Concept explainers
a)
To determine: The
Introduction: Statistical process control is a statistical technique used to analyze the functioning of production process. It helps to determine the factors that lead to poor quality in the production process. It also determines the measures that must be taken in order to correct the production process.
b)
To determine: The process capability ratio and index, and indicate if the process appears to be capable of meeting the restaurant’s goal for speed of service.
Introduction: Statistical process control is a statistical technique used to analyze the functioning of production process. It helps to determine the factors that lead to poor quality in the production process. It also determines the measures that have to be taken in order to correct the production process.
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Operations and Supply Chain Management 9th edition
- At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 = average; 4 = bad. The weekly revenue earned by a machine in state 1, 2, 3, or 4 is 100, 90, 50, or 10, respectively. After observing the condition of the machine at the beginning of the week, the company has the option, for a cost of 200, of instantaneously replacing the machine with an excellent machine. The quality of the machine deteriorates over time, as shown in the file P10 41.xlsx. Four maintenance policies are under consideration: Policy 1: Never replace a machine. Policy 2: Immediately replace a bad machine. Policy 3: Immediately replace a bad or average machine. Policy 4: Immediately replace a bad, average, or good machine. Simulate each of these policies for 50 weeks (using at least 250 iterations each) to determine the policy that maximizes expected weekly profit. Assume that the machine at the beginning of week 1 is excellent.arrow_forwardLeggere, an internet book retailer, is interested in better understanding the purchase decisions of its customers. For a set of 2,000 customer transactions, it has categorized the individual book purchases comprising those transactions into one or more of the following categories: Novels, Willa Bean series, Cooking Books, Bob Villa Do-It-Yourself, Youth Fantasy, Art Books, Biography, Cooking Books by Mossimo Bottura, Harry Potter series, Florence Art Books, and Titian Art Books. Leggere has conducted association rules analysis on this data set and would like to analyze the output. Based on a minimum support of 200 transactions and a minimum confidence of 50%, the table below shows the top 10 rules with respect to lift ratio. Explain why the top rule “If customer buys a Bottura cooking book, then they buy a cooking book,” is not helpful even though it has the largest lift and 100% confidence. Antecedent Consequent Support for A Support C Support for A and C Confidence Ratio Bottura…arrow_forwardEastern Motors Auto Dealership wanted to estimate the average CLV over a 5 year time horizon of a customer who purchases a new vehicle. The average vehicle sells for $28,350 and has a margin of 5%. Based on historical averages, 84 of people buying a new vehicle at Eastern will return for service 9 times over the next 5 years. Though it varies considerably, Eastern generates approximately $89 in margin on each service visit after accounting for parts and direct labor costs. Assume the 5 year value of the service component is $475. What would be the value of a service loyalty program that increased the average number of visits by 2 (over 5 years) and increased the probability that a new vehicle purchaser would return for service by 5 percentage points on a per customer basis?arrow_forward
- Mitsu and Prerak are researching a topic on use of virtual reality in promoting destination image. They want to float a questionnaire to several respondents to gain their perspective on the topic to be researched. As their supervisor, what are the steps involved in the design of a questionnaire that you will recommend to them. Highlight the characteristics of agood questionnaire to them, before they begin the process of collecting data. (Please do answer in maximum 400 words)arrow_forwardEastern Motors Auto Dealership wanted to estimate the average CLV over a 5 year time horizon of a customer who purchases a new vehicle. The average vehicle sells for $28,939 and has a margin of 6%. Based on historical averages, 83 of people buying a new vehicle at Eastern will return for service 9 times over the next 5 years. Though it varies considerably, Eastern generates approximately $92 in margin on each service visit after accounting for parts and direct labor costs. What is the estimated 5 year value of the service component (only) of a customer who purchases a new vehicle at Eastern