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A typical retail transaction consists of several smaller steps, which can be considered components subject to failure. A list of such components might include:

COMPONENT

DESCRIPTION

DEFINITION OF FAILURE

1

Find product in proper size, color, etc.

Can't find product

2

Enter cashier line

No lines open; lines too long; line experiencing difficulty

3

Scan product UPC for name, price, etc.

Won't scan; item not on file; scans incorrect name or price

4

Calculate purchase total

Wrong weight; wrong extension; wrong data entry; wrong tax

5

Make payment

Customer lacks cash; check not acceptable; credit card refused

6

Make change

Makes change incorrectly

7

Bag merchandise

Damages merchandise while bagging; bag splits

8

Conclude transaction and exit

No receipt; unfriendly, rude, or aloof clerk

Let the eight probabilities of success be .92, .94, .99, .99, .98, .97, .95, and .96. What is the reliability of the system; that is, the probability that there will be a satisfied customer? If you were the store manager, what do you think should be an acceptable value for this probability? Which components would be good candidates for backup, which for redesign?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92173081

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