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Control Chart Analysis for Error Tracking

A firm tracked errors in insurance records entered by 20 clerks. The firm examined 100 records entered by each clerk and recorded the number of errors. This data is displayed in a table. The CEO wants to create a control chart using a 99.73% confidence level to determine if the data entry process is in control. If out of control, the chart should be revised to find sources of variation.

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7 views5 pages

Control Chart Analysis for Error Tracking

A firm tracked errors in insurance records entered by 20 clerks. The firm examined 100 records entered by each clerk and recorded the number of errors. This data is displayed in a table. The CEO wants to create a control chart using a 99.73% confidence level to determine if the data entry process is in control. If out of control, the chart should be revised to find sources of variation.

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R
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

One hundred insurance claim forms are inspected daily for 25 working days, and the

number of forms with errors are recorded as in table given below. Construct a control
chart. If any points are outside the control limits, assume that assignable (special)
causes have been determined. Then construct a revised chart.
Day No. of Day No. of Day No. of
defects defects defects
1 2 10 1 19 1
2 0 11 3 20 3
3 2 12 0 21 0
4 1 13 0 22 2
5 0 14 2 23 8
6 2 15 1 24 2
7 0 16 2 25 0
8 2 17 5
9 7 18 0
A fast food franchise tracked the number of errors
that occurred in customers’ orders. These included
wrong menu item, wrong size drink, lack of
condiments, wrong price total, and so on. Some
orders may have more than one error. In one week,
1250 orders were filled, and a total of 30 errors
were discovered. Find the control limits
A firm keys in thousands of insurance records each day for a variety of client firms.
CEO of the firm wants to set control limits to include 99.73% of the random
variation in the data entry process when it is in control. Samples of the work of 20
clerks are gathered. The CEO fully examines 100 records entered by each clerk and
counts the number of errors. The table below gives the details of the same.

Sample
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Number
No. of
6 5 0 1 4 2 5 3 3 2 6 1 8 7 5 4 11 3 0 4
errors

Is the process under control? If not, where are the variations occurring. Plot a
control chart for the same. Make a revised chart in case it is not in control.

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