Q8 IM13EFinal

This is file Q8IM13E - The fifth of 5 files for solutions to this chapter.
This file also

includes the solutions to the end-of-chapter cases.
30.
Thirty samples of 75 items each were inspected at the Yummy Candy Company and 75
items were found to be defective. Compute control limits for a p-chart for this
process.
Ans
30.
Control limits for Yummy Candy Company are as follows:

CL
= 75/2250 = 0.0333
sp =
[( p )(1 p )] / n
sp =
(0.0333) (0.9667)/75
= 0.0207
Control limits:
UCLp =
+ 3 sp
UCLp = 0.0333+ 3(0.0207) = 0.0954

LCLp =
- 3 sp
LCLp = 0.0333 - 3(0.0207) = - 0.0288, use 0

31.
Thirty-five samples of 25 orders each at the Bakery Bread, Inc. were inspected, and 25
items were found to be defective. Compute control limits for a p-chart.
Ans.
31.
Control limits for Bakery Bread, Inc. orders can be calculated using:
CL
sp =
sp =
= 25/(35)(25) = 25/875 = 0.029
[( p )(1 p )] / n
(0.029)(0.971) / 25
= 0.034
1
Chapter 13 - Statistical Process Control
Control limits:
UCLp = p + 3 s p
UCLp = 0.029 + 3(0.034) = 0.131
LCLp =
- 3 sp
LCLp = 0.029 - 3(0.034) = - 0.073, use 0

32.
Samples of packages orders were taken at the R.A. Treinta Package Co. to determine
if the orders were prepared correctly. The percent defectives for each sample are given
in the worksheet Prob.13-32 for 25 samples. Five hundred orders are inspected each
day for each sample. Construct a p-chart and interpret the results.
Ans.
32.
Control limits for the R.A. Treinta Package Co. orders can be calculated using:
CL
= 0.012
sp =
[( p )(1 p )] / n
[(0.012) (0.988)]/500
Control limits:
UCLp =
LCLp =
+ 3 sp = 0.012 + 3(0.0049) = 0.0267

- 3 sp = 0.012 - 3(0.0049) = - 0.0027 use 0
The process appears to be under control.
= 0.0049
33.
The fraction defective for a folding process in an Out-of-the-Box plant is given in the
worksheet Prob.13-33 for 25 samples. One hundred units are inspected each shift.
a. Construct a p-chart and interpret the results.
b. After the process was determined to be under control, process monitoring began,
using the established control limits. The results of 25 more samples are shown in the
second part of the worksheet. Is there a problem with the process? If so, when should
the process have been stopped, and steps taken to correct it?
Ans
33.
See data and control chart below for Out-of-the-Box Companys plant. See
spreadsheet Prob13-33P.xls for details.
CL
sp =
= 0.024
[( p )(1 p )] / n
Control limits:
[(0.024) (0.976)]/100
= 0.0153

UCLp =
LCLp =
p
p
+ 3 sp = 0.024 + 3(0.0153) = 0.0699

- 3 sp = 0.024 - 3(0.0153) = - 0.0219 use 0
The process appears to be under control.
b)
When the additional data is added, while the process is being monitored using the
previously calculated control limits, the process starts to go out of control, with
samples 29, 30, 31 being the first indicators. Two out of three of these are more than 2
away from the mean, p , and sample 30 is outside the control limits. Later, four out
of five samples between 37-41 are more than 1 away from the mean, p , and sample
39 is outside the control limits. The overall pattern seems to show an upward shift in
the process proportion. See Part B tabs on spreadsheet Prob13-33P.xls for details. The
process should have been stopped and corrected when the first indications were seen.
If these were missed, it is certain that sample 39, which was above the control limit,
should have been spotted, and the process stopped and readjusted.
34.
The fraction defective of automotive pistons made by the Precision Piston Co. is given
in the worksheet Prob.13-34 for 25 samples. One hundred units are inspected each
day. Construct a p-chart and interpret the results.
Ans
34.
See data and control charts for Precision Piston Company, below. See spreadsheets
Prob13-34P.xls, sheets for details.
a) Initially, CL
sp =
sp =
= 0.096 (see printout)
[( p )(1 p )] / n
[ (0.096) (0.904)]/100
Control limits:
UCLp =
+ 3 sp
UCLp = 0.096 + 3(0.029) = 0.183

LCLp =
- 3 sp
= 0.029
LCLp = 0.096 - 3(0.029) = 0.009

See initial data and control chart, below.
34. b. Precision Piston Company (Continued)

Revised CL p = 0.092 (after sample 12, with a fraction defective
of 0.19, was removed).
sp =
[( p )(1 p )] / n
[(0.092) (0.908)]/100
= 0.029
Control limits:
UCLp =
+ 3 sp
UCLp = 0.092 + 3(0.029) = 0.179

