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Table \(31.6\) gives data on the financial losses (in dollars) incurred by a hospital in treating major joint replacement (DRG 209) patients. \(\underline{13}\) The hospital has taken from its records a random sample of eight such patients each month for 15 months. DIDE2 a. Make an \(s\) control chart using center lines and limits calculated from these past data. There are no points out of control. b. Because the \(s\) chart is in control, base the \(x\) chart on all 15 samples. Make this chart. Is it also in control?

Short Answer

Expert verified
Both the \(s\) and \(x\) control charts are in control.

Step by step solution

01

Overview of the Control Charts

Control charts are used to monitor whether a process is within the quality control limits. An \(s\) control chart plots the standard deviation of a sample, and an \(x\) chart monitors the sample means. These charts help identify trends or out-of-control processes.
02

Calculate the Mean and Standard Deviation

First, calculate the mean \( \bar{X} \) and standard deviation \( s \) for each of the 15 samples. This information is essential for plotting the control charts. The average standard deviation \( \bar{s} \) is calculated from these standard deviations.
03

Setup for the \(s\) control chart

Determine the center line and control limits for the \(s\) chart. The center line is \( \bar{s} \). The control limits are calculated using the following formulas: \[ UCL_s = B_4 \bar{s} \]\[ LCL_s = B_3 \bar{s} \]Where \(B_4\) and \(B_3\) are constants based on sample size. For \(n = 8\), typically \(B_4 = 2.267\) and \(B_3 = 0\).
04

Plot the \(s\) control chart

With the center line and control limits defined, plot the \(s\) values for each sample. Review the chart to ensure that no points fall outside the control limits, indicating an in-control process.
05

Prepare the \(x\) control chart

Since the \(s\) chart is in control, use all 15 samples to create the \(x\) chart. Calculate the grand mean \( \bar{\bar{X}} \). The \(x\) chart center line is \( \bar{\bar{X}} \).
06

Determine control limits for the \(x\) chart

Using \(A_3\), find the control limits with:\[ UCL_x = \bar{\bar{X}} + A_3 \bar{s} \] \[ LCL_x = \bar{\bar{X}} - A_3 \bar{s} \]For \(n = 8\), \(A_3\) is typically 0.732.
07

Plot the \(x\) control chart

Plot the \(x\) values for each sample on the chart with these control limits. Check that all points are within limits, indicating a process in control.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Standard Deviation
Standard deviation is a key concept in statistics that measures how much the values in a data set deviate from the mean. In simpler terms, it tells you how "spread out" the numbers are. A low standard deviation means that most of the values are close to the mean, while a high standard deviation indicates that the values are spread out over a wider range. This concept is crucial in control charts because it helps determine the variability in a process.
For instance, when creating an \(s\) control chart, the standard deviation of each sample is plotted to monitor variability. You calculate the average standard deviation (\( \bar{s} \)) from all the samples to find the control limits. This way, you can identify whether any outside factors are causing fluctuations in the process.
Process Control
Process control involves monitoring and managing a process to ensure it operates continuously within set parameters. Control charts are vital tools in this field. They provide a visual representation of the data over time, helping to ensure the consistency and predictability of a process.
When a process is "in control," it means that variations are due to normal randomness and not external factors. The creation of an \(s\) control chart and an \(x\) chart is integral to maintaining process control. These charts make it easy to spot any signs of a process going out of control, such as points that fall outside of the control limits. Keeping a process in control ensures quality and minimizes loss, which is highly relevant in quality control scenarios.
Sample Mean
The sample mean, denoted as \( \bar{X} \), is the average of values in a sample set. It is one of the most straightforward statistical measures, and yet, it holds great significance in both \(s\) and \(x\) control charts. By calculating the sample mean for each group of data points, you can assess the central tendency of those data points.
The \(x\) control chart uses the grand mean, \( \bar{\bar{X}} \), which is the mean of the sample means, as its center line. Creating an \(x\) chart involves plotting these sample means over time to determine if any samples strayed far from the expected range. By doing this, firms can maintain an understanding of the performance consistency in their processes, making it easier to detect issues.
Quality Control
Quality control is about maintaining standards in manufacturing and production processes to ensure products meet certain standards. Control charts play a large role in this because they provide constant feedback on the status of a process's quality.
Using both \(s\) and \(x\) control charts allows for early detection of problems within a process, helping business leaders make informed decisions before issues become costly. By analyzing trends and identifying anomalies, control charts foster a proactive approach to quality control, emphasizing prevention rather than reaction. This method ensures efficiencies and effectiveness, contributing to customer satisfaction and reduced costs.

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Most popular questions from this chapter

A large chain of coffee shops records a number of performance measures. Among them is the time required to complete an order for a cappuccino, measured from the time the order is placed. Suggest some plausible examples of each of the following. a. Reasons for common cause variation in response time b. s-type special causes c. \(x\)-type special causes

Choose a process that you know well. If you lack experience with actual business or manufacturing processes, choose a personal process such as cooking and serving a meal, ordering something online, or uploading a video to YouTube. Make a flowchart of the process. Make a cause-and-effect diagram that presents the factors that lead to successful completion of the process.

A manufacturer of ultrasonic parking sensors samples four sensors during each production shift. The expectation is that a sensor will initially alarm when an object comes within 60 inches of the sensor. The sensors are put on a rack, and an object is moved toward each sensor, one at a time, at a 90 -degree angle until the sensor alarms. The distance from the object to the sensor at that point is recorded. This results in four measurements, one for each sensor on the rack, and the mean of these four measurements is recorded. The process mean should be \(\mu=60\) inches. Past experience indicates that the response varies with \(\sigma=1.0\) inches. The mean response distance is plotted on an \(x\) control chart. The center line for this chart is a. \(1.0\) inches. b. 4 inches. c. 60 inches.

Continue the study of the process of working out at the gym for 30 minutes each day before work or classes from Exercise 31.2. If you kept good records, you could make a Pareto chart of the reasons (special causes) for your failures to make it to the gym and work out. Make a Pareto chart that you think roughly describes what you imagine would be your own reasons for these failures. That is, list the reasons from your experience and chart your estimates of the percentage of failures each reason explains.

A luxury sports car dealership offers its clients a complimentary shuttle service to and from the dealership when their cars are serviced. Currently, the dealership's driver shuttles clients to and from locations. However, the dealership has only one driver, and clients sometimes have to wait for an extended period. In hopes of improving service and pleasing clients, the dealership decides to change from an in-house shuttle service to using a ride- sharing service. The dealership wants to monitor the impact of this change to see if the percentage of clients who take advantage of the transportation service changes. First, the dealership gathers historical data to determine the percentage of clients who have been using the shuttle service. It looks at records for the past six months. The average number of clients who visit the dealership each month is 190 , with relatively little month-to-month variation. During the past six months, a total of 354 clients have requested rides. a. What is the estimated total number of clients requesting rides during these six months? What is \(p\) ? b. Give the center line and control limits for a \(p\) chart on which to plot the future monthly proportions of clients requesting rides.

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