1. The manager at an IT Consulting provides IT support to a number of clients. The manager is particularly concerned about a major client that is under Service Level Agreement (SLA). Under this SLA, all tier one issues called in must be resolved the same day not to exceed 12 hours. There is a $150 penalty for every call that exceeds the SLA time. The manager has the following information from collecting and analyzing call data on tier one issues for this client for the past 6 months.

Average number of calls per day = 30 with an standard deviation of 8

The mean time for resolving issues = 10 hours

The standard deviation of the resolution time = 1.1 hours

• Is the call center process capable?
• What % of calls will exceed the 12 hours SLA requirement?
• What is the expected penalty cost per year if any?