LCLp =
- 3 sp
LCLp = 0.092 - 3(0.029) = 0.005

See data and control chart, below, after sample 12 was removed. The conclusion is,
that the process is now in control.
Problem 34-B Final Revised Control Chart
35.
One hundred insurance claim forms are inspected daily at Full Life Insurance Co. over
25 working days, and the number of forms with errors have been recorded in the
worksheet Prob. 13-35. Construct a p-chart. If any points occur outside the control
limits, assume that assignable causes have been determined. Then construct a revised
chart.
Ans.
35.
See spreadsheets for Full Life Insurance Co. in file Prob13-35P.xls for details.
a) Initially, based on the sum of the p values for the 25 samples,
CL
p1 + p2 + p3 +
= ----------------------N
CL p = 0.55 / 25 = 0.022
sp =
UCLp =
[( p )(1 p )] / n
p
[(0.022)(0.978)]/100
+ 3 s p = 0.022 + 3(0.0147) = 0.0661
= 0.0147

LCLp =
- 3 s p = 0.022 - 3(0.0147) = -0.0221, use 0
Throw out #9 and #23, out-of-control values, revise.

See initial data and control chart, below.
35. b) Revised
CL p = 0.400 / 23 = 0.0174
sp =
[( p )(1 p )] / n
[(0.0174)(0.9826)]/100
Control limits:
UCLp =
+ 3 s p = 0.0174 + 3(0.0131) = 0.0567
LCLp =
- 3 s p = 0.0174 - 3(0.0131) = -0.0219, use 0
The conclusion is that the process is now in control.

Problem 35-b Final Revised Control Chart
= 0.0131
36.
Samples of size 50 have been randomly selected during each shift of 30 shifts in a
production process at Delgado Manufacturing, Inc. The data are given in the
worksheet Prob.13-36. Construct a p-chart and determine whether the process is in
control. If not, eliminate any data points that appear to be due to assignable causes and
construct a new chart.
Ans.
36. a) See spreadsheets Prob13-36P.xls with various worksheets, for details.
Based on the average number of defects per sample, the average proportion can be
calculated as:
CL
p 1 + p2 + p3 +
= ----------------------N
CL p = 4.12 / 30 = 0.1373
sp =
[( p )(1 p )] / n
[(0.1373) (0.8627)]/50
Control limits:
UCLp =
+ 3 s p = 0.1373 + 3(0.0487) = 0.2834
= 0.0487
LCLp =
10
- 3 s p = 0.1373 - 3(0.0487) = - 0.0088 Use 0
See initial p-chart, above. It appears that this process is not in control and that major
changes need to be made. However, we can assume that the out of control points #20
and #25 (and most likely, point #21) are due to assignable causes. By throwing out all
points containing 13 defectives and over, and revising the chart, we can come up with
the results shown in part 36 b), below.
36. b) (Continued)
This results in:
CL p = 3.22 / 27 = 0.1193
sp =
[( p )(1 p )] / n
[(0.1193) (0.8807)] / 50
Control limits:
UCLp =
+ 3 s p = 0.1193 + 3(0.0458) = 0.2568
LCLp =
- 3 s p = 0.1193 - 3(0.0458) = - 0.0181 Use 0
Revised p-chart
= 0.0458
11
After eliminating the outlying points, the process appears to be under control.
37.
SpeedyNetService.com, an Internet service provider (ISP), is concerned that the level

of access of customers is decreasing, due to heavier use. The proportion of peak
period time when a customer is likely to receive busy signals is considered a good
measure of service level. The percentage of times a customer receives a busy signal
during peak periods varies. Using a sampling process, the ISP set up control charts to
monitor the service level, based on proportion of busy signals received. Construct the
p-chart using on the sample data in the table in the worksheet Prob.13-37. What does
the chart show? Is the service level good or bad, in your opinion?
Ans.
37.
See spreadsheet Prob13-37P.xls for details about SpeedyNetService.com.

The average sample size = 15755/30 = 525.17
CL p = 202 / 15755 = 0.0128
sp =
UCLp =
[(0.0128)(0.9872)]/525.17
=
= 0.0128 + 3(0.0049) = 0.0275
[( p )(1 p )] / n
p
+ 3 sp
= 0.0049
LCLp =
- 3 s p = 0.0128 - 3(0.0049) = - 0.0019, use 0
All points fall within the control limits, so the service level appears to be good.
Problem 13-37: p-charts
12
38.
13
Ellswater Hospital surveys all outgoing patients by means of a patient satisfaction

questionnaire. The number of patients surveyed each month varies. Control charts that
monitor the proportion of unsatisfied patients for key questions are constructed and
studied. Construct a p-chart for the data in the worksheet Prob.13-38, which represent
responses to a question on satisfaction with hospital housekeeping services.
Ans.
38.
Note that the values obtained for Ellswater Hospitals data with a hand calculator will
differ slightly from those obtained from the Excel spreadsheets, due to rounding
differences. See spreadsheets in the file Prob13-38P.xls for details.
Initial Calculation
a)
The average sample size = 10468/ 30 = 348.93, so the approximate control limits,
based on total defects over total items samples, are:
CL p = 259 / 10468 = 0.0247
sp =
[( p )(1 p )] / n
[(0.0247)(0.9753)]/348.93
= 0.0083

UCLp =
+ 3 s p = 0.0247 + 3(0.0083) = 0.0496
LCLp =
- 3 s p = 0.0247 - 3(0.0083) = - 0.0002 Use 0
Below are charts showing exact and approximate control limits.

