SSFPC, Inc. specializes in the design and engineering of fired process heaters,
ID: 3217916 • Letter: S
Question
SSFPC, Inc. specializes in the design and engineering of fired process heaters, LNG vaporizers, and thermal oxidizers. A subsidiary, Thermal, offers a wide range of flameless thermal oxidizers with the capability of providing stand-alone emission devices in a variety of ways. Thermal is located in Blue Bell, Pennsylvania, where there are 90 employees.
Thermal has grown and flourished because of its good customer relationships, which include partnering, delivering a quality product on time, and listening to the customer’s needs.
PART 1
Thermal wants to formally measure customer satisfaction at least once a year and develops a brief survey that includes the questions shown in Table 1. Suppose 115 customer participated in this survey with the results shown in Table 1.
Table 1 Questions and Number Responding Yes or No
QUESTION
Yes
No
1
In general, were deliveries on time?
63
52
2
Were the contact people at Thermal helpful and courteous?
86
29
3
Was the pricing structure fair to you company?
101
14
4
Would you recommend Thermal to other companies?
105
10
The company would like to use the results to estimate population responses to the questions. As a business analyst, analyze the data and report to the company the results.
PART 2
The company would also like to ascertain employee satisfaction with the company. Thermal randomly sampled 9 employees and asked them to complete a satisfaction survey under the supervision of an independent testing organization. As part of this survey, employees were asked to respond to questions by providing a score from 0 to 50 along a continuous scale where 0 denotes no satisfaction and 50 denotes the upmost satisfaction. Assume that the data are normally distributed in the population.
The questions and the results of the survey are shown in Table 2.
Table 2 Questions with their Means and Standard Deviations
QUESTION
MEAN
STANDARD DEVIATION
1
Are you treated fairly as an employee?
37.9
8.6
2
Has the company given you the training you need to do the job adequately?
27.4
12.7
3
Does management seriously consider your input in making decision about production?
41.8
6.3
4
Is your physical work environment acceptable?
33.4
8.1
5
Is the compensation for your work adequate and fair?
39.5
2.1
The company would like to use the results of this survey to estimate population averages. As a business analyst, analyze the data and report to the company the results in a report.
WRITE YOUR REPORT IN MEMORANDUM STYLE.
Brief introduction
Results
Interpretation
QUESTION
Yes
No
1
In general, were deliveries on time?
63
52
2
Were the contact people at Thermal helpful and courteous?
86
29
3
Was the pricing structure fair to you company?
101
14
4
Would you recommend Thermal to other companies?
105
10
Explanation / Answer
Let p be the proportion of the sample or the population having a particular trait of interest.
Total no. of sample, n = 115.
95% Confidence Interval for population mean will be constructed.
Formula used:
p +(-) Z*[(p*q)/n](1/2)Where, q = (1-p), Z at 95% = 1.96
Confidence Interval for 95%
In general, were deliveries on time?
0.457 0.639, We can conclude with 95% confidence that greater than 45.7 % and less than 63.9% of the population thinks that the deliveries were on time. This is a bit low,considering the fact that the company gives customer service a lot of importance.
Were the contact people helpful and courteous?
0.6688 0.8272, We can conclude with 95% confidence that greater than 66.88 %and less than 82.72% people contacted felt that the people at Thermatrix were helpful andcourteous. This is high and the company is quite successful in providing a good customercare.
Was pricing structure fair to your company?
0.8182 0.9378, We can conclude with 95% confidence that greater than 81.82 %and less than 93.78 % people found the pricing structure fair, this implies that thecustomers are very much satisfied with the pricing structure.
Would you recommend Thermatrix to other companies?
0.8615 0.9645, We can conclude with 95% confidence that greater than 86.15 %and less than 96.45% customers would recommend Thermatrix to others. This shows theextent of customer satisfaction, which is very high.
Part B:
N: Total number of employees: 90
n: Employees selected for the survey: 9
Standard deviation is given for the sample instead of population, and the responses are normally distributed. Hence we will use Student’s t-distribution.
Degree of freedom: n-1 = 8.
Since n/N = 0.1 > 5%, therefore we need to use Correction Factor (CF).Correction Factor: (N-n)/(N-1)
Formula used:
Mean +(-) t*s/n(1/2) * CF, t (95%) = 2.306
Are you treated fairly as an employee.
31.884 43.916, Population mean lies in the interval. We can conclude that we can be reasonably sure that the responses of 95% of the employees would lie in the interval. The company scores high on providing fair treatment to the employees.
Has the company given you enough training you need to do the job adequately.
18.52 36.28, Population mean lies in the interval. This area has witnessed a high dispersion,i.e. the employees have given varied response. The company might want to look into this area and try to find the reason and if possible improve.
Does the management consider your input in making decisionsabout production.
37.393 46.207, We can be reasonably sure that the responses of 95% of the employees would lie in the interval. Population mean lies in the interval. This again is a good score and company values employees input in decision making process.
Is your physical work environment acceptable.
27.73 39.067, We can be reasonably sure that the responses of 95% of the employees would lie in the interval. Population mean lies in the interval. The company scored above average in this front, but can look to improve the score in future.
Is the compensation for your work adequate and fair.
38.031 40.969, We can be reasonably sure that the responses of 95% of the employees would lie in the interval. Population mean lies in the interval. The intervalis very narrow and with reasonably high score.
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