Establishing Tolerance Levels for Customer Complaints

ABSTRACTCustomer complaints data are usually expressed as counts for a period of time and are governed by a Poisson process. This process is stationary when the number of complaints is constant, while a change in these numbers would indicate a potential change in the product performance. In this paper we describe an approach for establishing the maximum tolerance level for the number of complaints received within a month. Tolerance level is based on a relatively stable period of time when the Poisson process is stationary. A change-point analysis is performed to the complaints data that exhibit large changes to partition the relatively stable period from the problematic period. Examples that illustrate this approach are provided.