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 of profitability. Sample size is 50. Results are given for the last 10 samples Sample Defectives5 4 10 12 12 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. UCLenter your response as a number between 0 and 1, rounded to three decimal places).

Explanation / Answer

z value corresponding to 99.73% confidence interval is = NORMSINV(1 - (1-0.9973)/2) = 3

Sample size, n = 50

Number of samples, k = 10

Total number of observations, n*k = 50*10 = 500

Total Number of Defects (np) = 61

p = np / (n*k) = 61/500 = 0.1220

p = [ p (1-p)/n] = [ 0.122 (1-0.122)/50] = 0.0463

UCLp = p + z*p = 0.1220 + 3*0.0463 = 0.261

LCLp = p - z*p = 0.1220 - 3*0.0463 = -0.0169 ~ 0.000 (LCL = 0, if ( p - z*p) < 0)

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