Managing for Quality and Performance Excellence 9th Edition by James Evans,William Lindsay

Exercise 11

Flybynight Airlines measured their numbers of lost bags in one month and found that they had lost 130 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 (Societe Internationale de Telecommunications Aeronautiques) in 2011 was 12.07 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 Flybynight-better or worse?