Case 11.2 Bob's Custom BBQs Bob's Custom BBQs, a manufacturer of outdoor grills, uses three primary carriers to

move grills from its Texas factory to home improvement retailers in the United States and Canada. The owner, Bob Flambeau, wants to evaluate the performance of the three carriers and collected data for the following metrics over a three-month period.

PERFORMANCE CRITERIA On-time delivery

Loads with damage claims Customer satisfaction ratings Billing accuracy Loads rejected

ALLIED TRANSPORT BESTWAY FREIGHT CERTAINT CARRIERS 99.5%

0.9% 4.6

99.3% 1.3%

98.7% 1.6% 4.2

99.6% 2.1%

on these five metrics. The manager came up with the following chart: PERFORMANCE CRITERIA

WEIGHT FACTOR On-time delivery 30

98.2% 0.4% 3.9

98.2% 0.9%

Bob asked his transportation manager to develop a scorecard to help compare the carriers

PERFORMANCE EVALUATION

.5 98.5% 5

96 25.01 98.5% 4 9325

96% 2 ,5

93% 0 Loads with damage claims 30 ,50.5% 5

0 25.5 1% 4 1. 25012% 2 .52%0

Customer satisfaction ratings 20 .5 4.55

4 25.014.5 4 325 ,5

42 30

Billing accuracy 10 .5 99% 5

9 257.01 99% 4 952597% 2 ,5

Loads rejected 10

95% 0 ,51%5

1 25% 2% 4 2. 2501 3% 2 .5

3% 0 Total Score 500 50 50 100 150 POTENTIAL SCORE ACTUAL SCORE 150

Case QuesTions

1. Calculate the performance score for each of the three carriers.

2. Which carrier would you recommend that Bob consider for elimination? Why?

3. If Bob decides to keep all three carriers, what should each of them work to improve?

Source