CASE 11.2 Bob's Custom BBQs
Bob's Custom BBQs, a manufacturer of outdoor grills, uses three primary carriers to move grills from its Texas factory to home improvement retailers in the United States and Canada. The owner, Bob Flambeau, wants to evaluate the performance of the three carriers and collected data for the following metrics over a three-month period.
PERFORMANCE CRITERIA ALLIED TRANSPORT RESTWAY FREIGHT CERTAINT CARRIERS On-time delivery 99.5% 98.7% 98.2% Loads with damage claims 0.9% 1.6% 0.4% Customer satisfaction ratings 4.6 4.2 3.9 Billing accuracy 99.3% 99.6% 98.2% Loads rejected 1.3% 2.1% 0.9%
Bob asked his transportation manager to develop a scorecard to help compare the carriers on these five metrics. The manager came up with the following chart:
455
PERFORMANCE CRITERIA WEIGHT FACTOR PERFORMANCE EVALUATION POTENTIAL SCORE ACTUAL SCORE On-time delivery 30 >98 5% = 5 150 96 01-98 5% = 4 93-96%= <93%= 0 Loads with damage claims 30 <0.5% = 5 150 OS-1%=4 101-2%= >2% = 0 Customer satisfaction ratings 20 >4.5 = 5 100 401-45=4 3-4 = <3 = 0 Billing accuracy 10 >99% = 5 50 97 01-99% = 4 95-97%= <95%= 0 Loads rejected 10 <1% = 5 50 1%-2% = 4 01 —1% = >3% = 0 Total Score 500
456 Chapter I I
CASE QUESTIONS
- Calculate the performance score for each of the three carriers.
- Which carrier would you recommend that Bob consider for elimination? Why?
- If Bob decides to keep all three carriers, what should each of them work to improve?
Sample Solution