Determine the appropriate sample size - process design, Operation Management

Assignment Help:

The following work sampling data was collected from observing a retail assistant: 

Activity                                                Number of observations

Attending to customers                                  60

Telephone enquiries                                        150

Walking around                                              40

Reading data                                                 30

Talking to manager                                         40 

Talking to other workers                                 20 

Lunch/coffee/comfort breaks                          50 

Dealing with customer complaints                  110 

Total                                                          500

The figures mean that, say, over the course of a day, it is estimated that 22 per cent of the time was devoted to dealing with customer complaints. 

(a) Determine the limits of accuracy of the above calculation 

(b) If the accuracy needed was to be ±1 per cent, determine the appropriate sample size. 

(c) How would an operations manager use the data obtained from the exercise described?

Answer: (a) N = 4P (100 - P) /L2 

 N = 500 

 P = 22 per cent 

 L = SQRT (4 × 22 (100 - 22))/500) = 3.7 per cent 

Therefore, P = 22 per cent ±3.7 per cent (ie we are 95 per cent confident that the true value lies between 18.3 per cent and 25.7 per cent) 

(b) 88(78)/1 = 6864. Unlikely to be economically worthwhile - a sample size of 1716 would give ±2 per cent accuracy 

(c) For setting targets of improvement, determining areas of improvement, cost savings, staff training.


Related Discussions:- Determine the appropriate sample size - process design

Problem 8, a small assembly line for the assembly of power steering pumps n...

a small assembly line for the assembly of power steering pumps needs to be balanced. exhibit 8.11 is the precedence diagram. the cycle time is determined to be 1.5 minutes. how wou

How does nestle have multiple facilities in a single country, Where in Euro...

Where in Europe, Africa, and Asia does Nestlé have operations? How many factories do they have in Spain and Thailand? Why does Nestlé have multiple facilities in a single country?

Explain the simple rate of return on the machine, The Jackson Company has i...

The Jackson Company has invested in a machine that cost $70000, that has a useful life of seven years, and that has no salvage value at the end of its useful life. The machine is b

Explain employee types, After an all-night study session the day before the...

After an all-night study session the day before their last final exam, four first-year MBA students decide to stop for some much-needed coffee at the campus Starbucks. They arrive

Compute maintenance check costs, Tahiti Manufacturing recently purchased a ...

Tahiti Manufacturing recently purchased a new machine. The maintenance contractor recommended that this model should receive maintenance every 3,000 - 6,000 hours of operation. If

Explain network design is a key business decision, Network design is a key ...

Network design is a key business decision as well as a technological decision. Why? Provide an example of a company you believe has a good network design, providing supporting rati

Explain maintaining both individual and team identity, What are some of the...

What are some of the challenges inherent in maintaining both individual and team identity? Please provide real world examples.

Explain the current maximum output of the process, I-mart is a discount opt...

I-mart is a discount optical shop that can fill most prescription orders in around 1 hour. The management is analyzing the processes at the store. There currently is one person ass

Explain important skills required to increase productivity, Important skill...

Important skills required to increase productivity, how a person will manage this in time. Please response fast. Tomorrow is my interview

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd