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The McGranger Mortgage Company made some changes to the process and undertook a process capability study. The following data were obtained for 15 samples of size 5. Based on the individual observations. management estimated the process standard deviation to be 4.47 (days) for use in the process capability analysis. The lower and upper specification limits (in days) for the mortgage process times were 11 and 25. Sample Mean 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 14 15 11 19 16 14 20 19 16 17 19 12 18 17 12 Range 11 14 5 12 11 9 6 16 15 12 7 13 11 12 a. Calculate the process capability index and the process capability ratio values. The process capability index C.pk = (Enter your response rounded to three decimal places.) The process capability ratio Cp = (Enter your response rounded to three decimal places.) b. Suppose management would be happy with three-sigma performance. What conclusions is management likely to draw from the capability analysis? Since Cpk is the critical value the process capable at the three-sigma level. Since Cp is the critical value this indicates that

The McGranger Mortgage Company made some changes to the process and undertook a process capability study. The following data were obtained for 15 samples of size 5. Based on the individual observations. management estimated the process standard deviation to be 4.47 (days) for use in the process capability analysis. The lower and upper specification limits (in days) for the mortgage process times were 11 and 25. Sample Mean 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 14 15 11 19 16 14 20 19 16 17 19 12 18 17 12 Range 11 14 5 12 11 9 6 16 15 12 7 13 11 12 a. Calculate the process capability index and the process capability ratio values. The process capability index C.pk = (Enter your response rounded to three decimal places.) The process capability ratio Cp = (Enter your response rounded to three decimal places.) b. Suppose management would be happy with three-sigma performance. What conclusions is management likely to draw from the capability analysis? Since Cpk is the critical value the process capable at the three-sigma level. Since Cp is the critical value this indicates that

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The McGranger Mortgage Company made some changes to the process and undertook a process capability study. The following data were obtained for 15 samples of size 5. Based on the individual observations. management estimated the process standard deviation to be 4.47 (days) for use in the process capability analysis. The lower and upper specification limits (in days) for the mortgage process times were 11 and 25. Sample Mean 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 14 15 11 19 16 14 20 19 16 17 19 12 18 17 12 Range 11 14 5 12 11 9 6 16 15 12 7 13 11 12 a. Calculate the process capability index and the process capability ratio values. The process capability index C.pk = (Enter your response rounded to three decimal places.) The process capability ratio Cp = (Enter your response rounded to three decimal places.) b. Suppose management would be happy with three-sigma performance. What conclusions is management likely to draw from the capability analysis? Since Cpk is the critical value the process capable at the three-sigma level. Since Cp is the critical value this indicates that
Transcribed Image Text:The McGranger Mortgage Company made some changes to the process and undertook a process capability study. The following data were obtained for 15 samples of size 5. Based on the individual observations. management estimated the process standard deviation to be 4.47 (days) for use in the process capability analysis. The lower and upper specification limits (in days) for the mortgage process times were 11 and 25. Sample Mean 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 14 15 11 19 16 14 20 19 16 17 19 12 18 17 12 Range 11 14 5 12 11 9 6 16 15 12 7 13 11 12 a. Calculate the process capability index and the process capability ratio values. The process capability index C.pk = (Enter your response rounded to three decimal places.) The process capability ratio Cp = (Enter your response rounded to three decimal places.) b. Suppose management would be happy with three-sigma performance. What conclusions is management likely to draw from the capability analysis? Since Cpk is the critical value the process capable at the three-sigma level. Since Cp is the critical value this indicates that
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