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

Explain critical path, Explain Critical Path. This is that sequence of ...

Explain Critical Path. This is that sequence of activities that decide the complete project duration. Critical Path is formed by critical activities. This path consumes maximum

Explain quality is considered to be a structural element, Quality is consid...

Quality is considered to be a structural element of the strategic service concept.

Define how you would decide the number of seats, During busy periods, a new...

During busy periods, a new customer walks into LHS every 15 mins. (with a standard deviation of 15 mins). At SHC, a customer walks in every hour (with a standard deviation of 1 hou

Supplier relationships in a supply network, Supplier relationships in a sup...

Supplier relationships in a supply network are categorised in which ways:- Single, multiple, delegated and parallel

Explain competitive advantage only exist for a short time, With the realiti...

With the realities of today's technological innovation and the realities of the current economy, competitive advantage only exist for a short time and are quickly outdated. Agree o

Explain when managing organizational change, When managing organizational c...

When managing organizational change, which would be more effective in overcoming resistance to change: rational persuasion, leader-follower relationship, both, or something else

Explain what is the horizon value, Current and projected cash flows for Ran...

Current and projected cash flows for Randell Global Operatons are shown below. Growth is expected to be constant after 2012, and the weighted average cost of capital is 11%. What i

Explain growth and globalization strategies, Given Pitney Bowes' growth and...

Given Pitney Bowes' growth and globalization strategies, analyze the forces for and against maintaining an organizational culture that supports diversity as a business imperative

Explain what implications does that fact have for managers, The resource-ba...

The resource-based model identifies four criteria that firms can use to evaluate whether particular resources and capabilities are core competencies and can, therefore, provide a b

Describe the peculiarity of location selection, Question 1: How is Brea...

Question 1: How is Break-even Analysis significant to investment, as well as, operational decisions Assumptions Importance of Break-even Analysis for operational deci

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