Assignment:
Analysis - Measuring Service Performance
Refer to FedEx: Measuring Service Performance
Q: Each day a FedEx competitor processes approximately 85,000 shipments. Suppose that they use the same Service Quality Index as FedEx and identified the following numbers of errors during a five-day week. 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 but late: 751
Traces: 115
Wrong day and late: 15
Start with the total number of shipments: 5 days in the week * 85,000 shipments per day = 425,000 shipments. Then follow a table such as the one listed below:
|
Weight
(from page 53)
|
# of errors
|
Weighted Sum
(Weight * Errors)
|
|
Complaints Reopened
|
3
|
125
|
375
|
|
Damaged Packages
|
10
|
18
|
180
|
|
International
|
1
|
102
|
|
|
Invoice Adjustments
|
1
|
282
|
|
|
Late Pickup Stops
|
3
|
209
|
|
|
Lost Packages
|
10
|
2
|
|
|
Missed Proof of Delivery
|
1
|
26
|
|
|
Right Date Late
|
1
|
751
|
|
|
Traces
|
3
|
115
|
|
|
Wrong Day Late
|
5
|
15
|
|
|
Totals
|
|
1,645
|
|
Finish filling out the table by multiplying the weight and number of errors. Then total the weighted sum column.
Compute the number of errors per shipment and the Service Quality Indicator (SQI) by finding the weighted sum of errors as a percentage of total shipments.
1- Total number of errors / shipment (425,000).
2- (SQI) Total weighted errors / shipment (425,000).
3- How might such an index be used in other organizations, such as a hotel or automobile service facility? What would be examples of the error descriptions for each company?
4- Number of errors per shipment
5- Service Quality Indicator (SQI)
6- Explain how such an index could be used in other organizations, such as a hotel or automobile service facility. What would be examples of the error descriptions for each of those types of company?