Reference no: EM131410792

Situation 1
CP Inc. has been using a specific process to produce a special component. Last year, several customers complained about inconsistencies on the ‘weight' of the component. They stated that there were a disproportionately large percentage of components that didn'tmeet the required standards. Based on the complaints, at the start of this yearthe company implemented a 6s project to improve the process, which ended one week ago.

At the beginning of this year, CP commissioned you to perform a study to find out the validity of the complaints and justify the process'improvements. Expeditiously, you designed a study based on their knowledge of statistical quality control. First, you obtained information on the prior process performance on ten consecutive hours, in two consecutive days; the information was gathered on December 4 and 5. Also, you gathered the same number of data, in two consecutive days (February 2 and 3), after the improvements were made.

a) Explain if the customers' complaints were justified.

b) Explain if the 6s project was needed.

Situation 2
During the last month, an insurance company has been studying the amount of insurance claims with mistakes, made by its clients: These claims represent extra costs to the company. They have provided you with 60 samples, each with 100 insurances claims, for a total of 6000, and the number of insurance claims with mistakes, Non-Compliance, in each sample.

Develop ap-chart with 3 sigma limit and comment on the process. If the process is out-of-control, the company will institutionalize a new process that will guide customers on how to properly fill out the claims. The actual cost of amending a claim with mistakes (calling the customer, updating files, etc.) is $2/claim. The cost to guide a customer would cost $1.25.

What would be the best action plan that the company should implement; (1) Letting things as they are or (2) institutionalizing the new process? Illustrate and explain.

Attachment:- Dataset-Situation-1-2.rar