# Question

The commercial loan operation of a financial institution has a standard for processing new loan applications in 24 hours. Table 7E.2 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.

(a) Set up the fraction nonconforming control chart for this process. Use the variable-width control limit approach. Plot the preliminary data in table 7E.2 on the chart. Is the process in statistical control?

(b) Assume that assignable causes can be found for any out-of-control points on this chart. What center line should be used for process monitoring in the next period, and how should the control limits be calculated?

(a) Set up the fraction nonconforming control chart for this process. Use the variable-width control limit approach. Plot the preliminary data in table 7E.2 on the chart. Is the process in statistical control?

(b) Assume that assignable causes can be found for any out-of-control points on this chart. What center line should be used for process monitoring in the next period, and how should the control limits be calculated?

## Answer to relevant Questions

Consider the paper-making process in Exercise 7.49. Set up a u chart based on an average sample size to control this process. In Exercise 7.49 Consider the data in Exercise 7.53. Suppose a new inspection unit is defined as 2,500 m of wire. (a) What are the center line and control limits for a control chart for monitoring future production based on the total number ...Find 0.975 and 0.025 probability limits for a control chart for nonconformities when c = 7.6. Using the cumulative Poisson distribution: Assembled portable television sets are subjected to a final inspection for surface defects. A total procedure is established based on the requirement that if the average number of nonconformities per units is 4.0, the ...What practical difficulties could be encountered in monitoring time-between-events data?Post your question

0