p as the chances of fault became increasingly higher due to human error.Operating costs increase since the salaries and wages paid to highly skilled Personnel are higher and much more testing has to be done to ensure that the vehicles are of quality of the carsRequires more precise equipment, which is more expensive.Going back to the Rolls Royce e.g. since the cars are hand made the possibilities of human error becomes greater. Thus the testing must have a high degree of precision. This obviously results in the costs of production being very high.Requires highly skilled workers, necessitating high wages and greater training.In order to ensure great quality of their cars, Rolls Royce had to acquire highly skilled workers, train them further and pay them well in order to retain and motivate them.3.5.3Stress customer serviceExample: Steers free delivery of ordersRequires broader development of service people and service parts and equipment.When Steers started the free delivery of orders within Nairobi, it had to train its service personnel to ride motorbikes as well as acquiring enough motor bikes for this purpose.Requires rapid response to customer needs or changes in customer tastes, rapid and accurate information system as well as careful coordination.At Steers this is done mainly through their customer hot lines and over the Internet where customers can call in to order, complain or complement their services. All these enable them to keep up with customers tastes as well as to coordinate smooth delivery of orders.Requires high inventory investment Since most of their foods are made in orders, Steers has to have high inventory of ingredients required for most of the foods ordered. This reduces delays in preparation since they store the ingredients in their proximity. This is costly to maintain.3.5.4Provide rapid and frequent introduction of new productsExample SmithKline Beecham: Requires versatile equipment and people. SmithKline Bee...