Problem 13-38: p-charts
Points #12 and #19 are above the control limits. After deleting these points, we get:
14
15
38. b) Revised
The revised average sample size = 9804/28 = 350.14
CL p = 223 / 9804 = 0.0228
sp =
UCLp =
LCLp =
[( p )(1 p )] / n
p
p
[(0.0228)(0.9772)]/350.14
+ 3 s p = 0.0228 + 3(0.0080) = 0.0468

- 3 s p = 0.0228 - 3(0.0080) = - 0.0012 Use 0
Problem 38b - Final revised p-charts
= 0.0080
16
The process is now considered to be under control.

39.
Construct an np-chart using the data in Prob.13-35, the Full Life Insurance Company.
What does the chart show?
Ans.
39.
See spreadsheets Prob13-39NP.xls for details. Using data from Prob.13-35, we get:
CL n p = n
= 100 (0.022) = 2.2
sn p =
[ n( p)(1 p)]
100 (0.022) (0.978)
= 1.467
Control limits:
UCL n p = n p + 3 s n p = 2.2 + 3 (1.467) = 6.601
LCL n p = n p - 3 s n p = 2.2 - 3 (1.467) = -2.201, use 0
As was shown in the previous control chart for Prob. 13-35, values for samples 9 and 23
are out of limits. Eliminating these points, we get revised control limits shown for the
final control chart, below. Note that the two values of 6 or over were dropped.
17
Problem 13-39- Revised

So, CL n p = n
sn p =
= 100 (0.0174) = 1.74
[ n( p)(1 p)]
100 (0.0174) (0.9826)
= 1.308
Control limits:
UCL n p = n p + 3 s n p = 1.74 + 3 (1.308) = 5.664
LCL n p = n p - 3 s n p = 1.74 - 3 (1.308) = -2.184, use 0
Note: Does not conform to spreadsheet values due to rounding errors.
Problem 13-39 Final np-control chart
40.
18
Construct an np-chart using the data in Prob. 13-36 from Delgado Manufacturing Co.
What does the chart show?
Ans.
40.
See spreadsheet Prob13-40NP.xls for details. Note that values obtained from a hand
calculator are slightly different from those from an Excel spreadsheet, due to rounding
errors. Using data from Prob.13-36, we get results for the np chart that are similar to the
p-chart:
Initial
So, CL n p = n
sn p =
= 50 (0.1373) = 6.865
[ n( p)(1 p)]
50 (0.1373) (0.8627)
Control limits:
UCL n p = n p + 3 s n p = 6.865 + 3 (2.434) = 14.167
LCL n p = n p - 3 s n p = 6.865 - 3 (2.434) = -0.437
= 2.434
19
As was shown in the previous control charts for Prob.13-36, values for 3 out of limits
samples (actually sample 20 would have been out of limits after re-calculation) had to be
eliminated, leaving 27 usable data points. After eliminating the unusable points, we get
revised control limits shown for the final control chart, below.
Final Revised
So, CL n p = n p = 50 (0.1193) = 5.965
50 (0.1193) (0.8807)
[ n( p)(1 p)] =
sn p =
Control limits:
UCL n p = n p + 3 s n p = 5.965 + 3 (2.292) = 12.841
LCL n p = n p - 3 s n p = 5.965 - 3 (2.292) = -0.911
Problem 13-40: Final revised np control chart
= 2.292
41.
Calculate the centerline and control limits for a c-chart involving 40 samples and
having a total of 1,000 defects and interpret their meaning.
Ans.
41.
Center line for the c-chart: c = 1000/40 = 25

c
42.
= 25 3
25
= 25 15 = 10 to 40
Find 3 control limits for a c-chart with an average number of defects equal to 18.
Ans.
42.
For the c-chart: Center Line: c (average number of defects) = 18

c
43.
= 18 3 (4.24) = 18 12.72 = 5.28 to 30.72
Calculate the centerline and control limits for a c-chart involving 35 samples and
having a total of 350 defects and interpret the results.
Ans.
20

43.
Center line for the c-chart: c = 350/35 = 10.0

c
44.
= 10.0 3
10.0
= 10.0 9.49 = 0.513 to 19.49
Consider the sample data for defects per pizza in a new store being opened by Robs
Pizza Palaces in the worksheet Prob.13-44. Construct a c-chart for these data. What
does the chart show?
Ans.
44.
See spreadsheet Prob13-44CC.xls for details.

