Jamison Kovach Supply Company manufactures paper clips and other office products

Question

Jamison Kovach Supply Company manufactures paper clips and other office products. Although inexpensive, paper clips have provided the firm with a high margin profitability. Sample size is 50. Results are given for the last 10 samples. Sample Defectives 10 12 4 4 4 The type of control chart that is best to monitor this process is p - chart a) Establish the control limits to include 99.73% of the random variation in defectives. uCL-(enter your response as a number between 0 and 1, rounded to three decimal places)

Explanation / Answer

Proportion of defectives, Pbar

= Total number of defectives / ( Sample size x Number of sample)

= ( 4 + 7 +3 + 5+5+5 +5 +4 +2 +12)/ ( 50 x 10 ) = 52/ 500 = 0.104

Sample size = n = 50

Z value for 99.73 % variation = NORMSINV ( 0.9973) = 2.7821

Upper control limit for P chart, UCLp

= Pbar + Zvalue x Square root ( Pbar x ( 1 – Pbar)/n)

= 0.104 + 2.7821 x Square root ( 0.104 x 0.896 /50)

= 0.104 +2.7821 x 0.0431

= 0.104 + 0.1199

= 0.2239 ( 0.224 rounded to 3 decimal places )

UCLp = 0.224

UCLp = 0.224

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