Data Analysis Case Study

Assessment Description

The purpose of this assignment is to apply a waiting line model to a business service operation in order to recommend the most efficient use of time and resources.

Use the information in the scenario provided to prepare a managerial report for Office Equipment, Inc. (OEI).

Scenario

Office Equipment, Inc. (OEI) leases automatic mailing machines to business customers in Fort Wayne, Indiana. The company built its success on a reputation of providing timely maintenance and repair service. Each OEI service contract states that a service technician will arrive at a customer’s business site within an average of 3 hours from the time that the customer notifies OEI of an equipment problem.

Currently, OEI has 10 customers with service contracts. One service technician is responsible for handling all service calls. A statistical analysis of historical service records indicates that a customer requests a service call at an average rate of one call per 50 hours of operation. If the service technician is available when a customer calls for service, it takes the technician an average of 1 hour of travel time to reach the customer’s office and an average of 1.5 hours to complete the repair service. However, if the service technician is busy with another customer when a new customer calls for service, the technician completes the current service call and any other waiting service calls before responding to the new service call. In such cases, after the technician is free from all existing service commitments, the technician takes an average of 1 hour of travel time to reach the new customer’s office and an average of 1.5 hours to complete the repair service. The cost of the service technician is $80 per hour. The downtime cost (wait time and service time) for customers is $100 per hour.

OEI is planning to expand its business. Within 1 year, OEI projects that it will have 20 customers, and within 2 years, OEI projects that it will have 30 customers. Although OEI is satisfied that one service technician can handle the 10 existing customers, management is concerned about the ability of one technician to meet the average 3-hour service call guarantee when the OEI customer base expands. In a recent planning meeting, the marketing manager made a proposal to add a second service technician when OEI reaches 20 customers and to add a third service technician when OEI reaches 30 customers. Before making a final decision, management would like an analysis of OEI service capabilities. OEI is particularly interested in meeting the average 3-hour waiting time guarantee at the lowest possible total cost.

Managerial Report

Develop a managerial report (1,000-1,250 words) summarizing your analysis of the OEI service capabilities. Make recommendations regarding the number of technicians to be used when OEI reaches 20 and then 30 customers, and justify your response. Include a discussion of the following issues in your report:

What is the arrival rate for each customer?

What is the service rate in terms of the number of customers per hour? (Remember that the average travel time of 1 hour is counted as service time because the time that the service technician is busy handling a service call includes the travel time in addition to the time required to complete the repair.)

Waiting line models generally assume that the arriving customers are in the same location as the service facility. Consider how OEI is different in this regard, given that a service technician travels an average of 1 hour to reach each customer. How should the travel time and the waiting time predicted by the waiting line model be combined to determine the total customer waiting time? Explain.

OEI is satisfied that one service technician can handle the 10 existing customers. Use a waiting line model to determine the following information: (a) probability that no customers are in the system, (b) average number of customers in the waiting line, (c) average number of customers in the system, (d) average time a customer waits until the service technician arrives, (e) average time a customer waits until the machine is back in operation, (f) probability that a customer will have to wait more than one hour for the service technician to arrive, and (g) the total cost per hour for the service operation.

Do you agree with OEI management that one technician can meet the average 3-hour service call guarantee? Why or why not?

What is your recommendation for the number of service technicians to hire when OEI expands to 20 customers? Use the information that you developed in Question 4 (above) to justify your answer.

What is your recommendation for the number of service technicians to hire when OEI expands to 30 customers? Use the information that you developed in Question 4 (above) to justify your answer.

What are the annual savings of your recommendation in Question 6 (above) compared to the planning committee’s proposal that 30 customers will require three service technicians? (Assume 250 days of operation per year.) How was this determination reached?

