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
Successful Entrepreneurial Organizations identify an entrepreneurial organization that has been successful for at least 10 years. What factors have contributed to the organization'

Why do organizations need to calculate a threshold for a reorder? How could this affect sales?

how to calculate idletime of each row

D-Magic is a new company that has developed a revolutionary 3D television. It uses a new technology that provides a much sharper and realistic 3D experience than their competitors.

Examine two primary causes of HR failure in multinational ventures. Provide an analysis that describes the manner in which each of these causes can be overcome by having the approp

what mean passing time is not allowed in sequencing problem in operation research

When Scott Tweedy picked up a magazine article on how to manage health care workers, he was pleased to some advice. Scott was concerned about poor or mediocre performance on

Analyze how total quality improvement has changed healthcare delivery on both the macro and micro levels.

Why do you think many managers are surprised by environmental changes and hence are less able to help their organizations adapt?

• What is an ethics audit and why is it important to an organization? Explain the benefits and challenges of conducting one. • Why is it important to link the ethics audit bac