The accounts receivable department at Rick Wing Manufacturing has been having difficulty getting customers to pay the full amount of their bills. Many customers complain that the bills are not correct and do not reflect the materials that arrived at their receiving docks. The department has decided to implement SPC in its billing process. To set up control charts, 10 samples of 100 bills each were taken over a month's time and the items on the bills checked against the bill of lading sent by the company's shipping department to determine the number of bills that were not correct. The results were: Sample No. 1 2 3 4 5 6 7 8 9 10 No. of Incorrect Bills 4 3 17 2 0 5 5 2 7 2 a) The value of mean fraction defective (p) = (enter your response as a fraction between 0 and 1, rounded to four decimal places). The control limits to include 99.73% of the random variation in the billing process are: UCLp = (enter your response as a fraction between 0 and 1, rounded to four decimal places). LCLp = (enter your response as a fraction between 0 and 1, rounded to four decimal places). Based on the developed control limits, the number of incorrect bills processed has been b) To reduce the error rate, which of the following techniques can be utilized: A. Fish-Bone Chart B. Pareto Chart C. Brainstorming D. All of the above

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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The accounts receivable department at Rick Wing Manufacturing has been having difficulty getting customers to pay the full amount of their bills. Many customers complain that the bills are not correct and do not reflect the materials that arrived at their receiving docks. The department has decided to implement SPC in its billing process. To set up control charts, 10 samples of 100 bills each were taken over a month's time and the items on the bills checked against the bill of lading sent by the company's shipping department to determine the number of bills that were not correct. The results were:

Sample No.	1	2	3	4	5	6	7	8	9	10
No. of Incorrect Bills	4	3	17	2	0	5	5	2	7	2

a) The value of mean fraction defective (p) = (enter your response as a fraction between 0 and 1, rounded to four decimal places).

The control limits to include 99.73% of the random variation in the billing process are:

UCLp = (enter your response as a fraction between 0 and 1, rounded to four decimal places).

LCLp = (enter your response as a fraction between 0 and 1, rounded to four decimal places).

Based on the developed control limits, the number of incorrect bills processed has been

b) To reduce the error rate, which of the following techniques can be utilized:

Fish-Bone Chart

Pareto Chart

Brainstorming

All of the above

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