EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 2, Problem 2PA
Summary Introduction
Interpretation: Service quality indicator needs to be computed using the available data and to describe its application to other fields.
Concept Introduction: Service quality indicator refers to average score of various factors that reflects expectation of the customer regarding company performance.
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Each day, a FedEx competitor processes approximately 50,000 shipments. Suppose that they use the same Service Quality Index as FedEx and identified the following numbers of errors during a 5-day week (see the "FedEx: Measuring Service Performance" box). These values are hypothetical and do not reflect any real company’s actual performance.
Description
Weight
Number of Errors
Complaints reopened
3
145
Damaged packages
10
17
International
1
109
Invoice adjustments
1
284
Late pickup stops
3
207
Lost packages
10
4
Missed proof of delivery
1
28
Right date late
1
752
Traces
3
115
Wrong day late
5
11
Compute the Service Quality Indicator by finding the weighted sum of errors as a percentage of total shipments. Do not round intermediate calculations. Round your answer to three decimal places.
Service Quality Indicator (SQI): %
day, a FedEx competitor processes approximately 70,000 shipments. Suppose that they use the same Service Quality Index as FedEx and identified the following numbers of errors during a five-day week (see the “FedEx: Measuring Service Performance” box): These values are hypothetical and do not reflect any real company’s actual performance. Complaints reopened: 125 Damaged packages: 18 International: 102 Invoice adjustments: 282 Late pickup stops: 209 Lost packages: 2 Missed proof of delivery: 26 Right date late: 751 Traces: 115 Wrong day late: 15 Compute the Service Quality Indicator by finding the weighted sum of errors as a percentage of total shipments.
As part of an insurance company’s training program, participants learn how to conduct an analysis of clients’ insurability. The goal is to have participants achieve a time in the range of 30 to 45 minutes. Test results for three participants were the following: Armand, a mean of 36.0 minutes and a standard deviation of 3.0 minutes; Jerry, a mean of 34.0 minutes and a standard deviation of 2.0 minutes; and Melissa, a mean of 37.5 minutes and a standard deviation of 1.7 minutes.
a.Compute process capability for the participants and determine whether each is capable. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Melissa ? Cp what is it
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- As part of an insurance company's training program, participants learn how to conduct an analysis of clients' insurability. The goal is to have participants achieve a time in the range of 30 to 45 minutes. Test results for three participants were: Armand, a mean of 38 minutes and a standard deviation of 3 minutes: Jerry, a mean of 37 minutes and a standard deviation of 2.5 minutes: and Melissa, a mean of 37.5 minutes and a standard deviation of 1.8 minutes. Which of the participants would you judge to be capable? Explain. Can the value of the Cp exceed the value of Cp for a given participant? Explainarrow_forwardVerizon Manufacturing Company spent $408,000 in 2019 to inspect incoming components. Of the $408,000, $244,000 is fixed appraisal costs. The variable inspection cost is $0.20 per component. It takes two components for each finished product. Internal failure costs average $88 per failed unit of finished goods. In 2019, nine percent of all completed items had to be reworked. External failure costs average $216 per failed unit. The company's average external failures are three percent of units sold. The company manufactures all units as ordered and carries no materials inventories. Seeking to decrease its total cost of quality (COQ), Verizon contracted Quality-is-Free Consultants, Inc. (QIFC) to study ways to improve product quality and to reduce costs. Upon completion of the study, QIFC recommended automatic inspection equipment that requires a $64,000 annual cost for training and $158,000 for equipment rental and maintenance. The new equipment will eliminate $44,000 of the fixed…arrow_forwardUsing signavio or any PBM tools. Model the following business process at a supplier. After a supplier notifies a retailer of the approval of a purchase order, the supplier can receive an order confirmation, an order change, or an order cancelation from the retailer. It may happen that no response is received at all. If no response is received after 48 h, or if an order cancelation is received, the supplier will cancel the order. If an order confirmation is received within 48 h, the supplier will process the order normally. If an order change is received within 48 h, the supplier will update the order and ask again the retailer for confirmation. The retailer is allowed to change an order at most three times. Afterwards, the supplier will automatically cancel the order.arrow_forward
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