Operations Management: Processes and Supply Chains (11th Edition)
Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 3, Problem 17P

(a)

Summary Introduction

Interpretation: As there was a concern pertaining to the number of faults in the billing process of Data Tech Credit Card Service Company, the manager of customer service has done a random inspection on 250 statements, for errors, that has happened to wrong entries that involved penalty charges, account numbers, charges levied on interests and customer account transactions. If there are one or more the errors, in the heads mentioned above, then that statement is considered as a defect. The Table 3.5 represents the data collected from the study for the last 30 days. A p-chart for the billing process needs to be constructed.

    SampleNumber of errors in Sample of 250
    1 − 10385117112908
    11 − 20357911329134
    21 - 301210621710584

Table 3.5

Concept Introduction: A process is analyzed between the limits of control and evaluated whether the same is under control or not, identifying the count of defects present. A p-chart reflects the proportion of defects that a process has.

(b)

Summary Introduction

Interpretation: As there was a concern pertaining to the number of faults in the billing process of Data Tech Credit Card Service Company, the manager of customer service has done a random inspection on 250 statements, for errors, that has happened to wrong entries that involved penalty charges, account numbers, charges levied on interests and customer account transactions. If there are one or more the errors, in the heads mentioned above, then that statement is considered as a defect. The Table 3.5 represents the data collected from the study for the last 30 days. Any non-random behavior in the billing process that would require management attention needs to be found out.

    SampleNumber of errors in Sample of 250
    1 − 10385117112908
    11 − 20357911329134
    21 - 301210621710584

Table 3.5

Concept Introduction: A process is analyzed between the limits of control and evaluated whether the same is under control or not, identifying the count of defects present. A p-chart reflects the proportion of defects that a process has.

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