Question 12.53

12.53 Pareto charts.

You manage the customer service operation for a maker of electronic equipment sold to business customers. Traditionally, the most common complaint is that equipment does not operate properly when installed, but attention to manufacturing and installation quality will reduce these complaints. You hire an outside firm to conduct a sample survey of your customers. Here are the percent of customers with each of several kinds of complaints:

Category Percent
Accuracy of invoices 25
Clarity of operating manual 8
Complete invoice 24
Complete shipment 16
Correct equipment shipped 15
Ease of obtaining invoice adjustments/credits 33
Equipment operates when installed 6
Meeting promised delivery date 11
Sales rep returns calls 4
Technical competence of sales rep 12
  1. Why do the percents not add to 100%?
  2. Make a Pareto chart. What area would you choose as a target for improvement?

12.53

(a) The customers could make 0 or many complaints, not just 1. (b) The three biggest complaints are problems with invoices, so that should be the focus.