Question Details

(Solved) Bottle Sample Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1 10.30 10.50 10.10 10.40 10.10 2 9.60 10.80 10.00 10.90 10.30 10.10 10.80 3...


During the last month, an insurance company has been studying the amount of insurance claims with mistakes, made by its clients: These claims represent extra costs to the company. They have provided you with 40 samples, each with 60 insurances claims, for a total of 2400 claims, and the number of insurance claims with mistakes, Non-Compliance, in each sample. If the process is out-of-control, the company will institutionalize a new process that will guide customers on how to properly fill out the claims. The actual cost of amending a claim with mistakes (calling the customer, updating files, etc.) is $4/claim. The cost to guide a customer would cost $2.25. Based on a p-chart with 3 sigma limit and the results in Sheet2, what’s the best action plan the company must implement: (1) don’t change the actual process (whatever it is) or (2) institutionalizing the new process? Illustrate and explain.

Bottle
Sample
Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 1
10.30
10.30
9.80
9.80
9.90
9.50
9.50
10.10
10.30
9.60
9.50
9.30
9.60
9.70
9.50
9.90
9.80
9.70
9.40
10.10 2
9.40
9.40
9.60
10.10
9.40
9.80
10.00
10.20
9.80
9.50
9.40
9.90
10.30
10.10
10.20
9.50
9.40
9.60
9.50
9.80 3
10.30
9.80
9.40
9.70
10.30
9.40
9.90
10.10
10.10
9.90
10.30
9.30
10.30
10.10
10.00
9.50
10.20
10.00
9.40
9.70 4
10.00
9.90
9.80
9.50
9.40
9.70
9.70
10.30
9.30
9.30
9.70
10.30
9.80
9.40
9.60
9.40
9.60
10.30
10.30
10.30 5
9.50
10.30
10.30
10.20
9.70
10.30
9.30
9.50
10.30
10.10
9.40
9.90
10.20
10.00
9.60
9.80
9.70
9.50
10.30
9.50 6
9.40
10.00
10.30
10.20
10.00
9.60
10.30
9.30
9.80
9.90
9.30
10.10
9.70
9.70
9.50
10.00
9.70
10.10
9.70
9.80 Sample
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40 Non-Compliance
7
10
6
9
7
5
8
8
9
10
0
3
2
5
2
2
9
6
2
6
0
3
0
6
0
1
5
4
1
2
9
6
0
10
2
7
6
4
2
6

 


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