Statistical Quality Control: Part II

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THIS IS WHAT I NEED YOU TO DO: Review POST 2 below. Further the conversation by adding more thoughts/perspective on how the applying some statistical quality control might change their situation.



I’m sure everyone has at one time or another received poor service or product quality. I have on numerous occasions found myself wondering what I was going to do with the meal that I pulled out of the bag from a fast food restaurant when I determined that the items in the bag were not the items I ordered. I’m sure others in the class have had times when an item that they purchased was either of poor workmanship, the wrong size or was incorrectly marked and needed to be returned. The quality of the service at the customer return counter often determines how we feel about the company in general.

I recently had issues where my house suffered some damage. The damages were relatively minor to start with. An electrical cable was coated with ice above the garage in an area that couldn’t be easily seen or reached. The ice cut through the cable casing and caused a small fire. The fire department called the electric company and they cut the power to the house pending the correction to the cable. Because it was fire damage, it was covered by insurance, but the company insisted that they arrange the repair through their company. When a local contractor was found, it was 3 days and 2 negative degree nights later. The heating system in the house is an old boiler with forced hot water radiant heat. Needless to say the system froze with no power. The insurance company again said they needed to locate a contractor for an estimate, meanwhile the power is back on but the heating system is not functional. After another couple of negative degree nights, the water pipes in the house all froze. The insurance company’s original bill was $757.48 – the total now is nearly $15,000. That is quite a jump in payout for them for damages that could have been avoided if they had allowed the homeowner to call an electrician.

The first examples can be put down to an employee who had a bad day and was simply not on their game – it’s not an excuse, but they are human. The insurance example seems to be a matter of poor service quality based on the very convoluted system of servicing a claim. I called my agent, who connected me with claims. The claims department took the information and said I had to wait for an adjuster. This is the first step that needs corrected. If I had at least been able to call and get an estimate, the process would have been a lot faster. When I talked to the adjuster, he asked if I had anyone working on it and I told him I did not because the claims dept. said I had to wait for him. I think there is some miscommunication in the line in that area. Now the adjustor tells me that he will contact the agency they use for these types of things and get someone in contact with me right away. Several hours later, I get a call from the agency and that person tells me that he is trying to locate a contractor who is approved for the repairs. I kept in touch for two days and finally told him I was just calling someone in town to at least come out and take a look. In the end, the agency also called the same contractor (this is a very small town with 3 electricians) and ultimately hired them but not before we lost the heating system to the cold. We started the process over when I called the adjustor and he said he would call the agency and have them get a heating contractor out to take a look – Déjà vu Much?

The process is broken and is likely costing the company thousands in claims that may otherwise have been unnecessary. The control department needs to take a close look at the claims process and revamp in order to save money and in the end premium prices.


Document Requirements:

Use standard 12-point font size

MS Word Document 

3/4-1 page paper for post 2(Nothing less than 3/4 of a page and nothing more then 1-page necessary)

1-2 sources in APA citation for post 2(I willn’t need any more than 3 sources for sure)

Thorough Response is a must!!

And NO plagiarism!!




*Homework Field of Study: Business Statistics

If you don’t have any expertise in this area of study please don’t waste my time sending a handshake.

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