MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
12th Edition
ISBN: 9780134742366
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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The manager of the customer service department of Data Tech Credit Card Service Company is concerned about the number of defects produced by the billing process. Every day a random sample of 250 statements was inspected for errors regarding incorrect entries involving account numbers, transactions on the customer’s account, interest charges, and penalty charges. Any statement with one or more of these errors was considered a defect. The study lasted 30 days and yielded the data in Table. Sample Data For Data Tech Credit Card Service Samples Number of Errors in Sample of 250 1–10 3 8 5 11 7 1 12 9 0 8 11–20 3 5 7 9 11 3 2 9 13 4 21–30 12 10 6 2 1 7 10 5 8 4 a. Construct a p-chart for the billing process.b. Is there any nonrandom behavior in the billing process that would require management attention?
Explain how can a Pareto chart used to improve quality?
What is the purpose of using a Pareto chart for a givenproblem?
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