Managerial Practice 3.1 Quality at Verizon Wireless Anyone who owns a cell phone
ID: 349906 • Letter: M
Question
Managerial Practice 3.1 Quality at Verizon Wireless
Anyone who owns a cell phone knows the agony of a dropped call. Did you know that the reason for the dropped call may be the phone itself and not the strength of the signal? With annual revenues of $81 billion and 74,000 employees in 2013, Verizon Wireless serves more than 105 million retail connections in the United States. Along with the other major carriers, it knows that if the phone does not work, the company, and not the manufacturer, will likely take the blame from the customer. With major investments in its technologically advanced 4G-LTE networks in the United States, Verizon touts the reliability of its services and can ill afford the failure of cell phones due to the quality of manufacture. Verizon expects manufacturers such as Motorola, Apple, Samsung, and LG Electronics to provide defect-free phones; however, experience has indicated that extensive testing by Verizon employees is also needed.
A baseline technician for Verizon Wireless checks boxes of cell phones wired to his computer used to check reception in different areas and also competition’s reception and signal as he drives about Sacramento territory.
In addition to a tear-down analysis that looks for weaknesses in a phone’s hardware and components, the device is tested for its ability to withstand temperature extremes, vibration, and stress. Beyond these physical tests, Verizon uses two approaches to assess a phone’s capability to receive cellular signals and clearly communicate to the caller. First, Verizon hires 98 test personnel who drive $300,000 specially equipped vans more than 1 million miles a year to measure network performance using prospective new cell phones. They make more than 3 million voice call attempts and 16 million data tests annually. The tests check the coverage of the network as well as the capability of the cell phones to pick up the signals and clearly communicate to the caller. Second, Verizon uses Mr. Head, a robotic mannequin, who has a recorded voice and is electronically equipped with a rubber ear that evaluates how well the phone’s mouthpiece transmits certain phonetics. Mr. Head utters what sounds like gibberish; however, it actually covers the range of sounds in normal speech patterns. Other systems monitor the tests and summarize results. Some phones spend so much time in the test phase that ultimately they never make it to the market. Clearly, in those cases, the cost of poor quality to the manufacturer is very high.
Along with testing the quality of its hardware and wireless service, Verizon also provides extensive training to its customer service representatives. Quality checks are done through company executives visiting retail stores and each of its 34 customer service center operations. With its focus on quality in operations, products, services, and technology, it is not surprising that Verizon Wireless has built a great reputation with its customer base and has also been recognized through several best wireless service awards.
Managerial Practice 3.1: “Quality at Verizon Wireless” [MO2.5, MO2.6]
a. What are some potential impacts of the costs of quality related to Verizon’s extensive testing procedures, including impacts on manufacturers whose phones are not selected by Verizon to be sold to its customers?
b. How can Verizon use Six Sigma, statistical process control, and acceptance sampling in determining which cell phones are selected to be sold? Present diagrams for these processes.
c. Would utilizing X-charts, R-charts, assignable causes of variation, and common causes of variation be useful tools for qualifying the cell phones for adoption by Verizon? Why or why not? Share your rationale for each process.
Managerial Practice 3.1 Quality at Verizon Wireless Anyone who owns a cell phone knows the agony of a dropped call. Lid you know that the resson for the dropped call may be the phone itselt and not the strength of the signal? With annual revenues of 531 billion and T4,000 employees in 2013, Verizon Wireless serves more than 105 million retail connadians in United States Alang with the other major camens it kna % hat fth none oas not work thn c mpam and na e manufacturer wil e take the blamn nm he as nmar W h ma or Inves man in its 1achno o cal advanced 4G L E nat ori s in he United States Verizon tours thereliability of its services and can il atford the failure of cell phones due to the quelity of manufacture. Verizon expects manufacturers such as Motorola, Apple, Semsung. and LG Electronics to provide defect-tree phones, however, experience has indicated that extensive testing by Verzon cmplayecs is also necded Wid baseline lechnician for Verizon Wireless checks boxes of cell phones wired to his compuler used lo check receplion in different areas and alsu compeitionn's receplion and signal as he drives abou Sacramernto territury. In additionto a 1nar n n na sis that noks ar w ak ssas n phona's har vara and cn monnants th dame stad r its ah to wit s and lemparat re ex r m s v bration, and s rast ayond thasa p r e ca te s anzon usas n approaches tassess a phone's capa hli to rec cellular signels and clearly communicale to the cale, Vrizon hires 98 test personnel whe drive 5300,000 specielly equipped vans mcre then 1 million riles a yeer to measure network perfermance using prospective new cell phones. They make more than 3 milion voice call attempts and 16 million data tests annually The tasts check tha coveraga of the nahwark as wall as the capability of tha call phanes to pick up the signas and dearty cammuricata to the calr Sacond, Varizon uses Mr Haad, a obatic mannequin, who has a recondad voice and is electronicallquipped with a rubber ear that evaluates how well the phone's mouthpiece transmits certein phonetica. Mr. Head utters what sounds lke gioberish, however, it actuelly covers the range of sounds in norm Other systems montor the tests and summerize resuts. Some chones spend so much time in the test phase that ubimatcly thay ner make it to tha markct Cleary, in those casas, the cast of poor quality tn the manufacturer is very high physical tests al speech pattems. Along with testing the quality of its hardware and wireless service, Verlzon also provides extenslive training to its customer service representatives. Quality checks are done through compeny executives visiltng reteil stores and each of its 34 customer service center operations. With its focus on quality in operations, praducts services, and technology, it is not surpricing that Verizon Wireless has huilt a great roputation with its cuctomer base and has alsa been recognized through several best wircless service awardsExplanation / Answer
a) Verizon uses extensive quality controls and checks to ensure that call drops and network failure cases do not occur. The immediate cost of quality, here is the prevention of dropped calls, that is the prevention costs involved. Due to numerous quality checks, the prevention costs, that is costs involved in design, maintenance and implementation of QMS (quality management system) might be huge. This also has an impact on manufactures whose phones are not selected by Verizon to be sold to customers. As in such cases, the product/phone has not undergone so many quality checks , tests and controls, it is highly likely that the performance of network in such phones is not upto the mark, as compared to phones selected by customers.
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