Engine Services, Inc, is a world-class jet engine overhaul center. About-to-be-released quarterly report supports the view that the repair facility has too much value in relation to the contractual guarantee. The root of the problem can be "two standard deviation rule," which is used to provide assurance over the pillow. Lower targets to increase the chances of costly rework, but save on the cost of the original work.
This Darden study. "Hide
by Sherwood C. Frey Source: Darden School of Business 6 pages. Publication Date: Aug 09, 2005. Prod. #: UV0702-PDF-ENG
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