For the c-chart: Number defective = 84; number of samples = 25
Center Line for the c-chart: c = 84/25 = 3.36
c 3
limit.
= 3.36 3
3.36
= 3.36 5.50 = -2.14 to 8.86, use 0 for lower control
The process appears to be in control.
21

45.
22
FarmaSuitica, Inc., a mail-order prescription drug vendor, measured the number of

defects per standard 200 line order being picked in their distribution center. Construct
a c-chart for data in the table in the worksheet Prob. 13- 45 and interpret the results.
Ans.
45.
See spreadsheet Prob13-45CC.xls for details.

For the c-chart: Number defective = 52; number of samples = 30
Center Line for the c-chart: c = 52/30 = 1.73
3
limit.
c
= 1.73 3
1.73
= 1.73 3.95 = -2.22 to 5.68, use 0 for lower control
The process appears to be in control.
46.
A quality consultant was asked to analyze the data from order errors at the Audubon
Books, Inc., distribution center as shown in the table in the worksheet Prob. 13-46.
The data show the number of orders processed per month and the error found in those
23
orders. Develop a run chart, a frequency histogram, and a u-chart for these data. What
insights do you get from each chart? What would you advise the distribution center
manager to do about the errors?
Ans.
46.
The run chart, frequency distribution, and u-chart all provide different insights on the
problem.
a. The run chart shows that there were as many as 10 errors recorded in the monthly
samples taken at the distribution center.
b. The frequency histogram shows that the most common number of errors was 5 per
monthly sample. Looking back at the run chart, one can see the months in which each
number of errors happened.
24
c. The u-chart shows what the rate of errors was, based on the orders processed, a
variable sample size. These data permit an analyst to develop a control chart,
with variable control limits. The chart shows that the process was under control,
although it doesnt mean that errors were at an acceptable level! The acceptable
level of errors is 0. Therefore, the distribution center manager should be
encouraged to use these data to analyze and find the root causes of errors and
make every effort to reduce the frequency to 0. In addition, she/he should
investigate the special causes on 3/7, 4/7 & 11/7. The manager should determine
what is different about these days. Different operators, in their ability to handle
capacity of large orders with current manpower, boredom, etc.; who was working
on the day when there were few, or no errors? What were they doing?
47.
25
Find 3 control limits for a small u-chart with the following errors per sample unit.
What do the limits show?
Errors
5
3
4
8
7
Sample Unit
92
136
70
78
165
Ans.
47.
0.05
For the u-chart conditions: Number of samples = range from 70 to 165 and the number
of errors from 3 to 8.
Center Line for the u-chart: u = (5+3+4+8+7) / (92+136+70+78+165) = 27/541 =
So, su = u / n = 0.05 / ni . The limits will therefore vary for each sample. For
example, the first sample will be:
u 3 u / n = 0.05 3
0 for the lower limit.
0.05 / 92
= 0.05 3 (0.0233) = - 0.0199 to 0.1199 Use
This calculation provides the control limits on one sample with a size of 92.
26
Limits for the samples are, respectively:
Errors
5
3
4
8
7
Sampl
e
Defects
Size
92
136
70
78
165
per unit
0.0543
0.0221
0.0571
0.1026
0.0424
Standard
Deviatio
n
0.0233
0.0192
0.0267
0.0253
0.0174
LCLu
0
0
0
0
0
CL
0.0499
0.0499
0.0499
0.0499
0.0499
UCLu
0.1198
0.1074
0.1300
0.1258
0.1021
The u-chart (see spreadsheet Prob13-47U.xls for details) looks like this:
48.
Determine, using Figure 13.42, p. 704 in the text, gives the appropriate sample size for
detecting:
a.
A 1-sigma shift in the mean with a 0.80 probability.
b.
A 2-sigma shift with 0.95 probability
c.
A 2.5-sigma shift with 0.90 probability
27
Ans.
48.
This is simply an exercise in reading values from the curves to fit required conditions.
a. For a 1 shift and a 0.80 probability, use n = 15 (if rounded to next higher value).
b. For a 2 shift and a 0.95 probability, use n = 8 (rounded to next higher value).
c. For a 2.5 shift and a 0.90 probability, use n = 3 (rounded to next higher value).
For problems 49 through 51, see the Statistical Foundations of Control Charts Section in the
Bonus Materials folder on the CD-ROM.
49.
What are the probability limits corresponding to a Type I error of = 0.10?
Ans.
49.
= 0.10 = 0.05; From the normal probability table, P(z) = 0.4500

2
2
Therefore, z0.02 = 1.64 or 1.65, since it is equidistant (0.4495 and 0.4505, respectively)
between the closest table values to 0.4500.
50.
If control limits for a project are based on 2.75 standard deviations, what percentage
of observations will be expected to fall beyond the limits?
Ans.
50.
For z = 2.75, P (z > 2.75) = P (z < -2.75)

