Question

In: Operations Management

One of New England​ Air's top competitive priorities is​ on-time arrivals. Quality VP Clair Bond decided...

One of New England​ Air's top competitive priorities is​ on-time arrivals. Quality VP Clair Bond decided to personally monitor New England​ Air's performance. Each week for the past 30​ weeks, Bond checked a random sample of 100 flight arrivals for​ on-time performance.

Sample

​(week)

Late

Flights

Sample

​(week)

Late

Flights

1

3

16

2

2

2

17

1

3

11

18

13

4

11

19

2

5

2

20

1

6

1

21

3

7

8

22

19

8

6

23

3

9

11

24

1

10

0

25

3

11

2

26

2

12

3

27

0

13

2

28

1

14

2

29

4

15

7

30

4

a)   Using a 95% confidence level, plot the overall percentage of late flights ( p ) and the upper and lower control limits on a control chart.

b)   Assume that the airline industry’s upper and lower control limits for flights that are not on time are .1000 and .0400, respectively. Draw them on your control chart.

c)   Plot the percentage of late flights in each sample. Do all samples fall within New England Air’s control limits? When one falls out-side the control limits, what should be done?

d)   What can Clair Bond report about the quality of service?

(Please Screen shot the Excel if its in excel

Solutions

Expert Solution

Answer:

Sample ​(week) Late Flights Percent of defective Pbar
1 3 100 0.0300 0.0430
2 2 100 0.0200 0.0430
3 11 100 0.1100 0.0430
4 11 100 0.1100 0.0430
5 2 100 0.0200 0.0430
6 1 100 0.0100 0.0430
7 8 100 0.0800 0.0430
8 6 100 0.0600 0.0430
9 11 100 0.1100 0.0430
10 0 100 0.0000 0.0430
11 2 100 0.0200 0.0430
12 3 100 0.0300 0.0430
13 2 100 0.0200 0.0430
14 2 100 0.0200 0.0430
15 7 100 0.0700 0.0430
16 2 100 0.0200 0.0430
17 1 100 0.0100 0.0430
18 13 100 0.1300 0.0430
19 2 100 0.0200 0.0430
20 1 100 0.0100 0.0430
21 3 100 0.0300 0.0430
22 19 100 0.1900 0.0430
23 3 100 0.0300 0.0430
24 1 100 0.0100 0.0430
25 3 100 0.0300 0.0430
26 2 100 0.0200 0.0430
27 0 100 0.0000 0.0430
28 1 100 0.0100 0.0430
29 4 100 0.0400 0.0430
30 4 100 0.0400 0.0430

Answer:a

The given confidence interval of 95% corresponds to the 1.96 value.
Hence,
UCLp-bar= P + 1.96*σ p-bar
LCLp-bar= P - 1.96*σ p-bar

Proportion of defects=P total defectives/total observations 0.043
Q= 1-P 0.957
N= average sample size 100
Standard deviation, σp-bar squareroot(P*Q/N) 0.020
UCLp-bar= P + 1.96*σ p-bar 0.0828
LCLp-bar= P - 1.96*σ p-bar

0.0032






Answer b


UCLp-bar= 0.1000
LCLp-bar= 0.0400

then




Answer c

Sample ​(week) Late Flights Percent of defective
1 3 100 3%
2 2 100 2%
3 11 100 11%
4 11 100 11%
5 2 100 2%
6 1 100 1%
7 8 100 8%
8 6 100 6%
9 11 100 11%
10 0 100 0%
11 2 100 2%
12 3 100 3%
13 2 100 2%
14 2 100 2%
15 7 100 7%
16 2 100 2%
17 1 100 1%
18 13 100 13%
19 2 100 2%
20 1 100 1%
21 3 100 3%
22 19 100 19%
23 3 100 3%
24 1 100 1%
25 3 100 3%
26 2 100 2%
27 0 100 0%
28 1 100 1%
29 4 100 4%
30 4 100 4%
Total 130 3000

As we can see in the chart above with the information provided to us, there are 5 instances where the % of late flights is above the UCL limit for the firm. and 5 instances where the % of late flights is above the UCL limit of the industry.
Hence not all % percentage of late flights fall within the firm's control limits.

