CASE STUDY 3: Titanic Shipping Company

Titanic Shipping Company depends on its nation-wide system of computer

terminals for entering orders, tracking shipments and other routine functions. Some
1,500 terminals in more than 70 locations are connected through a state-of-the-art
telecommunications network to central computing facilities in Newark, New Jersey.
Thanks to good back-up procedures and steady improvements in communications
technology, the system has become reliable, and failures (in the strict sense of the
term) have been rare.
The performance of the system has troubled the users, though. At any point during
a normal day, several hundred users may be entering or retrieving information about
the companys shipments or updating customer records. When response time for these
transactions deteriorates, they cant work effectively. Recently, theyve been letting
the computer center manager know of their feelingsforcefully.
The computer center manager understands their concerns, but isnt sure how to
respond. To some extent, of course, improving response time requires things like new
facilities or better performance tuning of their systems, both of which take money.
That can be negotiated in the normal company budget process. Right now, he is more
concerned about losing his credibility with the users he is supposed to serve. Several
years ago, the users representatives agreed that response times of two seconds would
be adequate. Since then, the computer center has tracked average response time, as
measured by an internal tool in the computers operating system. According to this
measure, performance has been generally satisfactory, at least for large portions of the
time. Still, the users complain, its not meeting their needs. The manager realizes that
part of the problem is one of translation: the users dont know how to specify
exactly how the computer center ought to measure response time (at least not in any
precise, quantifiable terms), but when performance is bad, they know it, and they
complain. As long as the computer center continues to track performance by using a
measure that (apparently) is unrelated to the users perceptions of their needs,
relations between the users and computer center management will probably continue
to deteriorate.
During the last quarter the computer center has developed a system that asks each
user to rate the system performance as OK or Bad when he signs off the system.

Thirteen weeks worth of the data from the 10:00 11:00 hour for each workday are
give in file case3.xls. The 10:00 hour is usually a busy one, and generates many of the
user complaints.
The manager wonders if these data can provide some insight that will allow him
to develop a better measure of response time. He really wants to know two things:
How should he measure response time?
What target or standard performance should be use?
The measurements in the data set from the software in the operating system and
could be obtained routinely if it were helpful to do so. In setting the standard, the
manager wants to use a value that corresponds as closely as possible to the users
performance, so that when the computer centers own measurements indicate
acceptable performance, the users will agree. Can you advise him?
Definitions
Averesp

Average response time during that hour (seconds)

Resp50

50th percentile of the response times during that hour (seconds)

Resp75

75th percentile of the response times during that hour (seconds)

Resp90

90th percentile of the response times during that hour (seconds)

Resp95

95th percentile of the response times during that hour (seconds)

Nbad

Number of users who rated performance bad when signing off

Nok

Number of users who rated performance OK when signing off

day

Averesp

Resp50

Resp75

Resp90

Resp95

Nbad

Nok

1
2

2.223
1.253

1.559
0.989

2.982
1.825

4.944
3.008

6.426
3.951

322
2

5
276

3
4
5
6

1.758
1.703
1.395
2.38

1.157
1.287
1.119
1.928

2.257
2.632
2.174
3.757

3.734
4.238
3.682
6.228

4.882
5.593
4.794
8.017

144
310
104
343

155
4
191
7

7
8
9
10

2.486
2.049
2.771
2.132

1.694
1.556
1.903
1.734

3.384
3.039
3.822
3.367

5.695
5.034
6.293
5.482

7.366
6.523
8.147
7.182

338
326
351
337

1
3
1
2

11
12
13
14
15
16
17

2.566
2.09
3.032
1.029
1.465
2.144
1.211

1.785
1.488
1.819
0.776
1.08
1.558
0.951

3.621
2.888
3.686
1.556
2.028
3.083
1.928

5.948
4.856
6.044
2.504
3.342
5.09
3.211

7.633
6.277
7.879
3.27
4.314
6.612
4.168

343
314
346
15
5
317
2

3
10
2
247
283
13
281

18
19
20

0.963
2.8
2.507

0.797
2.011
1.629

1.618
4.043
3.327

2.639
6.736
5.43

3.364
8.708
7.027

5
356
315

261
1
23

21
22
23
24

2.387
3.118
2.182
1.812

1.661
2.085
1.851
1.807

3.372
4.078
3.59
3.556

5.479
6.697
5.981
5.934

7.132
8.696
7.743
7.699

328
357
310
343

10
1
35
1

25
26
27
28
29

0.916
2.754
2.592
3.135
3.076

0.861
2.053
1.768
2.085
2.121

1.603
4.188
3.533
4.061
4.213

2.603
6.813
5.758
6.755
6.868

3.347
8.907
7.571
8.692
8.974

7
355
341
340
353

258
6
3
18
8

day

Averesp

Resp50

Resp75

Resp90

Resp95

Nbad

Nok

30
31

1.795
2.795

1.207
2.089

2.421
4.09

3.96
6.813

5.179
8.807

263
355

43
3

32
33
34
35

1.803
1.786
2.733
2.88

1.186
1.374
2.09
2.086

2.211
2.662
4.16
4.037

3.71
4.283
6.935
6.662

4.811
5.562
9.043
8.663

128
312
352
353

169
3
8
4

36
37
38
39

1.589
1.682
0.902
1.045

1.081
1.346
0.785
0.898

2.052
2.58
1.551
1.701

3.432
4.192
2.493
2.841

4.444
5.436
3.269
3.657

31
306
4
4

258
6
257
267

40
41
42
43
44
45
46

1.194
2.306
1.329
3.016
2.477
1.567
1.617

1.009
1.696
1.111
1.937
1.668
1.187
1.183

1.963
3.291
2.125
3.724
3.377
2.282
2.355

3.208
5.421
3.474
6.147
5.547
3.797
3.864

4.091
7.02
4.432
8.06
7.185
4.916
5.005

20
334
7
348
330
185
221

265
3
286
1
9
115
82

47
48
49

2.44
1.741
2.028

1.713
1.402
1.369

3.455
2.821
2.73

5.699
4.574
4.392

7.405
6.007
5.776

339
315
317

2
6
1

50
51
52
53

1.776
1.116
2.912
1.276

1.464
0.831
1.924
0.898

3.008
1.633
3.857
1.768

4.956
2.675
6.409
2.904

6.401
3.508
8.249
3.756

303
2
351
3

25
265
1
271

54
55
56
57
58
59
60

1.392
2.142
1.533
2.311
2.464
2.551
1.396

1.312
1.863
1.156
1.704
1.851
2.126
0.853

2.523
3.767
2.148
3.486
3.713
4.186
1.536

4.186
6.175
3.59
5.714
6.054
6.887
2.516

5.416
7.997
4.648
7.395
7.867
8.882
3.355

303
336
64
335
329
358
1

7
14
230
7
20
3
259

61
62
63

2.876
2.451
1.924

2.03
1.723
1.446

4.06
3.273
2.743

6.628
5.468
4.625

8.601
7.102
5.942

350
318
316

8
18
2