Operations Strategy (3 of 3) Table 1.5 Operations Strategy Assessment of the Bil

Question

Operations Strategy (3 of 3) Table 1.5 Operations Strategy Assessment of the Billing and Payment Process Competitiv e Priority Low-cost Cost per biling 31 Capabilit Measure Gap Action $0.0813 Target is $0.06 Eliminate microfilming and operations statement storage of billing statements Weekly postage $17.000 Target is $14,000Develop Web-based process for posting bills No action Consistent quality Percent errors in bill information | 90% Acceptable 32 Percent errors in posting payments 74% Acceptable No action Delivery Lead time to speed 48 hours Acceptable No action process merchant payments Utilization 98% Too high to support Acquire temporary Volume flexibility rapid increase in employees volumes Improve work methods

Explanation / Answer

Two arguments against the acquisition:

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