Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 12.3, Problem 17P
Summary Introduction

Interpretation: Three Sigma Control limits needs to be determined based on the given data.

Concept Introduction: P chart is a statistical control chart which helps in monitoring the non-defective pcs in a sample.

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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?
Using 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?
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?
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