Question

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	BESTWAY 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:

PERFORMANCE CRITERIA	WEIGHT FACTOR	PERFORMANCE EVALUATION	POTENTIAL SCORE	ACTUAL SCORE
On-time delivery	30	>98.5% = 5 96.01−98.5% = 4 93−96% = 2 <93% = 0	150
Loads with damage claims	30	<0.5% = 5 0.5−1% = 4 1.01−2% = 2 >2% = 0	150
Customer satisfaction ratings	20	>4.5 = 5 4.01−4.5 = 4 3−4 = 2 <3 = 0	100
Billing accuracy	10	>99% = 5 97.01−99% = 4 95−97% = 2 <95% = 0	50
Loads rejected	10	<1% = 5 l%−2% = 4 2.01−3% = 2 >3% = 0	50
		Total Score	500

CASE QUESTIONS

1.Calculate the performance score for each of the three carriers.

2.Which carrier would you recommend that Bob consider for elimination? Why?

3.If Bob decides to keep all three carriers, what should each of them work to improve?

Answer 1

b)

Bestway freight has the least performance score. Therefore, it has to be eliminated

c)

For Bestway, he should work on Loads with damage claims and Loads rejected.

For Certaint, he has to work on customer satisfaction.