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- Using samples of 200 credit card statements, an auditor found the following: Sample 1 2 3 4 Number with errors 4 2 5 9 a. Determine the fraction defective in each sample. b. If the true fraction defective for this process is unknown, what is your estimate of it? c. What is your estimate of the mean and standard deviation of the sampling distribution of fractions defective for samples of this size? d. What control limits would give an alpha risk of .03 for this process? Page 457 e. What alpha risk would control limits of .047 and .003 provide? f. Using control limits of .047 and .003, is the process in control? g. Suppose that the long-term fraction defective of the process is known to be 2 percent. What are the values of the mean and standard deviation of the sampling distribution? h. Construct a control chart for the process, assuming a fraction defective of 2 percent, using two-sigma control limits. Is the process in control? Can you show me the steps and formulas using excelUsing samples of 200 credit card statements, an auditor found the following:Sample 1 2 3 4Number with errors 4 2 5 9a. Determine the fraction defective in each sample.b. If the true fraction defective for this process is unknown, what is your estimate of it?c. What is your estimate of the mean and standard deviation of the sampling distribution of fractions defective for samples of this size?d. What control limits would give an alpha risk of .03 for this process?e. What alpha risk would control limits of .047 and .003 provide?f. Using control limits of .047 and .003, is the process in control?g. Suppose that the long-term fraction defective of the process is known to be 2 percent. What arethe values of the mean and standard deviation of the sampling distribution?h. Construct a control chart for the process, assuming a fraction defective of 2 percent, using twosigma control limits. Is the process in control?The cost of performing inspection sampling moves inversely to the cost of quality failures. We can reduce the cost of quality failures by increased levels of inspection, but that, of course, would increase the cost of the inspection. Can you think of any methods to reduce the cost of quality failures without increasing a company’s cost of the Inspection? Think specifically in terms of material purchased from vendors.
- At Webster Chemical Company, lumps in the caulking compound could cause difficulties in dispensing a smooth bead from the tube. Even when the process is in control, an average of four lumps per tube of caulk will remain. Testing for the presence of lumps destroys the product, so an analyst takes random samples. The following results are obtained: Tube No. Lumps Tube No. Lumps Tube No. Lumps 1 6 5 6 9 5 2 5 6 4 10 0 3 0 7 1 11 9 4 4 8 6 12 2 Determine the c-chart two-sigma upper and lower control limits for this process. Is the process in statistical control?Representatives of the Patriot Insurance Company take medical information over the telephone from prospective policy applicants prior to a visit to the applicant’s place of residence by a registered nurse who takes vital sign measurements. When the telephone interview has incorrect or incomplete information, the entire process of approving the application is unnecessarily delayed and has the potential of causing loss of business. The following data were collected to see how many applications contain errors. Each sample has 200 randomlyselected applications. Sample Defects Sample Defects 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 18 29 12 14 11 30 25 27 16 25 18 25 16 20 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 15 40 35 21 24 9 20 17 28 10 17 22 14 19 20 a. What are the upper and lower control limits of a p-chart for the number of defective applications? Use z = 3.b. Is the process in statistical control?BlueMoon Bottlers has a bottle-filling process with a mean value of 64 ounces and a standard deviation of 8 ounces. Suppose the upper and lower specification limits are 71 and 57 ounces, respectively. What is the process capability index of this process? (Note: You MUST show every single step and detailed derivation for full credit)
- You work for Raider Data Systems where thousands of insurance records are entered by clerks each day for a variety of client firms. You are in charge of setting control limits to include 99.73% of the random variation in the data entry process when it is in control. Samples that you collected from 20 employees are shown below. You carefully examine 100 records entered by each employee and count the number of errors entered by each clerk. You also compute the proportion defective in each sample. Using a p-chart, what are the upper and lower control limits? Sample Errors Made Proportion Defective 1 4 0.04 2 5 0.05 3 6 0.06 4 3 0.03 5 8 0.08Suppose that a quality characteristic is normally distributed with specifications at 100 ± 20. The process standard deviation is 6.(a) Suppose that the process mean is 100. What are the natural tolerance limits? Calculate Cp and Cpk and interpret these ratios. What fraction of parts do you expect to be defective?(b) Suppose that the process mean is 106. What are the natural tolerance limits? What is thefraction defective? Calculate Cp and Cpk and interpret these ratios.You want to determine the control lines for a "p" chart for quality control purposes. If the total number of defects from all samples is 2,500, the number of samples is 100, and the sample size is 40, which of the following would be the standard deviation used in developing the control lines? Answers: 0.0484 0.2499 0.00687 0.00707 0.00765
- . You are working in a small, student-run company that sends out merchandise withuniversity branding to alumni around the world. Every day, you take a sample of 50shipments that are ready to be shipped to the alumni and inspect them for correctness.Across all days, the average percentage of incorrect shipments is 5 percent. What wouldbe the upper control limit for a p-chart?a. 0b. 0.05c. 0.03082207d. 0.142466Suppose a form has 10 fields of information. If 15 forms are sampled and 21 defects are found in the sample. What is the DPMO?A metal fabricator produces connecting rods with an outer diameter that has a 1 ± .01–inch specification. A machine operator takes several sample measurements over time and determines the sample mean outer diameter to be 1.002 inches with a standard deviation of .003 inch.a. Calculate the process capability index for this example.b. What does this figure tell you about the process?