an additional fee, a customer purchasing a Sears Roebuck appliance, such as a washing machine, can purchase a three-year service contract. The contract provides free repair service and parts for the specified appliance using an authorized Sears service provider. When a person with a Sears service contract needs to repair an appliance, such as a washing machine, he or she calls the Sears Repairs & Parts department to schedule an appointment. The department makes the appointment and gives the caller the date and approximate time of the appointment. The repair technician arrives during the designated time framework and diagnoses the problem. If the problem is caused by a faulty part, the technician either replaces the part if he is carrying the part with him or orders the replacement part from Sears. If the part is not in stock at Sears, Sears orders the part and gives the customer an approximate time when the part will arrive. The part is shipped directly to the customer. After the part has arrived, the customer must call Sears to schedule a second appointment for a repair technician to replace the ordered part. This process is very lengthy. It may take two weeks to schedule the first repair visit, another two weeks to order and receive the required part, and another week to schedule a second repair visit after the ordered part has been received.

• Diagram the existing process.

• What is the impact of the existing process on Sears’ operational efficiency and customer relationships?

• What changes could be made to make this process more efficient? How could information systems support these changes? Diagram the new improved process.