Please answer all questions with diagrams, tables,
calculations, and references in detail. Thanks!
The accounts receivable department at Rick Oroso Production has been having difficulty getting customers to pay the full amount of their tax invoices. Many customers complain that the invoices are not correct and do not reflect the products that arrived at their receiving docks. The department has decided to implement SPC in its tax invoice process. To set up control charts, 10 samples of 50 invoices each were taken over a month's time and the items on the invoices checked against the shipping documents sent by the company's shipping department to determine the number of invoices that were not correct. The results were: No. of No. of incorrect incorrect Sample No. Sample No. tax tax invoices invoices 1 6. 6 5 2 5 7 3 3 11 8 4 4 4 9 7 5 0 10 2 I. Determine the value of p-bar, the mean fraction defective. Then determine the control limits for the p-chart using a 99.73% confidence level. Has this process been in control? If not, which samples were out of control? (1 mark) II. How might you use the quality tools discussed in “Quality Management“ to determine the source of the invocing defects and where you might start your improvement efforts to eliminate the causes? (2 marks)
Please answer all questions with diagrams, tables, calculations, and references in detail. Thanks!
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