Loss function and service

The manager's job is to know which characteristic is the most critical. That is, "Which characteristic should we pay attention to first from the point of view of improvement?".

The most critical characteristic could be anywhere. It could be in the billing department. You learn a lot from looking at bad debt. Most bad debt is not due to unwillingness to pay. There are usually a variety of reasons for bad debt, all of which reflect the basic failure to meet the nominal value, i.e. an invoice with the amount the customer expected at the time it was expected.

The most critical characteristic from the customer's point of view may only be one of the various transactions that customer has with the organisation.

See: Customer measures