Baruch College Zicklin School of Business Department of Management MGT 3121 Fall 2016 SERVICE OPERATIONS MANAGEMENT CHAPTERS 6 and 7 Service Quality and Process Improvement 1 (One Point) The concept of quality service deployment is based on the belief that services should be designed to reflect customer requirements. (T or F) 2 (One Point) Being meaningful and easy to invoke are important elements of a good unconditional service guarantee. (T or F) 3 (One Point) A process is said to be in control when all the variation that is noticed can be assigned to specific causes. (T or F) 4 (One Point) The term "producer's risk" refers to the probability that a sample will incorrectly indicate an acceptable quality. (T or F) 5 (One Point) When customer expectations are confirmed by perceptions, service quality is considered satisfactory. (T or F) 6 (One Point) According to the SERVQUAL quality assessment instrument, responsiveness is the most important dimension of service quality. (T or F) 7 (One Point) In the service quality gap model, GAP1 arises because of the management's lack of understanding about how customers formulate their expectations. (T or F) 8 (One Point) Setting goals and standardizing service delivery tasks will help close GAP3, the service performance gap. (T or F) 9 (One Point) The most important function of SERVQUAL is to keep a record of service quality trends through periodic customer surveys. (T or F) 10 (One Point) Joseph Juran identified internal failure costs, external failure costs, detection costs, and prevention costs. (T or F) 11. (Ten Points) ( X - chart and an R-chart Problem): The time to make beds at a hotel should fall into an agreed-on range of times. Four maids were observed on three different occasions and the time needed to make a bed was observed and recorded in the below table. (A sample consist of the service times for a maid) Factors for computing Control Chart Limits X-Bar Chart Mean Factor A2 Upper RangeD4 1.880 3.268 1.023 2.574 0.729 2.282 0.577 2.115 0.483 2.004 0.419 1.924 0.373 1.864 0.337 1.816 0.308 1.777 0.266 1.716 Sample Size 2 3 4 5 6 7 8 9 10 12 (a) Determine the upper and lower control limits for an Maid Ann Linda Marie Michael Observation 1 130 130 180 165 X - chart and an R-chart with a sample size of three. Service time, seconds Observation Observation 2 3 120 150 110 140 160 175 155 140 X R X R Control limits for X - Chart. Use the equations which use : R UCL LCL Control limits for R-Chart: UCL LCL (b) After the control chart was established, a sample of three observations of Marie had the following times in R-Chart seconds. 160, 150, and 170. Is corrective action needed? What is the basis for your answer? Sample mean: X = Sample range: R = 12. (Ten Points) (P-chart Problem): Several complaints recently have been sent to the Gotham City Police Department regarding the increasing incidence of congestion on the city's streets. The complaints attribute the cause of these traffic tie-ups to a lack of synchronization of the traffic lights. The lights are controlled by a main computer system, and adjusting this program is costly. Therefore, the comptrollers are reluctant to change the situation unless a clear need is shown. During the past year, the police department has collected data at 1,000 intersections. The data were compiled on a monthly basis as shown below: Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Congestion Incidence 14 16 14 12 16 12 18 12 14 11 10 18 Sample Proportions (a) Construct a p-chart based on the above data where the sample size (n) is 1000. (Use a Z value of 3 and take your calculations to four decimal places). P P UCL LCL (b) Should the system be modified if during the next three months reports of congestion at these 1000 intersections indicate the following? What is the basis for your answer? Plot the sample proportions on the control chart. Month Jan Feb Mar Congestion Incidence 15 9 11 Sample Proportions UCLp = P-bar = LCLp = Jan Feb Mar