Question: An improvement team at a construction workshop is working on improvement projects in a number of areas. One project is focused on improving the preparation
An improvement team at a construction workshop is working on improvement projects in a number of areas. One project is focused on improving the preparation of bids. The team has collected this baseline data:
- Turn-around time - When a staff member starts to assemble a bid, there is often missing or incomplete information. The team took a sample of bids created over the prior 24 months and recorded the number of business hours that passed until all of the missing information was collected. The current standard is to compile all required information in less than 32 hours (4 business days).
- Losses Two staff members complete the cost estimates for bids. The team collected data from a sample of bids and counted the number of bids that underestimated the cost of raw materials by more than 5 percent by staff member and month.
- Create a bar chart with the specification interval for turn-around time (see below). Calculate the process capability index and comment on whether the process is capable of meeting the turnaround time standard.

- Create a control chart for turn-around time (see chart above). Is the process stable? What should the improvement team do next?
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