From the normal probability table: 0.5000 - 0.4970 = 0.003;
Therefore, the % outside = 100 x 2 (0.003) = 0.6 %
51.
What is the probability of observing 11 consecutive points on one side of the center
line if the process is in control? 10 of 11 points? 9 of 11 points? How many points out
of 11 on one side of the center would indicate lack of control?
Ans.
51.
Using the binomial formula:
28
n
n
Probability (acceptance) = f(x) = and f(x) = ( x ) px (1-p)n-x
x=0
11 in a row = (0.5)11
10 of 11
= 0.049%
11
= ( 10 ) (0.5)10 (0.5)1 = 11 (0.5)11 = 0.539%
11
9 of 11 = ( 9 ) (0.5) 9 (0.5)2 = 55 (0.5)11 = 2.695%
11
8 of 11 = ( 8 ) (0.5) 8 (0.5)3 = 165 (0.5)11 = 8.085%
11
7 of 11 = ( 7 ) (0.5) 7 (0.5)4 = 330 (0.5)11 = 16.17%
9 out of 11 points are statistically significant (p < 0.05).
ANSWERS TO CASE QUESTIONS
Case - MORELIA MORTGAGE COMPANY
This case is designed to test the students' abilities to apply SPC principles, to interpret the
results effectively, and see "beyond the data." The key points are summarized below:
1. The student should be able to apply the formulas from this chapter to construct an x-bar
and R-chart and to determine the state of control, remove out-of-control points, and compute
new control limits.
2. A key aspect of the case is to recognize potential differences among operators. This is
going beyond the computations and using the data for diagnosis. The astute student might
even take a different approach and stratify the data by operator to study differences among
them. Although the key result (concerning operator Shaun) can be gleaned by crosscomparing the control chart with the table in the database, such an analysis would clearly
show the source of the problem.
3. It is critical that process capability calculations be performed after the process is brought
into control by removing out-of-control points.
29
4. The fact that process capability is not good means that the company should be concerned,
and should devote its attention to improved training of any substitute operators and use SPC
as more of an audit tool.
5. The additional data indicate that the process tends to drift upward after some time. The
student should speculate about potential reasons for this.
Assignment I - Company Case
1. Interpret the data in the MMC Case worksheet in the Excel workbook C13CaseData
(available on the Premium website), establish a state of statistical control, and evaluate the
capability of the process to meet specifications. Consider the following questions: What do
the initial control charts tell you? Do any out-of-control conditions exist? If the process is not
in control, what might be the likely causes, based on the information that is available? What is
the process capability? What do the process capability indexes tell the company? Is MMC
facing a serious problem that it needs to address? How might the company eliminate the
problems of slow loan processing?
Ans.
Since the data are variables data, the first step is to construct x-bar and R-charts and
determine if the process is in control. Figure Morelia Mortgage Co. - 1 (from the Excel
spreadsheet called MMCxbar&R1) shows the mean, range and control limits for the original
set of 30 samples. Using these data, we find that the mean and the average range are as
follows:
For the Center Lines, CL x :
= 16.021; CLR : R = 8.424
Control limits for the x - chart are:

x
A2 R = 16.021 0.577 (8.424) = 20.882 to 11.160
For the R-chart: UCLR = D4 R = 2.114 (8.424) = 17.808

LCLR = D3 R = 0
Figure Morelia Mortgage Co. - 1 shows the range and averages charts with these control
limits. The range chart does not have any obvious out of control points. However, the x chart has two points above the upper control limit, point 9 and point 21. Inspecting the
production records, we see that when each of these samples were taken, a different operator,
"Shaun" was running the cutting operation. Apparently he was a substitute for operator
"Carmen" who was absent. Hence, these data may be construed as a special cause. (The
30
company should determine if "Shaun" was knowledgeable about the operation and equipment
or needs additional training.)
FIGURE Morelia Mortgage Co. - 1
31
These data that show defective products must be removed from consideration and new
control limits must be computed before capability can be assessed. After deleting these
samples, Figure Morelia Mortgage Co. - 2 (from the Excel spreadsheet called
MMCxbar&R2.xls) shows the mean, range and control limits for the revised set of 28
samples. Using these data, we find that the mean and the average range are as follows:
CL x : x = 15.532; CLR : R = 8.147
These lead to the new control limits:
Control limits for the x - chart are:
x
A2 R = 15.532 0.577 (8.147) = 20.233 to 10.831
For the R-chart: UCLR = D4 R = 2.114 (8.147) = 17.223

