A soft drink bottling company is interested in controlling its filling operation. Random samples of size 4
Question:
A soft drink bottling company is interested in controlling its filling operation. Random samples of size 4 are selected and the fill weight is recorded. The table below shows the data for 24 samples. The specifications on fill weight are 350±5 grams (g). The daily production rate is 20,000 bottles.
a. Find the trial control limits for the X- and R-charts.
b. Assuming special causes for out-of-control points, find the revised control limits.
c. Assuming the distribution of fill weights to be normal, identify how many bottles are nonconforming daily?
d. If the cost of rectifying an underfilled bottle is $0.08 and the lost revenue of an overfilled bottle is $0.03, state that what is monthly revenue lost on average?
e. If the process average shifts to 342 g, evaluate that what is the probability of detecting it on the next sample drawn after the shift?
f. Explain what proportion of the output is nonconforming at the level of process part e and part.
Expert Answer:
a Xbar and R charts are as follows b Sample number 9 and 11 have special cause of variation ... View the full answer
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
