Question

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​The Money Pit Mortgage Company is interested in monitoring the performance of the mortgage process.

The Money Pit Mortgage Company is interested in monitoring the performance of the mortgage process. Fifteen samples of five 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 means and ranges of the mortgage process transaction times, measured in days, are as follows: 

Sample123456789101112131415
Mean201610191415171815161811131114
Range6103781211149911581012

Subsequently, samples of size 5 were taken from the process every week for the next 10 weeks. The times were measured and the following results obtained: 

Sample16171819202122232425
Mean13161117192015242220
Range71053111410975

Click the icon to view the table of factors for calculating three-sigma limits for thex-chart and R-chart. 

a. Construct the control charts for the mean and the range, using the original 15 samples 

Set up the R-chart by specifying the center line and three-sigma control limits below. (Enter your responses rounded to two decimal places.,)

R-chart
UCL_(R)=19.026
bar(R)=9
LCL_(R)=0

Set up the x-chart by specifying the center line and three-sigma control limits below. (Enter your responses rounded to two decimal places.)

image.png

b. On the control charts developed in part (a), plot the values from samples 16 through 25 and comment on whether the process is in control Choose the correct R-chart for the data below

image.png

c. In part (b), if you concluded that the process was out of control, would you attribute it to a drift in the mean, or an increase in the variability, or both?

The process variability is _______  statistical control and the process average is _______  statistical control. Therefore, the entire process is _______  control.


Solutions

Expert Solution

(a) Control limits of Xbar and R-chart

(b)

(c)

We see that R chart is in control, but Xbar chart is out of control. Therefore,

The process variability is __In__ statistical control, and the process average is __Out of__ statistical control. Therefore, the entire process is __Out of__ control.


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