Benchmark – Data Analysis Case Study – Rubric
Total 40 points
Criterion
1. 1: Unsatisfactory
2. 2: Less Than
Satisfactory
3. 3: Satisfactory
4. 4: Good
5. 5: Excellent
Customer Arrival Rate
0 points
1.48 points
1.58 points
1.74 points
2 points
Customer Arrival Rate
The customer arrival rate is not
included.
N/A
N/A
N/A
The customer arrival rate is included.
Customer Service Rate
0 points
1.48 points
1.58 points
1.74 points
2 points
Customer Service Rate
The customer service rate is not
included.
N/A
N/A
N/A
The customer service rate is included.
Explanation of How Model
Determines Total Customer Waiting
Time
0 points
4.44 points
4.74 points
5.22 points
6 points
An explanation of how the waiting line
model can determine the total
Explanation of How Model Determines customer waiting time is not included.
Total Customer Waiting Time
An explanation of how the waiting line
model can determine the total
customer waiting time is vague or
incomplete.
An explanation of how the waiting line
model can determine the total
customer waiting is included.
An explanation of how the waiting line
model can determine the total
customer waiting time considers both
the predicted travel and waiting times.
An explanation of how the waiting line
model can determine the total
customer waiting time considers both
the predicted travel and waiting times,
and specifically addresses how the
travel time of the technician affects the
model.
Determination of Average Customer 0 points
Waiting Times, Customers in the
A determination of the average
System, and Cost of Service (B)
customer waiting times, customers in
Determination of Average Customer
the system, and cost of service using a
Waiting Times, Customers in the
waiting line model is not included.
System, and Cost of Service Using a
Waiting Line. Analyze data using
appropriate statistical modeling (C2.3)
4.44 points
4.74 points
5.22 points
6 points
A determination of the average
N/A
customer waiting times, customers in
the system, and cost of service using a
waiting line model is incomplete.
N/A
A determination of the average
customer waiting times, customers in
the system, and cost of service using a
waiting line model is included.
Analysis of 3-Hour Service Call
Guarantee
0 points
4.44 points
4.74 points
5.22 points
6 points
An analysis of the 3-hour service call
guarantee is not included.
An analysis of the 3-hour service call
guarantee is vague or incomplete.
An analysis of the 3-hour service call
guarantee is included.
An analysis of the 3-hour service call
guarantee defends whether or not one
technician is sufficient to meet the
need for repairs.
A thorough analysis of the 3-hour
service call guarantee defends
whether or not one technician is
sufficient to meet the need for repairs,
using information from the waiting line
model to justify the response.
0 points
4.44 points
4.74 points
5.22 points
6 points
Technician recommendations for an
expanding base of both 20 and 30
customers are not included.
Technician recommendations for an
expanding base of both 20 and 30
customers are vague or incomplete.
Technician recommendations for an
expanding base of both 20 and 30
customers are included.
Technician recommendations for an
Technician recommendations for an
expanding base of both 20 and 30
expanding base of both 20 and 30
customers are included and explained. customers are thoroughly justified
using information gathered from the
waiting line model.
4.44 points
4.74 points
5.22 points
6 points
A comparison of annual savings
between the recommended plan and
A comparison of annual savings
between the recommended plan and
Analysis of 3-Hour Service Call
Guarantee
Technician Recommendations for
Expanding Customer Base
Technician Recommendations for
Expanding Customer Base
Comparison of Annual Savings From 0 points
Proposed Plans
A comparison of annual savings
between the recommended plan and
A comparison of annual savings
A comparison of annual savings
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between the recommended plan and
between the recommended plan and
2. 2: Less Than
Satisfactory
3. 3: Satisfactory
4. 4: Good
5. 5: Excellent
that of the planning committee is
vague or incomplete.
that of the planning committee is
included.
that of the planning committee is
included, along with an explanation of
how this determination was reached.
that of the planning committee is
included, along with an explanation of
how this determination was reached,
using information from the waiting line
model to support the response.
0 points
1.18 points
1.26 points
1.39 points
1.6 points
Thesis Development and Purpose
Paper lacks any discernible overall
purpose or organizing claim.
Thesis is insufficiently developed or
vague. Purpose is not clear.
Thesis is apparent and appropriate to
purpose.
Thesis is clear and forecasts the
development of the paper. Thesis is
descriptive and reflective of the
arguments and appropriate to the
purpose.
Thesis is comprehensive and contains
the essence of the paper. Thesis
statement makes the purpose of the
paper clear.
Argument Logic and Construction
0 points
1.18 points
1.26 points
1.39 points
1.6 points
Argument Logic and Construction
Statement of purpose is not justified
by the conclusion. The conclusion does
not support the claim made. Argument
is incoherent and uses noncredible
sources.
Sufficient justification of claims is
lacking. Argument lacks consistent
unity. There are obvious flaws in the
logic. Some sources have questionable
credibility.
Argument is orderly but may have a
few inconsistencies. The argument
presents minimal justification of
claims. Argument logically, but not
thoroughly, supports the purpose.
Sources used are credible.
Introduction and conclusion bracket
the thesis.
Argument shows logical progressions.
Techniques of argumentation are
evident. There is a smooth progression
of claims from introduction to
conclusion. Most sources are
authoritative.
Clear and convincing argument that
presents a persuasive claim in a
distinctive and compelling manner. All
sources are authoritative.
Mechanics of Writing (includes
spelling, punctuation, grammar,
language use)
0 points
1.18 points
1.26 points
1.39 points
1.6 points
Surface errors are pervasive enough
that they impede communication of
meaning. Inappropriate word choice or
sentence construction is used.
Frequent and repetitive mechanical
errors distract the reader.
Inconsistencies in language choice
(register) or word choice are present.
Sentence structure is correct but not
varied.
Some mechanical errors or typos are
present, but they are not overly
distracting to the reader. Correct and
varied sentence structure and
audience-appropriate language are
employed.
Prose is largely free of mechanical
Writer is clearly in command of
errors, although a few may be present. standard, written, academic English.
The writer uses a variety of effective
sentence structures and figures of
speech.
0 points
0.89 points
0.95 points
1.04 points
1.2 points
Appropriate template is used, but
some elements are missing or
mistaken. A lack of control with
formatting is apparent.
Appropriate template is used.
Formatting is correct, although some
minor errors may be present.
Appropriate template is fully used.
There are virtually no errors in
formatting style.
All format elements are correct.
Criterion
1. 1: Unsatisfactory
Comparison of Annual Savings From
Proposed Plans
that of the planning committee is not
included.
Thesis Development and Purpose
Mechanics of Writing (includes
spelling, punctuation, grammar,
language use)
Paper Format (use of appropriate
style for the major and assignment)
Template is not used appropriately, or
Paper Format (use of appropriate style documentation format is rarely
for the major and assignment)
followed correctly.
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