3 1 2 3 4 5 5 6 3 + 7 The commercial loan operation of a financial institutions has a standard for processing new loan applications in 24 hours. Following table 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. Number of Number Number of Number Day Applications Late Day Applications Late 200 11 219 0 250 + 12 238 10 240 2 13 250 4 KK) 14 302 KO 2 15 219 20 250 16 246 3 17 251 6 258 5 18 273 7 275 2 19 245 3 10 274 20 260 a. Set up the fraction nonconforming control chart for this process. Use the variable-width control limit approach. Plot the preliminary data in the table above. 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? c. Use the average sample size control limit approach. Plot the preliminary data in table given above on the chart. Is the process in statistical control? Compare this control chart to the one based on variable-width control limits in part (a). - 2 d. Use standardized control chart approach. Plot the preliminary data in table given above on the chart. Is the process in statistical control? Compare this control chart to the one based on variable-width control limits in part (a). 3 1 2 3 4 5 5 6 3 + 7 The commercial loan operation of a financial institutions has a standard for processing new loan applications in 24 hours. Following table 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. Number of Number Number of Number Day Applications Late Day Applications Late 200 11 219 0 250 + 12 238 10 240 2 13 250 4 KK) 14 302 KO 2 15 219 20 250 16 246 3 17 251 6 258 5 18 273 7 275 2 19 245 3 10 274 20 260 a. Set up the fraction nonconforming control chart for this process. Use the variable-width control limit approach. Plot the preliminary data in the table above. 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? c. Use the average sample size control limit approach. Plot the preliminary data in table given above on the chart. Is the process in statistical control? Compare this control chart to the one based on variable-width control limits in part (a). - 2 d. Use standardized control chart approach. Plot the preliminary data in table given above on the chart. Is the process in statistical control? Compare this control chart to the one based on variable-width control limits in part (a)