Upper and lower control limits, Operation Management

Clerks at Lotsa Data Systems key in thousands of insurance records each day for a variety of client firms.  The process is in control but CEO Donna Lotsa wants to be sure that at least 99.73% of the random variation in the data entry process is included in its control charts' control limits. Samples of the work of 20 clerks are shown in the table below. Lotsa examines 100 records entered by each clerk and counts the number of errors. She also computes the fraction defective in each sample.

Sample Number

Number of Errors

Sample Number

Number of Errors

1

6

11

6

2

5

12

1

3

0

13

8

4

1

14

7

5

4

15

5

6

2

16

4

7

5

17

11

8

3

18

3

9

3

19

0

10

2

20

4

 

 

TOTAL

80

a. What is the appropriate number of standard deviations to include in calculating the upper and lower control limits?

b. What are the upper and lower control limits?

c. Illustrate/state whether the process is in statistical control or not.

Posted Date: 2/24/2013 11:56:37 PM | Location : United States







Related Discussions:- Upper and lower control limits, Assignment Help, Ask Question on Upper and lower control limits, Get Answer, Expert's Help, Upper and lower control limits Discussions

Write discussion on Upper and lower control limits
Your posts are moderated
Related Questions
Consider your daily activities - as a consumer, student, parent, friend, homeowner or renter, car driver, employee etc. - and think about the ways that you are involved in transact

How does mobile technology address day-to-day business pressures?

It is generally unnecessary to have every single function represented on the core team of the project as that would make the team large than necessary and difficult to communicate

The information technology department of State University buys paper for its copier machine frequently. The office manager would like to determine the best quantity to order each

A suburban specialty restaurant has developed a single drive-thru window. Customers order, pay, and pick up their food at the same window. Arrivals follow a Poisson distribution, w

Given the following data for Albert's fabricating production area: Fixed costs for one shift = $60,000 Unit variable cost = $7 Selling price = $12 Number of machines = 5 Number of


Tools and Techniques of Layout Planning Various techniques are available for planning the layout. The most commonly used techniques is the use of two dimensional templates. O

Explain Improving Productivity. Improving Productivity: The production essence is creation of goods, may be by the transformation of raw materials or through assembling vario