please answer questions 1-4 based on the case study
Analytical Case Study #1 Instruction you have Please take the time to carefully read and analyze CASE: Scharadin Hotels Once completed the case analysis, please answer the following questions: 1. Construct a 3-sigma control chart with the given data. (30 points) **Please note that you need to show all the steps of your calculations to receive full credit. For this assignment, refer to Lecture #7 slides 2. Is the process "in control" or "out of control"? Why? (5 points) 3. Based on your analysis, do you think the problem is the new computer system or something else? (5 points) 4. What advice would you give to Larraine based on the information that you have? (10 points) Submit your report through Canvas. You can write or type a report, but the report must be clearly readable (only doe, xls, pdf, jpg files are allowed). CASE: Scharadin Hotels Scharadin Hotels is a national hotel chain started in 1957 by Milo Scharadin. What started as one upscale hotel in New York City turned into a highly reputable national hotel chain. Today, Scharadin Hotels serves over 100 locations and is recognized for its customer service and quality. Scharadin Hotels are typically located in large metropolitan areas close to convention centers and centers of commerce. They cater to both business and nonbusiness customers and offer a wide array of services. Maintaining high customer service has been considered a priority for the hotel chain A Problem with Quality The Scharadin Hotel in San Antonio, Texas, had recently been experiencing a large number of guest complaints due to billing errors. The complaints seemed to center around guests disputing charges on their final hotel bill. Guest complaints ranged from extra charges, such as meals or services that were not purchased, to confusion for not being charged at all. Most hotel guests use express checkout on their day of departure. With express checkout, the hotel bill is left under the guest's door in the early morning hours and, if all is in order, does not require any additional action on the guest's part. Express checkout is a service welcomed by busy travelers who are free to depart the hotel at their convenience. However, the increased number of billing errors began creating unnecessary delays and frustration for the guests who unexpectedly needed to settle their bill with the front desk. The hotel staff often had to calm frustrated guests who were rushing to the airport and were aggravated that they were getting charged for items they had not purchased. Identifying the Source of the Problem Larraine Scharadin, Milo Scharadin's niece, had recently been appointed to run the San Antonio hotel. A recent business school graduate, Larraine had grown up in the hotel business. She was poised and confident and understood the importance of high quality for the hotel. When she became aware of the billing problem, she immediately called a staff meeting to uncover the source of the problem. During the staff meeting, discussion quickly turned to problems with the new computer system and software that had been put in place. Tim Coleman, head of MIS, defended the system, stating that it was sound and the problems were exaggerated. Tim claimed that a few hotel guests made an issue of a few random problems. Scott Schultz, head of operations, was not so sure. Scott said that he noticed that the number of complaints seemed to have significantly increased since the new system was installed. He said that he had asked his team to perform an audit of 50 random bills per day over the past 30 days. Scott showed the following numbers to Larraine, Tim, and the other staff members. Number of Number of Number of Incorrect Incorrect Incorrect Day Day Bills Day Bills Bills 1 3 3 1 2 3 4 5 6 7 8 9 10 2 2 1 2 2 3 2 2 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 3 3 3 4 5 5 6 5 5 5 3 2 2 1 2 Everyone looked at the data that had been presented. Then Tim exclaimed, "Notice that the number of errors increases in the last third of the month. The computer system had been in place for the entire month, so that can't be the problem. Scott, it is probably the new employees you have on staff that are not entering the data properly." Scott quickly retaliated, "The employees are trained properly! Everyone knows the problem is the computer system!" The argument between Tim and Scott become heated, and Larraine decided to step in. She said, "Scott, I think it is best if you perform some statistical analysis of that data and send us your findings. You know that we want a high quality standard. We can't be Motorola with Six Sigma quality, but let's try for 3 sigma. Would you develop some control charts with the data and let us know if you think the process is in control