LCLR = D3 R = 0
FIGURE Morelia Mortgage Co. - 2
32
The new control charts are shown in Figure Morelia Mortgage Co.-2. The process now
appears to be in control (note that samples 9 and 21 were removed, and prior and succeeding
points were connected).
Process capability may now be evaluated. An estimate of the standard deviation from the
revised control chart statistics is
Estimated = R / d2 = 8.147/2.326 = 3.503
33
The six-standard deviation spread is 15.532 3 (3.503), or 26.041 to 5.023. (If one
computes the standard deviation of the raw data after the two samples are deleted, the actual
standard deviation is found to be 3.470, so the estimate is very close.) The six standard
deviation spread does not fall within the specifications of 20.5 and 10.5. This can also be seen
by computing the process capability indexes:
Cp = 10 / [6 (3.503)] = 0.476
Since the process is almost exactly centered, Cpl = Cpu = Cpk = approximately 0.47 or 0.48,
also. (See spreadsheet MMCxbar&R2.xls for exact figures). This means that the process is not
capable of meeting the specifications. Thus, the process is in control, but not capable.
Assignment II Morelia Mortgage Company Case

2. The process manager who initiated the trial project implemented the recommendations that
resulted from the initial study. Because of her success in using control charts, MMC made a
decision to continue using them on that process. After establishing control, one additional
sample was taken over the next 20 shifts, shown in second part of the table in the MMC Case
worksheet. Evaluate whether the process remains in control, and suggest any actions that
should be taken. Consider the following issues: Does any evidence suggest that the process
has changed relative to the established control limits? If any out-of-control patterns are
suspected, what might be the cause? What should the company investigate?
The additional 20 samples must be plotted using established control limits. It is incorrect to
use the data to find new control limits. The first set of samples established the state of
control and no process changes were made. Sample means and ranges for all 48 samples
(excluding the bad earlier samples) are shown below in Figure Morelia Mortgage-3 (from the
Excel spreadsheet called MMCxbar&R3.xls). The R-chart is in control. Sample 46 shows that
a point is out of control on the x - chart. In addition, it appears that values are hugging the
centerline, except for the bad sample.
The company should investigate the process, including training of workers, to determine if
adjustments should be made. It should also investigate the possible causes of sample data
hugging the centerline. In addition, the company should work to reduce overall variation in
the process in order to meet the specification limits which have been set up.
FIGURE Morelia Mortgage Co. 3
34
35
Case - Murphy Trucking, Inc.

The Billing Study - Part I
The first assignment requires the construction of a p-chart, since we are interested in the
proportion of bills in error. (Summary data is in spreadsheet C13MTISUMS.xls)The calculations
are shown below. The average proportion of bills in error is 0.63 and the standard deviation is
0.108. Using the formulas for a p-chart, the lower and upper control limits are, respectively,
0.306 and 0.954. The control chart is shown in Figure MTI-A.
CL
= 252 / 400 = 0.63
sp =
[( p )(1 p )] / n
[(0.63) (0.37)] / 20
= 0.108
Control limits:
UCLp =
LCLp =
+ 3 sp = 0.63 + 3 (0.108) = 0.954

- 3 sp = 0.63 - 3 (0.108) = 0.306
Perhaps the most surprising finding is that except for points hugging the center line, the process
appears to be under control! However, improvements definitely need to be made. Although the
process may be in control, an error rate of 63 percent is clearly unacceptable. The capability of
36
the process is specified by the control limits, since they are 3 standard deviations on either side of
the average. This can be interpreted to mean that error rates only as low as 31 percent and as
high as 95 percent might be reasonably expected. Thus, further analysis is warranted. See
spreadsheet C13MTIP1.xls for further details. Note that a u-chart has also been constructed for
comparison purposes with the Billing Study, Part II. See spreadsheet C13MTIUPt1.xls for
further details.
Figure MTI-A
Attribute (p) Chart
p Values
Lower Control Limit
Center Line
Upper Control Limit
1.00
% Non conform ing
0.800
0.600
0.400
0.200
0.00
9 10 11 12 13 14 15 16 17 18 19 20
Sample number
37
U Values
Low er Control Limit
Center Line
Upper Control Limit
1.0000
0.8000
0.6000
0.4000
25
23
21
19
17
15
13
11
0.2000
1
Defects per unit
Attribute (u) Chart
Sample number
The Billing Study - Part II

