Quality Management Plan for BookTek Media Inc - Essay Example

? QUALITY MANAGEMENT PLAN FOR BOOKTEK MEDIA INC by of Learning Location of the School Case Study 1 Quality Management Plan for BookTek Media Inc Quality Dimensions and Characteristics of an Internet Ordering System The ability to understand the needs of customers is an important tool to ensure a successful online business ( Scott, 2010, p. 5). BookTek Media Inc can use the profile of its customers to come with an online system that conforms to the needs of the customers. This means the system should allow for key word searches in multiple word combinations. This will go a long way in taking care for unexpected key word searches that the customer may use while looking for a book. Apart from being active on a 24-hour basis, the company should ensure that the system is most accessible during the period when the customers are most active (Ludwig-Becker, 2008, p.10). Since BookTek has been having an almost perfect interaction with its customers, the online system must ensure this level of interaction is maintained. Thus, the ordering system will have an option where the customer can leave a message and that message will be responded to within a specified period depending on the agency of the message. BookTek should also consider using effective and informed purchasing decision-making through subject-specific acquisition profiles, digitized preview information and list of recommendations tailored to the requirements of the customer (Phillips, 2011, p. 11). The ordering system should allow the customers to have a look at the content pages of the material that they want to order. BookTek will also require an ordering system that seamlessly integrates and displays updated bibliographic metadata in real-time mode directly on the company’s website. Quality management in an online environment can be challenging especially where the company offering the services does not know the kind of customers that are going to require its products. The ordering system that BookTek is going to implement should thus allow for a multilingual catalogue search in specialist titles that must be finely differentiated using the sub-categories in subjects (Fox, 2009, p. 5). Therefore, to ensure quality of service delivery, the system that BookTek Media is going to implement must provide filters that distinguish the type of work available, media type, language, and the subject category. The ordering system for BookTek will need to provide mechanisms through which the company can communicate with the customer and vice versa (Scott, 2010, p. 24). Thus, BookTek Media must employ alerting services such as RSS feeds. Consequently, BookTek Media will use the customer feedback information as a yardstick in evaluating the success of its products to the customers and identify ways of improving the system. In order to remain competitive in the online book market, BookTek will require to integrate web interfaces in its ordering system that assist the customer service team to organize the selection of important criteria with a view of creating a personalized list of books and materials that are available in the store. For instance, the system may consider using web-based services like Web2Print expo facility that allows for a direct combination of books a specific bookseller or buyer (Mould, 2006, p. 3). The facility also should allow for automated delivery of information to the customer after subscription so that such customers remain informed about the new arrivals (Phillips, 2011, p. 14). Case Study 2 Demand for cash (D = $ 17,000 per day = $ 5,185,000 per year “305 working day”). Interest rate currently charged (CC = 9% “0.09”). Charges a loan origination fee (CO = $ 1200 Plus P1= 2.25%“0.0225”) If she take $500,000 or more the Bank will lower the loan origination fee from 2.25% to / P2=2% “0.02”). Loan takes (L= 15 day). Economic order quantity (EOQ): Q =  =  Q=$371,842.26 Loan amount per lone. No. of loans per year: Number of loans =  =  = 13.94 (14 Loans per year). Order cost: Cc () = (0.09) () = $16,732.90 Holding cost: (P1)(D)= (.0225) (5,185,000) = $116,662.50 Total cost of borrowing: TC= (Co) (N) + Order cost+ Holding cost TC= (1,200) (14) + 16,732.90+ 116,662.50 TC= $150,195.40 Total cost of borrowing. Cash on hand at which the company should apply for a new loan: Reorder point = D*L= (17,000) (15) = $ 255,000. Quantity Discount Analysis. If quantity $ 500,000 the bank will lower the variable portion of the loan origination fee from 2.25% to 2%. Quantity =Q =$ 500,000 loan amount per lone. No. of loans per year: Number of loans =  =  = 10.37 (11 Loans per year). Order cost: Cc () = (0.09) () = $22,500 Holding cost: (P1)(D)= (.02) (5,185,000) = $ 103,700 Total cost of borrowing: TC= (Co) (N) + Order cost+ Holding cost TC= (1,200) (11) + 22,500 + 103,700 TC= $ 139,400 Total cost of borrowing. So a loan of $ 500,000 should be acceptable because it yields a lower TC: 139,400 – 150,195.40=– $ 10,795.40 Works Cited Cross, V. 2012. Standard Elements of a Quality Management Plan. Demand Media. Available at: http://smallbusiness.chron.com/standard-elements-quality-management-plan-22015.html Fox, S. C. 2009. E-Riches 2.0: Next-Generation Marketing Strategies for Making Millions Online. New York: AMACOM Div American Mgmt Assn Ludwig-Becker, M. 2008. Electronic systems quality management handbook. London: McGraw-Hill.  Mould, M. E. 2006. Online Bookselling. New York: Michael Mould. Phillips, L. 2011. Online Book Marketing: The Least Expensive, Most Effective Ways to Create Book Buzz. New York: 360 Books. Scott, D.M. 2010. The New Rules of Marketing and PR: How to Use Social Media, Blogs, News Releases, Online Video, and Viral Marketing to Reach Buyers Directly. Hoboken: John Wiley & Sons. Read More