Managing for Quality and Performance Excellence 10th Edition by James Evans ,William Lindsay

Exercise 1

Note: Data for many of the problems in this chapter can be found in the Excel workbook C08Data.xlsx on the Student Companion Site. Click on the appropriate worksheet tab as noted in the problem (e.g., Prob. 8-6, etc.) to access the data.
Nighthawk Airlines measured their numbers of lost bags in one month and found that they had lost 55 bags for 10,000 customers. If the average number of bags per customer is 1.3, how many errors per million opportunities (epmo) does this represent? The worldwide rate of baggage mishandling reported by SITA (Société Internationale de Télécommunications Aéronautiques) in 2013 was 6.96 per 1,000 passengers. If the average number of checked bags per passenger is assumed to be 1.3, how many errors per million opportunities (epmo) does this represent? How does this compare with the rate for Nighthawk-better or worse?