The second part of the study is to analyze the distribution of actual errors identified by the
management team. The analysis consists of two phases. First, a u-chart should be constructed to
study the total number of errors per bill. The calculations are shown below. The control chart,
shown in Figure MTI-B, is clearly in control. No special causes of variation are apparent; thus,
management must attack the common causes. (See spreadsheet C13MTIUPt2.xls for further
details.)
For the u-chart: 25 samples are available. Because the number of bills each day varies
considerably, individual control limits are established for each day. For the Day 1 sample, n = 54
total bills, number of defects = 36 for all categories. The overall average, u , must be used to
calculate the individual control limits.
Center Line for the u-chart: u = 1232 / 1965 = 0.6270
Control limits must be calculated for each sample, since each sample size is different, hence
the "ragged" appearance of the upper control limit on the u-chart below. For the first sample,
where n = 54:
3 u / n = 0.6270 3
0.304 to 0.950
u
Figure MTI-B
(0.6270)/54
= 0.6270 3 (0.1078) =
38
U Values
Low er Control Limit
Center Line
Upper Control Limit
1.0000
0.8000
0.6000
0.4000
25
23
21
19
17
15
13
11
0.2000
1
Defects per unit
Attribute (u) Chart
Sample number
Note that a p-chart has also been constructed with these data for comparison purposes with the
initial billing study, Part I, above. See spreadsheet C13MTIP2.xls for further details.
Attribute (p) Chart
p Values
Lower Control Limit
Center Line
Upper Control Limit
0.700
0.600
% Non conform ing
0.500
0.400
0.300
0.200
0.100
0.00
9 10 11 12 13 14 15 16 17 18 19 20
Sample number
Finally, if each error category is summed, we may construct a Pareto diagram of the distribution
of errors by category as shown in Figure MTI-C. (See C13MTIPARETO.xls for details.) By
examining the nature of the errors, you should realize that many of the errors, specifically
categories 1, 2, 3, 6 and 7, can easily be recognized by the driver, while the other categories are
"true" billing errors. Nearly seventy percent of the errors fall into this category. This suggests that
an increased focus on driver training and awareness could reduce a majority of the errors. The
customers also should be informed of their role in providing correct information to reduce the
scope of the problem.
Figure MTI-C
39
Murphy Trucking, Inc

Error Category
% of Total Cumulative
Errors Errors
Percent
300
24.35%
24.35%
264
21.43%
45.78%
159
12.91%
58.69%
151
12.26%
70.94%
147
11.93%
82.87%
87
7.06%
89.94%
62
5.03%
94.97%
62
5.03% 100.00%
2
8
1
6
4
5
7
3
Totals
1232
100.00%
Frequency of Billing Errors
Murphy Trucking, Inc. Pareto Diagram

350
120.00%
300
100.00%
250
80.00%
200
60.00%
150
40.00%
100
20.00%
50
0
0.00%
2
Error Categories
3
Errors
Cumulative Percent
III. Day Industries

Day Industries data can be analyzed in three ways. The measures are interrelated, so they may
be looked at individually, in groups, and by control charts. (See spreadsheets labeled:
C13DayScatter, C13DayViscos, C13DaySolids, and C13DayProcCap for details).
Visual inspection of the individual data for each variable reveals one conclusion about the
pounds per gallon variable. That is, there is very little variation over the 41 samples.
40
Day Industries - Scatter Diagram

80
Measure
75
Viscosity
Percent Solids
70
65
31
28
25
22
19
16
13
10
60
Batches
On the surface, it seems that this variable would not need to be charted continuously. A
reading could be taken, at random and infrequently, to evaluate whether further testing should
be done. There is one concern the process mean is not centered on the nominal value of
13.05 pounds per gallon. Because of the obvious stability of the pounds per gallon measure, it
will not be placed on a control chart, but its process capability will be calculated.
The other two variables, viscosity and solids, show much more variability than the pounds per
gallon measure. (See Scatter Diagram, above) They should be closely watched and carefully
controlled. Values for the sample means and standard deviations versus their specification
limits are:
Mean
Std. Dev.
Spec. Limits
Viscosity Percent Solids Lb./Gal.

74.146
63.056
13.261
4.569
0.511
0.080
60-80
60-65
Statistical Control of Viscosity and Solids
12.6-13.5
41
Analysis of viscosity and solids required use of charts for individuals, since each of the
measures was from a chemical process, from which each sample was taken individually.
Results show:
Individuals
Upper control limit
Center line
Lower control limit
Individuals (X) Chart - Viscosity

100
90
80
70
Value
60
50
40
30
20
10
0
1
20
2 22 23 24 25 26 27 28 29 30
3 32 33 34 35 36 37 38 39 40
42 43 44 45 46 47 48 49 50
Observation number
Moving ranges
Low er control limit
Center line
Upper control limit
Moving Range Chart - Viscosity

18
16
Moving ranges
14
12
10
8
6
4
2
0
1
20
22 23 24 25 26 27 28 29 30
Observation number
Solids
32 33 34 35 36 37 38 39 40
42 43 44 45 46 47 48 49
42
Individuals (X) Chart - Solids
Individuals
Upper control limit
Center line
Lower control limit
65.0
64.5
64.0
63.5
Value
63.0
62.5
62.0
61.5
61.0
60.5
60.0
1
20
22 23 24 25 26 27 28 29 30
32 33 34 35 36 37 38 39 40
4 42 43 44 45 46 47 48 49 50
Observation number
Moving Range Chart - Solids
Moving ranges
Low er control limit
Center line
Upper control limit
1.8
1.6
M oving ranges
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
1 2
3 4
6 7
8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49
Observation number
Although there was a sample on each of the charts that was just inside the control limits, the
measures for both variables appear to be stable and under control.
Process Capability- Solids
43
The process capability for solids is good, although not quite at the ideal level of 2.0 for all
measures as shown here:
Nominal specification
Upper tolerance limit
Lower tolerance limit
62.5
Average
65 Standard deviation
60
63.0561 Cp
0.5109 Cpl
Cpu
Cpk
1.6311
1.9939
1.2683
1.2683
Process Capability- Viscosity

