Question

In: Operations Management

An insurance company has an online help service for its customers. Customer queries that take more than 5 minutes to resolve are categorized as "unsatisfactory" experiences.

An insurance company has an online help service for its customers. Customer queries that take more than 5 minutes to resolve are categorized as "unsatisfactory" experiences. To evaluate the quality of its service, the company takes 10 samples of 100 calls each while the process is under control. The control chart that developed is described as follows: p = 0.1, UCL,,,, = 0.226 and LCL„ = 0. A new randomly selected sample shows that 30 queries took longer than 5 minutes to resolve. What can we conclude according to this sample?

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Expert Solution

Control charts can be defined as a process where statistical data aur collected and represented in the form of a graph to illustrate the rise or fall of business processes taking in an organisation.It gives an overview whether the activity taking place in an organisation is benefical or not.It even depicts the level of efficiency.It is also known as Shewharts chart or process behavior charts.

UCL and LCL are upper contorl limit and lower control limit which are used to mark the limitations of a process.Statistical data related to a particular ongoing business process in a firm is taken and is compared to these limits to know the status of the process and make changes if necessary to enhance it.

According to the sample result of the given insurance company,since the time taken is more than the time estimated for that particular process,the process is not under control.Necessary steps must be taken to evaluate the result,find the causes for delay in process and rectify them by training the employees.


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