Modelo, S.A., is considering three providers of automated visual inspection systems for their packaging needs
A team of manufacturing engineers, production managers, and process engineers has developed the following list of criteria and assigned them ratings on a scale of 1 (completely unimportant) to 5 (critical). This team has also rated the candidate products on each of these dimensions using a scale of 1 (poor) to 5 (excellent). Which provider should they choose and what caveats, if any, should go with their recommendation?
Dimension Importance Provider A Provider B Provider C
4 megapixels 5 4 5 5
Minimal fringing 3 4 3 2
15 fps VGA movie mode 4 4 4 1
Minimal shutter lag 2 2 5 5
Works in dim light 1 2 3 4
Water resistant 5 5 2 1
What will be an ideal response?
Answer: The highest score using the customer value index is obtained by Provider A.
V =
VA = 5 × 4 + 3 × 4 + 4 × 4 + 2 × 2 + 1 × 2 + 5 × 5 = 79
VB = 5 × 5 + 3 × 3 + 4 × 4 + 2 × 5 + 1 × 3 + 5 × 2 = 73
VC = 5 × 5 + 3 × 2 + 4 × 1 + 2 × 5 + 1 × 4 + 5 × 1 = 54
Caveats to this technique are the methods used to assign an importance rating to each of the criteria and scores to each of the providers. A slight switch in ratings or scores could swing the choice from Provider A to Provider B, for example, an increase in importance of the Minimal shutter lag criterion from a 2 to a 4 will put the two products in a tie.
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A building supply company has many high-volume customers and many low-volume customers. A CRM system would be LEAST likely to help management decide to use which of the following methods for communicating with low-volume customers?
A) Every November, send each customer a new calendar that has the phone number of the building supply company printed on the cover. B) Once or twice a year, mail a new product catalog to each customer. C) Every few months, have a customer service representative from the building supply company call each customer. D) Have a sales representative make a personal one-on-one appointment with every low-volume customer at least twice a month. E) Give each low-volume customer the company Web address to check building supply products sold by the company.