In such a case, the airline should investigate and find out the best corrective action and implement it as early as possible.

Answer d:

Clair Bond needs to report that the airline is faling to meets its own quality standards (in terms of punctuality) and is also failing to meets the quality standards of the industry.


Related Solutions

In most organisations customer satisfaction is one of the top priorities. As such attention to customers...
In most organisations customer satisfaction is one of the top priorities. As such attention to customers is necessary for success. Briefly describe the four dimensions of high performance that customers expect companies to deliver through effectively managing and running their business operations
1- The government of England has decided to issue a bond which has face value of...
1- The government of England has decided to issue a bond which has face value of 1,200$ and maturity of three years. The government has announced that it won’t make any coupon payments to the lenders. If the yield to maturity is 5.8%, how much the investors should pay for the bond? 2- You are planning to set up a deposit account and invest 500$ every month for the next six months. According to the strict policies of your bank,...
Acme Electronics makes calculators. Consumer satisfaction is one the top priorities of the company’s management. The...
Acme Electronics makes calculators. Consumer satisfaction is one the top priorities of the company’s management. The company guarantees a refund or a replacement for any calculator that malfunctions within 2 years from the date of purchase. It is known from past data that despite all efforts, 5% of the calculators manufactured by Acme Electronics malfunction within a 2-year period. The company mailed a package of 10 randomly selected calculators to a store. a. Let x denote the number of calculators...
Johnson Electronics makes calculators. Consumer satisfaction is one of the top priorities of the company’s management....
Johnson Electronics makes calculators. Consumer satisfaction is one of the top priorities of the company’s management. The company guarantees a refund or replacement for any calculator that malfunctions within two years from the date of purchase. It is known from past data that despite all efforts, 5% of the calculators manufactured by the company malfunction within a 2- year period. The company mailed a package of 10 randomly selected calculators to a store. a) Create a probability distribution table for...
Analyze Burger King when compared to its competitors in terms of its competitive priorities. Provide one...
Analyze Burger King when compared to its competitors in terms of its competitive priorities. Provide one recommendation on how they can change/improve. (Grading will be based on usage of correct terminology and accuracy of analysis)
Members of a fishing village in New England have open access to a fishery (no one...
Members of a fishing village in New England have open access to a fishery (no one in the village explicitly owns the fishery). As long as an individual is a resident of the village, the individual can harvest as much fish as he wants from the fishery. All non‐residents are not allowed to fish. Given this scenario, is the equilibrium level of fishery harvest “too much” or “too little” or equal to the social optimum? Explain why this occurs. Support...
Once upon a time, the treasurer of “Mighty Corporation” (MCO) decided to issue a bond (hereafter:...
Once upon a time, the treasurer of “Mighty Corporation” (MCO) decided to issue a bond (hereafter: The bond) The bond would have a 20-year life and promised that the holder of the bond would receive: 20 annual payments of $80, Along with the 20th payment, MCO promised to return the principal of $1,000. In other words, the final payments received at maturity would be ($1000+$80) = $1080. Question #3: The insurance company wants to use The Bond as part of...
You have decided that now is the time to buy a new laptop. List the factors...
You have decided that now is the time to buy a new laptop. List the factors that are important in choosing a new laptop and gather relevant information from various sources about different models on the market. Given that you have a maximum of $1600 to spend, identify which model you will buy and discuss the reasons for your choice. Present your answer so as to illustrate the steps required in the decision-making process as discussed in this chapter. “Accounting...
1. You have decided that now is the time to buy a new laptop. List the...
1. You have decided that now is the time to buy a new laptop. List the factors that are important in choosing a new laptop and gather relevant information from various sourcees about different models on the market. Given that you have a maximum of $1600 to spend, identify which model you will buy and discuss the reason for your choice. present your answer so as to illustrate the steps required in the decision-making process as discussed in the chapter?...
At large (100) physician cardiology group has decided it is time to move to a new...
At large (100) physician cardiology group has decided it is time to move to a new EHR. As the practice manager, what key features should you be looking for and how will you integrate this into the practice? Keeping in mind the objections the physicians might throw at you during the monthly practice meeting, create a pitch to the managing partners for the system you think would work best for the practice. Assuming the partners approve, what is your plan...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT