ENGM 620

Fall 2010
Session Five Homework Solutions

Many of these questions do not have a universal answer. Therefore, the answers are
written to elicit a range of potential answers based on differing perspectives. When this
is true, it is particularly important for the student to concentrate on justifying their
selected perspective.

Chapter Eight Discussion Questions

2. Provide an example of customer coproduction other than the example provided in the
text. What are the advantages and disadvantages of customer coproduction for service
providers?

The text defines coproduction as a situation where the customer and the
service provider work closely to produce the service. The examples used
by the text are: A haircut during which the customer is observing the
barber while the barber works; a hired consultant who works closely with
the company’s personnel; and patrons filling their own drinks at their
table. There are a myriad of other examples. The tax accountant and
taxpayer going over a tax return come immediately to mind. I am sure that
there are more examples than there are students in the class.
In a situation like this, the closeness of the customer and provider
can yield problems as well. Work habits, sanitation, different perspectives
of service requirements all can interfere with providing the service. In a
food oriented environment, sanitation and cleanliness become apparent.

14. How can the moment-of-truth concept be used as a training tool in a service setting?

On page 247, the text identifies three basic approaches to using the
“moment of truth” concept as training.
Poka-yoke (or fail-safes) is designed to isolate potential areas for
failure and insure that they do not happen. Three classifications are
identified: warning methods, physical contact methods, and visual contact
methods. Using these procedures, the process is designed not to fail.
The Three T’s
 Identify a further definition of ways of planning not to fail. They
offer a set of distinct items that can be observed and focused on.
The Kroger Company case (a closer look at Quality 8-2)
illustrates a situation where the “moment of truth” concept has been used
successfully to improve the service that the company provides.

Chapter Eight Problems

8. A state university wants to perform a gap analysis to determine what student traits
corporate CEOs find most important. The exercise is to be administered to CEOs and
involves two surveys – an expectations survey and a perceptions survey. All questions
are answered on a 10-point scale. The attributes the CEOs are asked to rate are
propensity for lifelong learning, ability to work in teams, innate ability, and cognitive
ability. The results of nine surveys are synopsized in the table in the book. Perform a
gap analysis by developing a two-dimensional differencing plane and evaluate the results.

Based on the above two-dimensional differencing plane, more emphasis is

needed in the area of lifelong learning as the expectations are high while
the perceptions are low. Teamwork and innate abilities have about the
right amount of emphasis (even though the perception of innate abilities is
low, the expectations match). Cognitive abilities has a low expectation
and a high perception, thus some of the effort currently going in to this
skill may be shifted to the need are of lifelong learning.

7. (the slides said 9, but there is no nine in the book – 7 is a good question) The averages
for different dimensions of service quality were computed by averaging the items
pertaining to the dimension. Use the following data to determine which dimensions to
emphasize.
Perceptions Expectations
Tangibles = 5.40 1.42
Reliability = 3.20 6.40
Responsiveness = 2.45 2.30
Assurance = 5.60 3.30
Empathy = 1.90 6.40
a. Using simple differencing, determine which dimensions should be emphasized.

Simple differencing = perceptions less expectations

Tangibles 5.40 – 1.42 = 3.98
Reliability 3.20 – 6.40 = -3.20
Responsiveness 2.45 – 2.30 = 0.15
Assurance 5.60 – 3.30 = 2.30
Empathy 1.90 – 6.40 = -4.50
The dimensions with the greatest negative difference should be
emphasized, thus reliability and empathy.

b. Use two-dimensional differencing to determine which dimensions should be

emphasized.

Based on the above two-dimensional differencing plane, the greatest

negative mismatches are in empathy and reliability.

c. Based on your findings, choose the most important dimension that needs to be
improved.

Both simple and two-dimensional differencing showed reliability and

empathy to be the areas of greatest need. While difficult to see in the
simple differencing process, the two-dimensional differencing plane
makes it easy to see that while there are no dimensions in the great (i.e.
high expectations and high perceptions) area, assurance and tangibles
could be slightly de-emphasized in order to address the issues with
empathy and reliability.

Chapter Nine Discussion Questions

9. How does the contingency perspective apply to supplier partnering?

Different companies in the supply chain can have different perspectives of what
customers want from their suppliers.
 Table 9-2 presents these priorities. Assemblers, suppliers, and indirect suppliers
all have a different set of importance. Knowledge of these different priorities
assists in a better relationship between customers and producers.

11. Describe the concept that is referred to as supplier partnering. How does this concept
differ from the traditional form of supplier–customer relationship?

The theme of this material has been about improving the communications
between the supplier and the customer as well as reducing the number of
suppliers. This improved communication enables a better product to be
delivered and, potentially, a better product for the end user. This concept is
called supplier partnering.
The traditional form of supplier-customer relationship has been
challenging. There has been a difference in the objectives of the customer
and supplier. Frequently communications have been poor, perhaps
adversarial.

15. What is acceptance sampling? When is acceptance sampling needed?

Acceptance sampling is a statistical procedure in which a predefined number of

products are inspected for quality. This number of items can range from 100% to a
small sample. There is a fair amount of controversy over this procedure. Deming
stated that sampling can be most effective in a controlled number of cases as
opposed to inspecting all products. On page 276, the text lists some examples of
when sampling might be needed:
 when dealing with unproven suppliers
 during start-ups and when building new products
 when products can be damaged in shipment
 when dealing with extremely sensitive products that can be damaged
easily
 when products can spoil during shipment
 when problems with a certain supplier have been noticed in the production
 processes that bring the supplier’s performance into question
Chapter Nine Problems
2. Using Figure 9-5, with a sample size of n=100 and an acceptance number c=2, if a bad
shipment has 40% defective, what is the probability of acceptance? What type of risk is
this?

The probability of acceptance is for 40% defective is practically zero. If,

by chance, the book meant 4% defective, than the probability of
acceptance would be about 35%. Either way, this is beta, or Consumer’s,
risk.

3. Using Figure 9-5, with a sample size of n=100 and an acceptance number of c=3, if a
good shipment has no more than .02 defective, what is the probability of acceptance?
What type of risk is this?

The probability of acceptance is about 85%. This is alpha, or Producer’s,

risk.

14. Interpret the following sampling plan in plain English:

n1 = 50
c1 = 2
n2 = 100
c2 = 5
r1 = 4
r2 = 6

Fifty items in the incoming lot are drawn at random. If two, one, or zero
defective pieces are found, accept the lot. If four or more defective pieces
are found, reject the lot. If three pieces are found defective, perform a
second sample with 100 pieces. If the combined number of defective
pieces in both samples is less than or equal to six, the lot can be accepted.