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Last year, the manager of the service department at East Woods Ford instituted a customer opinion program to find out how to improve service. One week after service on a vehicle was performed, an assistant would call the customer to find out whether the work had been done satisfactorily and how service could be improved. After one year of gath- ering data, the assistant discovered that the complaints could be grouped into the following five categories: Complaint Frequency Unfriendly atmosphere 5 Long wait for service 17 Price too high 20 Incorrect bill 8 Needed to return to correct problem 50 Total 100
a. Use OM Explorer to draw a bar chart and a pareto shart to identify the significant service problem.
b. Categorize the following causes of complaints into a cause-and-effect diagram: tools, scheduling, defective parts, training, billing system, performance measures, diagnostic equipment, and communications.
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Mary Williams, owner of Williams Products, is evaluating whether to introduce a new product line. After thinking through the production process and the costs of raw materials and new equipment.
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