Concept explainers
(a)
Interpretation: As there was a concern pertaining to appearance and accuracy of itineraries, in a travel agency, wherein the defects includes errors in reservation numbers, flight numbers, charge card numbers, airlines, timings, accommodation facilities, information regarding car rentals, prices and even typographical errors, it measures the count of errors that occurs, and the process gave findings that for every itinerary, there was an average error of three numbers. The two-sigma control limits for these defects needs to be determined.
Concept Introduction: The graph showing a sample is within the statistical control limits or not is called a Control Chart.
(b)
Interpretation: As there was a concern pertaining to appearance and accuracy of itineraries, in a travel agency, wherein the defects includes errors in reservation numbers, flight numbers, charge card numbers, airlines, timings, accommodation facilities, information regarding car rentals, prices and even typographical errors, it measures the count of errors that occurs, and the process gave findings that for every itinerary, there was an average error of three numbers. The information regarding a client who is
Concept Introduction: The graph showing a sample is within the statistical control limits or not is called a Control Chart.
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Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
- A production operation is making 150 units of a product by engaging five workers for 300 hours. However, 40 percent of the units appear to have various quality problems, and the company decides to sell them as seconds at a price of £50 each when a normal unit is sold for £150. To improve the situation, several initiatives are proposed, including a scheme where, for every improvement, 50 percent will be given to workers and the other 50 percent will be held by the company. This results in a significant drop in defects as now only 10 units are faulty out of an output of 130 units. a) Compare the productivity after Bonus with the initial productivity b) Determine the appropriate bonus per hour for the workers under the bonus scheme if the cost per piece is £70 both before and after the scheme.arrow_forwardJohn Bruno owns a factory producing electric cords. John observes that recently the number of cords with defect has increased. He monitors the 3 processing machines for 30 days for 100 cords per observation per machine. The results of John Bruno’s observations are presented in the table below.What can he do to make sure that the number of cords with defect to go down? Date Number of Rejects by Cause Number of observations Machine Bad Wind Twisted cord Broken Leads Abraded cord Broken cord Wrong wire Failed Electrical Test 1 100 1 0 1 3 1 0 0 1 100 2 2 1 0 0 2 5 0 100 3 0 0 0 5 0 0 3 2 100 1 1 0 4 0 0 0 0 100 2 3 1 0 0 1 3 0 100 3 0 0 1 6 0 0 0 3 100 1 1 0 0 2 0 0 0 100 2 0 0 0 0 0 3 0 100 3 0 0 1 4 0 0 3 4 100 1 0 0 3 0 0 0 0 100 2 0…arrow_forwardAs part of an insurance company’s training program, participants learn how to conduct an analysis of clients’ insurability. The goal is to have participants achieve a time in the range of 30 to 45 minutes. Test results for three participants were the following: Armand, a mean of 36.0 minutes and a standard deviation of 3.0 minutes; Jerry, a mean of 34.0 minutes and a standard deviation of 2.0 minutes; and Melissa, a mean of 37.5 minutes and a standard deviation of 1.7 minutes. a.Compute process capability for the participants and determine whether each is capable. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Melissa ? Cp what is itarrow_forward
- A production operation is making 150 units of a product by engaging five workers for 300 hours. However, 40% of the units appear to have various quality problems, and the company decides to sell them as seconds at a price of £50 each when a normal unit is sold for £150. To improve the situation, several initiatives are proposed, including a scheme where, for every improvement, 50% will be given to workers and the other 50% will be held by the company. This results in a significant drop in defects as now only 10 units are faulty out of an output of 130 units.- Compare the productivity after Bonus with the initial productivity. - Determine the appropriate bonus per hour for the workers under the bonus scheme if the cost per piece is £70 both before and after the scheme.arrow_forwardRepresentatives 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?arrow_forwardA travel agency is concerned with the accuracy and ap-pearance of itineraries prepared for its clients. Defects caninclude errors in times, airlines, flight numbers, prices, carrental information, lodging, charge card numbers, and res-ervation numbers, as well as typographical errors. As thepossible number of errors is nearly infinite, the agency mea-sures the number of errors that do occur. The current processresults in an average of three errors per itinerary.a. What are the two-sigma control limits for these defects?b. A client scheduled a trip to Dallas. Her itinerary containedsix errors. Interpret this informationarrow_forward
- As part of an insurance company’s training program, participants learn how to conduct an analysis of clients’ insurability. The goal is to have participants achieve a time in the range of 30 to 45 minutes. Test results for three participants were the following: Armand, a mean of 36.0 minutes and a standard deviation of 2.0 minutes; Jerry, a mean of 37.0 minutes and a standard deviation of 2.0 minutes; and Melissa, a mean of 37.5 minutes and a standard deviation of 2.6 minutes. a.Compute process capability for the participants and determine whether each is capable, given 4-sigma quality standards. (Do not round intermediate calculations. Round your answers to 2 decimal places.)arrow_forwardSpecifications for a metal shaft are much wider than the machine used to make the shafts is capableof. Consequently, the decision has been made to allow the cutting tool to wear a certain amountbefore replacement. The tool wears at the rate of .004 centimeter per piece. The process has a naturalvariation, σ, of .02 centimeter and is normally distributed. Specifications are 15.0 to 15.2 centimeters.A three-sigma cushion is set at each end to minimize the risk of output outside of the specifications.How many shafts can the process turn out before tool replacement becomes necessary?arrow_forwardEach day, a FedEx competitor processes approximately 50,000 shipments. Suppose that they use the same Service Quality Index as FedEx and identified the following numbers of errors during a 5-day week (see the "FedEx: Measuring Service Performance" box). These values are hypothetical and do not reflect any real company’s actual performance. Description Weight Number of Errors Complaints reopened 3 145 Damaged packages 10 17 International 1 109 Invoice adjustments 1 284 Late pickup stops 3 207 Lost packages 10 4 Missed proof of delivery 1 28 Right date late 1 752 Traces 3 115 Wrong day late 5 11 Compute the Service Quality Indicator by finding the weighted sum of errors as a percentage of total shipments. Do not round intermediate calculations. Round your answer to three decimal places. Service Quality Indicator (SQI): %arrow_forward
- Burger Doodle is a fast-food restaurant that processes anaverage of 680 food orders each day. The average cost of each order is $6.15. Four percent of the orders are incor-rect, and only 10% of the defective orders can be corrected with additional food items at an average cost of $1.75. Theremaining defective orders have to be thrown out.a. Compute the average product cost.b. In order to reduce the number of wrong orders,Burger Doodle is going to invest in a computerizedordering and cash register system. The cost of thesystem will increase the average order cost by $0.05and will reduce defective orders to 1%. What is theannual net cost effect of this quality-improvementinitiative?c. What other indirect effects on quality might be realizedby the new computerized order system?arrow_forwardNeed help calculating the margin of error for the question below. I show n=100, sigma = 1, and 95% prob equls a z score of 1.96 for z_alpha/2. Just having issues calcuating the Margin of Error value. The manager of a grocery store has taken a random sample of 100 customers. The average length of time it took these 100 customers to check out was 3 minutes. It is known that the standard deviation of the population of checkout times is 1 minute. With a 0.95 probability, the sample mean will provide a margin of error of 0.196. If we wanted to cut this margin of error in half, how many customers would we need to include in our sample?arrow_forwardThe chair of the operations management department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are in control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results Instructor Number of Failures Prof. A 13 Prof. B 0 Prof. C 11 Prof. D 16 What is the estimate of the mean proportion of failures for these instructors?arrow_forward
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