The Money Pit Mortgage Mortgage Company is interested in monitoring the performance of the mortgage process. Fifteen samples of the completed mortgage transactions each were taken during a period when the process was believed to be in control. The times to complete the transactions were measured. The Money Pit Mortgage Company made some changes to the process and undertook a process capability study. The following data were obtained for 15 samples of size 5. Based on the individual observations, management estimated the process standard deviation to be 4.71 (days) for use in the process capability analysis. The lower and upper specifications limits (in days) for the mortgage process were 4 and 20 a. calculate the process capability index and the process capability ratio values. The process capability Cpk=________ (enter your response rounded to three decimal places) The process capabilility ratio Cp=_____ enter your response rounded to three decimal places) b. Suppose management would be happy with three-sigma performance. What conclusions is management likely to draw from the capability analysis? Since Cpk is ________ the critical value, the process ____ capable at the three-sigma level. Since Cp is _____ the critical value, this indicates that _______________ c. What remedial actions, if any, do you suggest that management take? A. Management should use a lower target process capability reduced B. The variability of the process must be greatly reduced C. The specification limits must be revised D. Nothing. The process is capable.
question 7
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The Money Pit Mortgage Mortgage Company is interested in monitoring the performance of the mortgage process. Fifteen samples of the completed mortgage transactions each were taken during a period when the process was believed to be in control. The times to complete the transactions were measured.
The Money Pit Mortgage Company made some changes to the process and undertook a process capability study. The following data were obtained for 15 samples of size 5. Based on the individual observations, management estimated the process standard deviation to be 4.71 (days) for use in the process capability analysis. The lower and upper specifications limits (in days) for the mortgage process were 4 and 20
a. calculate the process capability index and the process capability ratio values. The process capability Cpk=________ (enter your response rounded to three decimal places)
The process capabilility ratio Cp=_____ enter your response rounded to three decimal places)
b. Suppose management would be happy with three-sigma performance. What conclusions is management likely to draw from the capability analysis?
Since Cpk is ________ the critical value, the process ____ capable at the three-sigma level.
Since Cp is _____ the critical value, this indicates that _______________
c. What remedial actions, if any, do you suggest that management take?
A. Management should use a lower target process capability reduced
B. The variability of the process must be greatly reduced
C. The specification limits must be revised
D. Nothing. The process is capable.
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