iSixSigma

SLA Defect Management

This topic contains 2 replies, has 2 voices, and was last updated by  Mike Carnell 4 months, 1 week ago.

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  • #56063

    mohamed

    Our customer requires the following:
    – SLA of 20 hours for fixing any P1 ticket
    – Customer Will pay $ 200 / P1 issue solved
    – Penalty of $100 each time SLA not met
    Taking into consideration that:
    – It costs us $100 / P1 issue to be solved “actual cost”
    – Our Capability: Average time for fixing P1 issues is 18 hours.

    shall I accept or consider it statistically first what are the steps for that ??

    #202914

    Strayer
    Participant

    Just looking at the numbers, this sounds like a study or exam question. Have you done the math? Do you have questions about your answer and methods? Experts on this site will be glad to help with that but we are loathe to do the work for you. In the real world I wouldn’t answer this question without knowing the distribution for your capability data or discussing the customer’s SLA requirements with them.

    #202918

    Mike Carnell
    Participant

    @mohamedhellal Absolutely agree with Strayer. Need to see the distribution.

    Personally I wouldn’t agree to that. The underlying assumption is that all problems are equal and can be fixed in 20 hours. Go back and propose that you want 20% of the money saved paid monthly for the next 12 months. If it takes longer than 20 hours it isn’t any of their business.

    Get an agreement ahead of time about how you will calculate benefits. Get a Finance guy involved. Accountants will pencil whip you.

    Just my opinion.

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