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 (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. How might such an index be used in other organizations, such as a hotel or automobile service facility?