Question 2: The account receivable department of R&W Company has received complaints from many customers about incorrect billing, i.e., the bills do not reflect the materials that arrived at their receiving docks. The department has decided to implement statistical process control in its billing process. Random samples of 60 bills each were taken over 8 days and the items on the bills checked against the bill of lading sent by the company’s shipping department to determine the number of incorrect bills. The observation is given below: Day 1 2 3 4 5 6 7 8 No. of Incorrect Bills 3 13 5 12 9 1 3 2 a. You want to develop appropriate control chart(s) to check whether the process is in control. i. Find the control limits ii. Plot the control chart(s) in excel. b. Is the process in control? Give reason for your answer.
Question 2: The account receivable department of R&W Company has received complaints from many customers about incorrect billing, i.e., the bills do not reflect the materials that arrived at their receiving docks. The department has decided to implement statistical process control in its billing process. Random samples of 60 bills each were taken over 8 days and the items on the bills checked against the bill of lading sent by the company’s shipping department to determine the number of incorrect bills. The observation is given below: Day 1 2 3 4 5 6 7 8 No. of Incorrect Bills 3 13 5 12 9 1 3 2 a. You want to develop appropriate control chart(s) to check whether the process is in control. i. Find the control limits ii. Plot the control chart(s) in excel. b. Is the process in control? Give reason for your answer.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question 2: The account receivable department of R&W Company has received complaints from many
customers about incorrect billing, i.e., the bills do not reflect the materials that arrived at their receiving
docks. The department has decided to implement statistical process control in its billing process. Random
samples of 60 bills each were taken over 8 days and the items on the bills checked against the bill of lading
sent by the company’s shipping department to determine the number of incorrect bills. The observation
is given below:
| Day | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| No. of Incorrect Bills | 3 | 13 | 5 | 12 | 9 | 1 | 3 | 2 |
a. You want to develop appropriate control chart(s) to check whether the process is in control.
i. Find the control limits
ii. Plot the control chart(s) in excel.
b. Is the process in control? Give reason for your answer.
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