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Refer to the FedEx: Measuring Service Performance chart on

complete the table, and compute the following:

Chapter 3 - Analysis - Measuring Service Performance

Refer to FedEx: Measuring Service Performance (page 53 of the text)

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?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92777218

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