Question

In: Other

​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.


Related Solutions

What is Network Performance Monitoring and Diagnostics? Why Network Performance Monitoring and Diagnostics? What are some...
What is Network Performance Monitoring and Diagnostics? Why Network Performance Monitoring and Diagnostics? What are some of the tools used? Which tools do you recommend? Why?
Your are the CFO of a factory.What procedures will be used for monitoring overall business performance?...
Your are the CFO of a factory.What procedures will be used for monitoring overall business performance? What level of performance will your business shoot for? These should be targets for next year and in five years. They should be financial performance standards used to monitor the overall business. What yield and output levels could you attain? What efficiency levels will you reach?
Monitoring the Cost Of Money: Interest Rates Interest rates, the cost of money, influence most all...
Monitoring the Cost Of Money: Interest Rates Interest rates, the cost of money, influence most all factors related to personal and corporate capital budgeting. The more obvious personal information for the cost of money is the rates associated with a mortgage or car loan. As a CFO you would “shop” interest rates to find the best rate for your financing needs. 1. Would you, as the CFO, finance your projects as soon as possible if the cost of capital was...
Monitoring the Cost Of Money: Interest Rates Interest rates, the cost of money, influence most all...
Monitoring the Cost Of Money: Interest Rates Interest rates, the cost of money, influence most all factors related to personal and corporate capital budgeting. The more obvious personal information for the cost of money is the rates associated with a mortgage or car loan. As a CFO you would “shop” interest rates to find the best rate for your financing needs. 1. Would you, as the CFO, finance your projects as soon as possible if the cost of capital was...
Monitoring the Cost Of Money: Interest Rates Interest rates, the cost of money, influence most all...
Monitoring the Cost Of Money: Interest Rates Interest rates, the cost of money, influence most all factors related to personal and corporate capital budgeting. The more obvious personal information for the cost of money is the rates associated with a mortgage or car loan. As a CFO you would “shop” interest rates to find the best rate for your financing needs. Would you, as the CFO, finance your projects as soon as possible if cost of capital was expected to...
**Case Study question** Suppose you are on a process improvement team (PIT) to evaluate an HCO’s...
**Case Study question** Suppose you are on a process improvement team (PIT) to evaluate an HCO’s goal-setting processes. What kinds of measures could evaluate the goal-setting process itself? How hard would it be to benchmark them? Beyond the measures, what else would you do to identify opportunities for improvement in the process?
What is involved in developing, monitoring and reviewing performance systems and processes to assess progress in...
What is involved in developing, monitoring and reviewing performance systems and processes to assess progress in achieving profit and productivity plans and targets. Be sure to include variance analysis, acceptable levels of variation, monitoring employee performance, performance appraisal, triple bottom line reporting and balance scorecard in your explanation. ( original answer please)
Explain why monitoring is important, and suggest why the measure of performance can be problematic. Suggest...
Explain why monitoring is important, and suggest why the measure of performance can be problematic. Suggest alternative measures of performance.
Develop a Monitoring and Evaluation Plan, including design of at least 3 key performance indicators that...
Develop a Monitoring and Evaluation Plan, including design of at least 3 key performance indicators that can be used to review and evaluate the Change Management Project Plan, and modify future similar projects to roll out this change to operating hours across all NSW Post Offices.
A researcher is interested in whether or not there is a difference in student’s performance based...
A researcher is interested in whether or not there is a difference in student’s performance based on the study methods they use. Participants are assigned one of three different study methods (read the text and re-read it, read and answer prepared questions, and read then create your own questions). There are 6 people in each group and the researcher measures the participants’ performance on a test. Perform a hypothesis test and show all four steps. Hints: Use a two tailed...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT