1. Explain the use of charts to investigate the sources of process variation: Tom Sharkey is the owner of Sharkey Chevy, Buick, GMC. At the start of the year, Tom instituted a customer opinion program to find ways to improve service. The day after the service is performed, Tom's administrative assistant calls the customer to find out whether the service was performed satisfactorily and how the service might be improved. A summary of the complaints for the first 6 months follows. Review the Pareto chart below. How should Tom prioritize the complaints to improve the quality of service? Complaint Problem not corrected Error on invoice Unfriendly atmosphere Price too high Wait too long for service 40 30 20 10 I 0 Problem not corrected Price high Count 38 23 Percent 42 25 Cum % 42 67 Frequency 38 8 12 23 10 Unfriendly 12 13 80 Long wait 8600 10 11 9 91 100 Invoice error T 0.5 0.4 0.3 0.2 0.1 O

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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1. Explain the use of charts to investigate the sources of process variation: Tom Sharkey is
the owner of Sharkey Chevy, Buick, GMC. At the start of the year, Tom instituted a
customer opinion program to find ways to improve service. The day after the service is
performed, Tom's administrative assistant calls the customer to find out whether the
service was performed satisfactorily and how the service might be improved. A summary
of the complaints for the first 6 months follows. Review the Pareto chart below. How
should Tom prioritize the complaints to improve the quality of service?
Complaint
Problem not corrected
Error on invoice
Unfriendly atmosphere
12
Price too high
23
Wait too long for service 10
40
30
20
10
0
Problem not corrected
Count 38
Percent
42
$
Cum % 42
Price high
23
25
67
Frequency
38
8
Unfriendly
12
13
80
10
11
91
Long wait
8
9
100
Invoice error
T
0.5
0.4
-0.3
T
-0.2
0.1
0
1
Transcribed Image Text:1. Explain the use of charts to investigate the sources of process variation: Tom Sharkey is the owner of Sharkey Chevy, Buick, GMC. At the start of the year, Tom instituted a customer opinion program to find ways to improve service. The day after the service is performed, Tom's administrative assistant calls the customer to find out whether the service was performed satisfactorily and how the service might be improved. A summary of the complaints for the first 6 months follows. Review the Pareto chart below. How should Tom prioritize the complaints to improve the quality of service? Complaint Problem not corrected Error on invoice Unfriendly atmosphere 12 Price too high 23 Wait too long for service 10 40 30 20 10 0 Problem not corrected Count 38 Percent 42 $ Cum % 42 Price high 23 25 67 Frequency 38 8 Unfriendly 12 13 80 10 11 91 Long wait 8 9 100 Invoice error T 0.5 0.4 -0.3 T -0.2 0.1 0 1
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