Question

In: Operations Management

Jim Corner, owner of Corner Bike Rentals, wants to start analyzing his company's quality. For each...

Jim Corner, owner of Corner Bike Rentals, wants to start analyzing his company's quality. For each bike rental, there are four types of customer complaints: (1) bike not working properly, (2) wrong bike size, (3) bike uncomfortable, and (4) bike broken during operation. During the past week, his company rented 280 bikes. He received a total of twenty-six complaints

If Jim wanted to operate at the five-sigma level, what would his errors have needed to be over the past week?

Solutions

Expert Solution

First we will know what is Five-sigma level as Jim mentioned about it, it means that the company is very confident about the service and products he is offering to customers and there is no chance of errors.Jim needs to take following measures as per the problem of the customers to make it five-sigma level-

1)He should get checked all of his bikes regularly and especially before renting the bike to the customer.

2)The bikes should be properly maintained and should be serviced frequently so that there would be no chance of problems after renting the bike.

3)Jim should ask customer details about the height,weight and whether customer would be driving solo or with partner and then rent him the best suitable bike to the customer so that customer will not face any issues for wrong size.

4)Old bikes which are not operating properly should be repaired immediately or should be replaced with the best new ones bikes, so the customer can satisfy about the rented bike and he should look into the bikes which got complained and take immediate measures for solving the issues.

5)Jim should take Feedback of the Bikes after the customers returned it and ask about how its services can be improved much more.

6)Jim should assign a Bike repair garage company for the AMC(automatic maintenance coverage) of its bikes and get them checked regularly.


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