The accounts receivable department at Rick WingManufacturing has been having difficulty getting customers topay the full amount of their bills. Many customers complainthat the bills are not correct and do not reflect the materials thatarrived at their receiving docks. The department has decided toimplement SPC in its billing process. To set up control charts, 10samples of 50 bills each were taken over a month’s time and theitems on the bills checked against the bill of lading sent by thecompany’s shipping department to determine the number of billsthat were not correct. The results were: SAMPLENO. NO. OFINCORRECTBILLS SAMPLENO. NO. OFINCORRECTBILLS1 6 6 52 5 7 33 11 8 44 4 9 75 0 10 2a) Determine the value of p -bar, the mean fraction defective.Then determine the control limits for the p -chart using a99.73% confidence level (3 standard deviations). Has thisprocess been in control? If not, which samples were out ofcontrol?b) How might you use the quality tools discussed in Chapter 6to determine the source of the billing defects and whereyou might start your improvement efforts to eliminate thecauses?
The accounts receivable department at Rick Wing
Manufacturing has been having difficulty getting customers to
pay the full amount of their bills. Many customers complain
that the bills are not correct and do not reflect the materials that
arrived at their receiving docks. The department has decided to
implement SPC in its billing process. To set up control charts, 10
samples of 50 bills each were taken over a month’s time and the
items on the bills checked against the bill of lading sent by the
company’s shipping department to determine the number of bills
that were not correct. The results were:
SAMPLE
NO.
NO. OF
INCORRECT
BILLS
SAMPLE
NO.
NO. OF
INCORRECT
BILLS
1 6 6 5
2 5 7 3
3 11 8 4
4 4 9 7
5 0 10 2
a) Determine the value of p -bar, the mean fraction defective.
Then determine the control limits for the p -chart using a
99.73% confidence level (3 standard deviations). Has this
process been in control? If not, which samples were out of
control?
b) How might you use the quality tools discussed in Chapter 6
to determine the source of the billing defects and where
you might start your improvement efforts to eliminate the
causes?
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