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 the decision variables for this problem, Problem 4: Comp-Max Comput...

Problem 4: Comp-Max Computers assembles computers and computer equipment. It is about to start production of three new types of computers, called model A, B, and C, respectively. E

Explain what will be the total costs for each alternative, Ergonomics Inc. ...

Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand = 54 units per day Average lead time = 30 days Item u

Define manufacturers should feel free to sell private labels, Should Nation...

Should National-Brand Manufacturers Also Supply Private Label Brands? Take a position: Manufacturers should feel free to sell private labels as a source of revenue versus nation

Explain supply chain excellence, Discuss the four enablers of purchasing an...

Discuss the four enablers of purchasing and supply chain excellence.

Describe several advantages of linear programming, Discuss several advantag...

Discuss several advantages of linear programming; clearly explain the reasons for your choices.

Production management, Give 5 steps in deciding Service facility location

Give 5 steps in deciding Service facility location

Assignment, identify the evolution of the operation management?

identify the evolution of the operation management?

Describe what opportunities exist, What are Google's key resources and comp...

What are Google's key resources and competitive capabilities? What competitive liabilities and resource weakness does it have? What opportunities exist? What threats to its continu

Explain what types of strategic plans must shoemaker make, Kathryn Shoemake...

Kathryn Shoemaker established Grandmothers Chicken Restaurant in Middleburg five years ago. It features a unique recipe for chicken,just like grandmother used to make.The facility

Explain why is forecasting important in organizations, Why is forecasting i...

Why is forecasting important in organizations, especially as related to understanding the relevant time horizon to develop a forecast against? What are some examples from industry?

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