1. A customer purchasing a Sears Roebuck appliance, such as a washing machine, can also purchase a three-year service contract for an additional fee. 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 an appliance repaired, 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 frame 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 for the first repair visit to occur, another two weeks to receive the ordered part, and another week for the second repair visit to occur in which the ordered part is installed.

• 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.