Question

1. The commercial loan operation of a financial institution has a standard for processing new loan applications in 24 hours. Table below shows the number of applications processed each day for the last 20 days and the number of applications that required more than 24 hours to complete. (can you please send me the excel file for this problem? Thanks) the question is Draw the chart to see if the system is in control or not? I am not exactly sure which chart I should use for this type of question. Thanks

Day	Number of Apps	Number Late
1	260	3
2	250	4
3	240	2
4	350	5
5	200	2
6	250	4
7	246	3
8	258	5
9	275	2
10	274	1
11	219	0
12	238	10
13	250	4
14	302	6
15	219	20
16	246	3
17	251	6
18	273	7
19	245	3
20	260	1

Answer 1

A P chart will be created in this regard:

Solution:

Now,

Or. P bar = 91/5106 = 0.0178

Or n = 5106/20 = 255 almost.

Calculations:

So, the control chart is given below:

The process is not under control as there is a point situated outside the control limit. For the process to be under control, all the p values should be within the control limits which is not in the case of this experiment...

End of the Solution...