The process capability for viscosity is not good, as shown here:
70
Average
80 Standard deviation
60
74.1463 Cp
4.5693 Cpl
Cpu
Cpk
0.72951
1.03200
0.42703
0.42703
Process Capability- Pounds/Gallon

The process capability for pounds per gallon is not as good as it might be, as shown here:
13.05
13.5
12.6
Average
Standard deviation
13.2610 Cp
0.0802 Cpl
Cpu
Cpk
1.8693
2.7457
0.9929
0.9929
The report to the plant manager would include the analysis presented above. It should also
include the recommendations that he/she:
Work to center the part of the process that controls solids, so that the measure
averages its nominal value of 62.5.
Attempt to center the part of the process that involves pounds per gallon, so that its
average approximates its nominal value of 13.05.
Perform a study of the part of the process that involves viscosity and work to center
its average and reduce its variation so as to make the process capable, as well as
continuing in control.
Continue to monitor both solids and viscosity using charts for individuals (x and
Moving Range charts), and take action if the process appears to be heading out of
control.
44
Monitor the part of the process that affects pounds per gallon until it is clear that there
is no tendency for the process average to drift. Afterward, it may be possible to
discontinue regular control charting and periodically sample the pounds per gallon. If
process instability occurs, step up monitoring and control activities.

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This is file Q8IM13E - The fifth of 5 files for solutions to this chapter.

This file also

Control limits for Yummy Candy Company are as follows:

UCLp = 0.0333+ 3(0.0207) = 0.0954

LCLp = 0.0333 - 3(0.0207) = - 0.0288, use 0

= 25/(35)(25) = 25/875 = 0.029

Chapter 13 - Statistical Process Control

LCLp = 0.029 - 3(0.034) = - 0.073, use 0

+ 3 sp = 0.012 + 3(0.0049) = 0.0267

The process appears to be under control.

Chapter 13 - Statistical Process Control

Chapter 13 - Statistical Process Control

+ 3 sp = 0.024 + 3(0.0153) = 0.0699

The process appears to be under control.

Chapter 13 - Statistical Process Control

= 0.096 (see printout)

UCLp = 0.096 + 3(0.029) = 0.183

Chapter 13 - Statistical Process Control

LCLp = 0.096 - 3(0.029) = 0.009

34. b. Precision Piston Company (Continued)

UCLp = 0.092 + 3(0.029) = 0.179

LCLp = 0.092 - 3(0.029) = 0.005

Chapter 13 - Statistical Process Control

+ 3 s p = 0.022 + 3(0.0147) = 0.0661

Chapter 13 - Statistical Process Control

- 3 s p = 0.022 - 3(0.0147) = -0.0221, use 0

Throw out #9 and #23, out-of-control values, revise.

+ 3 s p = 0.0174 + 3(0.0131) = 0.0567

- 3 s p = 0.0174 - 3(0.0131) = -0.0219, use 0

The conclusion is that the process is now in control.

Chapter 13 - Statistical Process Control

+ 3 s p = 0.1373 + 3(0.0487) = 0.2834

Chapter 13 - Statistical Process Control

- 3 s p = 0.1373 - 3(0.0487) = - 0.0088 Use 0

+ 3 s p = 0.1193 + 3(0.0458) = 0.2568

- 3 s p = 0.1193 - 3(0.0458) = - 0.0181 Use 0

Chapter 13 - Statistical Process Control

SpeedyNetService.com, an Internet service provider (ISP), is concerned that the level

See spreadsheet Prob13-37P.xls for details about SpeedyNetService.com.

Chapter 13 - Statistical Process Control

- 3 s p = 0.0128 - 3(0.0049) = - 0.0019, use 0

Chapter 13 - Statistical Process Control

Ellswater Hospital surveys all outgoing patients by means of a patient satisfaction

Chapter 13 - Statistical Process Control

+ 3 s p = 0.0247 + 3(0.0083) = 0.0496

- 3 s p = 0.0247 - 3(0.0083) = - 0.0002 Use 0

Below are charts showing exact and approximate control limits.

Chapter 13 - Statistical Process Control

+ 3 s p = 0.0228 + 3(0.0080) = 0.0468

Problem 38b - Final revised p-charts

Chapter 13 - Statistical Process Control

The process is now considered to be under control.

= 100 (0.022) = 2.2

100 (0.022) (0.978)

Chapter 13 - Statistical Process Control

Problem 13-39- Revised

= 100 (0.0174) = 1.74

100 (0.0174) (0.9826)

Problem 13-39 Final np-control chart

Chapter 13 - Statistical Process Control

Chapter 13 - Statistical Process Control

Chapter 13 - Statistical Process Control

Center line for the c-chart: c = 1000/40 = 25