Compute the following using customer satisfaction data from the table below.   Mean Squared Error (MSE)    Mean Absolute Deviation (MAD)    Mean Absolute Percentage error (MAPE)  Customer Month Satisfaction score Forecast 1 88.4 84.0 2 87.2 86.6 3 90.1 89.1 4 92.7 88.7 5 91.5 89.9

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

Volkswagen Operations Strategy

Product Design

In 1945, a rare and curious Volkswagen car was shipped from its bomb-damaged German factory to England. Here, a commission of leading British motor manufacturers inspected the small car. It would be “quite unattractive to the average motorcar buyer”, the commission reported. “It is too ugly and noisy”, while “to build the car commercially would be a completely uneconomic enterprise.” The commission was mistake, however, and the Volkswagen Beetle, with its friendly styling by the Austrian designer Erwin Komenda, and innovative engineering by Ferdinand Porsche, became the bestselling car of all time.

Production of the Beetle outstripped that of Henry Ford’s Model-T when the 15,007,034th car rolled off the line at Wolfsburg in 1972. As its name made clear, the Volkswagen was truly a ‘People’s Car’. Ultimately, the sheer quality, along with the affordability, reliability, economy and distinct look and feel of the Beetle, ensured its success. Sold to the United States in a brilliant ‘Think Small’ advertising campaign launched in 1959 and devised by the New York agency Doyle Dane Bernbach, the Beetle became the biggest selling foreign-made car in America throughout the ’60s.

Now days VW Beetles incorporated many new features such as:

Heated power side mirrors: Even the side mirrors on a Beetle can bring the heat. If the fog start, it will help the driver to have a clear view.

LED taillights: The available LED taillights have been styled with precise contours that perfectly flow with its design lines. The bright illumination can also help cars behind you know that the driver is applying the brakes.

Iconic design: Taken its iconic look to the next level. The Beetle unites classic styling and modern technologies. Panoramic sunroof: See the brighter side of life while driving, opening the sunroof lets the driver enjoy the sunshine.

Bi-Xenon headlights: Available Bi-Xenon headlights with sleek LED Daytime Running Lights boost a longer life and use less energy. It’s a really bright side to this headlight story

17- and 18-inch alloy wheels A Beetle this distinctive needs wheels to match. The available designs are perfectly matched to this time machine. 

Operations Strategy

VW have introduced a new strategy that facing ever challenging industry, strategy 2025 focused on many important aspect of any car makers challenges such as:

  • Flatter hierarchies or horizontal organization to establish a communication channel between staff and .
  • A fundamental change, which means a change on the basic level of .
  • More autarchy of Volkswagen’s 12 core .
  • Lower cost cars, to compete against the Japanese and Korean car .
  • Lower costs and higher profits, lowering the cost of operation to generate more .
  • Electrification, more electric car to produce, and to develop the technology needed to support the expansion of Hybrid and. Full Electrical
  • Digitalization and connectivity, by eliminating the old fashion way of paper documentation, and to improve the. communication by using latest technology in this
  • Volkswagen as a mobility (Schmitt, 2016)..

VW have categorized the main Initiatives for Strategy 2025 as follow:

Grow Profitability     -Sharpen positioning of the brands - Develop wining vehicle and drive train portfolio - Streamline modular architectures - Partner with regional players to win in economy segment.
Develop Strategic Capabilities - Develop self-driving system for autonomous vehicles and artificial intelligence in-house - Develop battery technology as new core competency - Develop best in class user experience across brands and customer touchpoints.
Enhance Entrepreneurial Spirit - Implement model line organization - Realign Components business
Transform Core Business - Build mobility solutions business - Develop and expand attractive and profitable smart mobility offering.
Secure funding - Improve operational excellence - Optimize business portfolio 

Question                                                                                                                                          

 

Compute the following using customer satisfaction data from the table below.

 

  • Mean Squared Error (MSE) 

 

  • Mean Absolute Deviation (MAD) 

 

  • Mean Absolute Percentage error (MAPE) 

Customer

Month Satisfaction score Forecast
1 88.4 84.0
2 87.2 86.6
3 90.1 89.1
4 92.7 88.7
5 91.5 89.9

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.