Question

In: Operations Management

Top Billers processes invoices for business clients. Lately, Top Billers has been getting complaints about errors...

Top Billers processes invoices for business clients. Lately, Top Billers has been getting complaints about errors in the invoices they have processed. The quality manager for Top Billers decides to select one client at random each day and sample all of that client’s invoices to measure the extent of the problem.

a)   If the manager decides to construct a u-chart, what values will be used for the center line, lower control limit, and the minimum and maximum values of the upper control limit of the control chart?

b)   Create the control chart.

c)   Does the process appear to be in statistical control? Why or why not?

d)   What conclusion can be drawn about the overall quality of the service Top Billers offers?

No. of Invoices No. of Invoices
Sample Reviewed With Errors
1 171 2
2 194 1
3 121 3
4 200 0
5 159 1
6 162 3
7 186 4
8 182 1
9 155 2
10 185 2
11 179 4
12 160 3
13 159 1
14 154 1
15 151 2
16 169 0
17 189 3
18 178 4
19 161 2
20 198 1
21 174 1
22 120 2
23 152 3
24 166 4
25 182 3
26 185 2
27 161 5
28 129 1
29 170 4
30 143 1

Solutions

Expert Solution

a)
u bar =
0.0132
Sample Reviewed - n With Errors - c Defects/ Unit (u) UCL LCL
1 171 2 0.01 0.0396 -0.0132
2 194 1 0.01 0.0380 -0.0115
3 121 3 0.02 0.0446 -0.0181
4 200 0 0.00 0.0376 -0.0112
5 159 1 0.01 0.0406 -0.0141
6 162 3 0.02 0.0403 -0.0139
7 186 4 0.02 0.0385 -0.0121
8 182 1 0.01 0.0388 -0.0123
9 155 2 0.01 0.0409 -0.0145
10 185 2 0.01 0.0386 -0.0121
11 179 4 0.02 0.0390 -0.0126
12 160 3 0.02 0.0405 -0.0140
13 159 1 0.01 0.0406 -0.0141
14 154 1 0.01 0.0410 -0.0146
15 151 2 0.01 0.0413 -0.0148
16 169 0 0.00 0.0397 -0.0133
17 189 3 0.02 0.0383 -0.0119
18 178 4 0.02 0.0391 -0.0126
19 161 2 0.01 0.0404 -0.0140
20 198 1 0.01 0.0377 -0.0113
21 174 1 0.01 0.0394 -0.0129
22 120 2 0.02 0.0447 -0.0183
23 152 3 0.02 0.0412 -0.0148
24 166 4 0.02 0.0400 -0.0136
25 182 3 0.02 0.0388 -0.0123
26 185 2 0.01 0.0386 -0.0121
27 161 5 0.03 0.0404 -0.0140
28 129 1 0.01 0.0436 -0.0171
29 170 4 0.02 0.0397 -0.0132
30 143 1 0.01 0.0421 -0.0156
TOTAL 4995 66

The above values are calculated using the formula given below:

b)

c) Yes the process is under control since all the points lie in between the UCL and LCL.

d) The Top Billers offers a good quality service to its customers. The quality is GOOD.

keosha answered 1 year ago
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