OPERATIONS MANAGEMENT W/ CNCT+
OPERATIONS MANAGEMENT W/ CNCT+
12th Edition
ISBN: 9781259574931
Author: Stevenson
Publisher: MCG CUSTOM
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Chapter 10, Problem 9P
Summary Introduction

To determine: The upper and lower control limits for the fraction and decide if the process is in control.

Introduction: Quality is a measure of excellence or a state of being free from deficiencies, defects and important variations. It is obtained by consistent and strict commitment to certain standards to attain uniformity of a product to satisfy consumers’ requirement.

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After a number of complaints about its tech assistance, a computer manufacturer examined samples of calls to determine the frequency of wrong advice given to callers. Each sample consisted of 100 calls. Determine 95 percent limits. Is the tech assistance process stable (i.e., in control)? Explain.
Using samples of 197 credit card statements, an auditor found the following: Sample 1   3 errors Sample 2   3 errors Sample 3   5 errors Sample 4    9 errors 1. what alpha risk would control limits of .0470 and .0038 provide? 2. Using control limits of .0470 and .0038, is the process in control? 3. Construct a control chart for the process, assuming a fraction defective of 2 percent, using two-sigma control limits.  Is the process in control?
Over a period of 12 consecutive production hours, samples of size 50 resulted in the following proportions of defective items: (given) a. What are the three-sigma control limits for this process?b. Do any of the sample points fall outside of the control limits?c. The company claims a defect rate of 3 percent for these items. Are the observed proportions consistent with a target value of 3 percent defectives? What difficulty would arise if the control limits were based on a target value of 0.03? In view of the company’s claims, what difficulty would arise if the control limits computed in part (a) were used?
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