Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 3, Problem 20P

(a)

Summary Introduction

Interpretation: As there was a concern pertaining to appearance and accuracy of itineraries, in a travel agency, wherein the defects includes errors in reservation numbers, flight numbers, charge card numbers, airlines, timings, accommodation facilities, information regarding car rentals, prices and even typographical errors, it measures the count of errors that occurs, and the process gave findings that for every itinerary, there was an average error of three numbers. The two-sigma control limits for these defects needs to be determined.

Concept Introduction: The graph showing a sample is within the statistical control limits or not is called a Control Chart.

(b)

Summary Introduction

Interpretation: As there was a concern pertaining to appearance and accuracy of itineraries, in a travel agency, wherein the defects includes errors in reservation numbers, flight numbers, charge card numbers, airlines, timings, accommodation facilities, information regarding car rentals, prices and even typographical errors, it measures the count of errors that occurs, and the process gave findings that for every itinerary, there was an average error of three numbers. The information regarding a client who is scheduled for a trip to Dallas, wherein her itinerary contained six errors needs to be interpreted.

Concept Introduction: The graph showing a sample is within the statistical control limits or not is called a Control Chart.

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A travel agency is concerned with the accuracy and appearance of itineraries prepared for its clients. Defects can include errors in​ times, airlines, flight​ numbers, prices, car rental​ information, lodging, charge card​ numbers, and reservation​ numbers, as well as typographical errors. As the possible number of errors is nearly​ infinite, the agency measures the number of errors that do occur. The current process results in an average of five errors per itinerary. a. What are the two​-sigma control limits for these​ defects? The UCLc equals _______________ and the LCLc equals ____________________ ​(Enter your responses rounded to three decimal places. If your answer for LCLc is​ negative, enter this value as 0.​) b. A client scheduled a trip to Dallas. Her itinerary contained five errors. Interpret this information.     A. The number of defects is within the control​ limits, so it is assumed that the process is not in control.   B. The number of defects is within the…
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.
A production operation is making 150 units of a product by engaging five workers for 300 hours. However, 40 percent of the units appear to have various quality problems, and the company decides to sell them as seconds at a price of £50 each when a normal unit is sold for £150. To improve the situation, several initiatives are proposed, including a scheme where, for every improvement, 50 percent will be given to workers and the other 50 percent will be held by the company. This results in a significant drop in defects as now only 10 units are faulty out of an output of 130 units.   1. Compare the productivity after Bonus with the initial productivity.   2. Determine the appropriate bonus per hour for the workers under the bonus scheme if the cost per piece is £70 both before and after the scheme.
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