EBK OM
EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 5, Problem 8PA
Summary Introduction

Interpretation: Overall reliability of the call center.

Concept Introduction:

Reliability is the probability of a product which performs under designed and controlled atmosphere in a given period of time. This is checked to know the accuracy of the product.

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The diagram below identifies the elements of service as provided by a soft drink vending machine. Each element has an estimate of its own reliability, independent of the others. What is the reliability of the "system"?
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Reliance Control Systems is a large manufacturer of control systems for the electrical power generation and  distribution industry. Over the past few years, Reliance has watched overseas competitors take away market  share with products that are priced lower and that, at the same time, have developed a reputation for better  reliability. The company is not in a dangerous position yet, but the board of directors wants to see a  concerted effort to improve the company’s competitive posture. In addition, the board wants to solve the  quality problem that is gradually arising in the implementation of their control systems. System glitches have  been evident in several projects of the company which strongly affect the company’s overall reliability to  their clients. During the discussion of the senior management, a proposal to implement quality standards of  ISO 9000 was considered. However, the CEO of the company is not at all convinced that mere application of  quality standards will…
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