Motors?arrow_forwardA key hospital outcome measure of clinical performance is length of stay (LOS), that is, the number of days a patient is hospitalized. For patients at one hospital with acute myocardial infarction (heart attack), the length of stay over the past four years has consistently decreased. The hospital also has data for various treatment options such as the percentage of patients who received aspirin upon arrival and cardiac medication for Left Ventricular Systolic Dysfunction (LVSD). The data are as follows: Year Average LOS Aspirin on arrival LVSD medication 2007 4.31 days 94% 89% 2008 4.10 days 96% 94% 2009 4.35 days 98% 97% 2010 4.13 days 100% 98% Calculate descriptive statistics for the data. Do not round intermediate calculations. Round your answers to four decimal places, when needed. Descriptive Statistics: LOS, Aspirin, LVSD Standard Standard Variable Mean Error Deviation Minimum Median Maximum LOS (days) Aspirin (%)…arrow_forward
- The owner of an automobile repair shop studied the waiting times for customers who arrive at the shop for an oil change. The following data with waiting times in minutes were collected over a one-month period. 2 5 22 6 5 0-4 5-9 10-14 (a) Develop a frequency distribution using classes of 0-4, 5-9, 10-14, 15-19, and 20-24. Class 15-19 20-24 Total 5 6 7 15 21 0-4 5-9 10-14 15-19 20-24 Class Total 0-4 5-9 10-14 Class 15-19 0-4 20-24 5-9 (b) Develop a relative frequency distribution using the classes in part (a). If required, round your answers to two decimal places. Relative Frequency 11 4 9 6 Class 16 10-14 15-19 12 21 8 20-24 9 10 Frequency 2 % 10 3 2 3 20 .1 .50 (c) Develop a cumulative frequency distribution using the classes in part (a) .15 .1 .15 1 M ✔ ✔ ✔ S (d) Develop a cumulative relative frequency distribution using the classes in part (a). If required, round your answers to two decimal places. 10 ✔ ✓ ✔ ✔ ✔ Cumulative Frequency Cumulative Relative Frequency X X (e) What…arrow_forwardPlease do not give solution in image formate thanku. The manager of the Safeway store (close to Santa Clara University) is considering improving the customer service level by reducing customers’ average waiting time for checkout. Based on the past year’s data, he knows that customers try to check out every 2 minutes, on average, and the standard deviation of the interarrival time is also 2 minutes. It takes on average 3 minutes to finish the checkout process. The standard deviation of the processing times is 3 minutes. The manager’s goal is to make sure the customers’ average waiting time is less than 0.5 minute. How many checkout cashiers should the manager use?arrow_forwardThe University of Central Lancashire has decided to adopt a new human access control system for both employees and students using biometricfingerprint recognition. For students, the system automatically links to the central attendance management system and logs a student’s attendance,and lateness based on when they scan their fingerprint before entering the classroom. For faculty, it automatically records a staff member’s workstatus and commitment, including work status, overtime hours and holiday record. The system should interact with other local and enterprise levelapplications including scheduling and facilities management to develop the staff and student weekly schedule and also grant both faculty and studentsaccess to the specific rooms and facilities based on their schedule through fingerprint recognition software. Analysis using business support matrix. (create the table please)arrow_forward
- A manager is simulating the number of times a machine operator stops a machine to make adjustments. After careful study the manager found that the number of stops ranged from one to five per cycle and that each number of stops was equally likely. Using the random numbers 0.90 and 0.36 (in that order), determine how many stops for adjustments each of the next two cycles will have. The first cycle will have stops and the second cycle will have stops.arrow_forwardSubject: management sciencearrow_forwardHDFC Bank has a single automated teller machine (ATM) located in a shopping center. Data were collected during a period of peak usage on Saturday afternoon and it was found that the average time between customers arrivals is 3.6minutes with a standard deviation of 0.7minute.lt also was found it takes an average of 2.8minutes (with a standard deviation of 1.9minutes) for a customer to complete a transaction. (a) Calculate expected customer arrival rate & service rate per server? (b) Calculate the expected server utilization? (c) Approximately how long will customers need to wait in line during the peak usage period?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,